Franchise Brands (FRAN) Corporate presentation summary

Portfolio and business model

• Seven market-leading franchise brands, c.600 franchisees across 10 countries; 2025E system sales c.£425m and adjusted EBITDA c.£35m, with 95% from B2B van-based businesses.

• Capital-light, cash-generative model links franchisor growth to franchisee growth; franchisees fund investment in their businesses.

• A maximum-potential model estimates £2.139bn system sales across Metro Rod, Pirtek and Filta North America, supported by opportunities in large, fragmented markets.

Growth strategy and integration

• Growth levers include expanding services, cross-selling, network optimisation, replicating leading franchisees, scaling high-potential territories and multi-franchise opportunities.

• Since acquisition, 2024 adjusted EBITDA reached £8.0m for Metro Rod, £7.1m for Filta and £19.9m for Pirtek; respective adjusted EBITDA CAGRs were 13.7%, 28.6% and 8.9%.

• One Franchise Brands, launched in Q4 2024, targets sales growth, smarter spending and improved cash collection while retaining local strengths.

• 2025 digital transformation budget £8m; global finance, works management, CRM and reporting platforms are progressing on schedule and within budget.

Financial performance and outlook

• H1 2025 system sales rose 3% YoY to £209.4m; statutory revenue was £70.4m, while adjusted EBITDA fell 2% to £17.4m, primarily reflecting technology investment.

• H1 adjusted profit before tax increased 10% to £11.7m and adjusted profit after tax rose 8% to £8.5m; adjusted EBITDA/system sales declined to 8.3% from 8.7%.

• Q3 trading continued the H1 trend; the Board expected FY2025 adjusted EBITDA in line with market expectations of £33.8m–£35.3m.

• Analyst consensus forecasts system sales of £441.9m and adjusted EBITDA of £36.7m in 2026E, rising to £466.9m and £39.1m in 2027E.