13th Feb 2023 10:16
(Alliance News) - FRP Advisory Group PLC on Monday said it expects to see a rise in insolvencies in the UK as companies continue to suffer from inflation and increased costs of borrowing.
Turning to its own business results, the London-based business advisory firm said that, for the nine months to January 31, it expects revenue and adjusted earnings before interest, tax, depreciation and amortisation to be "broadly" in line with the consensus for financial year 2023.
FRP said it anticipates more activity in the higher-value restructuring and administration market in 2023, but noted that volumes are yet to recover to pre-Covid levels.
FRP noted it has "seen an increase in the number of liquidation mandates in line with the widely reported increase in the overall number of insolvencies for companies during 2022".
In 2022, total insolvencies in England & Wales rose by 57% to 22,109 from 14,059 in 2021, the UK government's Insolvency Service said at the end of January. Administrations increased 55% to 1,231 from 796.
FRP Advisory declared a third-quarter dividend of 0.85 pence per share, up 6.3% from 0.80p a year ago.
The company will release its results for the financial year to April 30 in mid-May.
FRP Advisory shares were 2.7% lower at 142.10 pence each in London on Monday morning.
By Tom Budszus, Alliance News reporter
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