Franchise Brands (FRAN) Corporate presentation summary

Business overview and strategy

• Operates a platform of seven international B2B franchise brands focused on essential services, with c.600 franchisees and 2,500 vans across 10 countries.

• Delivers both reactive and planned services, completing approximately 1.3 million jobs annually for around 65,000 commercial customers.

• Utilizes a capital-light, highly cash-generative model with shared technology systems and management expertise to drive operational efficiency.

• Strategic focus on expanding service range, sector diversification, and leveraging best practices across networks.

• Maximum Potential Model targets significant growth in large, fragmented markets, aiming for system sales potential of £2.1bn.

Financial performance and growth

• System sales grew 2% to £435.0m in 2025, with adjusted EBITDA stable at £35.2m and adjusted profit before tax up 12% to £23.9m.

• Adjusted EPS increased 5% to 9.00p, and dividend per share rose 4% to 2.50p.

• Strong cash generation with 98% average cash conversion (2023-2025), supporting deleveraging and a progressive dividend policy.

• Adjusted net debt reduced by 15% to £55.6m, with leverage ratio improving to 1.6x.

• Share buy-back program initiated, with up to £10m planned to enhance EPS and mitigate dilution.

Segment highlights

• Pirtek: System sales up 1% to £193.4m, adjusted EBITDA down 4% to £19.2m; sector diversification and service expansion offset challenging UK construction market.

• Water & Waste Services: System sales flat at £110.5m, adjusted EBITDA up 6% to £11.8m; focus on higher quality work and increased planned services.

• Filta International: System sales up 10% to £107.5m, adjusted EBITDA up 17% to £7.0m; strong growth in used cooking oil sales and transition to royalty-based model.

• B2C brands contributed £2.0m adjusted EBITDA, with leading home service brands in the UK.