Acquisition

Frenkel Topping Group PLC

22 April 2024

 

The information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 as amended.  With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Frenkel Topping Group plc

("Frenkel Topping" or the "Company")

Acquisition of North West Law Services Limited

Continuing the roll-up strategy with a strategic bolt on acquisition of North West based cost consultant

Frenkel Topping (AIM: FEN), a specialist professional and financial services firm operating in the Personal Injury (PI) and Clinical Negligence (CN) space, is pleased to announce the acquisition of North West Law Services Limited ("NWL") (the "Acquisition") by way of acquisition of the current parent company NWL (Group) Limited.

The Acquisition is in line with the Board's strategy of expanding the Group's activities within the PI and CN market place and NWL is a leading firm of cost consultants based in the North West with over 40 years' experience in the field that will add to the Company's expertise in the area and work closely with the teams at Partners in Costs Limited (PIC), Bidwell Henderson Costs Consultants Limited (BH) and A&M Bacon Limited (A&M Bacon). The Acquisition complements the Group's full service offering within costs and gives broad national coverage and an ability to seamlessly offer its services to its clients.

About North West Law Services Limited

Founded in 1982 and based in Chester, NWL offers a comprehensive service, from settlement of claim to payment of costs, including all aspects of negotiation, budgeting and detailed assessment. It has 13 fee earners including qualified Costs Lawyers, Solicitors and CILEX and represents clients nation-wide. 

The sellers, Lee Evans and Phil Roberts, intend to step back from the company over time and, following a managed handover, NWL will become part of the Group's Costs operating segment led by Rebecca Bidwell, Director of Strategy and Implementation.

NWL specialises in PI, CN, Court of Protection and Commercial Costs, perfectly complementing the range of services offered by the Group's existing costs companies, whilst giving access to a new bank of clients and experienced fee earners.

Consideration & financials

Frenkel Topping has agreed to pay a total cash consideration of £2.75m split as follows:

•             An initial cash consideration of £1.65m (subject to adjustment)

•             A further cash payment of £550K on the first anniversary of completion

•             A final payment of £550K on the second anniversary of completion.

The Acquisition has been funded utilising part of the recently announced £7.5m revolving credit facility (RCF) with Santander.

For the year to August 2023, NWL recorded revenue of £1.6 million and PBT of £465K and had net assets of £1.0 million as at that date.

The Board expects the Acquisition to contribute positively in the first full year of ownership but is also mindful of certain integration costs expected to be incurred and so is prudently leaving its management expectations unchanged as a result.

Richard Fraser, Chief Executive Officer of Frenkel Topping Group plc, said:  

"I am delighted to welcome NWL into the Group. Over the years Lee, Phil and their team have built a leading legal costs consultancy business that was well known to the Group prior to discussions commencing. The acquisition fits perfectly into our strategy of acquiring high-quality, customer-focused businesses in the personal injury and clinical negligence market and builds on the successful acquisition and integration of our other costs businesses - Partners in Costs, A&M Bacon and Bidwell Henderson."

For further information:     

Frenkel Topping Group plc	www.frenkeltoppinggroup.co.uk
Richard Fraser, Chief Executive Officer	Tel: [phone]
Cavendish Capital Markets Ltd (Nominated Advisor & Broker)	Tel: [phone]
Carl Holmes/Abigail Kelly/Fergus Sullivan (Corporate Finance) Tim Redfern (ECM)

About Frenkel Topping Group

The Frenkel Topping Group of companies specialises in providing financial advice and asset protection services to clients at times of financial vulnerability, with particular expertise in the field of personal injury (PI) and clinical negligence (CN).

For more than 30 years the Group has worked with legal professionals and injured clients themselves to provide pre-settlement, at-settlement and post-settlement services to help achieve the best long-term outcomes for clients after injury. It boasts a client retention rate of 99%.

Frenkel Topping Group is focused on consolidating the fragmented PI and CN space in order to provide the most comprehensive suite of services to clients and deliver a best-in-class service offering from immediately after injury or illness and for the rest of their lives.

The group's services include the Major Trauma Signposting Partnership service inside NHS Major Trauma Centres, expert witness, costs, tax and forensic accountancy, independent financial advice, investment management, and care and case management.

The Group's discretionary fund manager, Ascencia, manages financial portfolios for clients in unique circumstances, often who have received a financial settlement after litigation. In recent years Ascencia has diversified its portfolios to include a Sharia-law-compliant portfolio and a number of ESG portfolios in response to increased interest in socially responsible investing (SRI).

Frenkel Topping has earned a reputation for commercial astuteness underpinned by a strong moral obligation to its clients, employees and wider society, with a continued focus on its Environmental, Social and Governance (ESG) impact.

 

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