5th Mar 2020 12:31
(Alliance News) - Franchise Brands PLC on Thursday lifted its annual dividend in 2019 amid double digit increases in profit and revenue on stronger sales.
Shares in Franchise Brands were up 3.5% at 129.90 pence on Thursday in London.
For the year, the multi-brand franchise business reported a pretax profit of GBP2.7 million, up 17% from GBP2.3 million, as fee income increased by 35% to GBP24.4 million.
Revenue for the year grew by 24% to GBP44.0 million from GBP35.5 million the prior year, lifted by Metro Rod and Willow Pumps.
In franchisees Metro Rod and Metro Plumb, systems sales for 2019 grew by 14% to GBP41.3 million.
In addition, water pump services provider Willow Pumps, which was acquired in October, exceeded group expectations in the first three months of ownership, contributing GBP3.8 million in revenue.
Franchise Brands declared a final dividend of 0.65p per share, bringing the total payout for the year to 0.95p, a 42% year-on-year increase from 0.67p.
Looking ahead, the group said trading in 2020 has started well, high higher job intake from Metro Rod, Metro Plumb and Willow Pumps. Franchise Brands said it has not seen any impact from the coronavirus, but it will continue to monitor the situation over the coming weeks.
"2019 has seen us successfully build the business both organically and by acquisition, with an acceleration in system sales growth at Metro Rod and Metro Plumb, and a recovery in franchise recruitment in the newly formed B2C division, complemented by the acquisition of Willow Pumps which has expanded Metro Rod's range of services," said Executive Chair Stephen Hemsley.
"Overall, we look forward to 2020 with considerable confidence given the group's strong start to the current year and the clear opportunities for growth we see across both our B2B and B2C divisions, particularly as we increasingly realise the benefits of our Vision 2023 strategy and our investment in new capabilities, capacity and a broader range of services at Metro Rod," Hemsley added.
By Dayo Laniyan; [email protected]
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