REG - Franchise Brands PLC - Interim Results
Wed 07:02
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RNS Number : 0828T Franchise Brands PLC 30 July 2025
30 July 2025
FRANCHISE BRANDS PLC
("Franchise Brands", the "Group" or the "Company")
Interim results for the six months ended 30 June 2025
A resilient trading performance in challenging conditions
Significant earnings progression as strong cash generation supports
deleveraging
Clear progress with strategic initiatives strengthening the business for
future growth
Franchise Brands plc (AIM: FRAN), an international multi-brand franchise
business, is pleased to announce its unaudited results for the six months
ended 30 June 2025.
Financial highlights
* System sales increased by 2.5% to £209.4m (H1 2024 Restated(1): £204.2m).
* Statutory revenue increased by 0.2% to £70.4m (H1 2024 Restated(1):
£70.2m).
* Adjusted EBITDA(2) decreased by 1.7% to £17.4m (H1 2024 Restated(1):
£17.7m).
* Profit before tax increased 9.6% to £11.7m (H1 2024 Restated(1): £10.7m).
* Adjusted EPS(3) increased by 7.8% to 4.42p (H1 2024 Restated(1): 4.10p).
* Basic EPS increased by 13.9% to 2.21p (H1 2024 Restated(1): 1.94p).
* Adjusted net debt(4) reduced by £8.7m to £62.0m at 30 June 2025 (30 June
2024 Restated(1): £70.7m), representing reduced leverage of 1.8x(5) (30
June 2024 Restated(1): 2.1x).
* Cash conversion rate increased to 83% (H1 2024 Restated(1): 71%) demonstrating
the strong cashflow performance of the Group's predominantly
franchise businesses.
* Interim dividend of 1.15p per share proposed, an increase of 5% (H1 2024:
1.10p).
Operational highlights
A resilient performance despite geopolitical uncertainty resulting in
challenging macroconditions in most key markets, with good progress made on
Group integration.
* Resilient underlying demand for the Group's essential services resulted in all
key divisions achieving record System sales.
* In line with our strategy of diversifying the range of customers and services,
we saw a small decline in the number of lower value jobs and an increase in
the number and value of higher value job.
* Benefiting from international diversification as Filta International performed
strongly and gained good traction with the FiltaMax strategic growth
initiative.
* The Group-wide IT initiatives of One Finance, One Works Management and One CRM
are progressing on time and on budget and will be "go live" ready by the end
of the year.
Outlook
* The outlook for the second half of the year remains similar to the first half,
with resilient demand for our essential services but a continuing weak
macroeconomic background.
* The Board is taking a prudent approach to expectations for the second half of
2025 and now expects Adjusted EBITDA for the full year to be at a similar
level to 2024.
* Adjusted EPS expected to increase due to debt repayment, declining interest
costs year-on-year as a result of reduced bank base rates and progressive
margin reduction as leverage reduces.
* Strong cash flow generation supports continued deleveraging and ongoing
investment for future growth.
( )
(1) System sales in H1 2024 have been restated to be consistent with the
treatment in H1 2025. Comparatives have been restated to reflect 2024 year-end
restatement as detailed in Note 1 of the 2024 Annual Report.
(2)Adjusted EBITDA is earnings before interest, tax, depreciation,
amortisation, exchange differences, share-based payment expense and
non-recurring items.
(3)Adjusted EPS is earnings per share before amortisation of acquired
intangibles, share-based payment expense, exchange differences and
non-recurring items.
(4)Adjusted net debt is the key debt measure used for testing bank covenants
and excludes debt of £9m on right-of-use assets.
(5)Leverage is calculated using Adjusted net debt at 30 June 2025 of £62.0m
and Adjusted EBITDA for the last 12 months of £34.9m.
Stephen Hemsley, Executive Chairman, commented:
"The Group delivered a resilient performance in challenging macroeconomic
conditions, benefiting from its international diversification, with all key
divisions achieving record System sales. Adjusted EBITDA was broadly
maintained with resilient underlying demand for our essential services
offsetting cost pressures and continuing weaker demand due to the
macroeconomic environment. The Group's strong cash generation supported
deleveraging which, combined with reduced interest rates, drove a significant
increase in Adjusted earnings per share.
