Investor Nigel Wray sells off chunk of Franchise Brands
Investor and entrepreneur Nigel Wray has sold a third of his stake in Macclesfield-based multi-brand franchise business, Franchise Brands.
The Saracens Rugby Club owner sold 7 million shares at 160p each through his company Euroblue Investments Limited, netting him over £11m.
Previously the largest shareholder in Franchise Brands, he now has a total beneficial interest in 15,921,858 Ordinary Shares, equivalent to 8.22% of the Company’s total voting rights.
On Tuesday (16 September 2024) the AIM-listed company reported a 35% increase in revenue to £69.8m and a statutory profit of £3.618m, a turnround from the £611,000 deficit the previous year.
Most of the business consists of franchises for van based businesses such as Pirtek in Europe, Metro Rod and Metro Plumb, all of which benefit from the group’s central support services, particularly technology, marketing, and financial management experience.
Nigel Wray
Following Tuesday’s half year results a research note by Allenby Capital said the business was “significantly undervalued” and said in spite of the temporary macroeconomic headwinds, said a medium term fair value for the shares was 330p, more than double its present trading price.
In an update to the stock market this morning the company also confirmed that Meredian Settlement Trust yesterday sold 2,600,000 Ordinary Shares, at a price of 160 pence per share, and therefore now holds 6,571,029 Ordinary Shares, equivalent to 3.39% of the Company’s total voting rights.
Jason Sayers, CEO of a subsidiary company, Filta International, and Mrs Dawn Sayers are beneficiaries of The Meredian Settlement Trust who separately have a beneficial interest in, respectively, 2.12% and 0.34% of the Company’s total voting rights.
