Franchise Brands (FRAN) Trading update summary

Q1 trading performance

• System sales grew by 4% in Q1, with all B2B divisions returning to growth, supported by strong US performance and recovery in Europe.

• Water & Waste Services division saw 8% growth in Q1, driven by Metro Rod's focus on higher value work and catch-up from Q4 delays.

• Filta International in North America achieved 12% system sales growth in local currency, with strong uptake of the new FiltaClean Pro service.

• Used cooking oil sales rose 35% in local currency, driven by both volume and price increases.

• European Pirtek markets grew 2% in Q1, with notable improvement in March, especially in Germany and Benelux.

Outlook and guidance

• Full-year performance is expected to be within the current range of analysts' forecasts for adjusted EBITDA (£35.9m to £38.0m).

• Diversification across sectors and geographies supports resilience and future momentum.

• Expansion of service offerings, such as FiltaClean Pro, is opening new sector opportunities.

Strategic highlights

• Focus on higher quality, higher value work in Water & Waste Services is yielding positive results.

• Continued investment in new services and franchise partner growth underpins business strategy.