Franchise Brands (FRAN) CMD 2025 summary

Strategic developments and priorities

• Focus on integrating the group into One Franchise Brands to enhance sales, operational efficiency, and reduce debt over the next three years.

• No material acquisitions planned; disposals of non-core businesses considered.

• Share repurchase programme to address option dilution as debt reduces.

• New management structure with separation of Executive Chairman and CEO roles; Peter Molloy appointed CEO in October 2024.

• Move to the Official List and Main Market of the LSE targeted.

Business overview and performance

• Operates seven franchise brands across 10 countries, with system sales of £418m in 2024 and over 600 franchisees.

• System sales grew at a 53% CAGR from 2020 to 2024; adjusted EBITDA at 52% CAGR.

• 2024 system sales reached £418m, adjusted EBITDA £35.0m, and over 900,000 jobs carried out.

• Total addressable market increased to £2.1bn, up from £1.8bn in 2024, driven by Filta International.

• Resilient demand for essential B2B services, with diversified customer base and strong franchisee network.

Integration and digital transformation

• Group-wide integration aims to harmonise processes, standardise technology, and leverage shared services.

• Major IT projects: One Finance (10 systems into one), One Works Management System (six into two), and unified reporting.

• Integration programme cost c.£8m in 2024, with similar budget for 2025; core systems go-live by end 2025.

• Digital transformation and IT centralisation to drive cost efficiencies, operational gearing, and enable future AI deployment.

• Integration supports value creation, improved decision-making, and scalability for future acquisitions.