Growth in investment management services drives profit rise at Frenkel Topping

Full year pre-tax profit rose 21 per cent at independent financial advisory group Frenkel Topping underpinned by strong growth in the group's investment management services.

Profit before tax increased to £1.03m in the year ended December 31st from £0.85m one year earlier, while revenue jumped 5.0% to £4.78m from £4.57m a year earlier.

Profit from operations before share-based compensation and provisions rose 25% to 1.11m and net asset value, before non-controlling interests, increased to £6.08m from £5.68m in 2011.

The group said that its strategy of driving organic growth and ensuring maximum client retention had resulted in the total funds in investment management services (FIMS) increasing by 16% to £483m from £416m in 2011.

The group also implemented a new technology platform and administration software solution to provide clients with increased access to fund management products that it said would not otherwise have been available to them.

Basic earnings per ordinary share contracted slightly to 1.09p from 1.11p a year earlier and basic diluted earnings per ordinary share were unchanged from a year ago at 1.05p.

The group said it would be recommending an increased dividend payment of £188,875, almost twice the value in 2011 - which was £100,000-, representing 0.3p per share. This compared to 0.176p per share in 2011 for the period, which was covered 3.6 times by earnings.

The proposed dividend is subject to shareholder approval at an AGM scheduled for May 29th and the group said, if approved, it would be paid on June 7th to shareholders on the register at close of business on April 19th.

David Southworth, Chairman of Frenkel Topping, commented: "The group's strategy for further growth remains to focus on driving organic growth and client retention. The board is confident about the future for Frenkel Topping, and this confidence is reflected in the increased dividend for the period."

MF