Franchise Brands PLC Share purchase programme and EBT (4479R)
01 July 2020 - 4:00PM
UK Regulatory
TIDMFRAN
RNS Number : 4479R
Franchise Brands PLC
01 July 2020
1 July 2020
Franchise Brands plc
("Franchise Brands", the "Company" or the "Group")
Share purchase programme and establishment of an Employee
Benefit Trust
Franchise Brands plc (AIM: FRAN), a multi-brand franchise
business, announces that for the next six-month period from 1 July
2020 to 31 December 2020, the Company will continue its
discretionary programme to buy ordinary shares of 0.5p each in the
Company ("Ordinary Shares") up to an aggregate value of GBP200,000
(the "Programme").
This is a continuation of the Programme that commenced in 2018
which seeks to mitigate the dilutive impact of share option awards
and to improve overall shareholder return. However, the Company
intends to use the EBT (as defined below) rather than purchasing
shares to be held in Treasury.
In order to facilitate the Programme, the Company has
established an onshore discretionary employee benefit trust (the
"EBT"), which is expected to conduct market purchases of Ordinary
Shares to satisfy potential future option exercises by employees
(but not directors). The EBT will be funded by the Group by up to
GBP200,000 during the second half of this year. As at today's date
the EBT does not yet hold any Ordinary Shares.
The Company and the EBT have entered into arrangements with the
Company's joint broker, Dowgate Capital Limited ("Dowgate"), to
carry out on-market purchases of Ordinary Shares under the
Programme, including on a discretionary basis independent of the
Company during any prohibited periods of the Company, as determined
by the Market Abuse Regulation 596/2014/EU ("MAR"), which may fall
during the period of the Programme.
The Company was granted authority by its shareholders at the
Company's Annual General Meeting ("AGM") on 28 April 2020 to
purchase up to 7,971,076 shares. This authority will expire at the
end of the next AGM of the Company in 2021 or, if earlier, at the
close of business on 28 July 2021 ("2020 Authority").
Enquiries:
Franchise Brands plc + 44 (0) 1625 813231
Stephen Hemsley, Executive Chairman
Chris Dent, Chief Financial Officer
Julia Choudhury, Corporate Development
Director
Allenby Capital Limited (Nominated Adviser
and Joint Broker) +44 (0) 20 3328 5656
Jeremy Porter / Liz Kirchner / Nicholas
Chambers
Dowgate Capital Limited (Joint Broker) +44 (0) 20 3903 7715
James Serjeant / Colin Climie
MHP Communications (Financial PR) +44 (0) 20 3128 8100
Katie Hunt +44 (0) 7884 494112
franchisebrands@mhpc.com
About Franchise Brands plc
Franchise Brands is focused on building market-leading
businesses in selected customer segments using primarily a
franchise model. The Group currently has a combined network of over
450 franchisees across five franchise brands. Our focus is on
established brands which can benefit from our shared support
services, specialist sector expertise, management experience and
group resources.
Franchise Brands' portfolio of market-leading service businesses
grew in 2019 with the acquisition of Willow Pumps. The addition of
Willow Pumps, a direct labour organisation, represented an
important step in expanding Metro Rod and Metro Plumb's range of
services to the commercial market.
The Group is organised into a B2B division comprised of Metro
Rod, Metro Plumb and Willow Pumps, and a B2C division that
incorporates ChipsAway, Ovenclean and Barking Mad. This divisional
organisation of our brands is designed to provide a greater focus
and structure to support the strategic development of our B2B and
B2C brands.
Each of our brands are leaders in their respective markets and
each brand has a long trading history. The combined trading history
of all the Group's brands is over 125 years.
Franchise Brands plc employs some 290 people across three
principal locations in Macclesfield, Kidderminster and
Aylesford.
For further information, visit www.franchisebrands.co.uk.
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END
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