Professional services company FPR Advisory has reported a 26% drop in insolvency appointments over the past 12 months.
According to the firm’s full trading year update, this dip is due to the various support measures made available by the UK government in response to Covid-19.
In its first full year as a plc, the business is expected to report revenues of £79m, up 25% from the £63.2m it generated in the 2019/20 financial year. This exceeds the guidance in FPR Advisory’s 12 February 2021 trading update.
This growth has been driven, in part, by its corporate finance team, which has seen it play an advisory role in deals such as Italian food chain Prezzo’s sale to investment firm Cain International.
Commenting on the update, Geoff Rowley, chief executive of FRP Advisory, said: “There is continued uncertainty around the shape and scale of the nationwide recovery following the economic impacts of the Covid-19 pandemic. FRP’s resilient business model is well positioned to help clients throughout their lifecycle, in addressing both their strategic ambitions, as pent-up liquidity is deployed and being available to help as challenges arise.
“The medium-term outlook for our market remains positive and we have sufficient resource flexibility to service an increase in demand. The board remains confident of making further progress in the upcoming financial year.”
On 26 February 2021, FPR Advisory acquired Spectrum Corporate Finance for £9.4m, which required a temporary draw from a £10m revolving credit facility (RCF) it has with Barclays Bank.
Post completion of the deal on 25 March 2021, it entered into a structured acquisition finance term loan facility with Barclays. £8m was drawn from this, the temporary RCF draw was repaid and this term loan will be repaid over five years in 20 quarterly instalments.