Frenkel Topping revenue misses expectations following Ogden rate tweak
StockMarketWire.com - Financial advisor and asset manager Frenkel Topping said annual trading was 'softer' than anticipated as changes in the Ogden rate ramped up payouts on personal injury and clinical negligence claims.
The average mainstream case size had increased to more than £0.6m, prolonging the company's sales cycles and leading to change in the fee structures, which in many cases, had led to smaller upfront payments.
'The company has made good progress on its strategic objectives, albeit against a softer trading background than anticipated, Frenkel Topping said. At 30 June assets under management stood at £760m, with assets on a discretionary mandate of £313m. The company's expert witness revenue was ahead of the same period for 2017, and AUM added was ahead of its half-year 2018 target.
In the first half, revenues are expected to be approximately £3.6m, with recurring revenues of £2.9m, both in-line with last year.
'The Board expects the second half to show the usual second half weighting for the business, especially as AUM continues to increase,' the company said.
At 9:59am: (LON:FEN) Frenkel Topping Group PLC share price was -8.3p at 38.5p
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