Last checked at 15 Jan 2020 07:00
15 January 2020
FRANCHISE BRANDS PLC
("Franchise Brands", "the Group" or "the Company")
Trading Update and Notice of Annual Results
Franchise Brands plc (AIM: FRAN), a multi-brand international franchisor, provides the following trading update for the year ended 31 December 2019.
The Board expects the Group's revenue and profits for the year to 31 December 2019 to be at least in line with consensus market expectations* which represents significant growth over the prior year.
This strong performance was driven by accelerating year-on-year momentum in the top-line growth generated by the Group's excellent Metro Rod franchisees, which resulted in System Sales growth of 14% in the year (2018: 10%).
Willow Pumps, which was acquired in October 2019, is trading in line with the Board's expectations and the integration of the business into the Group is progressing well.
The Board is delighted that the Metro Rod network has already begun to embrace the significant opportunities afforded by this acquisition in the specialist pump sector. During November and December, Willow Pumps hosted the Metro Rod network at a series of 'Discovery Days' that provided a forum to discuss the strategic opportunities and practical ways in which the network can develop its expertise to offer a full range of drainage, pumps and plumbing-related services.
The B2C brands (ChipsAway, Ovenclean and Barking Mad) continue to be strongly cash-generative and have achieved a pleasing upturn in recruitment in 2019, recruiting 65 new franchisees in the year (2018: 57). This has taken the total number of UK franchisees in the B2C businesses to 404 (2018: 387).
The Board is also pleased to report that trading in 2020 has started well, with job intake at Metro Rod and Willow Pumps up on the same period in 2019 and a strong start to the year for franchisee recruitment in the B2C brands.
Notice of results
The full results for the year ended 31 December 2019 are expected to be announced on 5 March 2020 and the Board looks forward to updating shareholders with further details at that time.
Stephen Hemsley, Executive Chairman of Franchise Brands, commented: "The Group has delivered a strong performance in 2019, which, in combination with the recent acquisition of Willow Pumps, leaves us confident about the prospects for Franchise Brands as we enter 2020."
"The addition of Willow Pumps to the Group represented an important step in expanding Metro Rod's scope of services to the commercial market, consistent with our Vision 2023 strategy."
"Longer-term, the Group has a significant opportunity to provide a "Water In, Waste Out" range of drainage, pumps and plumbing-related services on a national basis. I am delighted with the success of the Willow Pumps 'Discovery Days' at the end of 2019 that has provided both focus and impetus for the Metro Rod franchise network to grow their above-ground and below-ground pump capabilities. We look forward to an exciting year ahead."
*Consensus market expectations are as follows:
·; Revenue: £40.55m
·; Adjusted EBITDA: £5.15m
·; Adjusted EPS: 4.26p
Enquiries:
Franchise Brands plc | +44 (0) 1562 826705 |
Stephen Hemsley, Executive Chairman | |
Chris Dent, Chief Financial Officer Julia Choudhury, Corporate Development Director | |
Allenby Capital Limited (Nominated Adviser and Joint Broker) |
+44 (0) 203 328 5656 |
Jeremy Porter / Liz Kirchner
| |
Dowgate Capital Limited (Joint Broker) |
+44 (0) 203 903 7715 |
James Serjeant / Colin Climie
| |
MHP Communications (Financial PR) | +44 (0) 203 128 8794 |
Katie Hunt |