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FRP Advisory Group PLC on Friday upped its dividend despite profit falling on widening personnel costs and operating expenses, as it warned of over-due debts and uncertainties.
FRP Advisory is a London-based corporate finance, restructuring and debt adviser.
In its financial year that ended April 30, pretax profit declined 9.0% to £15.1 million from £16.6 million a year before. Revenue however grew 21% to £95.2 million from £79.0 million.
FRP Advisory increased its total dividend by 4.9% to 4.3 pence per share from 4.1p the prior financial year.
Revenue growth was offset by widening costs. Personnel costs increased by 26% to £58.8 million from £46.6 million. Other operating expenses grew 33% to £18.6 million from £14.0 million. Depreciation and amortisation was £2.1 million, up from £1.6 million.
‘Uncertainties still remain over how long troubled businesses can continue in their current form or how proactive key creditors like HM Revenue & Customs and institutional lenders will be on addressing over-due debts. 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,’ FRP Advisory said.
Despite this, it kept an optimistic outlook.
‘The medium-term outlook for our key markets remains positive,’ FRP Advisory said.
‘Our corporate finance team have an excellent pipeline to help clients realise their strategic ambitions. Despite softening in the capital markets, mid-market merger & acquisition activity levels are strong with institutional lenders and private equity well financed with significant capital to deploy; plus there is also considerable overseas interest in UK assets.’
Trading since May has been in line with expectations, the company said.
FRP Advisory shares fell 7.6% to 139.50 pence each in London on Friday morning.
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