"While we are adopting a cautious approach to guidance for the second half,
the underlying business continues to go from strength to strength as we
develop a platform to support resilience and future growth. We are making good
progress with our One Franchise Brands strategic initiative to accelerate
integration, which is already broadening and diversifying our customer base
and driving efficiencies. Group-wide technology platforms are also on track
and expected to provide a significant competitive and cost advantage.
"We remain focused on maximising the potential of our principal franchise
brands as they grow their small shares of large, fragmented, markets. I am
therefore confident that we will emerge from this period of slower growth with
a much fitter, leaner, more integrated business that can capitalise on the
many opportunities that will be available as conditions improve. As ever, I
would like to thank my colleagues and our franchisees for their hard work and
look forward to resuming a more robust trading performance."
Enquiries:
Franchise Brands plc + 44 (0) 1625 813231
Stephen Hemsley, Executive Chairman
Peter Molloy, CEO
Andrew Mallows, CFO
Julia Choudhury, Corporate Development Director
Stifel Nicolaus Europe Limited (Nominated Adviser & Joint Broker) +44 (0) 20 7710 7600
Matthew Blawat
Nick Harland
Allenby Capital Limited (Joint Broker) +44 (0) 20 3328 5656
Jeremy Porter / Daniel Dearden-Williams (Corporate Finance)
Amrit Nahal / Joscelin Pinnington (Sales & Corporate Broking)
Dowgate Capital Limited (Joint Broker) +44 (0) 20 3903 7715
James Serjeant /Amber Higgs (Corporate Broking)
Mel Brown (Sales)
MHP Group (Financial PR) +44 (0) 20 3128 8100
Katie Hunt / Hugo Harris +44 (0) 7884 494112
franchisebrands@mhpgroup.com
About Franchise Brands plc
Franchise Brands (FTSE AIM UK 50) is an international, multi-brand franchisor
focused on B2B van-based service with seven franchise brands and a presence in
10 countries across the UK, North America and Europe. The Group is focused on
building market-leading businesses primarily via a franchise model and has a
combined network of c600 franchisees.
The Company owns several market-leading brands with long trading histories,
including Pirtek in Europe, Filta, Metro Rod and Metro Plumb, all of which
benefit from the Group's central support services, particularly technology,
marketing, and finance. At the heart of Franchise Brands' business-building
strategy is helping its franchisees grow their businesses: "as they grow, we
grow".
Franchise Brands employs over 625 people across the Group and there are over
3,000 people in the franchise community.
For further information, visit www.franchisebrands.co.uk
(https://protect.checkpoint.com/v2/r06/___http:/www.franchisebrands.co.uk___.ZXV3MjpuZXh0MTU6YzpvOmNiOGI0NmY1YTVlZjM2Njc3MGYzYWJjZDcxY2EyNGFlOjc6ZDhhMjpjZjU3YTQyYjliYmZmZGQ2MTAyNzdjNGQ4Y2FkNWM2MjZjMDMxMjlkZDZjZDlhZTkxYWFkZTkzZGNiNWI2ODUyOnA6RjpU)
CHAIRMAN'S STATEMENT
Introduction
The Group delivered a resilient performance in the first half of 2025, despite
geopolitical uncertainty resulting in challenging macroeconomic conditions in
most key markets. The Group benefited from its international diversification
across its portfolio of market-leading franchise brands, with Filta
International performing strongly. Continuing resilient underlying demand
for the Group's essential services resulted in all key divisions achieving
record System sales. In line with our strategy of diversifying our range of
customers and services, we saw a small decline in the number of lower value
jobs and an increase in the number and value of higher value jobs. This
resulted in the Group broadly maintaining Adjusted EBITDA compared to the
previous year, whilst a reduction in our interest cost, driven by deleveraging
and lower interest rates, has resulted in an 8% increase in Adjusted earnings
per share ("Adjusted EPS").
