Frenkel Topping's revenue rose to £6.4m in the year to the end of December (2015: £6.3m) and recurring revenue increased to £5.1m (2015: £4.7m).
Gross profit fell to £3.7m (2015: £4.0m) and profit from operations (before share based payments and acquisition costs) fell to £1.4m (2015: £1.5m).
Pre-tax profit of £0.9m was down from £1.3m.
The group said underlying trading was in line with market expectations.
Chairman Jason Granite said: "2016 was a pivotal year of change for the group as it grew its range of specialisms to include the capability to offer discretionary managed services, as well as financial advice, to those in receipt of a personal injury or clinical negligence claim.
"The board welcomed Mark Richards as non-executive director and Mark Holt as commercial director, expanding the board's experience of the financial services industry and large complex claims.
"The Group completed the purchase of a 9,700 sqft building and the head office function has been relocated.
"The purchase of the building will allow the Group to continue to grow from its current head count of 65 and provide purpose built client suites to better serve our client base, in addition to providing staff with an excellent working area to retain and attract employees."
Granite said the performance during 2016, in terms of profitability, reflected the board's focus to develop Frenkel Topping's ability to gear up to manage increased AUM, including those on a discretionary basis with FTIM and laying the foundations for a step change in profitability from 2017 onwards.
He added: "We are pleased to report that for the eighth consecutive year we have maintained our very high client retention rate (99%) for the period.
"Closing cash and marketable securities as at 31 December 16 amounted to £4.2m (2015 £4.5m), this after the return to shareholders of £0.7m in dividends and £1.1m into purchasing the new head office building in Manchester.
"As at 31 December 2016, £3.1m was held in a listed fund investment which has been disposed of since that date and re-invested in a commercial property loan investment as announced on 23 January 2017. "Total Assets as at 31 December 16 were £15.0m (2015 £14.7m).
"We are delighted to continue to advance our progressive dividend policy and the Board has recommended a final dividend of 0.8719 pence.
"Combined with our interim dividend, the proposed dividend will give a total payment for the year of 1.1094 pence per share, a 25% uplift to the prior-year (2015: 0.8875 pence), and a recognition of the continued cash generation and profitability of the business."