FRP to beat expectations in first full year as listed firm

Professional services provider FRP Advisory Group reported a “strong performance” in its first full financial year as a publicly-listed company on Friday, reporting that it was expecting to top its own guidance for the 12 months just ended.

The AIM-traded firm said in a trading update that organic growth was driven by a number of high-profile appointments early in the financial year, while further gains in market share were supported by “demand-led” hiring.

In line with its stated strategy, four complementary acquisitions were completed within the year, also contributing towards its growth.

As a result, FRP said it expected to report revenues for the year ended 30 April of £79m, up 25% on the prior year, and underlying adjusted EBITDA of £23 million, 22% higher year-on-year.

Those results exceeded the guidance it provided in a trading update on 12 February.

The group said its balance sheet remained “strong”, with an unaudited net cash balance as at 30 April of £16.4m, and an undrawn revolving credit facility of £10m available with Barclays Bank.

FRP acquired Spectrum Corporate Finance on 26 February, which required a temporary draw on the revolving credit facility.

Post completion, on 25 March, the company entered into a structured acquisition finance term loan facility with Barclays, drawing £8m from that and repaying the temporary revolving credit facility draw, with the term loan to be repaid over five years in 20 quarterly instalments.

Given its trading performance and balance sheet, the group said it intended to propose a final dividend in line with its stated dividend policy.

“We are pleased with the progress that has been made during our first year as a plc,” said chief executive officer Geoff Rowley.

“We have continued to execute our growth strategy, with strong contributions from all five business divisions.

“After acquiring and then integrating two boutiques we have significantly bolstered our corporate finance offering.”

Rowley said FRP now held a “key position” in the UK mid-cap transactional advisory market, and was able to support a broader range of clients through a strengthened referral network.

“There is continued uncertainty around the shape and scale of the nationwide recovery following the economic impacts of the Covid-19 pandemic.

“FRP's resilient business model is well positioned to help clients throughout their lifecycle, in addressing both their strategic ambitions, as pent-up liquidity is deployed and being available to help as challenges arise.”

The medium-term outlook for the company’s market remained “positive”, Rowley said, adding that it had sufficient resource flexibility to service an increase in demand.

“The board remains confident of making further progress in the upcoming financial year.”

FRP said it would report its audited results for the full year ended 30 April on 27 July.

At 0900 BST, shares in FRP Advisory Group were up 0.8% at 126p.