Market's view on Frp Advisory Group
Published on April 2024
- Concerns are raised regarding escalating insolvencies among larger firms, which falls within FRP’s specialty, suggesting good value at the current share price.
- Observations are made that insolvencies typically occur towards the end of an economic slowdown due to rising capital costs, which could benefit FRP’s mergers and acquisitions services, despite the share price not reflecting recent positive broker forecasts.
- FRP has been appointed as administrators for the Body Shop, marking one of their highest-profile contracts to date.
- FRP operates in a distinct market focusing on restructuring and refinancing solvent but suffering businesses, unlike competitors who focus on high-volume, low-value insolvency cases.
- Significant growth in fee income and EBITDA, along with a rise in administration numbers and market share, were highlighted in FRP’s stunning H1 results, suggesting a potential undervaluation of the company.
- FRP is seen as gaining momentum with forecasts adjusting positively and the company’s operational leverage considered beneficial.
- The acquisition of Wilson Field is deemed a strategic move allowing FRP to access smaller, volume-based insolvency cases and expand their geographical presence and service offerings.
- FRP is noted for consistent top performance in administration appointments, suggesting strong market dominance and potential underpricing of their stock.
- The company is praised for its punctuality in publishing financial reports, providing reliability and transparency to investors.
- An increase in market share in the administration market is noticed, indicating strong performance and future growth potential in the face of economic challenges in the UK.