Specialist financial adviser Frenkel Topping says that its 2012 figures will be in line with expectations.
House broker Shore Capital forecast a rise in profit from £900,000in 2011 to £1.1m in 2012.
Frenkel Topping provides expert witness and wealth management services for personal injury and clinical negligence litigation. Frenkel Topping does not handle cases at the lower end of the range. Its cases are for much larger amounts of money. Nearly all of Frenkel Topping’s revenues come from fees so it will not be hit by the Retail Distribution Review (RDR) for the IFA sector.
Revenues were 5% higher at £2.3m in the six months to June 2012, with recurring revenues accounting for two-thirds of the total. Pre-tax profit rose 65% to £474,000.
There were £445m of funds under management and this is expected to rise to £476m by the end of 2012.
Net cash was £217,000 at the end of June 2012. Frenkel Topping announced its first ever dividend for the year to December 2011. The initial dividend was 0.18p a share and it is expected to increase to 0.3p a share this year. The dividend is likely to be around four times covered.
At 18.75p a share, Frenkel Topping is valued at £10.9m. The shares are trading on 17 times estimated 2012 earnings.
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