Great Results & Excellent Outlook27 Aug 2020 09:05
Looks as though the 2020/21 FY has got off to a very strong start, and that's despite all the government support, indicating the 2021/22 years and beyond will see even more growth.
Annual revenues of £100m by 2022 look very achievable = which would be 58% higher than what has been announced today.
"Outlook
For many businesses across the UK, their resilience was, and continues to be, tested as the country went into lockdown to manage the impact of the global pandemic. There remains a significant degree of uncertainty around the shape and scale of economic recovery, combined with potential additional pressure as the Brexit transitional agreement comes to an end in 2020.
The support measures made available to both firms and individuals by the UK Government in response to COVID-19 has reduced the number of appointments in our financial Q1 compared to prior year. Despite this, trading for the period since year end has been in line with expectations and we remain confident of making further progress in the current year. We have maintained steady growth and utlilisation rates by continuing to secure larger projects and market share, while sharing resources across our office network.
In a recessionary environment, there will naturally be higher levels of corporate financial distress, which depending on a number of factors - such as creditors' attitudes to forbearance - have historically led to an increase in insolvency volumes. We believe there should be an increase in restructuring assignments at all levels across the business community as the various UK government support mechanisms are phased out and the impact of Brexit is also felt across the wider economy when the current transitional agreement concludes.
With a significant and growing market share, FRP is well placed to service increasing levels of restructuring assignments in the UK, both on increasingly high profile, complex cases and across regional businesses through our national network. This is further supported by the breadth of our skillset across our service lines, including forensics, corporate finance, debt advisory and pensions advisory.
FRP is a resilient business with a track record of growth throughout the entire economic cycle and a strong balance sheet which will enable the Company to continue to grow both organically and through the acquisition of teams. We have 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, the medium-term outlook for our markets is positive and the Board remains confident of making further progress in the current year."
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