Franchise Brands (FRAN) Corporate presentation summary

Portfolio and business model

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

• The capital-light model is powered by franchisee investment and growth; 2024 system sales of £418.5m generated £35.1m adjusted EBITDA.

• Essential reactive and planned services include hydraulic repair, drainage, plumbing, pumps, kitchen oil services and cleaning.

Growth strategy

• Maximum potential system sales model totals £2.139bn: Filta North America £1.1bn, Pirtek £746m and Metro Rod £293m, based on current performance metrics and service ranges.

• Growth levers include service expansion, cross-selling, multi-franchise opportunities, territory scaling, replication of successful franchisees and network optimisation.

• Acquisitions have expanded scale: Metro Rod adjusted EBITDA rose from £3.3m at acquisition to £8.0m in 2024; Filta from £3.2m to £7.1m; Pirtek from £16.8m to £19.9m.

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

• Group technology integration carries a 2025 budget of £8m and includes finance, works management, CRM and reporting platforms; initiatives were progressing on schedule and within budget.

Financial performance and outlook

• H1 2025 system sales increased 3% YoY to £209.4m; statutory revenue was £70.4m, up 0.2%, while adjusted EBITDA declined 2% to £17.4m.

• H1 adjusted profit before tax rose 10% to £11.7m and adjusted profit after tax rose 8% to £8.5m; adjusted EBITDA/system sales was 8.3% versus 8.7% in H1 2024.

• H1 operating cash generation was £14.5m, with 83% cash conversion versus 71% in H1 2024.

• 2025 analyst consensus forecasts: system sales £424.1m and adjusted EBITDA £34.8m; 2026 forecasts are £443.3m and £37.7m, respectively.

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