23rd Jul 2019 11:24
(Alliance News) - Franchise Brands PLC on Tuesday said its profit rose significantly in the first half of the year, led by accelerated growth from its Metro Rod franchise.
Shares in Franchise Brands were up 5.9% at 88.92 pence in morning trade.
For the six months ended June 30, the multi-brand franchisor's pretax profit was GBP1.8 million, rising 27% from GBP1.4 million the year before let by drain clearance and maintenance services franchise Metro Rod, which was acquired in April 2017.
Revenue was up 19% to GBP20.1 million from GBP16.8 million, with "almost all the additional revenue coming from Metro Rod" and the company's direct labour operations.
Adjusted earnings before interest, depreciation, taxation, and amortisation for the group, which excludes share-based payment expense, was GBP2.5 million, up from GBP2.0 million. Within this, Metro Rod's Ebitda rose to GBP1.7 million from GBP1.2 million.
Administrative expenses increased, however, to GBP5.5 million from GBP4.9 million.
The company raised its interim dividend 43% to 0.30 pence per share from 0.21p per share.
Franchise Brands Executive Chair Stephen Hemsley said: "Franchise Brands has delivered a strong performance in the first half of 2019 driven primarily by Metro Rod's accelerating rate of growth. We have made significant progress with our strategy at Metro Rod and have begun to realise the benefits of our investment in infrastructure - in particular IT - that is starting to unlock sales growth, efficiencies and improved customer service, enhancing both corporate and franchisee profitability."
Hemsley added: "The outlook for the group therefore remains very positive, with the combination of accelerating organic growth and the potential for prudently financed, earnings-enhancing complementary acquisition opportunities giving us the confidence of delivering further significant growth in earnings and dividends in the current year and beyond."
Related Shares:
Franchise Brands