Franchise Brands PLC Trading Update and Notice of Interim Results (0758E)
05 July 2021 - 04:00PM
UK Regulatory
TIDMFRAN
RNS Number : 0758E
Franchise Brands PLC
05 July 2021
5 July 2021
FRANCHISE BRANDS PLC
("Franchise Brands", "the Group" or "the Company")
Trading Update and Notice of Interim Results
Record-breaking system sales at Metro Rod
Franchise Brands plc (AIM: FRAN), a multi-brand franchise
business, provides the following trading update for the six-month
period ended 30 June 2021.
The Board is pleased with the progress the Group has made over
the past six months. As the country has thankfully progressed out
of lockdown with the successful vaccination programme, our
franchisees have continued to serve our underlying customers.
System sales at Metro Rod have returned to their strong
pre-COVID growth levels, increasing by 21% compared to H1 2020 and
17% compared to H1 2019. This represents record system sales of
GBP23.8m for the six-month period (H1 2020: GBP19.7m; H1 2019:
GBP20.2m). The growth accelerated during the period as restrictions
have been eased resulting in record system sales in June of
GBP4.3m, an increase of 41% compared to H1 2020 and 26% compared to
H1 2019.
Willow Pumps, which was acquired in October 2019, has a greater
exposure to hospitality and was more impacted by lockdown. However,
invoiced sales increased by around 9% compared to H1 2020. In
addition, Willow Pumps continues to facilitate the growth of
pump-related work within Metro Rod, where pumps system sales by our
franchisees have increased 159% to GBP0.7m (H1 2020: GBP0.3m).
The B2C division has also performed strongly, and 40 new
franchisees have been recruited (H1 2020: 27; H1 2019: 34) taking
the number of B2C franchisees to 393 (H1 2020: 389; H1 2019:
394).
Overall, the Group's trading in the first half gives the Board
strong confidence in delivering a full year performance at least in
line with market expectations and it will provide a further update
on current trading and outlook at the time of the half year
results.
Notice of results
The interim results for the six-month period ended 30 June 2021
are expected to be announced on 22 July 2021 and the Board looks
forward to updating shareholders with further details at that
time.
Stephen Hemsley, Executive Chairman of Franchise Brands,
commented:
"I have been pleased by the speed at which the demand for our
services has grown as the lockdown restrictions have been lifted.
Throughout the pandemic I have been particularly encouraged by the
resilience of our franchisees. Their entrepreneurial spirit and
continued commitment to serve our customers gives me huge
confidence in the future of Franchise Brands."
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 (Corporate Finance)
Amrit Nahal (Sales and Corporate Broking)
Dowgate Capital Limited (Joint Broker) +44 (0) 20 3903 7715
James Serjeant / Colin Climie / Nicholas Chambers
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
425 franchisees across five principal franchise brands. Our focus
is on established brands which can benefit from our shared support
services, specialist sector expertise, management experience and
group resources.
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 135 years.
Franchise Brands plc employs some 280 people across three
principal locations in Macclesfield, Kidderminster and
Aylesford.
For further information, visit www.franchisebrands.co.uk.
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