Franchise Brands PLC (AIM:FRAN) proposed a 36% dividend increase as it reported record profits for 2021 and made a strong start to 2022.
The owner of the Metro Rod, Metro Plumb and Willow Pumps franchises posted a statutory profit before tax of £5.8mln for the past calendar year, up 57% on the previous time.
Adjusted profit before tax, which excludes amortisation of acquired intangibles, share-based payment expense and non-recurring items, was up 34% to £6.5mln.
Total revenues, as reported in January, were up 17% to £57.7mln amid a strong recovery across the group, including a steady level of franchisee recruitment.
A final dividend of 0.9p per share has been proposed, making for a total dividend for the year of 1.5p per share, up from 1.1p a year ago.
The balance sheet had £14mln of cash and available undrawn facilities, which the company said put it in a “strong position to support franchisees, invest in the business, support a progressive dividend policy, and take advantage of earnings-enhancing acquisition opportunities”.
Last month an all-share offer was agreed for commercial kitchen services provider Filta Group.
Executive chairman Stephen Hemsley said: “The record-breaking result has been driven by the strong performance of our Metro Rod franchise network. However, all our businesses have shown themselves to be resilient and demonstrate the overall strength of our portfolio of franchise networks.”
The existing businesses have started the new year on the front foot, with continuing sales growth reported in the B2B division and steady recruitment in the B2C division.