Fast-growing Franchise Brands ‘hugely confident’ about the future
Franchise Brands is “hugely confident” about its future, one year after it floated on the Alternative Investment Market.
The Kidderminster-based franchisor operates five brands, including Metro Rod, Barking Mad and ChipsAway, and has ambitious growth plans.
Its latest half-year figures, revealed today, show a three-fold increase in revenue to £8.64m for the first six months of 2017.
That was driven by the acquisition of Metro Rod in April, a £20m-plus turnover business which has contributed 11 weeks’ trading to Franchise Brands’ figures.
Executive chairman Stephen Hemsley said: “In a relatively short space of time, we have created a high quality portfolio of businesses with significant critical mass in the franchising sector.
“I am hugely confident that following significant investment in infrastructure over the next couple of years we will have a highly profitable and cash generative business able to successfully take on still more challenges and grow into a substantial force in franchising.”
Adjusted pre-tax profits before exceptional items were up 38% to £1.00m. The cost of acquisitions and other one-costs resulted in a statutory pre-tax loss of £237,000, but the board’s confidence in the underlying strength of the business has been backed by the payment of a maiden interim dividend.
Franchise Brands floated in August 2016, raising around £6m. There was a share placing in March to support the Metro Rod purchase, and the board and senior management own 64% of the group.
Franchise Brands’ two major shareholders are its co-founders, Saracens chairman Nigel Wray and Mr Hemsley. The duo previously worked together growing pizza franchise business Domino’s UK.