FRP Advisory Group in line with expectations after first half

(Sharecast News) - FRP Advisory Group reported a strong first half on Tuesday, with revenue rising 32% to £77.6m, supported by organic growth and acquisitions. The AIM-traded company said underlying adjusted EBITDA increased 44% over the six months ended 31 October, to £22.3m, while adjusted profit before tax climbed 47% to £20.3m.

Organic revenue growth, which accounted for 23% of the increase, was driven by confidential advisory mandates, complex restructuring projects, and notable contributions from work related to the Body Shop and a significant corporate finance transaction.

Acquisitions added a further 9% to revenue.

The company said it maintained balance sheet strength, with net cash of £13.3m as of 31 October, alongside an undrawn £10m revolving credit facility and £7.8m available in an acquisition accordion facility.

An interim dividend of 1.9p per share was declared, up 6% year-on-year.

Operationally, FRP said it continued to expand its five specialist service pillars.

In restructuring, colleague use rose to 69%, driven by confidential advisory mandates, despite a declining formal administration market where FRP's share fell to 12% by volume.

Corporate finance saw significant growth, completing 46 transactions worth £1bn and raising £432m in debt, compared to 25 deals in the prior year.

The forensic services division benefited from increased litigation demand, while financial advisory recorded heightened transaction activity ahead of the October UK Budget.

FRP added that it completed four acquisitions in the period, including Hilton-Baird Group, Lexington Corporate Finance, WilliamsAli Corporate Finance, and Globalview Advisors, further strengthening its geographical presence and service offering.

FRP also invested in talent, with team growth supported by external hires and internal development.

A 'save as you earn' share scheme launched in July saw strong employee participation, while voluntary attrition remained low at 10%, in line with the prior year.

The board highlighted a robust pipeline across all service pillars, and expressed confidence in achieving full-year market expectations, assuming current activity levels persisted. Consensus forecasts for the 2025 financial year were for revenue of £146.7m and adjusted EBITDA of £39.5m.

"Our strategy is to provide solutions that achieve the best possible outcomes for clients. Across both service pillars and locations we encourage collaboration, so the best team of specialist advisors is always put forward for each project," said chief executive officer Geoff Rowley.

"We continue to strengthen the group through acquisitions, with four completed across three of our service pillars.

"We also recently opened a new office in Belfast, Northern Ireland."

Rowley said developing talent and managing succession was a key focus, adding that in the first half, the company promoted seven colleagues to partner, along with three more lateral-hire partners.

"I am proud of the team's achievements in the first half with revenue growth at 32%, of which 23% was organic, and underlying adjusted EBITDA growth of 44%, demonstrating the group's ability to deliver sustainable profitable growth.

"Trading in the first half included a strong contribution from the Body Shop and a large corporate finance project."

As demand for FRP's services continued to increase, Geoff Rowley said the firm remained committed to retaining its "healthy collegiate culture" where it promoted the development, health and well-being of colleagues.

"Each service pillar has a robust pipeline and a positive outlook.

"The board remains confident of achieving current market expectations for the full year, assuming current activity levels continue."

At 1010 GMT, shares in FRP Advisory Group were down 4.11% at 148.15p.

Reporting by Josh White for Sharecast.com.