Franchise Brands drives forward growth on the back of record system sales

Macclesfield-based multi-brand franchise business, Franchise Brands, achieved impressive increases in annual revenues and profits for the year to December 31, 2024.
Audited results showed a 20% increase in system sales of £418.5m, a record, while statutory revenues increased by 15% to £139.2m. Pre-tax profits of £9.2m represented an 86% improvement.
Adjusted net debt fell from £74.7m in 2023 to £65.1m, while the cash conversion rate rose to 94% from 80%.
The final dividend of 1.3p per share is an eight per cent increase on the previous year’s payout.
During the reporting period the group launched its One Franchise Brands strategic initiative to accelerate the integration of the group into a unified, connected business with the aim of enhancing sales, creating an efficient overhead structure and driving operational gearing.
It created a new CEO role, linked to the separation of responsibilities with the executive chairman.
New appointments, including post year-end, were also made of CFO, COO, group FD and independent non-executive director to strengthen the group’s leadership team and board.
Franchise Brands says its outlook for the current financial year sees it as well placed to benefit from the expected pick up in discretionary spend in several international markets, although the timing of this remains uncertain.
It says deleveraging is a strategic priority. Strong cash generation is expected to enable leverage to be below 1.5x by December 31, 2025.
And it says a performance in line with current market expectations is achievable.
Executive chairman, Stephen Hemsley, said: “The group achieved record system sales in all key divisions and a creditable adjusted EBITDA outturn for the year, despite ongoing challenging macroeconomic conditions in many of our key markets.
“This is a testament to the strength and resilience of the Franchise Brands business model and international diversification of our market-leading brands.”
He added: “Our essential services and diverse geographies provide a resilient base from which we are driving opportunities through our ‘One Franchise Brands’ strategic initiative, whilst growing our small share of large, fragmented, markets to position us well for recovery in our markets.
“As we accelerate the pace of integration of the group’s businesses, we will drive operational gearing by maximising sales opportunities whilst leveraging an efficient structure, on an enhanced IT platform.
“We are confident that we have the strengthened leadership team in place to unlock the significant opportunities ahead.”
The Cheshire group is an international, multi-brand franchisor focused on B2B van-based service with seven franchise brands and a presence in 10 countries across the UK, North America and Europe.
It is focused on building market-leading businesses primarily via a franchise model and has a combined network of more than 600 franchisees.
It owns several market-leading brands with long trading histories, including Pirtek in Europe, Filta, Metro Rod and Metro Plumb.
Franchise Brands employs almost 650 people across the group and there are more than 3,000 people in the franchise community.