We initiate coverage on FRP, which is rapidly taking share in the UK mid-market for advisory services. A 9-year revenue CAGR of 13.1% during a decade of declining market insolvencies and administrations is impressive and suggests to us that FRP is more than just a counter-cyclical play. The corporate finance team, in particular, is growing quickly and should contribute c.20% of revenues in FY 22. Limited conflicts of interest, a strong referral network and growing reputation make FRP the firm of choice on small, mid-market and increasingly high profile mandates. Superior financial metrics imply FRP should trade at a premium to peers. BUY, TP 170p.
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