FRP Advisory Group PLC on Tuesday lifted its dividend as profit more than doubled in the first half of its financial 2024, while it also said its non-executive chair will retire in the new year.
In the six months that ended October 31, the London-based corporate finance, restructuring and debt adviser said pretax profit more than doubled to £11.5 million from £5.6 million a year earlier.
This tracked revenue rising 19% to £58.7 million from £49.4 million. FRP Advisory noted growth driven by an uptick in restructuring activity levels.
As a result, it declared a raised interim dividend of 1.8 pence, up 5.9% from 1.7p a year earlier.
‘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,’ said Chief Executive Officer Geoff Rowley.
‘Financial Advisory and FRP Corporate Finance (including Debt Advisory) remain active in the mid-market and have a healthy [second half] pipeline, although increased caution among investors and lenders in the current environment is also driving an increase in due diligence which means deals are taking longer to complete. There is also an increase in debt refinancing and restructuring related [mergers & acquisitions] activity.’
Looking ahead, FRP Advisory said post-period trading has been positive and that it expects to exceed current consensus market expectations for its financial 2024.
This includes delivering revenue of £123 million, up 18% from £104 million a year earlier, and adjusted earnings before interest, tax, depreciation and amortisation of £32 million, more than doubled from £15.6 million.
FRP Advisory also said Non-Executive Chair Nigel Guy will retire on January 2 after 13 years in the role.
Guy’s retirement is in accordance with a succession plan developed by the board, with Penny Judd appointed as chair designate.
Judd is a non-executive director at LendInvest PLC, Alpha Financial Markets Consulting PLC, TruFin PLC and Team17 Group PLC.
Between 2016 and 2021, she was non-executive chair at FTSE 250-listed financial technology company Plus500 Ltd, ‘managing the company through a period of extreme regulatory change and a move from AIM to a premium listing on the Main Market,’ FRP Advisory said.
‘Since Nigel became chairman in 2010, FRP has grown from a small partnership into one of the UK’s largest national independent advisory firms with 650 colleagues, 28 offices and revenue of over £100 million. On behalf of the board and everyone at FRP, I would like to thank Nigel for his contribution over the years and we wish him a long and healthy retirement,’ said Chief Executive Officer Geoff Rowley.
‘Following a thorough recruitment process we look forward to welcoming Penny to chair our board. Penny has extensive public company board experience and a deep knowledge of the capital markets that will be invaluable to FRP as we continue to grow.’
Shares in FRP Advisory were up 4.9% to 134.25 pence each in London on Tuesday afternoon.
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