15th Jan 2020 09:42
(Alliance News) - Franchise Brands PLC said Wednesday it has delivered a strong performance in 2019 and expects revenue and profit in line with market expectations.
In a trading update for the year ended December 31, the multi-brand franchising firm said its revenue is expected to be "at least in line" with consensus market expectations of GBP40.6 million.
For the six months to June 30, the company reported revenue of GBP20.1 million, while revenue in 2018 was GBP35.5 million.
Earnings before interest, tax, depreciation and amortization is expected to be in line with consensus market expectations of GBP5.2 million, compared to GBP3.7 million in 2018.
For the six months ended June 30, pretax profit was GBP1.8 million, while pretax profit in 2018 was GBP2.9 million.
Adjusted earnings per share also are expected to be in line with consensus market expectations of 4.26 pence, up from 3.00p reported in 2018.
Franchise said this strong performance was driven by "accelerating year-on-year momentum in the top-line growth" generated by the group's Metro Rod franchises, a provider of drain clearance and maintenance services.
The company said water pump services Willow Pumps, which was acquired in October 2019, is trading in line with the board's expectations, and the integration of the business is progressing well.
Franchise Brands said it expects to announce its annual results on March 5.
Stephen Hemsley, executive chair, 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."
Franchise Brands shares were up 6.6% in London at 128.50 pence each on Wednesday.
By Loreta Juodagalvyte; [email protected]
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