Transformational acquistion delivering results after unblocking strategy

Franchise Brands is delivering on its ambition to become one of the largest franchise groups in the country after a year of “considerable progress”.

A year ago it agreed a “transformational” £28m deal for drain clearance business MetroRod, and it has since implemented a chain of strategy and a change of leadership.

Franchise Brands’ executive chairman Stephen Helmsley said: “The early signs are that these initiatives are having the desired effect and will give us a platform from which to significantly build this business. However, there is much work still to do and we anticipate some additional churn in the franchise community before we establish a group of franchisees aligned with our ambition for the business.”

The Kidderminster-based franchisor operates three other brands – Ovenclean, Barking Mad and ChipsAway – which all exceeded budget.

Overall, revenues increased nearly £20m, to £24.3m, while adjusted pre-rax profits rose 72% to £2.1m.

Hemsley added: “2017 has been a year of considerable progress in the development of Franchise Brands, with strong growth from the original brands, and the acquisition of Metro Rod has propelled the company into becoming one of the largest franchise groups in the country.

“2018 will be a year in which we continue to build on the foundations we have created. I am pleased to report that the year has started in line with our expectations and we look forward to the remainder of the year and beyond with confidence.”