TIDMFRP
RNS Number : 6051Y
FRP Advisory Group PLC
14 May 2021
FRP Advisory Group plc
("FRP" or the "Group")
Full Year Trading Update
Strong performance, with continued growth and strategic
delivery
FRP Advisory Group plc, a leading UK professional services firm
specialising in advisory services, today announces a trading update
for the full year ended 30 April 2021.
Trading performance
In its first, full financial year as a plc, the Group delivered
a strong performance, continuing to grow revenues, profits and the
team. Organic growth was driven by some large high-profile
appointments early in the financial year and further gains in
market share which were supported by demand-led hiring. In line
with the Group's stated strategy, four complementary acquisitions
were completed within the year, also contributing towards our
growth.
As a result, the Group expects to report revenues for the full
year to 30 April 2021 of GBP79 million, up 25% on the prior year
(FY 2020: GBP63.2 million), and underlying adjusted EBITDA* of
GBP23 million, up 22% on the prior year (FY 2020: GBP18.8 million).
These results exceed the guidance provided in the 12 February 2021
trading update.
The FRP Corporate Finance team had a very busy year in a
challenging, but ultimately active, UK M&A market. Notable
transactions include advising The Goat Agency on its minority
investment from Inflexion, Encore Group on its MBO backed by
Queen's Park Equity, Vehicle Replacement Group on its sale to
Davies, Everest Dairies on its sale to Vibrant Foods and Prezzo on
its sale to Cain International. The previously announced highly
complementary acquisitions of Spectrum Corporate Finance Limited
(who also have a Debt Advisory team) and JDC in East Anglia (who
also have a Forensics team) during the year have given FRP a key
position in the UK mid-cap transactional advisory market.
The FRP Restructuring team continue to serve the full range of
clients, including Personal clients, SME's, the core mid-market and
high-profile appointments. The Restructuring team grew market share
in an overall subdued market, due to the various support measures
made available by the UK Government in response to the Covid-19
pandemic. As a result of the support measures, the number of formal
Company insolvency appointments over the past 12 months was 26%
down, compared to the prior period.
* Our underlying adjusted EBITDA compares the current model of
partner compensation on a like-for-like basis to the prior
corresponding period, as the business was previously a full
distribution partnership. It also excludes exceptional costs and a
share based payment expense that arises from a) the Employee
Incentive Plan (EIP) funded on IPO and b) Deemed remuneration
amortisation linked to acquisitions.
Balance sheet
The Group's balance sheet remains strong with an unaudited net
cash balance as at 30 April 2021 of GBP16.4 million (Cash of
GBP24.4 million less recent structured debt of GBP8 million). The
group also has an undrawn revolving credit facility (RCF) available
of GBP10 million with Barclays Bank.
FRP acquired Spectrum Corporate Finance Ltd on 26 February 2021
which required a temporary draw on the RCF. Post completion, on 25
March 2021, FRP entered into a structured acquisition finance term
loan facility with Barclays Bank. GBP8 million was drawn down from
this facility, the temporary RCF draw was repaid and this term loan
will be repaid over five years in 20 quarterly instalments.
The Group did not apply for any Covid-19 support, for example
government backed lending schemes or delayed tax settlements.
During the Covid-19 pandemic period FRP have been dedicating
significant effort and resources to help businesses navigate the
crisis. In addition to our appointments, we have offered pro bono
advice and shared extensive business support resources through our
website.
Given the trading performance and strong balance sheet, the
Group intends to propose a final dividend, in line with its stated
dividend policy.
People and operations
The Board remains focused on the health, safety and wellbeing of
all colleagues. Throughout the Covid-19 pandemic period, we have
operated without interruption and none of our people were placed on
furlough. Colleagues adapted well to remote working during lockdown
periods and previous investments in our IT infrastructure have
proven to be invaluable. Ongoing investments within our IT
infrastructure, Information Security and Risk management are
expected.
The overall FRP team grew 30% year on year to 457 colleagues
excluding consultants (30 April 2020: 351) through both
acquisitions and demand-led hires. At 30 April 2021 we had 73
partners (2020: 51), 288 other fee earners (2020: 230) and 96
support staff (2020: 70).
FRP's offices across 22 locations in the UK continue to work
well together, drawing on specialists from different service lines
as necessary, in order to give each assignment the right team in
order to deliver the best possible service and outcome. The Group
has recently hired a team of six in Scotland, including Partners
Michelle Elliot and Stuart Robb to establish a new FRP office in
Glasgow. In April 2021, Marco Piacquadio was hired as a Partner,
who will be based in a new FRP office in Milton Keynes.
Notice of results
The Group expects to report its audited results for the full
year on 27 July 2021 .
Geoff Rowley, Chief Executive Officer of FRP Advisory Group plc,
said:
"We are pleased with the progress that has been made during our
first year as a plc. I am particularly pleased with how our
colleagues have navigated the uncertainties during the pandemic and
adapted to serve clients without interruption.
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. FRP now has a key position in the UK
mid-cap transactional advisory market and is 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 our market remains positive and we
have sufficient resource flexibility to service an increase in
demand. The board remains confident of making further progress in
the upcoming financial year."
The information contained within this announcement is deemed by
the Group to constitute inside information under the Market Abuse
Regulations No. 596/2014.
Enquiries:
FRP Advisory Group plc
Geoff Rowley, CEO
Jeremy French, COO
Gavin Jones, CFO
Enquiries via MHP
Cenkos Securities plc (Nominated Adviser and Sole Broker)
Max Hartley/Max Gould (Corporate Finance)
Alex Pollen (Sales)
Tel: +44 (0) 207 397 8900
MHP Communications (Financial Public Relations)
Oliver Hughes
Charlie Barker
Pete Lambie
Tel: +44 (0) 3128 8540 / +44 (0) 20 3128 8570
FRP@mhpc.com
Notes to Editors
FRP is a professional services firm established in 2010 which
offers a range of advisory services to companies, lenders,
investors and other stakeholders, as well as individuals. These
services include:
-- Corporate finance: mergers & acquisitions (M&A),
strategic advisory and valuations, financial due diligence, capital
raising, special situations M&A and partial exits.
-- Restructuring advisory: corporate financial advisory, formal
insolvency appointments, informal restructuring advisory, personal
insolvency and general advice to all stakeholders.
-- Debt advisory: raising and refinancing debt, debt amendments
and extensions, restructuring debt, asset based lending and
corporate and leveraged debt advisory.
-- Forensic services: forensic investigations, compliance and
risk advisory, dispute services and forensic technology.
-- Pensions advisory: pension scheme transaction advisory,
pension scheme restructuring advisory, covenant advisory and
corporate governance
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END
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