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: 0161 886 8000
|
|
|
Cavendish
Capital Markets Ltd (Nominated Advisor &
Broker)
|
Tel: 020 7220 0500
|
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.