Acquisition causes audit delay at Franchise Brands
Franchise Brands, the Macclesfield-based multi-brand franchise business, is to delay publication of its audited accounts following challenges from the Group’s auditors, BDO.
In a statement to the stock market this morning Franchise Brands has extensively reviewed its existing accounting policies to ensure they comply with the accounting standards and are consistent across the enlarged Group.
The company explained that following the acquisition of Pirtek Europe and subsequent increase in market capitalisation, the Group has become an Other Entity of Public Interest (“OEPI”) and as such the audit of its accounts is now in scope for the purposes of the Financial Reporting Council’s audit quality review processes.
“This has caused a significant delay in publishing this year’s results, recognising the need for a high-quality audit. The Board of Franchise Brands is confident this will not re-occur in future years.”
Franchise Brands also expects to report Adjusted EBITDA* for FY23 at the top end of the range of current market expectations of £29.3m to £30.1m.
Chairman, Stephen Hemsley, has previously updated markets that the integration of Pirtek is progressing well, and that new senior leadership appointments are allowing he business to accelerate the process of integrating this business into the group.
Following the acquisition of Pirtek Europe in April 2023, the Group now has over 625 franchisees across seven franchise brands in ten countries covering the UK, Continental Europe and North America, resulting in a diversified international footprint.
