Restructuring group sees profits jump as number of firms entering administration rises
The firm’s adjusted pre-tax profits for the six months leading to 31 October rose by 35 per cent to £13.8 million on the same period last year, while revenue rose 19 per cent to £58.7 million.
This comes as the firm announces that the number of companies which appointed it due to entering administration more than doubled in the first half of the financial year, reaching a total of 169 businesses.
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Hide AdGeoff Rowley, chief executive officer of FRP Advisory Group plc, noted that the company had also seen an increase in demand due to fraud related matters.
He said: “Our Restructuring Team are considerably more active compared to the same period last year and have increased their administration market share.
“The Forensic Services team is expanding, and are seeing an increase in demand for support on disputes and investigations, often driven by fraud related matters or the need for independent investigations.”
FRP also saw earnings before interest, tax, depreciation and amortisation increase by 34 per cent in the period to £15.5 million.
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Hide AdThe firm said it expects to exceed current consensus market expectations for FY 2024.
In September, FRP acquired Sheffield-based The Wilson Field Group for £4.8 million. FRP said that the integration of the businesses was continuing as planned, and that the results and contribution for the seven weeks post-acquisition were “in line with the board's expectations”.
The firm added that on an annual basis, it is expects that Wilson Field's underlying incremental contribution to FRP will be revenue of £5.6 million and adjusted EBITDA of £1.1 million.
FRP’s latest results also comes as the firm announces that non-executive chairman Nigel Guy will retire on 2 January 2024, after 13 years in the role. He is set to be replaced by Penny Judd.
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Hide AdMr Guy said: "I am hugely proud of what we have achieved at FRP over the last 13 years and appreciate the support and counsel of many of our colleagues over that time.
“The Group has grown to become a market leading advisory firm and has a strong base to continue its development which I will follow with interest."
Ms Judd has over 35 years' experience in compliance, regulation, corporate finance and audit, and is currently a non-executive director of a number of AIM quoted companies.
She said: "I am honoured to be taking over as Chair and look forward to working with the Board and other FRP colleagues to build on the company's success."
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