Franchise Brands (FRAN) H1 2026 earnings summary

Executive summary

• Achieved record system sales of £229.2m, up 6.7% year-over-year, with US operations leading growth and UK/Europe recovering.

• Statutory revenue rose 7.4% to £75.6m, and adjusted EBITDA increased 6.5% to £18.5m, reflecting operational improvements and strategic initiatives.

• Strategic focus on simplifying the group to three core B2B franchises, leveraging the One Franchise Brands platform.

• Strengthened executive team with new CFO and Group Delivery Director appointments to drive strategic execution.

• Continued deleveraging, strong cash generation, and a 9% increase in interim dividend underpin confidence in meeting full-year market expectations.

Financial highlights

• System sales grew 6.7% to £229.2m; statutory revenue up 7.4% to £75.6m year-over-year.

• Adjusted EBITDA rose 6.5% to £18.5m; adjusted EPS up 8.9% to 4.81p.

• Adjusted net debt reduced to £52.9m from £62.0m a year ago; leverage ratio improved to 1.5x.

• Dividend per share increased 9% to 1.25p.

• Basic EPS increased 45% to 3.20p; adjusted profit before tax up 7.8% to £12.6m.

Outlook and guidance

• Strategic initiatives and essential service focus position the group for continued growth despite volatile macroeconomic conditions.

• No macroeconomic tailwinds assumed for H2 2026 due to ongoing volatility; full-year performance expected in line with market expectations.

• Adjusted EBITDA guidance for FY 2026 is £35.9m–£38.0m.

• Highly cash-generative model supports further deleveraging and increased dividends.

• Ongoing investment in the One Franchise Brands platform to broaden customer base and expand service range.