FRP Advisory reports record £128m revenue

FRP Advisory reports record £128m revenue

May 29, 2024

Restructuring specialist FRP Advisory Group plc has seen double digit growth and profit ahead of expectations as restructuring business buoyed by 22% rise in company administrations

In a trading statement, the group said it had ‘achieved another year of strong profitable growth, with all five service lines making positive contributions’.

Subject to audit, the Group expects to report revenues for year ended 30 April 2024 (FY24) of £128m, up 23% on the prior year’s £104m. The FY23 growth in revenue was only 9%. Pre-tax profit was £37m, up 37% on the prior year.

The hike in revenue was a reflection of the current difficult trading environment. FRP is ranked 19th in the Accountancy Daily Top 75 Firms survey and the latest results would see the firm jump to 14th place.

FRP has seen a growth in business due to the impact of further increases in interest rates, inflationary pressure, higher costs of living and general market confidence, all contributing to a 22% rise in the number of company administrations, resulting in a hike in restructuring clients.

Sectors that appear to have suffered the most include construction and retail. One of the key challenges for companies has been the ability to raise finance, with lenders’ appetite for risk changing.

FRP’s restructuring team has been active nationwide across all sectors with high-profile appointments including the Body Shop, WiggleCRC, Inland Homes plc, Just Cashflow and Readers Digest. It grew its market leading position in the administrations market, remaining the most active administration appointment taker in the UK by volume of appointments, and growing its market share to 16% (2023: 14%).

Geoff Rowley, CEO of FRP Advisory Group plc, said: ‘The Group made excellent progress in FY 2024, continuing to execute our strategy while growing revenues and profits for the thirteenth year.

‘The results achieved are testament to the quality of our colleagues and their continued efforts to provide a high-quality service to achieve the best possible results for our clients.

‘Activity levels across all our locations and pillars are encouraging. As a result, we start our new financial year with confidence of making further positive progress.’

In order to deliver sustainable profitable growth, FRP’s strategy remains to focus on organic growth, supported by acquisitions that meet the group’s strict criteria of cultural alignment, strategic fit and mutually acceptable economics. During the year it made a number of acquisitions including insolvency firms, Wilson Field Group and GWC. There is a healthy M&A pipeline and active dialogue across a range of opportunities.

Staff numbers have also grown in the last year, up 19% to 657 staff, which includes new hires and staff acquired through acquisitions.

The corporate finance and debt advisory teams closed 76 transactions with an aggregate deal value of £1.4bn although this was down on the previous year’s £1.8bn.

The first full year of trading for the combined financial advisory division was positive, and the second half of the year saw increased activity across all service lines.

The group plans to publish its full audited results on 24 July.