Franchise Brands considers main market listing after appointing group CEO

Macclesfield-based multi-brand franchise business, Franchise Brands, is considering a main market listing.

The AIM-listed group revealed today that, while the process is at an early stage, it believes a switch to the official list and main market could  be beneficial to the business, which also announced the appointment of a new group CEO this morning.

It said: “Given the scale and growth ambitions of the group, the board is beginning to consider a move from the AIM market to the official list and main market of the London Stock Exchange.

“Today’s announcement of the appointment of a group CEO and separation of management responsibilities for the strategic development of the company and the day-to-day leadership of its businesses is the first step in that journey.”

Peter Molloy, CEO of the Water & Waste Services division, has been appointed as group CEO, a new role, and a director on the board of the company with immediate effect.

The group has grown rapidly over the past two years with the acquisitions of Filta and Pirtek and now has annualised system sales of approximately £400m, with seven franchise brands across 10 countries in the UK, Europe and North America.

The board has been considering the optimum leadership structure and the development of corporate governance for a group of this size as it continues to realise the group’s growth potential.

In his new role, Peter Molloy will be responsible for the day-to-day leadership of the group across its four principal divisions and shared central functions, and will drive the implementation of the strategy, business performance and accelerate integration.

Stephen Hemsley will remain executive chairman and focus on the strategic and corporate development of the company, including group finance and future acquisitions.

He said: “The group has reached a scale where the timing is right for the appointment of a group CEO at board level, to separate my responsibilities and provide greater focus on the strategic and commercial development of the business to support our ambitious growth plans.

“Peter Molloy has been a key part of the Franchise Brands team since 2017 and has made an exceptional contribution in leading the substantial growth of Metro Rod and in the successful formation and integration of the Water & Waste Services division.

“Peter has strong commercial acumen, and the board is confident that he will successfully drive the implementation of our strategic priorities, which includes an increased focus on digitally-enabled integration, enabling the group to realise its significant growth potential.

Peter Molloy said: “I am honoured to be chosen as the first group CEO. Since joining Metro Rod over 20 years ago and having worked closely with Stephen and the Franchise Brands team since 2017, I am so proud of what we have achieved together.

“We have created a strong business, yet there remains so much untapped potential. Our principal franchise brands have significant growth potential through increasing their small shares of large, fragmented markets, expanding their range of services and geographical penetration, and cross-selling to our large customer base.”

He added: “I am excited to lead the further development of the business and to realise the strategic ambitions set out at the Capital Markets Day earlier this year. This will be achieved in part by accelerating the pace of integration of the group’s businesses into ‘One Franchise Brands’ and by supporting the entrepreneurial spirit of our franchisees, who are the backbone of our business together with our dedicated support centre teams.”