TIDMFRP
RNS Number : 0226S
FRP Advisory Group PLC
11 November 2021
11 November 2021
FRP Advisory Group plc
("FRP" or the "Group")
Half Year Trading Update
FRP Advisory Group plc, a leading UK professional services firm
specialising in advisory services, today announces a trading update
for the half year ended 31 October 2021 (H1 2022).
Trading performance
The Group delivered another strong performance during the first
half, continuing to grow revenue and underlying adjusted
EBITDA.
The Corporate Finance market remains busy as pent-up capital
continues to be deployed. FRP Corporate Finance, including Debt
Advisory, was enlarged last year by two acquisitions and the team
have been very active, advising on 50 transactions in H1 with a
combined deal value of GBP1.28bn and GBP0.5bn of debt raised. Three
notable transactions in H1 include:
- Sell side adviser to Solent Global, a provider of branded,
licensed and white label products to the consumer sector, in their
GBP117m merger with the Swedish FMCG powerhouse Humble Group.
- Sell side adviser to Timberwolf, a manufacturer of a broad
range of commercial wood chippers, in their sale to Alamo Group
- Sell side adviser to Insurtech firm Ignite Software Solutions
on their sale to Sequel, owned by the Nasdaq listed data analytics
group, Verisk.
The Corporate Finance team have a strong transactional pipeline
for H2.
The Restructuring market has seen liquidation activity return to
pre-pandemic levels but extended Government support has meant the
administration market, where FRP has a significant market share,
remains subdued.
The Group expects to report revenue for the half year to 31
October 2021 of GBP44.7m, up 25% on the prior year (H1 2021:
GBP35.9m), and underlying adjusted EBITDA* of GBP11.1m, up 14% on
the prior year (H1 2021: GBP9.7m), in line with the Board's
expectations to date.
*Underlying adjusted EBITDA removes non-cash costs including
share based payments relating to deemed remuneration arising on
acquisitions that is subject to continuing employment and the
Employee Incentive Plan established on IPO and funded by partners,
so no dilution to existing shareholders.
Balance sheet and liquidity
The Group's balance sheet remains strong with an unaudited net
cash balance as at 31 October 2021 of GBP9.2m** (H1 2021:
GBP15.4m). The Group also continues to have an undrawn revolving
credit facility of GBP10m.
**GBP16.8m gross cash less GBP7.6m of structured debt, repayable
over approximately four years.
People and operations
FRP's 22 offices in the UK continue to work well together,
drawing on specialists from different service lines as necessary,
in order to deliver the best possible service and outcome.
We continued to grow our headcount, with total Colleagues up 11%
over H1 (via demand-led lateral hires) and 18% year-on-year (via
both demand-led lateral hires and acquired Colleagues that came
with the Spectrum Corporate Finance Ltd acquisition) .
31 October 30 April 31 October
2021 2021 2020
Partners 76 73 61
----------- --------- -----------
Other Fee earners 310 277 270
----------- --------- -----------
Subtotal - Fee earners 386 350 331
----------- --------- -----------
Support 99 88 81
----------- --------- -----------
Total Colleagues (ex Consultants) 485 438 412
----------- --------- -----------
In H1, two new London Partner hires included Simon Stibbons, a
Restructuring Partner specialising in Government projects and Jim
Davies, a Valuations specialist who joined our Corporate Finance
team. Harry Walker, a Leicester based Corporate Financier was an
internal promotion to Partner in H1.
On 1 November 2021 two new Partners joined FRP. Dan Bowtell
joined our Corporate Finance team and will be based in a new FRP
Cambridge office, while Henry Pocock joined our Birmingham office
as a Forensic Services Partner. Our new Glasgow office is expected
to open in late November 2021.
The Group has also started to execute several key system
upgrades and changes as part of a plan to further improve
operational efficiency and enhance internal controls. These changes
are expected to conclude in late 2022.
Notice of results
The Group expects to report its unaudited results for the half
year ended 31 October 2021 on 16 December 2021 .
Geoff Rowley, Chief Executive Officer of FRP Advisory Group plc,
said:
"We delivered another pleasing performance in the first half,
continuing to execute our strategy to grow the business. The
markets we operate in have been mixed. The Corporate Finance market
is highly active as capital continues to be deployed. However, the
extension of Government support over most of H1 has resulted in
Restructuring administration activity remaining subdued.
Looking ahead, we are well positioned to service the expected
increase in Restructuring Advisory activity driven by: the
withdrawal of Government support, supply chain disruption and
rising input costs from energy, wages and raw materials. Our
Corporate Finance team have a strong pipeline and are well
positioned to continue helping clients realise their strategic
ambitions.
The medium-term outlook for all our markets is positive and the
Board remains confident of making further progress in the current
financial year."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the UK version of the EU Market Abuse Regulation (2014/596) which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended and supplemented from time to time.
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)
Katy Birkin/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:
-- Restructuring advisory: corporate financial advisory, formal
insolvency appointments, informal restructuring advisory, personal
insolvency and general advice to all stakeholders.
-- Corporate finance: mergers & acquisitions (M&A),
strategic advisory and valuations, financial due diligence, capital
raising, special situations M&A and partial exits.
-- 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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