Interpath Advisory, the financial advisory business, saw revenues climb by 23% during its financial year ending 31 March 2023 as the firm built upon its 50-year heritage in the restructuring and turnaround market, and continued its expansion into new territories and service offerings.
Topline revenues reached £142.6m during the firm’s second year of trading, up from £115.5m for the 11-month period to 31 March 2022, and with an adjusted EBITDA of £41.6m, up 18% on the previous period.
Commenting on Interpath’s financial performance for the year ended 31 March 2023, Blair Nimmo, chief executive officer of Interpath Advisory said:
“We made strong progress during our second year of trading, cementing our position as the UK’s largest privately-owned restructuring business, scaling our wider advisory capabilities and expanding internationally. I’m particularly proud of our brilliant people, who continue to support and guide our clients through a challenging economic environment, helping them to create, protect, preserve, sustain and grow value.”
The firm has continued to invest in its people, with headcount now standing at 71 managing directors and 670 staff, spanning four jurisdictions.
Momentum in Restructuring
Interpath’s market-leading Restructuring practice remains at the core of the business, delivering revenues of £115.7m during the period.
With ongoing economic uncertainty resulting in a steady uptick in the number of companies requiring specialist restructuring support, its UK team has significantly grown its market share in administration appointments.
In recent months, the team has led on high-profile client engagements including being appointed administrator to uPVC windows manufacturer and retailer Safestyle UK; completing the pre-pack sale of Hotter Shoes; being appointed administrator of Tuffnells Parcels Express Limited; and the administration of the short-term consumer loan company, Morses Club.
Growth in Advisory
In addition to its established restructuring, insolvency and turnaround capabilities, Interpath saw its Advisory business grow rapidly during this, its first full year of trading, cementing Interpath’s position as a truly multi-disciplinary advisory firm.
Revenues for Advisory reached £26.9m. This performance was underpinned by a series of strategic investments in this part of the business during the financial year, including the recruitment of a number of senior hires including Emma Baylis (Tax), Chris Hall (Debt Advisory), David Mitchell (Valuations), Alex Dunstan-Lee (Data & Technology) Federica Taccogna (Financial Crime) and Nigel Webb (Financial Crime), and the promotions to managing director of Steve Bunn (Transaction Services) and Nathan McCarthy (Value Creation).
Over the course of the 2023 calendar year, Interpath’s Deals Teams have advised on high-profile transactions including the sale of D&D London to Calveton and Breal Capital; the refinancings of GRS Group and Superdry; as well as advising on transactions for both PE houses and corporate clients, including LDC, BGF, PSG Equity, Longacre Group, Epiris, Davidson Kempner, and Bunzl.
More recently, the Deals team has further welcomed managing directors including Heath Snyder (Corporate Finance), Louise Smith (Transactions Services) and Kelly Klein (Valuations) and celebrated the promotion of Stuart Reid (Value Creation) and Matthew Townsend (Transaction Services), while the Tax team welcomed the arrival of real estate expert Matthew Roach alongside the promotion to managing director of Rob Trill.
Looking ahead to Spring 2024, the firm is set to welcome experienced corporate financier Nick Parkhouse to lead its Financial Services Deal Advisory offering in the UK, as well as a number of other managing directors spanning Value Creation, Tax, Deal Advisory, and Debt Advisory.
International Expansion
FY23 saw Interpath expand internationally, opening three offices in Ireland (Dublin, Belfast and Cork), in addition to its acquisition of the advisory firm, Kalo Caribbean which has operations in BVI and Cayman Islands.
Since launching in late 2022, Interpath’s multi-disciplinary team in Ireland has grown rapidly and now comprises circa 69 people. Its Restructuring business is led by some the country’s preeminent restructuring professionals including Kieran Wallace, Ken Fennell, Mark Degnan, Andrew O’Leary and Eamonn Richardson, while its Advisory team includes experienced corporate financier Liam Booth and forensic specialist, Paul Hough. Looking ahead to 2024, the team is expected to expand into new services lines including tax and real estate debt advisory.
Its established teams in BVI and Cayman have acted as receivers in relation to the significant Port Link GP Ltd and The Port Fund LP entities; the successful restructuring of the All Year property portfolio valued in the region of $850m; as well as the provisional liquidation of the crypto trading and market-making firms Auros Tech and Auros Global, and the liquidation of Three Arrows Fund, a feeder fund of Three Arrows Capital. Further, the region is facilitating growth for the valuations practice with a strategic local hire and new engagements to provide expert testimony and shadow expert roles in large shareholder dissenter applications.
Blair Nimmo said: “We have never hidden our ambition to become a truly international firm, with a long-term aim of having a presence in all four corners of the globe. The exciting news is that we have advanced plans afoot to further broaden our geographic footprint in 2024, both into Asia and mainland Europe.”
Outlook
Blair Nimmo concluded: “Since the close of our last financial year in March, our business has continued to perform strongly, and we are well on track to deliver double digit growth at both the top and bottom line by the end of March 2024.
“From a market perspective, 2024 is likely to see a continuation of this complex and ever-changing economic climate. Here in the UK, sluggish growth, fragile consumer confidence, high interest rates and a looming general election will all contribute to ongoing uncertainty, and while some businesses will find they require specialist support to help them navigate through these headwinds, others will be seeking to seize opportunities. We are confident that we have the capabilities to provide the advice, support and insights needed to help organisations navigate the road ahead, whatever the size and scale of the challenge.”
