Successful first half performance for Franchise Brands
Multi-brand franchise business, Franchise Brands, has unveiled strong half year results with revenues surging by 60%.
Reporting results for the six months to 30 June 2022, the Macclesfield business reported turnover of £44.5m, up from £27.8m for the same period in the previous year.
Statutory pre-tax profits increased by 83% to £4.8m, that’s up from £2.6m in 2021, while adjusted EBITDA increased by 74% to £7.3m, up from last year’s £4.2m.
The board has also declared a 50% increase in the interim dividend to 90p per share.
Franchise Brands said trading in the first half of 2022 has been buoyant for its two largest businesses, Metro Rod and Filta North America, which together contributed 72% of adjusted EBITDA and expects this pattern to be repeated in second half of the year.
Stephen Hemsley, executive chair, said: “The Group has had a highly productive and successful first half, with record organic growth primarily driven by Metro Rod and the transformational acquisition of Filta bringing highly complementary services, an international footprint and considerably enhanced scale.
“In the near term, we are focussed on integration to capitalise on the opportunities the acquisition presents and we expect continued momentum in the traditionally stronger second half of the year to enable us to deliver a full year performance at the top end of market expectations.
“Beyond the near term, we are confident our largest businesses, Metro Rod and Filta, are well positioned to capture the clear opportunities to grow from their current small share of large, fragmented markets where scale is becoming still more of a competitive advantage, including through the implementation of efficiency-enhancing technology.”
He added: “As a highly profitable and cash generative business, with a strong ungeared balance sheet, we are in a robust financial position to weather uncertain economic conditions, take advantage of future organic growth and acquisition opportunities, and deliver growing returns to shareholders, as we have today through a 50% increase in our interim dividend.”
