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The Markets
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Proactive UK has moved.
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Franchise Brands ups dividend 50% after 'buoyant' first half

Drain maintenance businesses Metro Rod and Metro Plumb led the way

Franchise Brands raised its interim dividend 50% as it hailed buoyant trading in the first six months of 2022.

The multi-brand franchise business said revenues rose 60% to £44.5mln, underlying profits (EBITDA) were 74% higher at £7.3mln and pre-tax profits were up by 83% to £4.8mln.

Drain repair and maintenance businesses Metro Rod and Metro Plumb led the way with sales up by 20% to £28.5mln while new acquisition Filta International also delivered strong results.

Recovering levels of activity in the customer base post-Covid and the elevated price of cooking oil helped this business said the franchise specialist.

Stephen Hemsley, executive chairman, added: “The group has had a highly productive and successful first half, with record organic growth primarily driven by Metro Rod and the transformational acquisition of Filta.

"We expect continued momentum in the traditionally stronger second half of the year to enable us to deliver a full year performance at the top end of market expectations.

"Beyond the near term, we are confident our largest businesses, Metro Rod and Filta, are well positioned to capture the clear opportunities to grow from their current small share of large, fragmented markets.”

Consensus forecasts for 2002 are revenues of £91.2mln and underlying profit (adjusted EBITDA) of £14mln.

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