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 108 partners practice. FRP 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. The 28 partners who bought out the firm have since done well for themselves, expanding revenue from just shy of £28m in 2010 to over £152m last year.
“We think counter-cyclical exposure is valuable In portfolios as a diversifier, 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 at FRP Advisory.”
Why we like it now: FRP Advisory presents a compelling investment opportunity following its robust full-year results ending 30 April 2025. The company achieved 19% revenue growth to £152.2m, driven by 11% organic growth and 8% from strategic acquisitions, with adjusted EBITDA rising 11% to £41.3m. Its diversified service lines, particularly its leading 13% share in UK administration appointments and a strengthened corporate finance arm, underscore its market resilience. Despite economic and geopolitical uncertainties, FRP’s 21% headcount increase to 795 and net cash position of £33.3m reflect financial stability and growth capacity. The proposed 5.4p dividend (up from 5p) and an 8% rise in adjusted earnings per share to 10.7p further enhance its appeal.
