{"id":2181986,"date":"2026-11-03T07:24:25","date_gmt":"2026-11-03T07:24:25","guid":{"rendered":"https:\/\/www.thebusinessdesk.com\/northwest\/?p=2181986"},"modified":"2026-11-03T07:24:25","modified_gmt":"2026-11-03T07:24:25","slug":"record-system-sales-maintain-third-quarter-momentum-for-franchise-brands","status":"publish","type":"post","link":"https:\/\/www.thebusinessdesk.com\/northwest\/news\/2181986-record-system-sales-maintain-third-quarter-momentum-for-franchise-brands","title":{"rendered":"Record System sales maintain third quarter momentum for Franchise Brands"},"content":{"rendered":"

Franchise Brands, the Macclesfield-based multi-brand franchise business, says System sales momentum has continued across its core B2B businesses during its third quarter period, ending September 30, 2026.<\/span><\/p>\n

The group achieved another period of record System sales, growing by 8.4% (H1 2026: 6.7% and Q3 2025: 4.2%), building on the momentum achieved in the first half and delivering growth at a significantly higher rate than the prior year.<\/span><\/p>\n

Demand for its essential services across the core B2B businesses remained robust in Q3, reflecting the critical nature of its services and strong customer relationships across an increasingly diversified range of sectors.<\/span><\/p>\n

Pirtek System sales increased by 6.3% in Q3 2026 in sterling (Q3 2025: 2.6%). Encouragingly, Pirtek UK, the largest market, delivered significantly improved System sales growth of 8.9% (Q3 2025: 1.5%), reflecting the initiatives taken to expand the range of services and broaden the customer base.<\/span><\/p>\n

In Germany, System sales growth also built on the progress achieved in Q2, increasing by five per cent in local currency (Q3 2025: 0.6%), supported by increased reactive work across a diverse range of sectors. Benelux System sales increased by 14% in Q3 in local currency (Q3 2025: 1.1%).<\/span><\/p>\n

In the Water & Waste Services division, System sales grew by 2.4% in Q3 2026 (Q3 2025: 1.2%). Metro Rod performed well, but divisional growth was impacted by the previously announced deferral of certain projects to Q4 at Willow Pumps.<\/span><\/p>\n

Filta International in North America delivered another strong performance, with System sales increasing by 20.8% in local currency in Q3 2026 (Q3 2025: 15%). Excluding Used Cooking Oil (UCO) revenue, System sales increased strongly by 15.9% in local currency (Q3 2025: 11.6%).<\/span><\/p>\n

The expansion of Filta\u2019s offering with the new FiltaClean Pro service has started well and is opening up new sector opportunities, with the first national account onboarded for a leading Quick Service Restaurant group.<\/span><\/p>\n

UCO sales increased by 42.3% in local currency (Q3 2025: 32.9%), driven by a 9.6% increase in volume (Q3 2025: 12.5%) and a 29.9% increase in price (Q3 2025: 18.1%). The group expects the UCO market to remain structurally supported around current levels into 2027.<\/span><\/p>\n

Franchise Brands says a key element of its strategic plan is the simplification of the group to focus on its three core B2B franchised businesses: Pirtek, Filta and Metro Rod.<\/span><\/p>\n

It says the implementation of this plan is progressing in line with management\u2019s expectations. Any disposal proceeds will be utilised to accelerate debt repayment, supporting Earnings Per Share growth in the continuing businesses.<\/span><\/p>\n

The group\u2019s capital allocation strategy remains focused on deleveraging, supported by strong cash conversion from its capital-light franchise model.<\/span><\/p>\n

It said it is increasing its focus on working capital improvement, leveraging the One Franchise Brands platform and ways of working to support this across the group.<\/span><\/p>\n

Looking ahead, the group said it benefits from a business model that combines resilient demand characteristics with significant growth opportunities.<\/span><\/p>\n

Its strategic initiatives are positioning it well to continue driving System sales growth while maintaining cost discipline, despite macro-economic conditions remaining challenging as expected.<\/span><\/p>\n

Full-year expectations assume no improvements in market conditions in Q4 2026.<\/span><\/p>\n

The improved performance of the business through Q3 2026 and the momentum the business is building across the group continues to underpin its confidence that its full-year Adjusted EBITDA performance will be in line with market expectations, for the financial year ending December 31, 2026, which are \u00a336.5m to \u00a338m, with consensus of \u00a337m.<\/span><\/p>\n

Executive chairman, Stephen Hemsley, said: \u201cThe group achieved another period of record System sales in Q3 2026, building on the momentum achieved in the first half and delivering growth at a significantly higher rate than the prior year.<\/span><\/p>\n

\u201cThis performance was broad-based across all three core B2B franchise brands, with Pirtek\u2019s key franchised businesses returning to more robust growth and a particularly strong performance from Filta as it expands its services with FiltaClean Pro.\u201d<\/span><\/p>\n

He added: \u201cOur plan to simplify the group around our three core B2B franchise brands is progressing in line with management\u2019s expectations. This should accelerate debt repayment and, in turn, will drive EPS growth in the continuing businesses.<\/span><\/p>\n

\u201cDespite the environment remaining challenging, the strategic actions we have taken are delivering clear results, underpinning our confidence that our full year performance will be in line with market expectations.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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