FRP Advisory reported a drop off in restructuring appointments in the last financial year as government financial aid protected many businesses from collapse during the Covid pandemic.
The professional services firm, which plans to pay a dividend for the year, said the number of insolvency appointments it secured in the last 12 months was down 26 per cent on the previous year.
“The restructuring team grew market share in an overall subdued market, due to the various support measures made available by the UK Government in response to the Covid-19 pandemic,” FRP said in a statement this morning.
However, FRP chief executive Geoff Rowley noted that the company has “sufficient resource flexibility to service an increase in demand”, which could come when the government rolls back its coronavirus support measures.
The firm’s corporate finance division offset the impact of the pandemic on its restructuring arm, and it expects to beat previous profit forecasts for the year.
It expects to report revenue of £79m for the full year ended 30 April, up 25 per cent on the previous year, with underlying earnings before interest, tax, depreciation and amortisation forecast to come in at £23m, an increase of 22 per cent.
FRP, which listed in London last year, said it had a “very busy year in a challenging, but ultimately active, UK mergers and acquisitions market”.
Notable transactions include advising Prezzo on its sale to Cain international and Vehicle Replacement Group on its sale to Davies.
Rowley added: “There is continued uncertainty around the shape and scale of the nationwide recovery following the economic impacts of the Covid-19 pandemic.
“FRP’s resilient business model is well positioned to help clients throughout their lifecycle, in addressing both their strategic ambitions, as pent-up liquidity is deployed and being available to help as challenges arise.”