FRP Advisory upbeat after robust first half

(Sharecast News) - FRP Advisory Group reported a robust first-half performance in an update on Wednesday, with revenue rising 32% year-on-year to £77.6m, driven by 23% organic growth and 9% contribution from acquisitions.

The AIM-traded firm said underlying adjusted EBITDA increased 44% to £22.3m, compared to £15.5m in the prior period, reflecting strong performance across its service pillars.

Its restructuring division experienced a solid first half, completing high-profile projects including the Body Shop.

A spike in solvent liquidations was seen during the period of economic stagnation following the UK general election in July.

Looking ahead, the board said the recent increase in employers' National Insurance Contributions was expected to place further financial strain on sectors such as retail and hospitality, potentially increasing demand for restructuring services.

Corporate finance and debt advisory saw expansion through acquisitions, including Lexington Corporate Finance in Cardiff, Williams Ali in Newcastle, and the Hilton-Baird Group in Southampton.

The board said the additions enhanced FRP's capabilities in corporate finance, debt advisory, and asset-based lending support.

Activity in debt refinancing and restructuring-related mergers and acquisitions was expected to grow as market sentiment stabilises.

The forensic services division performed well, particularly in litigation and contentious insolvency.

FRP said the team was bolstered by strategic hires, including a new partner for its recently-opened Belfast office.

Meanwhile, the financial advisory division benefited from increased activity in the transaction services market ahead of the new government's budget, expanding its valuation services through the acquisition of Globalview in October.

FRP said it was continuing to invest in talent, with headcount increasing 18% during the period, supported by acquisitions.

Its balance sheet remained strong, with £13.3m in net cash, an undrawn £10m revolving credit facility, and an acquisition facility with Barclays.

Looking ahead, the group's pipeline remained robust, with key projects contributing positively to performance.

The board said it was confident of achieving full-year market expectations, including projected revenue of £146.7m and adjusted EBITDA of £39.5m.

"FRP has delivered another strong performance in the first half of the year, reporting increased revenue and profits," said chief executive officer Geoff Rowley.

"In line with our proven strategy, we continued to be acquisitive, strengthening the group with four acquisitions across three of our service pillars."

In doing so, Rowley said the company had enhanced its offering, and was "even better positioned" to provide optimum solutions for our clients.

"I am confident that we will make further progress in the remainder of the year, as we support corporates through the entire business cycle."

FRP Advisory said it would report its unaudited results for the half year ended 31 October on 17 December.

At 0913 GMT, shares in FRP Advisory Group were up 6.14% at 155.5p.

Reporting by Josh White for Shaercast.com.