FRP Advisory trading in line after first-half earnings growth
FRP Advisory Group
FRP Advisory Group reported a 10% improvement in first-half revenue on Tuesday, to £49.4m.
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The AIM-traded firm said revenue was ahead 9% on an organic basis in the six months ended 31 October, and 1% inorganic through the April acquisition of Bridgeshield.
Underlying adjusted EBITDA grew by 5% year-on-year to £11.6m, while reported profit before tax slipped to £5.4m from £5.7m.
The board described a “strong” balance sheet, with net cash at period end on 31 October of £21m, up from £9.2m a year earlier, and a continued undrawn committed revolving credit facility of £10m.
Adjusted total earnings per share rose to 3.35p from 3.25p, while reported basic earnings improved to 2.58p per share from 2p.
The board declared a second quarter interim dividend of 0.85p, making for a total first-half distribution of 1.7p per share, up from 1.6p a year earlier.
Looking ahead, FRP reported a “positive” medium-term outlook for all of its markets, adding that it was “well-positioned” for an expected increase in demand for its “broad range” of services.
The board said it was confident of making further progress in the current financial year, and trading is in line with market expectations.
“FRP made good progress in the first half, continuing to grow its revenues, profits and team,” said chief executive officer Geoff Rowley.
“Our strategy remains unchanged to deliver sustainable profitable growth by ensuring our five service pillars work together to provide solutions that achieve the best possible outcomes.
“Our restructuring team is well positioned to service the expected increase in demand stemming from the many challenges faced by UK businesses.”
Rowley said uncertainties were persisting over how long the available liquidity and government-backed loans could sustain troubled businesses, and how proactive key creditors such as HMRC and institutional lenders would be on addressing overdue debts.
“Our corporate finance team has a good pipeline and are seeing an increase in demand for debt advisory colleagues to support on transactions.
“The medium-term outlook for our key markets remains positive, and the board is confident of making further progress in the current financial year.”
At 1-15 GMT, shares in FRP Advisory Group were down 3.31% at 160.5p.
Reporting by Josh White for Sharecast.com.