Frp Advisory Group Plc · LSE:FRP
Frp Advisory — FY2023 Earnings Presentation
31 slides from Frp Advisory's earnings presentation, July 2023
Slide 1: Full year results presentation
Full year results presentation Year ended 30 April 2023 (FY 2023) July 2023 frpadvisory.com
Slide 2: Agenda and presentation team
Agenda Presentation team Geoff Rowley > Presentation team . . . Chief Executive Officer > Value Proposition > +44 (0)20 3005 4289 > Highlights and strategy > geoff.rowley@frpadvisory.com > Market and team growth > Financials Jeremy French > Outlook Chief Operating Officer > Q&A > +44 (0)1277 503 333
Slide 3: Value proposition
Organic growth focus supported by selective acquisitions Collaborative, entrepreneurial and meritocratic culture Increasing market activity and demand for advice Diversified and growing referral client base, both geographically and sector Experienced management team and growing reputation/brand Prof
Slide 4: Staying focused on the basics: our 5 pillars
Staying focused on the basics Sustainable profitable growth, with a focus on organic growth and supplemented by selective acquisitions Our 5 pillars Give clear Corporate Finance honest advice People & . culire Debt Advisory Financial Advisory network Working capital discipline Forensic Services Rest
Slide 5: Highlights and strategy
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Slide 6: Financial highlights
*Adjusted for share based payments, deemed remuneration and exceptional items frpadvisory.com 6
Slide 7: FY 2023 Operational highlights
FY 2023 Operational highlights ie Achievements Restructuring team again the most active in the administration appointment market. Improved market share to 14% 13th most active Corporate Finance adviser in the UK (including debt transactions) Successful audit and recommendation to receive ISO 27001 S
Slide 8: Service offering across pillars
Corporate M&A Advisory Raising and Board and C- Forensic restructuring refinancing debt suite advisory investigations Strategic Corporate advisory advisory and Debt Transaction Dispute services valuations amendments services (VDD, Contentious and extensions FDD) Compliance and insolvency Raising cap
Slide 9: Members of / networks
Members of: As at July 2023 frpadvisory.com 9
Slide 10: Selected transactions and mandates
Adviser to LDC, the UK’s leading mid- FRP's Restructuring Advisory team Adviser to global expansion leader Adviser on the pre-pack sale of the market private equity firm, on its completed the sale of Coventry Blueback Global, on its sale to business and assets of Truphone investment in water and env
Slide 11: Revenue CAGR over 12 years
120.0 104.0 Underlying EBITDA* Revenue 100.0 95.2 Revenue 79.0 CAGR over 80.0 12 years 63.2 60.0 £m 54.3 51.0 40.1 40.0 32.2 29.8 24.6 25.7 27.0 21.8 21.5 23.0 17.4 18.8 20.0 15.7 14.1 11.9 7.0 7.8 4.0 3.7 3.4 1.5 - 2011** 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 * Adjusted for sh
Slide 12: Market and team growth
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Slide 13: Restructuring market drivers
Input cost increases (interest rates, energy, raw Many institutional lenders and investors are more materials, wage inflation) cautious on giving additional financial support without comfort around future viability Weakening consumer demand Early engagement of FRP can enable innovative Supply chain
Slide 14: Market activity charts
10.0% 25 20.0% 5 Thousands 18.0% 8.0% 20 16.0% 4 14.0% 6.0% 15 12.0% 3 10.0% 4.0% 10 8.0% 2 6.0% 2.0% 5 4.0% 1 2.0% 0.0% 0 0.0% 0 frpadvisory.com 14
Slide 15: Corporate Finance and Debt Advisory
In FY 23 this contributed c. 15% of FRP revenue (Corporate Finance and Debt Advisory combined). 73 successful transactions with an aggregate deal value of £1.8 billion and £0.8 billion of debt raised Named “UK Corporate Finance House of the Year” at the Real Deals PE Awards During the year to 30 Apr
Slide 16: Financial Advisory pillar launch
