Frp Advisory Group Plc · LSE:FRP
Frp Advisory — FY2024 Earnings Presentation
34 slides from Frp Advisory's earnings presentation, 2024
Slide 1: Full year results presentation
Slide 2: Presentation team and agenda
Presentation team Value proposition Highlights and strategy Market and team growth Financials Outlook Q&A Appendices
Slide 3: About FRP
ection one ae FRP |__| tee ERP
Slide 4: Our strategy centers on organic growth bolstered by strategic acquisitions
Our strategy centers on organic growth bolstered by strategic acquisitions, all underpinned by a collaborative, entrepreneurial, and meritocratic culture. Amidst increasing market activity and demand for advisory services, our client base is diversified (across geography and sectors) and continues t
Slide 5: Our five specialist service pillars and partner count
Our five specialist service pillars 63 Partners Corporate restructuring Corporate advisory Contentious insolvency Personal insolvency Solvent restructuring Creditor services Property Asset Management FRP 18 Partners M&A Advisory Strategic advisory and valuations Raising capital Special situations M&
Slide 6: Updated as of July 2024
102 750 30 Updated as of July 2024
Slide 7: Specialist services to support throughout a corporate's lifecycle
Specialist services to support throughout a corporate's lifecycle The average deal value of approximately £20 million for the year maintains FRP Corporate Finance's position in the heart of the lower mid-market. Just under half (43%) of the deals in FY 2024 involved private equity. Lexington Team ne
Slide 8: Highlights and strategy
Highlights and strategy
Slide 9: Financial highlights FY24
23% 37% 29% Revenue growth Adjusted* EBITDA growth Underlying adjusted EBITDA margin 19% organic FY 24: £37.1m FY 23: 26% FY 24: £128.2 million £29.7m 27% 9% Net cash FY 24 Adjusted total EPS of 9.94p Dividend growth FY23: 7.83p Undrawn RCF £10m and an acquisition Total Dividend 5.0p facility (Propo
Slide 10: Revenue CAGR over 13 years
140.0 15% 128.2 Underlying EBITDA Revenue 120.0 104.0 Revenue CAGR over 100.0 95.2 13 years 79.0 80.0 £m 63.2 60.0 40.1 51.0 54.3 19% 37.1 40.0 32.2 Revenue CAGR since IPO 29.8 27.0 21.8 21.5 24.6 23.0 25.7 in 2020 over 4 years 17.4 18.8 20.0 15.7 14.1 11.9 (14% to IPO in 2020 over 9 years) 7.0 7.8
Slide 11: Operational highlights
16%, #1 19% 5 months Restructuring team once again the most Consistent low attrition rates and positive Continued working capital focus, active by volume in the administration feedback from colleague engagement robust monthly WIP valuations appointment market, underpinned by FRP's survey and convers
Slide 12: Preserving and creating value
Preserving and creating value Pregervi }value for one of the UK's largest direct mailing businesses Supporting a premium health club through a ERP complex debt restructure Providing comfort to the delisting and acquisition ofa listed retail business NN “4 % A. sale hs he Tra Centre to the Mezzanine
Slide 13: Recent client assignments
FRP’s Restructuring Restructuring Advisory team from across eight offices, Adviser to a leading solar Norwich coffee franchise now FRP-led Restructuring FRP’s Debt Advisory team Advisory team secures energy generation business, closer to their goal of 100 Plan provides Clintons appointed by market l
Slide 14: Market and team growth
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Slide 15: Insolvency and administration appointments
Insolvency Appointments* Administration Only Appointments 6.0% 25,000 18.0% 2,000 16.0% 1,800 5.0% 20,000 1,600 14.0% 1,400 4.0% 12.0% 15,000 1,200 10.0% 3.0% 1,000 8.0% 10,000 800 2.0% 6.0% 600 4.0% 400 5,000 1.0% 2.0% 200 0.0% 0 0.0% 0 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 20
Slide 16: Acquisitions and new locations
Share, 2 Partners + Share, 1 Partner +8 Share, 4 partners + 36 colleagues Share, 1 partner + 14 colleagues 61 colleagues colleagues Restructuring Restructuring Debt Advisory Corporate Finance New source of work New location, strengthens Deepens asset backed lender (ABL) Wales was a target region for
Slide 17: Colleague & utilisation growth year on year
Heads as at year ended 30th April Colleague & utilisation growth year on year 2020 2021 2022 2023 2024 700 70% Partners 51 73 80 78 92 Fee earners 230 288 317 361 430 600 68% Subtotal - Fee earners 281 361 397 439 522 500 66% Support 70 96 107 112 135 400 64% Total Colleagues (exc consultants) 351 4
