Franchise Brands PLC (LON:FRAN) saw its shares rise on Tuesday as the international franchisor said it expects revenues and profits for 2018 to be “at least” in line with consensus market expectations.
The Metro Rod franchise delivered impressive top-line growth in 2018 while the ChipsAway, Ovenclean and Barking Mad franchise operations continue to be highly cash generative, although the group did caution that franchise recruitment has slowed.
Trading in the initial weeks of 2019 has been positive, with job intake at Metro Rod up on the same period from 2018 and healthy levels of franchise enquiries at ChipsAway, Ovenclean and Barking Mad.
"We are very encouraged by the prospects for Franchise Brands as we enter 2019,” said Stephen Hemsley, the executive chairman of Franchise Brands.
“Our Vision 2023 growth strategy for Metro Rod has met with real engagement from a re-invigorated franchise community, with half of the network recording double-digit sales growth in 2018. Our balance sheet and strong cash flows from our brands support our buy-and-build strategy,” he added.
In afternoon trading, shares in Franchise Brands were up 3.1% at 66.5-0p.
-- Adds share price --