FRP Advisory H1 2026: Double-digit revenue growth, steady profits, and a sixth pillar on the way
FRP Advisory Group has posted a solid first half for the six months to 31 October 2025. Revenue rose 12% to £87.1 million, with profits and cash staying resilient despite a tougher M&A and lending backdrop. The strategy is clear: grow organically, keep adding quality people, and bolt on specialist capability where it enhances the platform.
There’s also a new service line coming. Following the acquisition of Arc & Co in November, FRP intends to launch a sixth pillar – Real Estate Advisory – to sit alongside Restructuring, Corporate Finance, Debt Advisory, Financial Advisory and Forensic Services. That broadens the offering and should deepen client relationships across the cycle.
Key numbers that matter to investors
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue | £87.1m | £77.6m | +12% (5% organic, 7% acquired) |
| Underlying adjusted EBITDA (see note) | £23.0m | £22.3m | +3% |
| Adjusted profit before tax | £21.1m | £20.3m | +4% |
| Reported profit before tax | £18.3m | £17.8m | +3% |
| Adjusted total EPS | 6.11p | 5.97p | +2% |
| Net cash | £16.5m | £13.3m | +24% |
| Cash collection | £81.0m | £70.6m | +15% |
| Interim dividends (H1 total) | 2.0p | 1.9p | +5% |
Note: EBITDA is earnings before interest, tax, depreciation and amortisation. “Underlying adjusted” here strips out non-cash share-based charges.
What drove the half-year performance
Restructuring: market share held as administrations dipped
FRP remained the top administration appointment taker by volume, with market share steady at 12%. The total market for administrations fell 5%, and FRP’s own administration appointments dropped to 87 (from 98) alongside that trend. Management expects demand to rise after the 2025 Autumn Budget, particularly if retail and hospitality see a softer-than-needed “golden quarter”.
Corporate Finance and Debt Advisory: fewer deals, still winning mandates
The market-wide slowdown in lending, M&A and equity raises weighed on volumes: 31 transactions advised on, with a combined value of £682 million and £128 million of debt raised (H1 2025: 46, £1 billion and £432 million). Despite that, FRP continued to win quality mandates, expanded to Liverpool, added a Corporate Finance pillar in Leeds, and hired a head of private equity coverage. The H2 2026 pipeline is described as robust.
Financial Advisory and Forensics: steady to buoyant
Financial Advisory saw an uptick in buy-side, sell-side and pre-lend due diligence, and steady valuations work. One Advisory Group was acquired, adding governance advisory (including company secretarial duties), financial reporting and pre-IPO services, plus 40 colleagues and three Partners. Forensic Services remained busy across litigation, investigations and insolvency-related matters, with a new team in Manchester to strengthen northern coverage.
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.