In February 2023, we launched our new Financial Advisory pillar following increased client demand, bringing together our existing transaction related services including financial due diligence, independent business reviews, financial modelling, and valuation services, alongside our pensions and comp
Slide 17: Forensic Services
FY 2023 was another year of growth and expansion for the Forensic Services team. The team received further accreditations, which saw them gain recognition for their industry expertise and experience in Chambers and Who’s Who Legal. An enhanced eDiscovery tool, RelativityOne, was also launched: the t
Slide 18: Colleagues and fee earners
Partners 78 80 Colleagues – fee earners 361 317 Share, 2 Partners + 14 Type + team fee earners/Colleagues Total fee earners 439 397 Pillar Restructuring Advisory Enables us to better Colleagues - support 112 107 Rationale support our clients on international matters Further strengthens our Total (ex
Slide 19: Financials
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Slide 20: Adjusted underlying EBITDA reconciliation
£m 2023 2022 Reported profit before tax (PBT) 15.6 15.1 Add back deprecation, amortisation and interest 2.9 2.6 Reported EBITDA 18.5 17.7 Add share based payment expense relating to the Employee Incentive Plan (EIP) 6.3 5.4 Add share based payment expense - Deemed remuneration 2.1 2.6 Add exceptiona
Slide 21: Income statement
Year Ended Year Ended 30 April 2023 30 April 2022 £'million £'million 9%, of which 8% organic. Revenue 104.0 95.2 Personnel costs (64.3) (58.8) Growth through salary Depreciation and amortisation (2.5) (2.1) increases (promotions and pay Other operating expenses (21.1) (18.6) rises), acquired collea
Slide 22: Balance sheet: net cash of £22.9 million
As at 30 April As at 30 April 2023 2022 £'million £'million Non-current assets Goodwill 10.8 10.2 Other intangible assets 0.6 0.7 Property, plant and equipment 2.5 2.8 Right of use asset 6.5 6.3 Strong financial position with net cash of Deferred tax asset 2.5 2.4 Total non-current assets 22.9 22.5
Slide 23: Cash flow statement
Year Ended Year Ended 30 April 2023 30 April 2022 £'million £'million Growth in receivables a result of WIP Cash flows from operating activities build on large existing cases which are Profit before taxation 15.6 15.1 more complex and therefore have Depreciation, amortisation and impairment (non cas
Slide 24: Outlook
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Slide 25: Outlook: five connected service pillars
FRP’s five connected service pillars now include Financial Advisory Our Restructuring team are being engaged on projects due to a range of pressures on UK Corporates Cost of financing increase, debts owed to HMRC, supply chain issues, labour shortages, impact of inflation and weakening consumer dema
Slide 26: Appendices
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Slide 27: frpadvisory.com
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Slide 28: Cash flow and IPO cessation profits repaid
Year Ended 30 April 2023 £'million Net cash from operating activities 11.1 Net cash used in investing activities (2.0) Net cash (used in) / generated from financing activities (6.3) * Net increase in cash and cash equivalents 2.8 Cash and cash equivalents at the beginning of the year 24.9 Cash and c
Slide 29: Work in progress and cash collections
A FRP provides services on credit and mandates take on average five to WIP (£M) vs WIP as a % of Revenue seven months to complete, leading to a large unbilled revenue (work in 50.0 60% progress) balances. Larger, more complex administration appointments 40.0 50% are more remunerative but can also ex
Slide 30: Acquisition criteria and track record
Contributed 19% of FY 23 revenue Criteria: Cultural fit, Strategic fit, Economic fit Structured with retention, similar Lock-in to IPO partners Combine 2 strongest teams dominate mid- market Hub has critical mass to support the Newcastle WIP, 2 Partners + 13 Restructuring Little team over-lap North
Slide 31: : Ri frpadvisory.com
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