Interpath, the UK-headquartered international financial advisory business, has recorded a rise in revenues of 15% during its financial year ending 31 March 2024 as the firm maintained its position as a preeminent restructuring firm, accelerated the expansion of its global Advisory capabilities and broadened its reach into new overseas markets.
Interpath achieved revenues of £163.6m in its third year of trading, up from £142.6m in the previous year, and with adjusted EBITDA of £46.3m, up 11.2% on the previous period. Operating profit stood at £26.9m, up £20.2m (301%) on FY23.
The release of the firm’s FY24 financial results comes as Interpath announces the appointment of Tamara Box as Chair.
Tamara, an experienced non-executive director and a Partner and the immediate past Managing Partner for EME at global law firm Reed Smith, has served on Interpath’s board since 2021. She succeeds John Connolly who is stepping down from the role that he has held since Interpath was formed in May 2021.
Commenting on her appointment, Tamara Box said: “I am immensely proud to become the Chair of Interpath. We are at such an exciting stage of our journey. As the global professional services market continues to evolve, with new entrants and new sources of capital, we have an extraordinary opportunity to make our mark and build a truly international firm which sets the highest standards for client service delivery, and which always puts its people at its heart.”
Commenting on the firm’s financial results, Mark Raddan, CEO of Interpath, said: “This has been another landmark year for our business. Our continued investments into our people, our infrastructure and the expansion of our advisory services and international footprint have proven to be strong pillars for growth, with double digit increases in both revenue and profit.
“Above all, these results are testament to our exceptional people who continue to go above and beyond to help our clients navigate a challenging and unpredictable economic environment. Indeed, one of our many strengths is the way in which our teams come together to work collaboratively and collegiately, often across different service lines and different geographies, to deliver best-in-class client services to our clients. I’m incredibly proud of what we’ve achieved together over the past 12 months.”
International growth
The expansion of Interpath’s global network remains fundamental to the group’s 2030 growth strategy. The firm’s headcount now stands at over 900 people, including 84 Managing Directors, across 21 locations in the UK, France, Ireland, BVI, Cayman, Bermuda and Algeria.
Mark Raddan explained: “The last 12 months have seen us really kick-on with our ambitious international expansion plans, including taking our first steps into mainland Europe and the opening of our new office in Bermuda.
“In particular, the launch of our operations in France, and the acquisition of KPMG’s Restructuring business there, show a real statement of intent and a sign of what’s to come. This deal adds €20 million of revenue, over 100 colleagues, including some of the leading practitioners in the market, and immediately establishes Interpath as a top restructuring and financial advisory business in France.”
He continued: “We have advanced plans to accelerate our international expansion further, aiming to be in additional European markets by early 2025, as well as expanding into markets further afield. The pace at which we’re moving is really exciting, and a sign of our desire to shake up the professional services market wherever we go.”
Earlier this month, Interpath announced the appointment of David Sawyer as a Special Advisor for the business, as the firm seeks to accelerate its international footprint into North America.
Meanwhile, Interpath is committed to further expanding its team in Ireland, with the aim of having 120 professionals in Dublin, Belfast and Cork by the end of 2025. The firm recently launched its tax practice in Ireland with the appointment of Denis Herlihy, who joined the firm from BDO, and also expanded into debt advisory services with the arrival of real estate specialist, Andy Tallon.
Continued momentum in Restructuring
Restructuring remains at the core of the firm, as Interpath continues to build on its position as a leading international provider of restructuring and turnaround services. Over the course of the financial year, Restructuring capabilities delivered revenues of £121.8m for the period, up 5.8% (FYE 31 March 2023: £115.7m).
Companies across the globe continue to be impacted by high interest rates, inflationary pressures, fragile consumer confidence and supply chain disruptions caused by the legacy effects of the pandemic, geopolitical insecurity alongside rising costs and economic stagnation.
In the UK, corporate insolvency rates are now at levels higher than those seen both during the COVID-19 pandemic and between 2014 and 2019. Against this backdrop, Interpath has continued to maintain its exceptionally strong market share in administration appointments, and in recent months has led on high-profile client engagements including the administration of Waldorf Production Limited; the pre-pack sale of global party products business Amscan International to Baaj Capital; the administration of companies across the Tenet Group; and the pre-pack sale of CTD Tiles to Topps Tiles plc.
In Ireland, the firm has acted on high-profile engagements including the liquidation of PFS Card Services (Ireland) Limited (‘PCSIL’) and the receivership of The Square shopping centre in Tallaght, while in the Caribbean, Interpath has been engaged on mandates including the receivership of Hector DAO – a landmark case which in July 2024 saw the United States Court granting the first cross-border recognition of a Decentralised Autonomous Organisation (DAO) under Chapter 15 of the U.S. Bankruptcy Code.
Double digit growth in Advisory
Interpath’s Advisory capabilities have continued to grow at pace, recording revenues of £41.8m, a 55.4% rise against the previous financial year (FYE 31 March 2023: £26.9m), and cementing Interpath’s standing as a truly multi-disciplinary, financial advisory business.
Over the past 12 months, the firm has advised organisations including PLCs, financial institutions, privately owned companies and public sector bodies on a large volume of engagements, spanning forensic, value creation, tax, regulatory advisory, pensions, valuations and deals.
In recent months, its Value Creation team has supported clients including Manchester United Football Club and the private equity firm KKR, while its Deals business, comprising M&A, Transaction Services and Debt Advisory, has advised on a number of high-profile transactions including Mitchells Group’s acquisition of Allied Grain Systems; the $60m refinancing of Naked Wines Plc; and an €8m fundraise for global digital payments platform, CleverCards. The firm also advised on the transfer of the members of the Debenhams Retirement Scheme out of Pension Protection Fund (PPF) assessment to Clara-Pensions – the second ever ‘Superfund’ transaction in the UK pensions industry.
Central to the growth of the Advisory business has been the continued strategy of recruiting market-leading talent, all with deep sector specialisms. Over the past year, this has included a number of strategic team lifts, including the hire of Nick Parkhouse, Stuart Mogg and Jenna Picken to lead Interpath’s Financial Services Deal Advisory team in the UK; the hire of FS and Private Equity Deal Advisory specialists Benjamin Tarac, Florent Steck, Marc Civita and Guilhem Maguin in France; as well as the hire of Simon Mower (UK), Andy Tallon (Ireland), Jack Rupchandani (France) and a number of other personnel to support Interpath’s cross-disciplinary work in the Real Estate sector. Other recent Managing Director hires in Advisory include Jayshree Shah, who leads Interpath’s Healthcare & Life Sciences team, and head of Financial Modelling, Deepa Ramchandani.
Outlook
Mark Raddan concluded: “We continue to see strong momentum across the breadth of our business, with some recent sizeable client wins, including for our new business in France, and a burgeoning pipeline.
“From a market perspective, I think we can be cautiously optimistic about the outlook for the year ahead. While we expect to see continued strong demand for restructuring services as organisations seek to untangle and unwind the impact of challenges faced in recent years, there are also signs that certain economic indicators are heading in the right direction, and growing anticipation of renewed activity to come across the global M&A market.
“We remain supremely confident that we have the capabilities and experience to provide the advice, support and insights needed to help organisations navigate the road ahead, whatever the size and scale of the challenge and wherever they are in their lifecycle.”
