FRP Advisory has reported that its pre-tax profits dropped 9% year-on-year from £16.6m to £15.1m for the year ended 30 April 2022 (FY22), despite revenues rising 21% from £79m to £95.2m.
The revenue increase was driven by 11% organic growth and 10% growth from acquisitions, however a 2% increase in interest rates led to profits dropping by £0.2m.
Meanwhile, revenue per partner for the year increased 9% from £1.1m to £1.2m, and adjusted underlying EBITDA rose by 12% from £23m to £25.7m.
In FY22, FRP welcomed 66 new colleagues and the overall headcount grew 15% to 504 in the year, and the partner cohort expanded by 7 to 80.
Additionally, the Corporate Finance and Debt Advisory teams were involved in 99 transactions with an aggregate deal value of £3bn and £1.3bn of debt raised.
FRP said the board believes the medium-term outlook for all the group’s markets is positive, and trading since 1 May 2022 is in line with the board’s expectations.
Geoff Rowley, CEO of FRP Advisory Group plc, said: “I am pleased to report another year of profitable growth. FRP is a resilient business, with a track record of growth regardless of the economic conditions.
“Uncertainties still remain over how long troubled businesses can continue in their current form or how proactive key creditors like HMRC and institutional lenders will be in addressing overdue debts.”
He added: “Following the removal of government support, inflationary pressures and other disruptive forces, the group has seen an increase in the level of enquiries for restructuring services in recent months.”