FRP Advisory Group Plc (FRP) AI Stock Analysis

• Market Cap: £307.98M
• Dividend Yield: 2.29%
• Average Volume (3M): 829.72K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.25
• Revenue Growth: 29.83%
• EPS Growth: 60.50%
• Country: UK
• Employees: 777
• Sector: Financial
• Sector Strength: 82
• Industry: Financial - Capital Markets
• EPS (TTM): 0.11
• Shares Outstanding: 257,833,440
• 10 Day Avg. Volume: 902,884
• 30 Day Avg. Volume: 829,717
• PEG Ratio: -3.05
• Price to Book (P/B): 3.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £207.50
• Price Target Upside: 68.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: 149.00p ▲(20.65%Upside)

FRP Advisory Group Plc scores 77 due to its strong financial performance and positive corporate events, such as strategic acquisitions. The valuation is fair, providing a reasonable return to investors. However, technical indicators suggest some caution is necessary. The company's robust financial health and strategic moves position it well for future growth.

Positive Factors

Acquisition

FRP has acquired One Advisory Group, expanding its transactional service offering and adding new governance advisory capabilities.

Earnings

FRP's recent trading update indicates that its adjusted EBITDA is expected to surpass market expectations, showcasing strong performance across its service pillars.

Valuation

The current valuation of FRP is considered attractive with a one-year forward P/E of approximately 12x, making it an appealing investment.

Negative Factors

Economic Conditions

The favorable outlook in the Restructuring Advisory market is driven by demand pressures, rising employer costs, and subdued GDP growth.

FRP Advisory Group Plc Business Overview & Revenue Model

Company Description

FRP Advisory Group plc, through its subsidiaries, provides business advisory services to companies, lenders, investors, individuals, and other stakeholders. The company's services include corporate finance advisory services comprising mergers and acquisitions (M&A), strategic advisory and valuations, capital raising, special situations M&A, partial exits, and financial due diligence; and debt advisory services, such as asset based lending, raising and refinancing debt, debt amendments and extensions, restructuring debt, and corporate and leveraged debt advisory. Its services also comprise forensic services, including forensic investigations, dispute, compliance and risk advisory, and forensic technology services; pensions advisory services comprising covenant advisory, corporate governance, pension scheme transaction advisory, and pension scheme restructuring advisory; and restructuring advisory services, such as corporate financial advisory, formal insolvency appointments, informal restructuring advisory, personal insolvency, and general advice to various stakeholders. The company was founded in 2010 and is based in London, the United Kingdom.

How the Company Makes Money

FRP Advisory Group Plc generates revenue primarily through its advisory services across various sectors. The firm's key revenue streams include fees charged for insolvency and restructuring services, where they assist companies in financial distress with turnaround strategies and managing insolvency processes. Additionally, FRP earns from corporate finance services, helping businesses with mergers, acquisitions, and capital raising. Debt advisory and forensic accounting services also contribute to their earnings, providing solutions for debt restructuring and offering investigative accounting services. The company's ability to form significant partnerships with financial institutions and law firms enhances its market presence and client base, further contributing to its financial success.

FRP Advisory Group Plc Financial Statement Overview

Summary

FRP Advisory Group Plc exhibits strong financial performance. The income statement shows impressive revenue growth and high profitability margins. The balance sheet is robust, with low leverage and high equity, while the cash flow statement reflects strong free cash flow growth and effective cash conversion. The company is well-positioned for continued stability and growth in the capital markets industry.

Income Statement

FRP Advisory Group Plc has shown impressive revenue growth, with a 23.27% increase in the most recent year. The gross profit margin stands at 45.71%, indicating strong profitability. The net profit margin of 17.16% and EBIT margin of 23.79% further highlight effective cost management and profitability. Overall, the company demonstrates robust growth and profitability.

Balance Sheet

The company's balance sheet reflects a healthy equity position with a debt-to-equity ratio of 0.15, suggesting low leverage and financial stability. The equity ratio of 59.77% indicates a strong equity base relative to total assets. Return on equity is strong at 28.24%, showcasing effective use of shareholder funds. Overall, the balance sheet is solid, with low risk due to minimal debt.

