Frenkel Topping, a firm specialising in wealth management services for personal injury victims, is on track for a robust year of trading. The AIM-listed company reported today that it experienced “strategic progress and a solid performance” across most of its subsidiaries in the first half of 2024.
Despite a 12% increase in half-year revenues, rising from £16m to £17.9m, profit margins showed only modest increases, with gross profit up by 5% and EBITDA improving by 3%. One exception to this positive trend is Partners in Costs Limited (PIC), a leading costs law specialist, which faced significant challenges primarily due to recruitment and technology implementation issues. As a result, the company has undertaken remedial action to address these hurdles.
The board has quickly modified several key processes, made new hires, and continues to invest in technology expected to enhance medium-term performance. The board remains confident in PIC’s prospects but acknowledges that the underperformance will impact the group’s results and expectations for the year.
Highlights of the first six months of 2024 include record levels of new Funds Under Management (FUM). Market conditions led to a substantial proportion of these mandates being allocated to the Money Market Solution (MMS) at lower fee rates. Launched in June 2023, MMS had reached £113.5m as of 30th June 2024.
Additionally, Somek & Associates, another subsidiary, expanded its number of expert witnesses by 19% and achieved a further 17% growth in the first half of 2024. This growth remains a key objective for the rest of the year and beyond.
Beyond their range of business support and legal services, Frenkel Topping also operates a charitable foundation. The foundation supports several charities, including Silk Elephant, Aspire, and Headway, which focus on assisting individuals who have suffered life-changing injuries.
While challenges at Partners in Costs Limited present a short-term setback, the overall performance and strategic advances in other areas suggest a promising outlook for Frenkel Topping in 2024.