FRP Advisory Posts 12% Revenue Growth, Expands Service Pillars with Strategic Moves

Strategic moves: a broader, stickier platform

Arc & Co and the launch of Real Estate Advisory

Arc & Co joined in November. FRP plans to combine Arc & Co’s real estate expertise with its existing cross-pillar property specialists to form a sixth pillar – Real Estate Advisory. In practical terms, it adds another door-opener to client situations where property, debt and restructuring intersect.

Queens Tower Advisory investment

FRP made a £3 million founding investment for a 25% stake in Queens Tower Advisory, a technology-enabled strategy and transactions platform primarily serving larger private equity firms. FRP’s share of QTA’s loss was £0.2 million in the half, which is normal for a start-up phase while recruitment and operations bed in.

People, productivity and capacity

Headcount rose to 861 (up 11% year on year) with fee earners at 672 (up 9%). Revenue per Partner for six months increased to £0.9 million (up 19%), indicating good leverage. Colleague utilisation – the proportion of time worked on client matters – was 65% versus 69% last year. That’s a nudge lower, likely reflecting capacity added ahead of expected demand. If the pipeline converts, utilisation should improve.

Cash, balance sheet and working capital

FRP ended the period with £16.5 million net cash (gross cash £22.3 million, structured debt £5.8 million). There is also an undrawn £10 million revolving credit facility and £7.8 million remaining in an accordion acquisition facility. An “accordion” lets the company increase its borrowing limit on pre-agreed terms – helpful dry powder for selective deals.

Cash collection was strong at £81.0 million (+15%). Operating cash flow for the half was £1.6 million, held back by working capital investment as receivables and unbilled revenue grew with activity. Work in progress (WIP – work done but not yet billed) rose to £73.9 million from £65.9 million, in line with management’s expectations. Debtors growth was in line with revenue, though >90 day receivables did tick up to £4.2 million from £2.3 million – one to watch, albeit from a modest base.

Dividend and outlook

The Board declared a Q2 2026 dividend of 1.0p, taking H1 dividends to 2.0p (up 5%). Cash returns are underpinned by the balance sheet and cash generation, though timing of cash conversion can vary with case mix.

Management says the pipeline is encouraging across all pillars and remains confident of achieving full year expectations, assuming activity levels continue. Company-compiled consensus for FY 2026 is revenue of £164.2 million and adjusted EBITDA of £44.8 million.

My take: resilient now, optionality building for the upturn

• Positives: double-digit revenue growth against a tough comparator; stable profits; rising revenue per Partner; cash collections strong; undrawn facilities provide firepower; new Real Estate Advisory pillar should deepen client coverage; disciplined, accretive M&A continues.
• Watchpoints: EBITDA up only 3% suggests some margin pressure from mix and investment; utilisation slipped to 65%; administration appointments fell with the market; Corporate Finance volumes are still subdued; operating cash flow was modest due to working capital build; >90 day receivables edged higher.
• Why it matters: FRP’s multi-pillar model is designed to perform through cycles. Restructuring tends to underpin tougher periods, while Corporate Finance and Debt Advisory benefit more when dealmaking and credit thaw. The added Real Estate capability should create more cross-sell and stickier mandates.

What to watch into H2 2026

• Conversion of the Corporate Finance pipeline and any recovery in debt markets and M&A volumes.
• Restructuring demand following the Autumn Budget, especially across retail and hospitality.
• Utilisation improvement as new hires and acquired teams are fully deployed.
• WIP and debtor trends, particularly ageing, as a signal for cash conversion cadence.
• Further selective acquisitions using the undrawn RCF and accordion facility.

Bottom line

This is a steady, well-executed half from FRP. Revenue growth is healthy, profits are edging up, and the balance sheet gives management room to keep compounding via talent and targeted deals. If the pipeline converts and markets stabilise, there’s scope for operating leverage to improve. For income-minded holders, the dividend is nudging higher, and for long-term investors, the platform is quietly getting broader and stronger.