Premium content from Motley Fool Hidden Winners UK
Our monthly Best Buys Now are designed to highlight our team’s three favourite, most timely Buys from our growing list of small-cap recommendations, to help Fools build out their stock portfolios.
“Best Buys Now” Pick #1:
FRP Advisory (LSE:FRP)
Why we like it: “FRP Advisory (LSE: FRP) is a corporate restructuring expert that benefits when economic times are tough and more businesses need restructuring or enter administration. This is the core of FRP’s business and the area where the majority of its 101 partners practice. FRP Advisory started life as an independent company when its former parent Vantis succumbed to high debts it had built up trying to consolidate the UK accountancy market. A bruising start to life for the independent business and for the 28 partners who bought out the firm. But they’ve since done well for themselves, expanding revenue from just shy of £28m in 2010 to over £128m last year.
“We think in this economic environment that counter-cyclical exposure is valuable, especially when paired with the company’s other growth areas from forensic accounting to debt issuance and equity investments. With a proven track record of growth throughout the economic cycle, steady profits and cash flow, and short-term income prospects, now could be an ideal time to look closer at FRP Advisory.”
Why we like it now: In its recent trading update, FRP Advisory expects to report revenue of £152 million for the financial year ended 30 April 2025, representing a 19% year-on-year increase. During the year, the firm completed five acquisitions, all of which are progressing well in terms of integration. The most recent acquisition—One Advisory—is expected to contribute approximately £4.9 million in annual revenue and £1.1 million in adjusted EBITDA on a forward-looking basis. FRP has established a strong track record of delivering profitable growth across the economic cycle. The outlook for all of its core markets remains positive, and the team is confident in its ability to continue making progress in the new financial year. At present, FRP trades at a price-to-earnings ratio of 12x and offers a dividend yield of 3.9%, which we view as attractive given the company’s consistent performance and growth potential.
