Franchise Brands expects results for the year ended 31 Dec to be ahead of current market forecasts.
The group said its principal existing brands had delivered strong growth and it was pleased with the progress that had been made with putting in place the strategic and operational foundations that were expected to help unlock the substantial potential it saw for Metro Rod. The group said trading in the initial weeks of 2018 had been very positive, with order intake at Metro Rod significantly higher than in the corresponding period in 2017.
An update said: 'The board notes the liquidation of Carillion, whose various facilities management clients accounted for approximately 3% of Metro Rod's system sales last year.
'We have fully provided for all outstanding amounts, which totalled £316,000, as an operating exceptional item in the results to 31 December 2017.
'Despite this, the results for the year are expected to be ahead of market expectations at both an adjusted and a statutory level.
'The board believes that Metro Rod is well placed to secure work from the underlying clients of Carillion and has already secured approved supplier status with a number of them.'
At 8:09am: (LON:FRAN) Franchise Brands Plc share price was +5p at 61.5p