Frenkel Topping says it is delighted with the cost savings that have been implemented with no impact to business.
The Company is pleased to announce that it has completed the £0.85 million purchase of a 9,700 sq ft building at Two Quays Reach, Salford, Manchester, M50, to host the head office function. Design and fit out will commence shortly and the Company expects the relocation of its head office function to be complete before Christmas.
The lease of the current premises expires in December 17 and as such the Company will be actively seeking to sublet these premises during the final year of the lease. From January 2018, taking into account the cost of running larger premises, the rental savings will add approximately £60,000 annually to the Company's operating profit.
The purchase of the building will allow the company to continue to grow from its current head count of 65, as it can accommodate more than double the current workforce. The building will also provide purpose built client suites to better service our vulnerable client base.
The Company has also conducted a full cost review for the financial year 2017 and has both identified and implemented cost savings of circa £0.4m which is expected to deliver a revised operating profit of £3.4m for 2017.
The principal assumptions behind this forecast, remain that: (i) approximately £350m of AUM is migrated onto the FTIM platform by 31 December 2016; (ii) Frenkel Topping commences 2017 with approximately £750m of AUM; (iii) the Company maintains control of its administrative expenses and (iv) £100m of new clients assets are added throughout 2017. The Company remains confident that it will meet all the above targets.
Executive chairman Jason Granite said: "Owning our own building is an important step in the continued evolution of the xompany. The building not only provides staff with an excellent working area to retain and attract employees, it gives the Company scope for expansion as we continue towards our target of £1 billion of Assets under Management.
"I am also delighted with the cost savings that have been implemented with no impact to business"