Frp Advisory Group Plc · LSE:FRP
Frp Advisory — H1 2023 Earnings Presentation
30 slides from Frp Advisory's earnings presentation, Dec 13, 2022
Slide 1: Interim results presentation
Interim results presentation First half to 31 October 2022 (H1 2023) 13 December 2022 frpadvisory.com
Slide 2: Presentation agenda
Presentation team Strategy and highlights Market and team growth Financials Outlook Q&A Appendices frpadvisory.com 2
Slide 3: Presentation team
Presentation team rr a Geoff Rowley Chief Executive Officer > +44 (0)20 3005 4289 ta > geoff.rowley@frpadvisory.com Gavin Jones Chief Financial Officer > +44 (0)1277 503 333 > gavin.jones@frpadvisory.com FRP Jeremy French Chief Operating Officer > +44(0)1277 503 333 > jeremy.french@frpadvisory.com f
Slide 4: Strategy and highlights
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Slide 5: Our strategy
Our strategy Organic growth supplemented by selective acquisitions People & Give clear Culture honest advice Staying focused on the basics Referral Working network capital discipline Infrastructure FRP frpadvisory.com 5
Slide 6: Revenue and underlying EBITDA growth
100.0 95.2 90.0 Underlying EBITDA * Revenue 79.0 80.0 70.0 £m 63.2 60.0 54.3 51.0 49.4 50.0 40.1 40.0 32.2 29.8 30.0 25.7 24.6 23.0 21.8 21.5 17.4 18.8 20.0 15.7 14.1 11.9 11.6 10.0 7.0 7.8 4.0 3.7 3.4 1.5 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 H1 23 ** * Adjusted for share-ba
Slide 7: H1 2023 financial highlights
(June 22 - £7.5m gross raise) *Adjusted for share-based payments, deemed remuneration and exceptional items, adjusted EPS also reflects deferred tax frpadvisory.com 7
Slide 8: Several high-profile appointments in the period
Several high-profile appointments in FRP Leigh on Sea, fully Continued investments to the period integrated and performing in improve the infrastructure and line with management operational efficiency: Appointed on more Government expectations. (Bridgeshield panels New CRM system, Acquisition April
Slide 9: Memberships and international network
Member of the International Association of Corporate Advisers (AICA) Corporate member of the IFT 8 International member frpadvisory.com 9 As at December 2022
Slide 10: Notable appointments and transactions
Successful claim by Additional FRP’s Scotland and London City Liquidator securing £100 million + FRP secured the £62 million sale of FRP Corporate Finance advised on the based teams advised on the sale of leading restaurant group Corbin & sale of data led programmatic agency judgement (subjecy to po
Slide 11: Market and team growth
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Slide 12: Key competitor analysis
Key competitor analysis a4 Domicile/ Conflict Conparsie Company Description Sector Finance Market free A offering sole Large Specialist UK YES Medium Yes Independent Small - “mi [BDO pwe Large _—_ 9 UK/Global NO Large Yes accountancy firms @ GrantThomton EY interpath PE backed ex big 4 UK/Global Yes
Slide 13: Rapid Response Unit (RRU)
Rapid Response Unit (RRU) frpadvisory.com 13
Slide 14: UK businesses facing disruption and instability
UK Businesses are facing disruption and economic Many troubled UK corporates have avoided the need to and market related instability: consider and implement formal restructuring processes Inflation/Input cost increases (energy, raw Administration market still considered artificial, materials, food,
Slide 15: UK company insolvency statistics
Total formal company 15,657 567 4% insolvencies (10% up on H1 22) (39% up on H1 22) (H1 2022: 3%) Total formal company 11,338 411 4% Source: London and Regional Gazettes insolvencies (excluding (35% up on H1 22) (50% up on H1 22) (H1 2022: 3%) Members Voluntary Liquidations) Administrations only 589
Slide 16: Corporate Finance and Debt Advisory
The FRP Corporate Finance brand was launched in July 2022 supported with a new dedicated corporate finance website to amalgamate the previous FRP Advisory, Spectrum Corporate Finance and JDC Corporate Finance brands. Our Corporate Finance and Debt Advisory colleagues had a strong H1 2023, advising o
Slide 17: Colleague numbers
Partners 80 80 76 Colleagues – fee 342 317 310 earners Total fee earners 422 397 386 Colleagues - support 114 107 99 Total (exc Consultants) 536 504 485 frpadvisory.com 17
Slide 18: Acquisition of APP, Cyprus
Type + team Share, 2 Partners + 14 Pillars Restructuring New Cyprus office, supports our ability to Rationale help on international matters with 8 international Builds on existing FRP/APP relationship Opportunities to support accelerated growth frpadvisory.com 18
Slide 19: Financials
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Slide 20: Underlying adjusted EBITDA reconciliation
£m H1 2023 H1 2022 FY 2022 Reported profit before tax (PBT) 5.4 5.7 15.1 Add interest, depreciation, amortisation 1.4 1.1 2.6 Reported EBITDA 6.8 6.8 17.7 Add exceptional items 0.3 - - Add share based payment expense relating to the Employee Incentive Plan 3.3 2.9 5.4 Add share based payment expense
Slide 21: Consolidated income statement
Unaudited Unaudited Audited 6 months ended 6 months ended Year Ended 31 Oct 22 31 Oct 21 30 Apr 22 Notes £ million £ million £ million Revenue 49.4 44.7 95.2 Pers onnel cos ts (32.3) (28.9) (58.8) Depreci a ti on a nd a morti s a ti on (1.2) (1.0) (2.1) Other opera ti ng expens es (10.0) (8.9) (18.7
Slide 22: Consolidated balance sheet
Restated Unaudited Unaudited Audited 6 months ended 6 months ended Year Ended 31 Oct 22 31 Oct 21 30 Apr 22 Notes £ million £ million £ million Non-current assets Goodwi l l 10.2 9.6 10.2 Other i nta ngi bl e a s s ets 0.7 0.7 0.7 Property, pl a nt a nd equi pment 2.7 2.5 2.8 Ri ght of us e a s s et
Slide 23: Consolidated cash flow statement
Unaudited Unaudited Audited 6 months ended 6 months ended Year Ended 31 Oct 22 31 Oct 21 30 Apr 22 £ million £ million £ million Cash flows from operating activities Profi t before taxa ti on 5.4 5.7 15.1 Depreci a ti on, a morti s a ti on a nd i mpa i rment (non ca s h) 1.2 1.0 2.1 Sha re ba s ed p
Slide 24: Work in progress and debtor days
WIP (£M) vs WIP as a % of Revenue FRP provides services on credit and mandates take on average five to seven months to complete, leading to a large unbilled revenue (work in 45.0 95% progress) balances. 40.0 35.0 90% Larger, more complex administration appointments are more remunerative 30.0 85% but
Slide 25: Outlook
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Slide 26: Outlook
FRP is a resilient business, with a track record of growth. The group has a strong balance sheet and a structure that provides a good level of flexibility to put forward the right team from the right locations for each project. Many troubled UK corporates have avoided the need to consider and implem
Slide 27: Q&A
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Slide 28: Questions
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Slide 29: Investment highlights
Consistent profitable growth Revenue CAGR of +15% since founding in 2010, with consistent high margins and profit growth year on year. Proven strategy Track record of organic growth supplemented by successful integration of highly selective acquisitions, regardless of the macro-economic conditions R
Slide 30: Service offering
Raising finance Pre-lending reviews Independent business reviews Administrations Management Raising finance Contingency planning Corporate restructuring buyout/buy-in Management buyout/buy-in Company valuations Contentious insolvency Company valuations Company valuations Special situation M&A Volunt