Frenkel Topping (FEN) AI Stock Analysis

• Market Cap: £59.60M
• Dividend Yield: 2.84%
• Average Volume (3M): 548.50K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.29
• Revenue Growth: 16.81%
• EPS Growth: 282.56%
• Country: UK
• Employees: 369
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.02
• Shares Outstanding: 128,013,060
• 10 Day Avg. Volume: 37,041
• 30 Day Avg. Volume: 548,497
• PEG Ratio: 0.28
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 1.40
• P/FCF Ratio: 29.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 54.00p ▲(11.34% Upside)

Frenkel Topping's overall stock score is driven by strong financial performance and a strategic acquisition that promises to enhance market position. While technical indicators suggest stability, the valuation remains reasonable with a decent dividend yield. The acquisition by Irwell Bidco is a significant positive, expected to provide long-term benefits.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong business momentum and effective client acquisition strategies, supporting long-term financial stability.

Balance Sheet Health

A low debt-to-equity ratio reflects conservative leverage, providing financial flexibility and reducing risk in economic downturns.

Client Base and Partnerships

Strong partnerships with legal firms ensure a steady client base, enhancing revenue stability and growth prospects in the niche market of compensation fund management.

Negative Factors

Declining Gross Profit Margins

A decline in gross profit margins suggests increased cost pressures, which could impact profitability if not managed effectively over time.

Cash Flow Conversion Efficiency

Limited cash conversion efficiency may constrain the company's ability to reinvest in growth opportunities and manage operational expenses effectively.

Operational Challenges

Decreasing EBIT and EBITDA margins indicate potential operational inefficiencies, which could hinder profitability if not addressed.

Frenkel Topping Business Overview & Revenue Model

Company Description

Frenkel Topping Group Plc, together with its subsidiaries, provides independent financial advisory and wealth management services in the United Kingdom. It also offers forensic accounting, cost consulting and management, legal, and post settlement services, as well as witness reports, and care and case management services to legal firms and their clients. The company was founded in 1979 and is based in Manchester, the United Kingdom.

How the Company Makes Money

Frenkel Topping generates revenue through several key streams, primarily from fees associated with asset management and advisory services. The company charges management fees based on the assets under management (AUM) and performance fees linked to investment returns. Additionally, Frenkel Topping earns income from consultancy services provided to clients, including financial planning and investment advice. Significant partnerships with legal firms and organizations specializing in personal injury claims provide a steady flow of clients, as these firms often refer clients who require long-term financial management after receiving settlements. The company's reputation for reliability and expertise in managing compensation funds also contributes to its earnings, allowing it to maintain a loyal client base and attract new business.

Frenkel Topping Financial Statement Overview

Summary

Frenkel Topping shows strong revenue growth and a solid balance sheet with low leverage, which are positive indicators of financial health. However, declining gross profit margins and moderate cash flow metrics highlight areas for improvement.

Income Statement

Frenkel Topping has demonstrated consistent revenue growth with a 7.98% increase in the latest year, indicating strong business momentum. However, the gross profit margin has declined from 42.26% to 36.16%, suggesting increased cost pressures. The net profit margin improved to 7.47% from 5.06%, reflecting better cost management and profitability. EBIT and EBITDA margins have slightly decreased, indicating potential operational challenges.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.20, indicating conservative leverage. The return on equity is modest at 6.66%, showing room for improvement in generating returns for shareholders. The equity ratio is strong, reflecting a solid capital structure and financial stability.

Cash Flow

Operating cash flow has decreased, impacting the operating cash flow to net income ratio, which stands at 0.27. Free cash flow growth is positive at 4.11%, but the free cash flow to net income ratio of 0.88 suggests limited cash conversion efficiency. Overall, cash flow management appears stable but could benefit from improved operational cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	40.46M	37.40M	32.81M	24.85M	18.37M	10.19M
Gross Profit	7.02M	13.52M	13.87M	10.56M	8.68M	5.22M
EBITDA	6.85M	5.52M	7.35M	3.47M	4.32M	2.29M
Net Income	4.05M	2.79M	1.66M	1.65M	2.34M	1.05M
Balance Sheet
Total Assets	62.23M	59.85M	53.13M	53.14M	37.81M	28.55M
Cash, Cash Equivalents and Short-Term Investments	3.54M	3.25M	2.53M	5.09M	8.73M	13.23M
Total Debt	0.00	8.44M	1.07M	1.03M	388.26K	448.67K
Total Liabilities	18.16M	17.60M	11.73M	13.05M	8.25M	3.40M
Stockholders Equity	43.74M	41.94M	41.06M	39.81M	29.36M	24.99M
Cash Flow
Free Cash Flow	3.21M	1.75M	2.92M	417.89K	639.88K	1.68M
Operating Cash Flow	3.45M	1.98M	3.21M	657.88K	739.84K	1.72M
Investing Cash Flow	-3.24M	-5.12M	-3.81M	-11.75M	-4.45M	-1.00M
Financing Cash Flow	-912.00K	3.85M	-1.97M	7.46M	330.48K	9.95M

