Frenkel Topping, the specialist advice firm focusing on personal injury and clinical negligence cases, has acquired Chester-based cost consultants North West Law Services Limited (NWL) for £2.75m and revealed that profits for 2023 climbed by almost a third.

The payment for NWL will be split over two years beginning with an initial £1.65m (subject to adjustment), £550,000 on the first anniversary of completion and £550,000 on the second anniversary.

North West Law Services was founded in 1982 and specialises in personal injury, clinical negligence, court of protection and commercial costs. It has 13 fee earners including qualified costs lawyers and solicitors and represents clients nationwide. For the year to August 2023, the firm recorded revenue of £1.6m and pre-tax profit of £465,000 and had net assets of £1m.

The firm’s sellers, Lee Evans and Phil Roberts, will step back from the company over time and, following a managed handover, NWL will become part of the Frenkel’s costs operating segment led by Rebecca Bidwell, director of strategy and implementation.

Richard Fraser, chief executive of Frenkel Topping, said: “Over the years Lee, Phil and their team have built a leading legal costs consultancy business that was well known to the group. 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."

Frenkel revealed that its profit and revenue both climbed by almost a third in 2023. In its annual results published today it said adjusted profit climbed 31% from £5.5m to £7.2m while revenue soared 32%, rising from £24.8m to £32.8m.

It said funds under management rose 12% to £1.335bn, up from £1.187bn, “despite turbulent markets.”

The company signed a new £7.5m revolving credit facility with Santander earlier this year to support its growth and acquisition strategy, with the money being used to fund the acquisition of North West Law Services.

Richard Fraser said: “Our 2023 results demonstrate the success of our acquisition strategy over recent years and the resilience of our business against the backdrop of challenging and volatile market conditions.”

He said he continues to be optimistic about the firm’s long-term goal to grow to 15% market share in each of its business units.

Salford-based Frenkel Topping was established in 1979 as a specialist forensic accountants 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 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.

Other businesses in the group include expert witness services company Keystone Case Management, medico-legal litigation expert witnesses business Somek and Associates, costs consultants Bidwell Henderson, costs experts PIC, and civil and Court of Protection costs experts A&M Bacon.