Frenkel Topping Regulatory News (FEN)

Frenkel Topping Group plc

("the Company" or, together with its subsidiaries, "the Group")

PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2013

Frenkel Topping, a leading provider of specialist independent financial advice on the investment of personal injury damages and clinical negligence awards, today announces its preliminary results for the year ended 31 December 2013.

Highlights

David Southworth, Chairman of Frenkel Topping, commented: "The Group has successfully increased its profit before tax by 35%, as well as significantly growing its cash balances. The Board is pleased to report that it has increased the funds in the Investment Management Service to over £0.5 billion, and our confidence for the future is reflected in our continuing progressive dividend policy.

"The Group's strategy is to invest further in strengthening its brand to maintain its position as market leader, as well to continue developing our excellent network of professional advisers with whom we work so closely. The Group is in a robust financial position and has recorded a fifth consecutive year of client retention at 99%. The Board remains confident of continuing to deliver profitable growth and increasing shareholder value for the foreseeable future."

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Notes to Editors:

Frenkel Topping Limited (Frenkel Topping) is the trading subsidiary of Frenkel Topping Group Plc.

Frenkel Topping provides specialist independent financial advice on the investment of personal injury damages and clinical negligence awards. Frenkel Topping offers a complete service for all personal injury claims handlers, lawyers and individual clients, dealing with awards from a few thousand pounds to multi-million pound cases. Frenkel Topping's expertise includes asset protection, bespoke investment portfolios, analysis of periodical payments, Court of Protection portfolios and provision and setting up of trustee and receivership bank accounts. Frenkel Topping currently has £558m of client's funds in its investment management service.

CHAIRMAN'S STATEMENT

RESULTS

On behalf of the Board, I am pleased to report another record set of results for the Group. There has been significant progress across the business despite the period being one of considerable change with regard to legal and welfare benefit reforms. The Group's leading technology platform is now in place and is successfully underpinning our best of breed fund management, ensuring that the Group is not committed to one particular fund manager. In particular, the Board is pleased to report that once again, the Group has maintained its 99% client retention rate for the period.

The results for the period show a profit before taxation of £1,392,071 (2012: £1,030,528), representing a 35% increase over the previous year. The profit from operations before share based payments has increased by 30% to £1,436,703 (2012: £1,108,953).

The Group has increased its gross profit margin to 64% (2012: 60%), and its profit from operations margin to 26% (2012: 23%), both notable achievements.

With stringent working capital controls in place, the Group has generated £1,717,362 of cash from its operating activities during the year (2012: £604,951). At the year end the Group's net cash balance was £1,524,551 (2012: £352,275), with no requirements for external financing.

The total equity of the Group, before non-controlling interests, at 31 December 2013 had increased to £7,536,963 (2012: £6,078,197).

The Board was pleased to report that on 11 February 2013, the Group purchased the remaining 17% non-controlling interest in its trading subsidiaries.

OPERATIONS

During 2013 the Group invested over £85 million of new clients' assets (excluding cash), another record achievement, which takes the total Funds in Investment Management Services ("FIMS") as at 31 December 2013 to £558 million (December 2012: £483 million). In addition the Board is pleased to have recorded its fifth consecutive year of retaining 99% of its clients for the FIMS service.

We have continued our investment in the Frenkel Topping brand, which has enabled us to become the market leader in our niche area of financial advice. The Group has plans to extend its coverage in the legal marketplace even further, in order to take advantage of the many changes and opportunities that the Board has identified there. The Board continues to value highly its relationships with fellow advisers in the litigation market place, such as clinical negligence solicitors and professional deputies, and during the period the Group hosted a number of 'Deputy Day' conferences across the UK, aimed to bring together this community. These conferences consist of a series of seminars and discussion groups for personal injury and clinical negligence legal professionals, and are particularly focused on working together to discuss the latest changes to the legal landscape and government legislation such as the Welfare Benefit reform. These events, as well as a host of other activity aimed at this audience, has kept and will continue to keep Frenkel Topping at the forefront of the personal injury litigation community.

The Group's "best of breed" investment offering and new investment platform have been well received by our clients. The Group's approach to its clients, supported by the latest technology, continues to enhance our service offering, which provides us with a clear competitive advantage over our competitors, as we are not tied down to one particular fund manager to manage clients' funds.

The Group prides itself on its 99% client retention rate and remains committed to its clients, not only through its fund management and financial planning offering but by supporting charity organisations across the UK. The Board is pleased to announce that it has now reached Platinum membership of the Spinal Injury Association ("SIA") charity, and Richard Fraser, Group Managing Director has been recently appointed to its panel.

DIVIDENDS

The Board intends to continue with its progressive dividend policy and recommends for approval an increased dividend payment of £366,693 (2012: £188,875), representing 0.58 pence per share (2012: 0.30 pence per share) for the period, which is covered 3 times by earnings. The proposed dividend remains subject to shareholder approval at the AGM on 14 May 2014 and will be paid on 6 June 2014 to Shareholders on the register at close of business 23 May 2014. The shares will trade ex-dividend on 21 May 2014.

PROSPECTS

During 2013 we have continued to build on the Group's strength in supporting litigation professionals by providing their clients with premium investment solutions at competitive rates. This strategy has proved to be successful, as demonstrated by our record results. We intend to continue to capitalise on this strategic approach in order to continue to grow the business.