Cash Flow

FRP Advisory Group Plc has demonstrated significant free cash flow growth of 144.55% over the past year. The operating cash flow to net income ratio of 1.16 indicates a good conversion of income into cash. The free cash flow to net income ratio of 1.12 shows effective cash management. Overall, the cash flow position is strong, supporting ongoing operations and potential investments.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	147.10M	128.20M	104.00M	95.16M	78.99M	63.19M
Gross Profit	67.60M	58.60M	39.70M	36.36M	32.41M	20.50M
EBITDA	38.10M	33.30M	18.60M	17.74M	18.39M	6.23M
Net Income	26.30M	22.00M	12.70M	11.90M	13.61M	2.08M
Balance Sheet
Total Assets	146.90M	130.30M	108.90M	93.47M	83.84M	61.63M
Cash, Cash Equivalents and Short-Term Investments	22.20M	32.90M	27.70M	24.92M	24.38M	21.31M
Total Debt	16.80M	11.30M	11.30M	13.08M	11.64M	4.20M
Total Liabilities	61.20M	52.40M	45.80M	48.95M	51.85M	41.12M
Stockholders Equity	85.70M	77.90M	63.10M	44.52M	31.99M	20.50M
Cash Flow
Free Cash Flow	27.10M	24.70M	10.10M	16.46M	9.42M	1.75M
Operating Cash Flow	28.40M	25.60M	10.70M	17.86M	10.54M	2.46M
Investing Cash Flow	-12.10M	-5.10M	-2.20M	-5.78M	-13.32M	-707.00K
Financing Cash Flow	-9.80M	-15.30M	-5.70M	-11.54M	5.86M	14.61M

FRP Advisory Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 123.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRP, the sentiment is Negative. The current price of 123.5 is below the 20-day moving average (MA) of 124.08, below the 50-day MA of 127.23, and below the 200-day MA of 135.28, indicating a bearish trend. The MACD of -0.86 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FRP.

FRP Advisory Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRP	77 Outperform	£307.98M	11.30	34.33%	2.29%	29.83%	60.50%
Sector *	62 Neutral	AU$9.88B	7.94	10.79%	5.20%	32.02%	38.31%
CBGPF		$809.46M	5.88	-6.71%	―	―	―
CAV	61 Neutral	£52.57M	61.30	1.93%	8.51%	108.96%	67.62%
TAVI	54 Neutral	£18.96M	―	-6.24%	2.09%	3.68%	-800.00%
PEEL	49 Neutral	£114.33M	―	-3.06%	―	15.48%	23.67%
WHI	42 Neutral	£5.12M	―		―	―	―

FRP Advisory Group Plc Corporate Events

FRP Advisory Group Announces Total Voting Rights

FRP Advisory Group plc announced that it has 257,833,422 ordinary shares in issue, each carrying one vote, with no shares held in treasury. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:FRP) stock is a Buy with a £220.00 price target. To see the full list of analyst forecasts on FRP Advisory Group Plc stock, see the GB:FRP Stock Forecast page.

FRP Advisory Group Expands with Acquisition of One Advisory

FRP Advisory Group Plc has announced the acquisition of One Advisory Group for a total consideration of approximately £8.1 million, comprising cash and new ordinary shares. This acquisition aligns with FRP’s strategy to enhance its service offerings and expand its market presence. One Advisory, based in London, specializes in financial reporting, transaction advisory, and governance services, primarily serving clients listed on the London Stock Exchange. The acquisition is expected to contribute an annual revenue of approximately £4.9 million to FRP, strengthening its position in the financial advisory sector and providing a platform for further growth.

FRP Advisory Group Reports Strong FY 2025 Performance Amid Economic Volatility

FRP Advisory Group plc reported strong trading performance for the fiscal year ending April 2025, with revenues expected to rise by 19% to approximately £152 million and adjusted EBITDA up 11% to about £41 million. Despite macroeconomic volatility affecting business confidence and delaying some corporate finance projects, the company maintained a robust balance sheet and completed five acquisitions. The firm is poised for further growth, supported by a positive market outlook and its ability to assist clients through economic changes, particularly in sectors facing financial difficulties due to recent UK economic policies.

FRP Advisory Group Updates on Director’s Role in Burrington Estates Liquidation

FRP Advisory Group PLC announced an update regarding director disclosures under AIM Rules, highlighting the involvement of David Chubb in the administration and liquidation processes of several companies within the Burrington Estates Group. This development may impact FRP’s operations and its positioning in the business advisory industry, as it reflects the firm’s active role in managing complex insolvency and restructuring cases, potentially affecting stakeholders involved with the Burrington Estates Group.

FRP Advisory Group Director Increases Shareholding

FRP Advisory Group plc announced that David Chubb, a Non-Executive Director, has purchased 22,871 ordinary shares in the company, increasing his total holdings to 56,621 shares. This transaction reflects a minor increase in shareholding, representing approximately 0.02% of the company’s issued share capital, and is part of routine director dealings, with no immediate impact on the company’s operations or market position.