Franchise Brands has ambitions to become a £1bn market cap business, according to Stifel, which recently hosted executive chairman Stephen Hemsley for a fireside chat.
Hemsley made his ambitions clear, said Stifel, namely to replicate his success at Domino's Pizza Group.
Significant potential for growth exists across the group's principal franchise brands through broadening the service range, increasing geographical penetration and cross-selling, with IT infrastructure investment accelerating operational gearing Hemsley said.
“We are buyers of Franchise Brands with a 300p target price and view the current valuation (FY24E EV/EBITDA of c.9.4x) as attractive for a fast-growing international franchise business with a strong management team”.
Shares rose 1% to 152p, valuing the group at around £290m.