Acquisition
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."
Pour plus d'informations:
Frenkel Topping Group plc | www.frenkeltoppinggroup.co.uk |
Richard Fraser, chef de la direction | Tél: 0161 886 8000 |
Cavendish Capital Markets Ltd (Conseiller désigné et Broker) | Tél: 020 7220 0500 |
Carl Holmes/Abigail Kelly/Fergus Sullivan (Finance d'entreprise) Tim Redfern (ECM) |
À propos du groupe Frenkel Topping
Le groupe de sociétés Frenkel Topping est spécialisé dans la fourniture de conseils financiers et de services de protection des actifs aux clients en période de vulnérabilité financière, avec une expertise particulière dans le domaine des blessures corporelles (PI) et de la négligence clinique (CN).
Depuis plus de 30 ans, le Groupe travaille avec des professionnels du droit et des clients blessés eux-mêmes pour fournir des services avant, pendant et après le règlement afin d'aider à obtenir les meilleurs résultats à long terme pour les clients après une blessure. Il affiche un taux de fidélisation de la clientèle de 99 %.
Frenkel Topping Group se concentre sur la consolidation de l'espace PI et CN fragmenté afin de fournir la gamme de services la plus complète aux clients et de proposer une offre de services de premier ordre immédiatement après une blessure ou une maladie et pour le reste de leur vie.
Les services du groupe comprennent le service de partenariat de signalisation des traumatismes majeurs au sein des centres de traumatologie majeure du NHS, le témoin expert, les coûts, la fiscalité et la juricomptabilité, les conseils financiers indépendants, la gestion des investissements et la gestion des soins et des cas.
Le gestionnaire de fonds discrétionnaire du Groupe, Ascencia, gère des portefeuilles financiers pour des clients dans des circonstances particulières, qui ont souvent obtenu un règlement financier après un litige. Au cours des dernières années, Ascencia a diversifié ses portefeuilles pour inclure un portefeuille conforme à la charia et un certain nombre de portefeuilles ESG en réponse à l'intérêt accru pour l'investissement socialement responsable (ISR).
Frenkel Topping s'est forgé une réputation d'astuce commerciale soutenue par une obligation morale forte envers ses clients, ses employés et la société au sens large, avec une attention continue sur son impact environnemental, social et de gouvernance (ESG).
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