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Franchise Brands looking for acquisitions as it emerges from lockdown

Turnover was boosted by the acquisition of Willow Pumps

Franchise Brands PLC -
Drain maintenance was an essential service during lockdown

Franchise Brands PLC (LON:FRAN) said revenues rose by 21% in the half-year to end-June, 2020, and all its businesses are now up and running again as coronavirus (COVID-19) pandemic restrictions ease.

Turnover was boosted by the acquisition of Willow Pumps, which like its other B2B business, MetroRod, was classified an essential business during the lockdown.

Franchise Brands’ consumer business were shut due to the restrictions and group like-for-like revenue dropped to £18mln from £20.1mln during the half-year. Underlying profits (adjusted EBITDA) increased by 13% to £2.8mln, though after charges related to COVID-19, statutory profits fell to £0.9mln from £1.8mln.

The interim dividend was maintained at 0.3p.

In the results statement, Stephen Hemsley, Franchise Brands' executive chairman, said it had been a robust first half with a strong first quarter followed by a period of tight cost control during the lockdown period.

“This highlights the underlying resilience of our business model, underpinned by our network of 435 franchisees supporting a broad range of commercial and domestic customers. 

"Following a successful [£13.6mln] Placing, our strengthened balance sheet will allow us to take advantage of both organic growth opportunities and earnings-enhancing acquisitions as the lockdown eases," he added.

Quick facts: Franchise Brands PLC

Price: 104.44 GBX

Market: AIM
Market Cap: £100.01 m

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