Frenkel Topping Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 48.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FEN, the sentiment is Positive. The current price of 48.5 is above the 20-day moving average (MA) of 48.50, below the 50-day MA of 48.69, and above the 200-day MA of 43.30, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 57.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FEN.

Frenkel Topping Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FEN	74 Outperform	£59.60M	14.74	9.43%	2.84%	16.81%	282.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MERC	67 Neutral	£125.24M	37.44	1.79%	3.32%	-9.37%	―
DORE	62 Neutral	―	-43.94	-1.99%	5.72%	―	―
IIG	44 Neutral	£250.94M	-188.52	-0.39%	―	130.38%	-124.02%

Frenkel Topping Corporate Events

Frenkel Topping Shareholders Approve Acquisition by Irwell Bidco

Frenkel Topping Group PLC has announced the successful approval of a recommended offer by Irwell Financial Services Bidco Limited for the acquisition of its entire issued share capital. The offer, structured as a court-sanctioned scheme of arrangement, received the necessary shareholder approvals at both the Court Meeting and the General Meeting. This acquisition is expected to impact Frenkel Topping’s operations by transitioning it into a private limited company, subject to regulatory approval and court sanctioning, with implications for its market positioning and shareholder structure.

Frenkel Topping Agrees to Acquisition by Irwell Financial Services

Frenkel Topping Group PLC has announced a recommended offer from Irwell Financial Services Bidco Limited, a company indirectly owned by Harwood Private Equity LLP, to acquire the entire issued share capital of Frenkel Topping. The acquisition will be implemented through a Court-sanctioned scheme of arrangement under the Companies Act 2006. The Scheme Document detailing the terms and conditions of the offer has been published, and shareholders are urged to vote in favor of the scheme at the upcoming meetings. The acquisition is subject to regulatory approvals and the satisfaction of certain conditions, with an expected completion timeline outlined in the document.

Frenkel Topping Agrees to £65.8 Million Acquisition by Irwell Bidco

Frenkel Topping Group PLC has agreed to a recommended offer from Irwell Financial Services Bidco Limited, a company formed by Harwood Private Equity LLP, to acquire all of its issued and to be issued ordinary share capital. The acquisition, valued at approximately £65.8 million, will be implemented through a court-sanctioned scheme of arrangement. The offer provides shareholders with a choice between a cash offer and an alternative offer involving shares and loan notes. The deal represents a premium on the current share price and is expected to enhance Frenkel Topping’s market position and provide potential benefits to its stakeholders.

Frenkel Topping Reports Strong Interim Results Amidst Potential Acquisition Talks

Frenkel Topping Group PLC reported a 17% increase in revenue and a 14% rise in adjusted EBITDA for the first half of 2025, highlighting continued growth despite economic challenges. The company saw a 12% growth in Funds Under Management and received accolades for its investment solutions. Operationally, the group expanded its Major Trauma Support Partnership and increased its Medico-Legal expert witnesses, while also launching new products and rebranding efforts to enhance its market presence. Discussions are ongoing with Harwood Private Equity LLP regarding a potential cash offer for the company, with a decision expected by October 20, 2025.

Frenkel Topping Extends Deadline for Potential Harwood Acquisition

Frenkel Topping Group PLC has announced an extension of the deadline for Harwood Private Equity LLP to make a firm offer for the company. The ongoing discussions between Frenkel Topping and Harwood have led to this extension, now set for October 20, 2025, with the possibility of further extensions. This development indicates continued interest in the potential acquisition, impacting stakeholders by maintaining the company in an ‘offer period’ and highlighting the importance of disclosure requirements under the City Code on Takeovers and Mergers.