Slide 18: Promotions and new Board members
During the year we promoted 15 colleagues to Partners, 13 to Directors and announced a further 72 promotions across a wide range of senior and specialist roles, from Office Managers to Associate Directors/Senior Managers. Immediately following the year-end, on 1 May 2024, 7 further promotions to Par
Slide 19: Recent colleague engagement survey results
Recent colleague engagement survey results 84% of employees said they would be proud to recommend FRP as a great place to work. That is a strong validation of the internal culture On average colleagues voted 8/10 that their achievements at work was worthwhile and this is a key contributor to emotion
Slide 20: Financials
Financials
Slide 21: Income statement
Year Ended Year Ended 30 April 2024 30 April 2023 £'million £'million 23%, of which 19% was organic Revenue 128.2 104.0 Personnel costs (69.6) (64.3) ▪ 106 new colleagues split between acquisitions and lateral hires. Depreciation and amortisation (2.8) (2.5) ▪ Salary increases (promotions and pay ri
Slide 22: Adjusted underlying EBITDA reconciliation
£m 2024 2023 Reported profit before tax (PBT) 29.9 15.6 Add back deprecation, amortisation and interest 3.4 2.9 Reported EBITDA 33.3 18.5 Add share based payment expense relating to the Employee Incentive Plan (EIP) 2.2 6.3 Add share based payment expense - Deemed remuneration 1.6 2.1 Add exceptiona
Slide 23: Balance sheet
As at 30 April As at 30 April 2024 2023 £'million £'million Goodwill and intangibles increase as a result of acquisitions. Total non-current assets 27.2 22.9 Strong financial position with net cash of £29.7 million as at 30 Current assets April 24. Trade and other receivables 70.2 58.3 Cash and cash
Slide 24: Cash flow statement
Year Ended Year Ended 30 April 2024 30 April 2023 £'million £'million Cash flows from operating activities Profit before taxation 29.9 15.6 Depreciation, amortisation and impairment (non cash) 2.8 2.5 Share based payments: employee options 2.2 6.3 Share based payments: deemed remuneration 1.6 2.1 Ne
Slide 25: Capital allocation
Capital allocation 1. Investment in the Group to drive continued organic growth 2. Selective acquisitions in line with criteria (culture, strategy & economic fit) 3. Quarterly dividends in line with policy Any other distribution of capital to be determined FRP
Slide 26: Outlook
Our strategy is built around steady and sustainable growth through both organic initiatives and selective acquisition opportunities. Part of the organic growth strategy is to ensure that FRP's offices, across its 28 locations in the UK and two international locations, are connected and work well tog
Slide 27: Q&A
Q&A
Slide 28: Appendices
Appendices
Slide 29: WIP vs WIP as a % of revenue
WIP (£M) vs WIP as a % of Revenue 60.0 60% 50.0 50% 40.0 40% £m 30.0 30% 20.0 20% FRP provides services on credit and mandates 10.0 10% take on average five to seven months to 0.0 0% complete, leading to a large unbilled revenue £M £M £M £M £M £M £M £M (work in progress) balances. Larger, more FY17
Slide 30: Cash collections H1 vs H2
Cash Collections H1 Vs H2 Revenue & Cash Collections (£M) 70.0 140.0 60.0 120.0 50.0 100.0 40.0 £m 80.0 30.0 £m 60.0 20.0 40.0 10.0 20.0 0.0 £M £M £M £M £M £M £M £M 0.0 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 H1 (Ex Vat) H2 (Ex Vat) Revenue Cash Collected (Ex
Slide 31: Key competitors
Key competitors ee a Domicile/ | Conflict SeipoeD ease cesiia Market free eins offering Large FRP peciolist UK YES Medium YES epence! Small [BDO owe Large accountancy UK/Global NO Large YES © conetronton firms interpath ; P PEbackedexbid — Yx/Global YES Large ves fiTeneo 4 Oecsties Taynor . - Medium
Slide 32: Growing referral network
Growing referral network Investors inc PE Government /Regulatory bodies Lawyers FRP
Slide 33: Recent acquisitions and team hires
Newcastle restructuring team – adding to Glasgow team hire - FRP opened a new Wilson Field - The acquisition GWC - Based in the Isle of Man our existing office office in Glasgow, bringing the firms strengthened our Restructuring providing restructuring services to Scottish office count to four, foll
Slide 34: FRP
FRP frpadvisory.com