Financial services firm Frenkel Topping moved close to its 52-week high after a solid set of interim figures.
The company, which provides financial advice on the investment of personal injury damages and clinical negligence awards, saw revenue in the first half of 2012 rise to £2.34m from £2.22m.
Back in March house broker had forecast full year revenues of £5.0m, so the company would appear to be a little bit behind the pace, but Finance Director Julie Dean explained to Sharecast that the firm's results are typically a bit second half weighted, at least on the new business side, as its consultants burn rubber on the roads of the nation towards the end of the year to close deals and hit full year targets.
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Like most companies, Frenkel Topping loves to see recurring income as a proportion of total income increase, and in the first half of 2012 it rose to £1.6m versus £1.5m in the corresponding period of 2011, and now represents 69.5% of group revenue.
Profit before tax surged to £0.48m from £0.29m the year before. The group paid a maiden dividend last year and intends to make another dividend payment this year at the time of its full year results.
"We'll talk to our advisors about future dividend policy later in the year," Dean revealed.
Funds in the Investment Management Service increased by 14% to £445m, while net asset value (before non-controlling interests) grew to £5.9m from £5.3m the year before.
The Retail Distribution Review (RDR) comes into force in January 2013 and is likely to shake up the world of independent financial advisors (IFAs) but its introduction holds no terrors for Frenkel Topping.
"We've been RDR-compliant since the company was formed, so we are well placed for when the new order comes in," Fraser said. In fact, the uncertainty surrounding the future of IFAs in 2013 is already working in the company's favour, at least in terms of deepening the talent pool from which it can recruit.
"We deal in quite complex legal cases, and we have occasionally found it hard to find qualified people who can handle the complexities of what our business entails " Dean explained.
The firm acts as an expert witness in Court of Protection cases where a person is no longer capable of handling their own business affairs, typically because of personal injury, whether through accidents or operations that went wrong. "Having advised solicitors and barristers on the pre-settlement case, we can then offer our services in the post-settlement area, advising on how best to invest any lump sum settlement awarded to provide structured settlements, or periodical payments as they are now called," Fraser said.
Frenkel Topping was a UK pioneer in structured settlements, introducing the practice from the USA back in the eighties.
The shares 1.35p to 15.85p on the morning of the results, a shade below their 52-week high of 16p.
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