FRP Advisory posts strong full-year results
Professional services company FRP Advisory Group reported a 25% improvement in revenue in its full-year results on Tuesday, to £79m, with organic growth of 15% and inorganic growth coming in at 10%.
The AIM-traded firm said its underlying adjusted EBITDA rose by 22% in the year ended 30 April to £23m, with net cash at year-end standing at £16.4m.
It said that consisted of cash of £24.4m, less recent-structured debt of £8m, compared to £21.3m cash and no debt 12 months earlier.
That was after paying down 70%, or £15.4m, of initial public offering liabilities relating to cessation profits owed to partners and related tax liabilities, and the acquisition of four businesses, with the Group also having an undrawn revolving credit facility of £10m.
Average revenue per partner stood at £1.1m at year-end, down from £1.2m year-on-year, but reflecting an increase in partners, with several joining close to the end of the period.
Reported profit before tax came in at £16.6m, compared to £2.9m for the two-month period post-IPO in the 2020 financial year.
The board recommended a total dividend of 4.1p for the year, made up of two interim dividends of 1.6p and 0.8p, and a final dividend of 1.7p per share for the quarter ended 30 April.
“I am pleased to report another year of profitable growth and strategic progress,” said chief executive officer Geoff Rowley.
“FRP is a resilient business, with a track record of growth regardless of the economic conditions.
“We have a strong balance sheet and a structure that provides a good level of flexibility in our internal capacity, allowing us to be well positioned for an increase in demand for our services.
“Trading since 1 May is in line with the board's expectations.”
Rowley said uncertainties about the shape and scale of the UK's economic recovery remained, as government support continued to extend.
“However, our strengthened corporate finance offering gives the FRP group a stronger position in the UK mid-cap transactional advisory market.
“Our specialist advisers are available to help clients post Covid-19 through their entire business cycle; in addressing both their strategic ambitions, as pent up capital is deployed and being available to support as challenges arise.”
At 1258 BST, shares in FRP Advisory Group were down 3.09% at 125.5p.