Franchise Brands PLC’s (LON:FRAN) results for 2019 will show significant growth over the previous year and at least match market expectations for £40.6mln of sales and underlying profits of £5.2mln.
Drain maintenance group Metro Rod led the improvement with 14% higher sales compared with 10% growth a year earlier, while recent acquisition Willow Pumps has integrated well and broadened the range Metro Rod can offer.
Trading in 2020 had also started well, the AIM-listed group said, with job intake at Metro Rod and Willow Pumps up on the same period in 2019 and a strong start to the year for franchisee recruitment in the B2C brands.
A net 17 new franchisees were added over 2019 to its consumer-facing brands – ChipsAway, Ovenclean and Barking Mad – to take the number to 404.
Stephen Hemsley, executive chairman said: “The Group has delivered a strong performance in 2019, which, in combination with the recent acquisition of Willow Pumps, leaves us confident about the prospects for Franchise Brands as we enter 2020.”
“Longer-term, the Group has a significant opportunity to provide a ‘Water In, Waste Out’ range of drainage, pumps and plumbing-related services on a national basis,” he added.
By Philip Whiterow
Source: Proactive Investors