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Franchise Brands highlights positive start to 2021 trading

“We look forward to the remainder of 2021 with confidence,” said chairman Stephen Hemsley

Franchise Brands PLC’s (LON:FRAN) final results for 2020 highlighted positive trading through the current lockdowns.

It said that trading started 2021 strongly in the first quarter, with business-to-business sales described as resilient.

“We look forward to the remainder of 2021 with confidence,” said Stephen Hemsley, Franchise Brands chairman.

Financials for the 12 months ended December 31, meanwhile, showed a 12% rise in revenue to £49.3mln from £44mln in 2019 and a 28% increase in earnings (adjusted EBTIDA) to £6.6mln from £5.2mln.

READ: Franchise Brands tops 2020 expectations

Adjusted profit amounted to £4.8mln, up 19%, and, statutory profit improved by 12% to £3.7mln after COVID-19 related non-recurring items.

Franchise Brands ended December with £4.9mln of cash and £11.1mln of net debt. It proposes a final 0.8p per share, which will take the total 2020 dividend to 1.1p, up 16% on the prior year.

"Against the backdrop of a challenging year, I am pleased with the resilient performance of the business in 2020 and our achievements across the group,” Hemsley said.

The chairman added: "Since being admitted to AIM in August 2016, we have developed a market-leading portfolio of brands through organic growth and targeted acquisitions and have generated compound annual growth in adjusted EBITDA of 47% and a 59% compound growth in dividends.

“We now set out for the first time our strategic financial targets of run-rate revenues of £100mln and adjusted EBITDA of £15mln by the end of 2023.”

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