Final Results

Frenkel Topping Group PLC
26 March 2007



                           FRENKEL TOPPING GROUP PLC
                       ('FRENKEL TOPPING' OR 'THE GROUP')


            PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006


Frenkel Topping provides specialist independent financial advice on the
investment of personal injury damages and clinical negligence awards.  Frenkel
Topping offers a complete service for all personal injury claim handlers,
lawyers and individual clients dealing with awards from a few thousand pounds to
multi-million pound cases.  Frenkel Topping's expertise includes asset
protection, bespoke investment portfolios, analysis of periodical payments,
Court of Protection portfolios and provision of trustee and receivership bank
accounts.


Financial Highlights

                                                                         Year ended 31 Dec Year ended 31 Dec
                                                                                      2006              2005

Turnover                                                                        £2,570,504        £2,303,306
Operating loss before exceptional items, share based compensation and
amortisation of goodwill                                                         £(93,649)        £(161,114)
                                                                                 
Operating loss                                                                  £(884,777)        £(938,487)
                                                                                
Loss before taxation                                                            £(932,483)        £(935,458)

Basic and fully diluted loss per share                                             (1.85)p           (1.72)p


Operational Highlights


  • Funds in the Investment Management Service (FIMS) as at 31 December 2006
    £171 million (31 December 2005: £145 million)

  • Operating profit before exceptional items, share based compensation and
    goodwill recorded for 6 months July - December

  • Recurring income grown to £1.1m (2005 £0.8m)

  • Focus on growing FIMS to increase recurring income



For further information:-


Frenkel Topping Group plc                              Richard Fraser
                                                       (Chief Executive)

                                                       Tel No:  0161 886 8000

W.H. Ireland Limited                                   David Youngman

                                                       Tel No:  0161 832 2174


CHAIRMANS STATEMENT



Frenkel Topping Plc today announces its results for the year ended 31 December
2006.  For the period 1 January to 31 December 2006, the Group recorded a
turnover of £2.6m (2005 £2.3m) and a loss on ordinary activities before
exceptional items, share based compensation and goodwill of £93,649 (2005
£161,114).  There was a loss before taxation of £932,483 (2005 £935,458).



Whilst any trading loss is disappointing the Board are pleased that the Group is
now experiencing the benefits of the actions taken to return the Group to
profitability at the operating profit level.



For the final six months of the year operating profit before exceptional items,
share based compensation and goodwill of £80,812 was recorded.  This was
comparable with an operating loss of £174,461 for the six months ended 30 June
2006 and a comparable loss of £161,114 for the year ended 31 December 2005.


                                                  Jan - June             July - Dec                   2006
                                                           £                      £                      £

Turnover                                           1,243,822              1,326,682              2.570,504

Cost of Sales                                      (682,157)              (488,310)            (1,170,467)

Gross Profit                                         561,665                838,372              1,400,037

Admin Expenses                                     (736,126)              (757,560)            (1,493,686)

Operating (Loss)/Profit                            (174,461)                 80,812               (93,649)



Our income is gained primarily from fees and commission together with recurring
income from Funds in the Investment Management Service (FIMS).  The Group
turnover of £2.6m (2005 £2.3m) included £1.1m (2005 £0.8m) of recurring income
from FIMS.  The total FIMS grew by 18% from £145m to £171m during the year.



It is our intended strategy for future years to grow the FIMS with the resultant
recurring income in order to establish more stable income streams and to provide
the best way of increasing shareholder value.



Costs have been tightly controlled during the year and will remain so for the
future as the clear priority of the Group moves to cash generation.  Net debt as
at 31 December 2006 was £508,211 and the net asset value of the Group at the
same date was £4,400,799.



Between June and August the Group purchased 16% of the issued share capital of
Frenkel Topping Limited and Frenkel Topping Structured Settlements Limited by
way of issuing 9,183,333 new Ordinary Shares in Group at an issue price of
£0.24.  The shares have a lock-in period of 1 year.  As a result the Group has
increased its holding in the issued share capital of Frenkel Topping Limited and
Frenkel Topping Structured Settlements Limited to 83%.



The Board does not intend to propose a final dividend.



There are still significant growth opportunities open for the Group and we are
currently pursuing a number of potential partnerships which may provide
increases in revenue and profitability.  The new year has started positively and
we are confident that good progress can continue during 2007.


CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 December 2006
                                                                                     2006            2005
                                                                                        £               £

TURNOVER                                                                        2,570,504       2,303,306

Cost of sales                                                                 (1,170,467)       (967,914)


GROSS PROFIT                                                                    1,400,037       1,335,392

ADMINISTRATIVE EXPENSES

Amortisation of goodwill                                                        (485,842)       (346,677)
                                                                                                
Share based compensation                                                        (198,301)        (88,197)

Exceptional items                                                               (106,985)       (342,499)
                                                                                                
Other administrative expenses                                                 (1,493,686)     (1,496,506)


TOTAL ADMINISTRATIVE EXPENSES                                                 (2,284,814)     (2,273,879)


Operating (loss) before exceptional items, share based
compensation and goodwill                                                        (93,649)       (161,114)
                                                                                 
