Well that explains the weakness |
Great result and bodes well for Beg too. |
FRP results to outstrip market expectations
By Alice Bird
17 May 2024
FRP results to outstrip market expectations
Revenues and EBITDA surpassed current market expectations in FRP Advisory Group's most recent financial year, with all five service pillars making "positive contributions".
In a trading update for the full year ended 30 April 2024, FRP said it achieved "profitable growth".
It expects to report revenues of £128m, up 23 per cent on the prior year, and adjusted EBITDA of £37m, up from £27m in 2023.
Both figures are higher than current market expectations. |
The company has beaten it's forecasts " significantly ".
There will be some massive upgrades for the current year. |
seems that a small beat on revenue results in a big leap in adjusted EBITDA though always wary of the latter metric, need to dig into the accounts to work out the adjustments particularly share based payments. also note they worked on admin of Inland, one of my poorest investment decisions years ago... |
They almost do themselves down a bit - £37m adj EBITDA vs £32m consensus isn't ahead, it's significantly ahead! |
very strong trading update this morning - seems to be doing better than Begbies.. |
Very interesting acquisition today. Hilton Baird are a strong financial brokerage operating in the invoice finance/asset-based lending marketplace. They should dovetail in very well with FRP's Debt Advisory and Restructuring teams. Good to see how FRPs acquisitions glue their various service lines together. |
Just read the above and agree ThropeMatt. Further backed up by article in the Times stating insolvencies are starting to shift to bigger companies - FRP's ideal territory. Good value at the current share price IMHO. |
I have bought a few of these. Have enough for the time being now I think.
Mostly insolvenices happen toward the latter part of a slowdown and in addition tend to be linked to higher cost of capital (which in itself takes a while to bite).
Also acting as a tailwind will be the potential for those companies with strong business models and balance sheets to acquire those in distress. FRP's M&A services should see a pick up in demand I believe.
Broker's forecasts have seen a pick up of late. Converesely the share price has continued to bottom out. We are still below both 50 and 200 day MA.
Might take a little while to play out, so the strong divi will come in handy. |
It's quiet around here! IMO a new higher-low being confirmed |
Breaking news - FRP have been appointed administrators for the Body Shop.
One of the highest profile contracts they've secured. |
Interesting little closing (UT) trade today. |
The issue with BEG is that they are in the high volume but low value insolvency burial market. Volumes will undoubtedly increase for them in the current economic climate but what won’t change is the meat left on the bone of a corpse, and from which they derive their fee-income… hence their diversification into a hotch-potch of other seemingly unrelated business areas.
FRP operate in a totally different territory where they gain income from suffering but solvent businesses through restructuring, refinancing and possibly a sale, and collect fees from each of these areas.
Hopefully that will go some way to explaining the fundamental differences between FRP and BEG and their massive differences when it comes to margins. |
Yep very solid, momentum is building. The rating is not that cheap to start with but should see the shares move higher. Beg looks a bit left behind currently imo |
FRP coning into a sweet spot with the interest rate lag effect. Trading ahead of expectations i now pencil in a conservative adjusted eps of 10.3p for FY24 and with net cash on the balance sheet this is undervalued by historical standards. Operational leverage is a beautiful thing. |
Stunning H1 results released this morning. Fee income up 19%, EBITDA up 34%. Administration numbers up 117% compared to same period last year and Admin market-share up from 13% to 20%. Interesting to see a conservative board state that they will beat consensus forecasts and place an estimate on FY income and profits, presumably down to good WIP forecast ability. Surely a PE re-rating is overdue here ? |
Looking at statistics from Insolvency Insider FRP have had 42 Administration appointments this month alone and have had 231 Administration appointments this year putting them 100 ahead of Begbies. |
Its taken a while but Administrations now back to pre-Covid levels. Should increase from here. |
Bought some more, upgrades coming here |
Interesting acquisition of Wilson Field announced this morning. Although WF are based in Sheffield they have a nationwide online presence at the lower-end of the insolvency market and appear to be a well-run outfit.
The acquisition appears to offer FRP access to smaller, volume-based insolvency cases - particularly through online marketing - and also gives them a presence in South Yorkshire to promote all of their services.
Potentially it also gives them the ability to differentiate their services without losing focus from their core mid-market targets. Looking at fee income and potential EBITDA uplift it looks like a smart acquisition.
Time will tell. |
Just been checking Administration appointments from the Insolvency Insider website and during July and August, FRP booked 49 appointments. Not only does this place them in 1st position, but they have received over twice as many appointments as the 2nd IP Leonard Curtis. Great to see that the Administrations tap seems to be fully on and that the boards conservative predictions are playing out. The stock is looking very cheap at this point. |
props to FRP, they say the report is on their website at 7 and the report is on their website, at least by 7.03. Lots of companies don't bother putting documents up until a few hours after they RNS that they're up. |
Unfortunately PwC. |
Presume they'll be appointed administrators. |
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