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Highlights

  • Driven by the continued success of its acquisition strategy, FEN’s top-line revenue surged around 32% YoY in FY23
  • The company's cash generation from operations increased by around 357%
  • FEN has declared a final dividend of 1.375 pence per share, scheduled to be paid on 18 October 2024

Frenkel Topping Group PLC (LSE: FEN) is an FTSE AIM All-Share index-listed investment company specializing in providing financial advice and asset protection services. It has a market capitalization of GBP 65.19 million.

In FY23, the company experienced decent growth across various metrics. Its top-line revenue surged 32.3% year-over-year (YoY), driven by the continued success of its acquisition strategy. Moreover, adjusted basic earnings per share rose around 12.7%, reflecting the company's ability to efficiently convert revenue into earnings. Despite market turbulence, the funds under management (AUM) demonstrated resilience, climbing approximately 12% YoY to reach £1,335 million. Furthermore, the company's cash generation from operations increased by around 357% in FY23 compared to FY22.

FEN has declared a final dividend of 1.375 pence per share. It is scheduled to be paid on 18 October 2024 with an ex-dividend date of 03 Oct 2024. 

Recent business update

According to the latest update from FEN, Cardinal Management Limited (acquired by FEN in Jan 2022) has announced a partnership with the new NHS Major Trauma Centre at Sheffield Children's Hospital. In April, FEN announced the acquisition of Northwest Law Services Limited for a total cash consideration of £2.75 million.

Company outlook

FEN has signed a new £7.5 million revolving credit facility with Santander to support its growth and acquisition strategy. Furthermore, the company has a long-term goal to grow its market share to 15% in each of the business units. Overall, the company intends to focus on the record numbers for pipeline of opportunities across geographies.

Top 10 shareholders

The top 10 shareholders of FEN collectively own around 77.20% of the total stake in the company. Harwood Capital LLP holds the majority stake in the company, accounting for ~29.96% of the total shareholding. Following closely is IPGL (Holdings), Ltd.  with approximately 12.68% of the total stake, as shown in the chart below:

Stock performance

The stock price of FEN has witnessed a decline of ~6.54% in the last one month and over the last six months, it has decreased by ~5.66%. The stock’s 52-week low and 52-week high stand at GBX 45.50 & GBX 71.00, respectively. Currently, it is trading below the average of its 52-week high-low.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 24 May 2024. The reference data in this report has been partly sourced from EODHD/Others.