- exceptional items                                                             (106,985)       (342,499)
                                                                                
- share based compensation                                                      (198,301)        (88,197)
                                                                                
- goodwill                                                                      (485,842)       (346,677)
                                                                                
OPERATING LOSS                                                                  (884,777)       (938,487)

Profit on partial disposal of interest in subsidiaries                                  -          41,015
                                                                                        
Interest payable                                                                 (47,706)        (37,986)

LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION                                     (932,483)       (935,458)
                                                                                
Tax on loss on ordinary activities                                               (25,039)        (19,273)
                                                                                 

LOSS ON ORDINARY ACTIVITIES AFTER TAXATION                                      (957,522)       (954,731)
                                                                                
Equity minority interest                                                           16,346         168,789

RETAINED LOSS FOR THE FINANCIAL PERIOD                                          (941,176)       (785,942)
                                                                                                
BASIC LOSS PER ORDINARY SHARE                                                     (1.85)p         (1.72)p

FULLY DILUTED LOSS PER ORDINARY SHARE                                             (1.85)p         (1.72)p


All the activities of the group are classed as continuing.


CONSOLIDATED BALANCE SHEET

As ended 31 December 2006
                                                                                     2006            2005
                                                                                        £               £
FIXED ASSETS

Intangible assets                                                               4,609,445       2,620,855
Tangible assets                                                                    43,648          68,426

                                                                                4,653,093       2,689,281
CURRENT ASSETS
Debtors                                                                           833,466         759,988
Cash at bank and in hand                                                               29             183

                                                                                  833,495         760,171

CREDITORS: amounts falling due within one year                                (1,119,599)       (782,553)

NET CURRENT LIABILITIES                                                         (286,104)        (22,382)

TOTAL ASSETS LESS CURRENT LIABILITIES                                           4,366,989       2,666,899

CREDITORS: amounts falling due after more than one year                          (30,689)        (34,807)

PROVISIONS FOR LIABILITIES AND CHARGES                                          (240,000)       (233,973)

MINORITY INTERESTS                                                                304,499         540,955

NET ASSETS                                                                      4,400,799       2,939,074

CAPITAL AND RESERVES
Called up share capital                                                           273,915         227,998
Other reserve                                                                     286,498          88,197
Own shares                                                                       (25,000)        (25,000)
Share premium account                                                           5,744,876       3,586,193
Profit and loss account                                                       (1,879,490)       (938,314)

EQUITY SHAREHOLDERS' FUNDS                                                      4,400,799       2,939,074


CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2006
                                                                                     2006            2005

                                                                                        £               £

Net cash (outflow) from operating activities                                    (141,306)       (108,587)

Returns on investments and servicing of finance                                  (44,336)        (37,986)

Taxation                                                                         (18,415)         (9,595)

Capital expenditure                                                               (5,441)        (35,472)

Acquisitions and disposals                                                       (17,032)         486,760

net cash (outflow)/inflow before financing                                      (226,530)         295,120

Financing                                                                          15,863          16,819

(decrease)/increase in cash in the period                                       (210,667)         311,939



RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS


                                                                                     2006            2005

                                                                                        £               £

(Decrease)/increase in cash in the period                                       (210,667)         311,939

Net cash outflow from debt financing                                             (15,863)        (16,819)

Change in net debt resulting from cashflows                                     (226,530)         295,120
Other                                                                             (3,370)               -

Change in net debt                                                              (229,900)         295,120
Net debt as at 1 January                                                        (278,311)       (573,431)

Net debt as at 31 December                                                      (508,211)       (278,311)



1.     PRESENTATION OF FINANCIAL INFORMATION


Information in this preliminary announcement does not constitute statutory
accounts of the Group within the meaning of Section 240 of the Companies Act
1985.   The figures for the year ended 30 December 2006 are audited.  The
preliminary announcement is prepared on the same basis as set out in the
previous year's statutory accounts.



The preliminary announcement is prepared on a going concern basis, which assumes
the Group will continue in operational existence for the foreseeable future. The
Group's ability to meet its future working capital requirements and therefore
continue as a going concern is dependent upon it being able to generate
significant revenues and free cash flow.  The directors have prepared
projections which they consider to be prudent and demonstrate that the business
can operate within its existing cash resources, and have identified a series of
realistically achievable actions that they are committed to taking to mitigate
the rate of cash outflow should revenues not be secured as predicted.



Statutory accounts for the year ended 31 December 2005, which were prepared
under accounting practices generally accepted in the UK, have been filed with
the Registrar of Companies.  The auditors' report on those accounts was
unqualified and did not contain any statement under Section 237 (2) or (3) of
the Companies Act 1985.



2.     TURNOVER AND SEGMENTAL ANALYSIS


                 The total turnover, losses before tax and net assets are
attributable to the one principal activity of the Group, the provision of advice
regarding structured settlements and related financial services.


