Multi-franchise company Franchise Brands (FRAN:AIM) said trading in the six months to 30 June had made good progress with record system sales at its specialty drain clearance franchise Metro Rod. The shares fell 1% to 149p.
Sales at business-to-business franchise Metro Rod have returned to the strong growth seen before the pandemic with first-half revenues growing 21% compared with 17% in 2019, pushing system sales to £23.8 million, above the £20.2 million achieved in the first half of 2019.
As government mandated restrictions were removed sales growth accelerated with June system sales of £4.3 million, some 41% higher than last year.
Pumps business Willow Pumps, which was acquired in October 2019, registered growth of 9% and continued to facilitate growth of pump-related work within Metro Rod. From a small base, revenues increased 159% to £0.7 million.
The business-to-consumer division, comprising Chips Away, Ovenclean and Barking Mad, also saw strong growth with 40 new franchisees recruited, taking the total number of franchisees to 393 compared with 394 in 2019.
POSITIVE OUTLOOK
The board said that good trading in the first half gave it confidence in meeting full year expectations. According to Refinitiv data, the consensus forecast is for revenues to grow 16% to £57.2 million while pre-tax profit is expected to be 27% higher at £6.1 million.
Executive Chairman Stephen Helmsley said, ‘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.’
Interim results are expected to be announced on 22 July 2020.
