FRP Advisory profits soar due to uptick in restructuring activity

Professional services firm FRP Advisory’s revenue jumped 19 per cent in the first half of 2023 as its restructuring team was more active this year.

The firm generated £58.7m in revenue for the first half of 2023, which was up on the £49.4m generated in the same time period last year.

The firm saw earnings before interest, tax, depreciation and amortisation (EBITDA) for this period rise by 34 per cent to £15.5m, up from £11.6m

The firm stated that its growth was driven by an uptick in restructuring activity levels. It noted that its administration appointments more than doubled in H1 2024 to 169, up from 78 appointed for the same period last year, as market activity increased.

FRP Advisory has also increased its number of fee earners, which includes partners, to 484, up from 422 in H1 2023.

Commenting on the results, Geoff Rowley, CEO of FRP Advisory Group 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.”

Rowley added: “Financial Advisory and FRP Corporate Finance (including Debt Advisory) remain active in the mid-market and have a healthy H2 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 M&A activity.”

The firm also announced today that Nigel Guy will retire from his role as non-executive chairman on 2 January 2024, after 13 years in the role. Penny Judd was announced as his appointment, who will take over the role once he retires. Judd was managing director and EMEA head of compliance at Nomura International until 2016.

FRP Advisory’s share price was trading at 128p per share yesterday.