Good morning, it’s Paul here with the SCVR for Friday.

Timing - I’ll be focused on this all morning, so should be done by lunchtime. There’s not much fresh news, but I have plenty of backlog items to catch up on.

Agenda -

Frp Advisory (LON:FRP) (I hold) - Trading update looks good - ahead of expectations

Jet2 (LON:JET2) - another fundraising. I use this as an example to warn of the dangers of dilution.

Fulham Shore (LON:FUL) - Trading update from earlier this week. Takeaway/delivery doing well. Expansion resuming.

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Frp Advisory (LON:FRP)

(I hold)

100p (pre market open) - mkt cap £240m

FRP Advisory Group plc, a leading UK professional services firm specialising in advisory services, today announces a trading update for the nine months to 31 January 2021.

That means it has an unusual 30 April 2021 year end.

It’s mainly an insolvency practitioner.

Exceeding market expectations - good news here -

The Board is pleased with the continued progress made over the first nine months of the Group's financial year, despite the significant levels of government support and reduced levels of both corporate insolvency and administration appointments across the market. As such, at current trading levels, the Board now expects to exceed current market expectations1, with revenues of at least £75 million and adjusted2 EBITDA of at least £21 million.
1. The Group believes that current consensus market expectations for revenue and adjusted EBITDA average £72m and £19.2m respectively for FY21
2. Adjusted for share based payments including deemed remuneration and exceptional costs.

That’s a good beat, about 10%, although why are they quoting adj EBITDA? I wish companies would report adj EPS, because that’s a much simpler number, which reflects reality, and means we can quickly work out the PER.

EBITDA is not a useful measure to me, because it ignores so many important, real world cash outflows (e.g. interest, tax, capex).

As Andy Brough pointed out in a recent PIWorld interview (a must-watch if you haven’t already seen it), he’s convinced that EBITDA was invented by Americans after Big Bang, to justify higher valuations! I don't think he was joking, maybe slightly, but it's difficult to tell. Here it is again -

Broker update - many thanks to James Fletcher at Cenkos, his…

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