A cyber security incident in 2025 has directly impacted new client numbers for specialist financial adviser Frenkel Topping, its most recent financial results reveal.
The cyber incident in its Legal Aid Agency arm has increased costs as well as directly impacting the number of instructions received for the year ended 31 December.
Richard Fraser, CEO of Frenkel Topping, said the impact from the incident has now largely played out.
He said: “Whilst we are still experiencing some challenges from the eventual remediation of this incident, the situation is much improved and we move forward with renewed confidence.”
Despite the increase in costs, Frenkel saw revenues increase by 11% to £41.7m, with recurring revenue increasing 19% to £15.9m for the financial year.
Funds under management rose 16% to £1.8bn (31 December 2024: £1.56bn), with funds on a discretionary mandate rising 18% to over £1.2bn.
Gross profit rose 6% to £15.3m.
Private equity firm Harwood Private Equity’s £65.8m takeover of Frenkel Topping, a Salford-based financial adviser and professional services firm, moved a step closer earlier this month after receiving FCA approval.
The deal was first announced 2 June 2025 and was originally expected to complete in the first half of this year.
The acquisition will be completed via a court-sanctioned scheme of arrangement. According to the latest financial results, the Court Hearing to sanction the scheme is scheduled to be held on 6 July, with an effective date for the acquisition scheduled for 8 July.
The bid from Irwell Financial Services Bidco Ltd, which is managed by Harwood Private Equity, will see shareholders will receive 50 pence cash and one contingent value right for each scheme share held, or an alternative offer of 10p in cash, plus shares in the newly-created company.
This values Frenkel at £65.8m, a 12.9% premium to the 29 September closing price of 45.5 pence.
Frenkel Topping was established in 1979 as a specialist forensic accountant by John Frenkel and Mike Topping. The company was dedicated to servicing lawyers dealing with large personal injury and clinical negligence claims. It floated on AIM in 2004.
It now has a number of businesses including Cardinal Management, which was established in 2015 to provide trauma support and direction. In 2016, Frenkel Topping Group launched its discretionary fund management service, Ascencia, and in 2018 it created wealth manager Obiter.
In recent years it has been busy on the acquisition trail, beginning with Manchester and Leeds-based forensic accountancy firm Forth’s in 2020. In 2021 it acquired civil and commercial litigation costs consultants A&M Bacon and Partners in Costs (PIC), a costs law specialist, both based in Doncaster.