Due to the financial robustness of the Group model, Frenkel Topping continues to be well placed to adapt to a dynamic and fast changing legal sector and is ready to benefit from any opportunities in the market that may arise going forward.

The Group is in a financially robust position and the Board expects to continue to deliver profitable growth. Accordingly, the Board continues to view the future with confidence.

David Southworth

Chairman

24 March 2014

 GROUP INCOME STATEMENT

For the year ended 31 December 2013

GROUP STATEMENT OF FINANCIAL POSITION

As at 31 December 2013

GROUP STATEMENT OF CHANGE IN EQUITY

For the year ended 31 December 2013

· The share capital represents the number of shares issued at nominal price.

· The merger reserve represents the cost of the shares issued to purchase the non controlling interest at market value at the date of the acquisition.

· The other reserve represents the excess paid for the non controlling interest over the book value at the date of the acquisition.

· The own shares reserve represents the cost of 2,124,823 (2012: 1,749,293) shares held by an employee benefit trust. The open market value of the shares held at 31 December 2013 was £658,695 (2012: £310,500).

· Retained earnings/(losses) represents the profit/(loss) generated by the Group since trading commenced, together with dividends paid, share premium cancelled and share based payment and credits.

· The non controlling interests represents the value of the part of the subsidiary owned outside the Group.

· The Group has conformed with all capital requirements as imposed by the FCA.

GROUP CASH FLOW STATEMENT

For the year ended 31 December 2013

1. General information

The preliminary financial information does not constitute full accounts within the meaning of section 434 of the Companies Act 2006 but is derived from accounts for the years ended 31 December 2013 and 31 December 2012. The figures for the year ended 31 December 2013 are audited. The preliminary announcement is prepared on the same basis as set out in the statutory accounts for the year ended 31 December 2013. Those accounts, upon which the auditors issued an unqualified opinion, did not include a reference to any matters to which the auditors drew attention by way of emphasis, without qualifying their report, and made no statement under section 498(2) or (3) of the Companies Act 2006, will be delivered to the Registrar of Companies following the Annual General Meeting.

Statutory accounts for the year ended 31 December 2012 have been filed with the Registrar of Companies. The auditors' report on those accounts was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis, without qualifying their report, and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), this announcement does not in itself contain sufficient information to comply with IFRSs.

Frenkel Topping Group Plc is incorporated and domiciled in the United Kingdom.

2. significant accounting policies

GOING CONCERN

The financial statements are prepared on a going concern basis, which assumes the Group will continue in operational existence for the foreseeable future. The Group's ability to meet its future working capital requirements and therefore continue as a going concern is dependent upon it being able to generate significant revenues and free cash flow. The current facility has been secured until 31 January 2015 and the Directors do not foresee a problem in securing funding after this date. The Directors have prepared projections which they consider to be prudent and demonstrate that the business can operate within its existing cash resources, and have identified a series of realistically achievable actions that they are committed to taking to mitigate the rate of cash outflow should revenues not be secured as predicted.

3. revenue and SEGMENTAL REPORTING

All of the Group's revenue arises from activities within the UK. Management considers there to be only one operating segment within the business based on the way the business is organised and the way results are reported internally.

4. TAxation

Factors affecting tax charge for year

The tax assessed for the period is higher than the standard rate of corporation tax in the UK 24% (2012: 24.5%). The differences are explained below:

5. EARNINGS PER SHARE

The calculation of the basic and diluted earnings per share is based on the following data:

In the calculation of dilutive earnings per share as at 31 December 2013, no share options have been excluded for being antidilutive. In 2012: 2,932,116 share options were in issue which were not been included in the above calculation of diluted earnings per share as they were antidilutive as at 31 December 2012.

6. Basis of the preliminary announcement

The board of directors of Frenkel Topping Group Plc approved the Preliminary Results on 21 March 2014.

The statutory accounts for the year ended 31 December 2013 will be delivered to the Registrar of Companies following the Annual General Meeting. The statutory accounts will be posted to shareholders on 26 March 2014. Further copies will be available to the public, free of charge, at the company's registered office, 4th Floor, Statham House, Talbot Road, Old Trafford, Manchester, M32 0FP and the Company's website at www.frenkeltopping.co.uk

7. subsequent EVENTS

On 7 January 2014 the Company established a new subsidiary, Frenkel Topping Group Holdings Limited. On the same date it transferred the shareholding in its subsidiaries Frenkel Topping Limited, Frenkel Toppings Structured Settlements Limited, Frenkel Topping Wealth Solutions Limited and New Horizon AM Limited to Frenkel Topping Group Holdings Limited. As a result of a new share scheme implemented post year end 15% of the share capital was disposed of as a result of the scheme and is owned by 3 directors of the Company. The Company owns 85% of the share capital of Frenkel Topping Group Holdings Limited but is entitled to 100% of all the profit and dividend distributions of Frenkel Topping Group Holdings Limited.

8. ANNUAL GENERAL MEETING

The Annual General Meeting will be held on 14 May 2014 at 10am at Addleshaw Goddard LLP, 100 Barbirolli Square, Manchester, M2 3AB.

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