FRP Advisory Group – the latest Trading Update offers investors a cheaper buy chance, shares 132p, brokers TP’s up to 220p

Mark Watson-Mitchell
May 9
3 min read

09.05.2025

Yesterday the FRP Advisory Group (LON:FRP) issued a Full Year Trading Update for its year to end-April, with its Finals due to be announced on Wednesday 23rd July.

After a strong showing for its first three quarters of that trading year, it was hit by ‘macroeconomic volatility’ in its last three months.

That has, in due reaction, caused analyst estimates to be pulled back, but it also gives investors an opportunity to buy into some good corporate improvement that is expected in the current year.

The Business

FRP is a leading national specialist business advisory firm that was established in 2010.

It offers a range of advisory services to companies, lenders, investors and other stakeholders, as well as individuals.

Its services include: restructuring advisory; corporate finance; debt advisory; forensic services; and financial advisory.

Trading Update

Performance in the first nine months of the year was strong, with positive trading across each of the five service pillars, supported by significant contributions from The Body Shop and a large Corporate Finance project.

The final quarter of the financial year saw a marked increase in macroeconomic volatility, driven predominantly by US announcements regarding global trade tariffs, impacting business confidence and causing delays in decision-making.

Several Corporate Finance projects extended their completion date into FY 2026.

The Group expects to report FY 2025 revenues of approximately £152m, up 19% on the prior year (FY 2024: £128.2m), and adjusted underlying EBITDA of approximately £41m, up 11% on the prior year (FY 2024: £37.1m).

As at the end of April the group stated that it held net cash of some £32.0m (£29.7m), while it also had an undrawn £10m banking facility.

Management Comment

CEO Geoff Rowley stated that:

"Whilst the global and UK economies continue to be impacted by uncertainty, FRP remains well placed to continue to serve its clients across the entire economic cycle.

The medium-term outlook for our markets remains positive and we have sufficient resource flexibility to respond to an increase in demand for our services.

The Board is therefore confident of further growth and progress in the new financial year."

Broker Comment

Analyst Peter Renton, at Cavendish Capital Markets, eased back his end-April 2025 year predictions to show revenues of £152.0m (£128.2m), with adjusted pre-tax profits of £36.3m (£33.7m), generating earnings of 10.2p (9.9p) and paying a 5.2p (5.0p) dividend per share.

For the year just started his estimates suggest £164.0m revenues, £40.2m profits, 11.8p of earnings and a 5.4p dividend.

The group could well end this trading year with a £38.0m net cash position.

Renton has a Target Price of 200p on the shares.

Over at Berenberg, their analyst James Bayliss is also bullish about this group.

His Buy note has a 220p Target Price for the shares.

He considers that the strength of FRP has not been reflected by the market, stating that the numbers were impressive but earnings missed his own forecast after slippage on corporate finance project completions into full-year 2026 due to the fourth quarter macroeconomic volatility.

“While frustrating, we sympathise with the extreme volatility of markets around the time of the group’s year-end and expect that structural growth drivers in FRP’s core markets – insolvencies and restructuring – are stronger than ever.

We think the long-term opportunity is not at all reflected in a price/earnings of just 11.8 times.”

My View

I can understand why the analysts have such a bullish 200p to 220p Target Prices, because the group’s ability to keep on pushing forward with its revenues and profits is impressive, while its cash generation has to be admired.

Capitalised at £338m, with its shares now at 132p, I feel that FRP Advisory Group offers investors a good steady capital appreciation over the coming years.

I now set a new Target Price of 165p, which could be achieved before the year is out.