FRP Advisory ends year 'at least' in line with expectations

(Sharecast News) - FRP Advisory said on Friday that it expected annual revenue and adjusted underlying EBITDA to be at least in line with market expectations, after a year of growth across its advisory services.

The AIM-traded specialist business advisory firm said revenue for the year ended 30 April was expected to be at least £176m, up 16% from £152.2m a year earlier.

Adjusted underlying EBITDA was expected to be at least £45m, up 9% from £41.3m.

FRP said the performance reflected the breadth and resilience of the group during a year affected by periods of "decision inertia" among UK corporates, driven by uncertainty around US tariff changes and speculation ahead of the delayed Autumn 2025 Budget.

In restructuring, FRP said it strengthened its position as the number one firm for UK administration appointments by volume.

Notable appointments during the year included work involving Market Financial Solutions and Denby Pottery.

The corporate finance division delivered a record year for revenue despite challenging M&A markets, where transactions took longer to complete and pre-deal due diligence was extended.

FRP said its national lower mid-market focus remained resilient, with private equity involved in half of its deals.

Financial advisory and forensic services also saw steady to buoyant demand, particularly in financial due diligence and valuations.

FRP said the year ended with the conflict in the Middle East affecting energy costs and beginning to disrupt supply chains.

It said the situation was expected to add upward pressure to headline inflation and complicate the path for central bank rate cuts, with the group already seeing higher demand for debt advisory and restructuring advisory services.

The group reported an unaudited net cash balance of about £26m at 30 April, compared with £33.3m a year earlier.

It also has an undrawn £10m revolving credit facility and an accordion acquisition facility.

During the year, FRP acquired One Advisory and Arc & Co and made a minority investment in Queens Tower Advisory.

One Advisory added governance advisory, pre-IPO services and broader financial advisory capabilities, while Arc & Co expanded FRP's real estate and development debt financing expertise.

The company said it would formally launch its real estate advisory service pillar this month.

FRP also expanded geographically, establishing an office in Liverpool, a new corporate finance pillar in Leeds, and new forensic services and debt advisory pillars in Manchester.

It said headcount rose 12% to 894 from 795, supported by acquisitions and targeted hiring.

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

Chief executive Geoff Rowley said the group had strengthened its model through targeted acquisitions and investment in talent, geographic reach and service capabilities.

"Whilst the global and UK economies continue to be impacted by uncertainty, FRP remains well placed to continue to serve its clients across the entire economic cycle," he said.

"The short and medium-term outlook for our markets remains positive and we have sufficient resource flexibility to respond to an increase in demand and a strong balance sheet to capitalise on investment opportunities when they arise."

FRP said it expected to publish audited results for the year ended 30 April in July, following the appointment of PKF Littlejohn as auditor.

At 1214 BST, shares in FRP Advisory Group were down 0.44% at 112.5p.

Reporting by Josh White for Sharecast.com.

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