Frenkel Topping 'confident' despite stuttering growth

Financial adviser and asset manager Frenkel Topping saw its shares dip on Wednesday as its first-half profit before tax fell following the recruitment of additional trainees and graduates.

For the six months ended 30 June, the firm recorded profit before tax of £0.3m, which was down 70% from the same period last year, as revenues remained flat at £3.6m and the company invested in marketing, trainees and a graduate academy.

Paul Richardson, non-executive chairman of Frenkel Topping, said: "The board is confident that, following a significant period of investment in the company's systems and personnel, the company will return to growth in the coming quarters."

An interim dividend of 0.32p per share, up 8% over last year, reflected the board’s "confidence in the company's growth trajectory," Frenkel said in a statement.

Cash and cash equivalents stood at £1.8m at 30 June, down from the £1.9m registered at 31 December.

The AIM-traded company’s assets under management increased by 1% to £759m and saw assets on its discretionary fund management mandate hit £312m, up from £291m in December.

Frenkel also announced that Richardson is stepping down from his executive chairman role to serve as non-executive chairman with immediate effect.

"I joined the board almost 12 months ago after it had decided that selling the business was not in the best interest of shareholders and after my predecessor had decided to step down. Once on board, the executive team worked together to develop and implement the strategy and culture for growing the business," said Richardson.

Frenkel Topping’s shares were down 3.23% at 30.00p at 0936 BST.