                An analysis of turnover is given below:
                                                                            2006             2005
                                                                               £                £

United Kingdom                                                         2,570,504        2,303,306




3.    TAX ON LOSS ON ORDINARY ACTIVITIES


Analysis of charge in period                                                2006             2005
                                                                               £                £
Current tax

UK Corporation tax based on the results for the period                    39,404            5,020
at 30% (2005: 19%)

Adjustment in respect prior year                                        (12,439)           27,615

Total current tax charge                                                  26,965           32,635

Total deferred tax                                                       (1,926)         (13,362)

Tax on loss on ordinary activities                                        25,039           19,273


      FACTORS AFFECTING TAX CHARGE FOR PERIOD


The tax assessed on the loss for the period is that of the Group, the combined
rate being lower than the standard rate of corporation tax in the UK of
30%.  The differences are explained below:


                                                                            2006             2005
                                                                               £                £

Loss on ordinary activities before taxation                            (932,483)        (935,458)

Loss on ordinary activities multiplied by standard rate of             (279,746)        (280,637)
corporation tax in the UK of 30% (2005: 30%)

Effects of:

Expenses not deductible for tax purposes                                 151,916          126,952
(including goodwill)

Capital allowances in excess of depreciation                               2,170           13,362
Deferred tax movements not recognised                                          -          173,472
Effect of rate change                                                          -         (10,277)
Adjustment to tax in respect prior period                               (12,439)                -
Short term tax differences                                                58,358                -
Marginal relief                                                          (9,287)            4,743
Unrelieved tax losses and other deductions in period                     115,993            5,020

Current tax charge for period                                             26,965           32,635


      FACTORS THAT MAY AFFECT FUTURE CHARGES


The Group has unrecognised deferred tax assets of £546,152 at 31 December 2006
and £446,732 at 31 December 2005, which have arisen mainly due to trading losses
carried forward.  The deferred tax asset has not been provided for because it is
uncertain whether the trading losses giving rise to the asset will be utilised
in the foreseeable future.



4.    LOSS PER SHARE


The calculation of basic loss per ordinary share is based on losses of £941,176
(2005: £785,942) and on 50,956,558 (2005: 45,599,614) ordinary shares of 0.005p
each being the weighted average number of ordinary shares in issue during the
period.


The loss for the period and the weighted average number of ordinary shares for
the purpose of calculating the diluted loss per share are the same as for the
basic loss per share calculation.  This is because the outstanding share options
would have the effect of reducing the loss per ordinary share and would
therefore not be dilutive under the terms of Financial Reporting Standard ('FRS
') 22.



5.    GROUP GROSS CASHFLOWS


Reconciliation of operating loss to net cash outflow from operating activities

                                                                         2006             2005
                                                                            £                £

Operating loss                                                      (884,777)        (938,487)
Share based compensation                                              198,301           88,197
Depreciation and amortisation                                         516,061          458,654
(Increase)/decrease in debtors                                       (71,551)          119,986
Increase in creditors                                                 100,660          163,063

Net cash outflow from operating activities                          (141,306)        (108,587)


                                                                         2006             2005
                                                                            £                £
Returns on investments and servicing of finance

Interest paid                                                        (44,336)         (37,986)

Taxation

Payment of UK corporation tax                                        (18,415)          (9,595)

Capital expenditure

Payments to acquire tangible fixed assets                             (5,441)         (35,472)

Acquisitions and Disposals

Purchase of additional shareholding in subsidiaries                  (17,032)                -

Proceeds from disposal of interest in subsidiary
undertakings                                                                -          511,760
                                                                            
Purchase of own shares                                                      -         (25,000)

                                                                     (17,032)          486,760


Financing

New short term loans                                                  150,000           25,000
Repayment of bank loans                                                     -         (13,296)
Other loan (repayments)/advances                                    (130,019)           13,015
Capital element of finance lease payments                             (4,118)          (7,900)

                                                                       15,863           16,819


6.    GROUP ANALYSIS OF CHANGES IN NET DEBT


DEBT                                              As at                                        As at
                                              1 January            Cash    Other non     31 December
                                                                        cash changes
                                                   2006           flows                         2006
                                                      £               £            £               £

Cash at bank and in hand                            183           (154)            -              29
Overdrafts                                     (77,216)       (210,513)            -       (287,729)

                                               (77,033)       (210,667)            -       (287,700)

Debt due within one year                      (162,353)        (19,981)      (3,370)       (185,704)
Debt due after one year                        (25,000)               -            -        (25,000)
Finance leases                                 (13,925)           4,118            -         (9,807)

                                              (201,278)        (15,863)      (3,370)       (220,511)

Net debt                                      (278,311)       (226,530)      (3,370)       (508,211)


7.     BASIS OF THE PRELIMINARY ANNOUNCEMENT


The board of directors of Frenkel Topping Group Plc approved the Preliminary
Results on 23 March 2007.


The statutory accounts for the year ended 31 December 2006 will be delivered to
the Registrar of Companies following the Annual General Meeting.   The statutory
accounts will be posted to shareholders on 30 March 2007.  Further copies will
be available to the public, free of charge, at the company's registered office,
Frontier House, Merchants Quay, Salford Quays, Manchester M50 3SR.



The Annual General Meeting will be held on 23 April 2007 at 10 am at Addleshaw
Goddard LLP, 100 Barbirolli Square, Manchester, M2 3AB.



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