Franchise Brands PLC (AIM:FRAN) said it remains on track to meet full-year earnings forecasts as its B2B businesses are all trading at record levels after a third quarter that was softer than the first half.
The B2C division is maintaining profitability in line with expectations despite continuing to operate in a challenging environment, the multi-brand franchise group said.
The three business-facing franchises, Metro Rod and Metro Plumb in the UK and Pirtek in eight European countries, saw some softening in demand over the summer period but an increase in activity at the start of the fourth quarter.
Pirtek, a £200 million acquisition agreed in April, was said to be “integrating well”, with a recent group management restructuring helping accelerate the process.
It is meeting expectations at the time of the deal, including expanding the range of services and growing the customer base through cross-selling.
In North America, Filta was reported to have benefited from robust activity across all key customer sectors, with its range of services offered being expanded with the addition of new bulk oil sales and a steam cleaning service, though prices achieved from the sale of used cooking oil have fallen.
Executive chairman Stephen Hemsley said: “Whilst the trading environment has become more challenging as the year has progressed, the resilient nature of the business services we provide gives us confidence in delivering adjusted EBITDA for the full year in line with consensus market expectations."
Group net debt had reduced from £79.1 million in June to £76 million at the end of September, with net cash totalling £16.4 million.