Frenkel Topping Group PLC Trading Update (9920K)
September 28 2016 - 1:00AM
UK Regulatory
TIDMFEN
RNS Number : 9920K
Frenkel Topping Group PLC
28 September 2016
Frenkel Topping Group plc
("Frenkel Topping" or "the Company")
Trading Update
Frenkel Topping (AIM: FEN), a specialist independent financial
advisor and asset manager focussed on asset protection for
vulnerable clients, provides the following update in relation to
trading.
The Company is pleased to announce that it has completed the
GBP0.85 million purchase of a 9,700 sq ft building at Two Quays
Reach, Salford, Manchester, M50, to host the head office function.
Design and fit out will commence shortly and the Company expects
the relocation of its head office function to be complete before
Christmas.
The lease of the current premises expires in December 17 and as
such the Company will be actively seeking to sublet these premises
during the final year of the lease. From January 2018, taking into
account the cost of running larger premises, the rental savings
will add approximately GBP60,000 annually to the Company's
operating profit.
The purchase of the building will allow the company to continue
to grow from its current head count of 65, as it can accommodate
more than double the current workforce. The building will also
provide purpose built client suites to better service our
vulnerable client base.
The Company has also conducted a full cost review for the
financial year 2017 and has both identified and implemented cost
savings of circa GBP0.4m which is expected to deliver a revised
operating profit of GBP3.4m for 2017.
The principal assumptions behind this forecast, remain that: (i)
approximately GBP350m of AUM is migrated onto the FTIM platform by
31 December 2016; (ii) Frenkel Topping commences 2017 with
approximately GBP750m of AUM; (iii) the Company maintains control
of its administrative expenses and (iv) GBP100m of new clients
assets are added throughout 2017. The Company remains confident
that it will meet all the above targets.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Jason Granite, Executive Chairman, commented:
"Owning our own building is an important step in the continued
evolution of the Company. The building not only provides staff with
an excellent working area to retain and attract employees, it gives
the Company scope for expansion as we continue towards our target
of GBP1 billion of Assets under Management. I am also delighted
with the cost savings that have been implemented with no impact to
business"
For further information:
Frenkel Topping Group www.frenkeltopping.co.uk
plc
Jason Granite, Executive Tel: 0161 886 8000
Chairman
Richard Fraser, Chief
Executive Officer
Julie Dean, Chief
Finance Officer
finnCap Ltd Tel: 020 7220 0500
Adrian Hargrave/James
Thompson/ Alex Price
(Corporate Finance)
Tony Quirke (Corporate
Broking)
Walbrook PR Ltd Tel: 020 7933 8780 or frenkeltopping@walbrookpr.com
Paul McManus Mob: 07980 541 893
Nick Rome
This information is provided by RNS
The company news service from the London Stock Exchange
END
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