The ongoing integration of our two major acquisitions, Pirtek Europe and
Filta, remains a key priority for 2025. The One Franchise Brands strategic
initiative, launched last year to accelerate integration, is progressing well
as we broaden our customer base, continue to reduce our sector dependency, and
enable a more efficient overhead structure. The Group-wide technology
projects, which include a global finance system, a single works management
system and Group-wide CRM in all reactive service businesses, are progressing
on time and on budget and will be ready to "go live" by the end of the year.
All of these initiatives are strengthening the Group to support our
continuing resilient performance.
Capital allocation
Capital allocation decisions will balance debt reduction, maintaining a
progressive dividend policy and investment in the organic expansion of the
Group. The Group's clear strategic focus remains to accelerate the pace of
integration, drive operational gearing and deleverage. The Board does not
anticipate making any further significant acquisitions until the outstanding
debt is substantially repaid which we now expect to be in 2028.
As part of our continuing review of capital allocation, we are considering the
strategic fit of non-core or sub-scale businesses. The Board may consider
disposals of businesses which no longer support the growth of the franchise
channels. Any capital generated through such disposals will be applied to
accelerate debt reduction.
Following the announcement last October that our Employee Benefit Trust
("EBT") would restart its share purchase programme up to an aggregate value
of £5,000,000, we have commenced a regular and consistent share purchase
programme, contributing £600,000 to the EBT in the first half of 2025. This
programme aims to mitigate the dilutive impact of share option awards and
improve overall shareholder return.
Dividend
The Board is pleased to propose an interim dividend of 1.15 pence per share,
an increase of 5% (H1 2024: 1.10 pence per share), broadly in line with the
increase in Adjusted EPS. The interim dividend will be paid on 26 September
2025 to those shareholders on the register at the close of business on 12
September 2025.
Trading platform migration and entry into the AIM 50
On 19 May, we transitioned trading of the Company's shares on AIM from
the London Stock Exchange's SETSqx (Stock Exchange Electronic Trading
Service: Quotes and Crosses) to SETS (Stock Exchange Trading Service). On 23
June, the Company became a constituent of the FTSE AIM UK 50 Index. This
marks a milestone in Franchise Brands' journey and is testament to the
Group's substantial growth since IPO in 2016. These are preparatory steps
towards a future listing on the Official List and Main Market of the London
Stock Exchange, in line with the Group's growth ambitions.
Outlook
The outlook for the second half of the year remains similar to the first half,
with continued, resilient demand for our essential services. The "green
shoots" that we saw in the Spring as a result of anticipated infrastructure
and defence spending, have not yet materialised and customer sentiment remains
cautious. Whilst the US tariffs have little direct impact on our business,
they do affect the ten economies in which we operate.
Mindful of this macroeconomic backdrop and continued geopolitical headwinds,
the Board is taking a prudent approach to expectations for the second half of
the year and now expects Adjusted EBITDA for the full year to be at a similar
level to 2024. On this basis, Adjusted EPS is expected to continue to grow as
a result of declining interest costs year-on-year due to debt repayment, a
reducing interest rate margin as leverage falls, and potentially lower bank
base rates. This should also support our progressive dividend policy.
However, should demand improve, leading to increased gross profit, this would
flow directly through to Adjusted EBITDA given the relatively fixed cost
nature of our substantially franchised business.
While we are adopting a cautious approach to guidance for the second half, I
am pleased to report that the underlying business goes from strength to
strength in developing the infrastructure needed to support future rapid
organic growth and will allow us to integrate future acquisitions more
efficiently. The development of our technology, on platforms which are mostly
Group-owned, provides us with the ability to meet the changing requirements of
our customers and franchisees and leverage new technologies such as AI. This
will provide us with a significant competitive and cost advantage. The
streamlining of our overhead structure to eliminate unnecessary duplication of
support functions across countries and businesses and the sharing of
actionable data will both reduce overhead costs and facilitate the development
of cross-selling and customer diversification opportunities.
We remain focused on the growth potential of our principal franchise brands as
they grow their small shares of large, fragmented, markets. I am therefore
confident that we will emerge from this period of slower growth with a much
fitter, leaner, more integrated business that can capitalise on the many
opportunities for future growth that will be available.
Conclusion
The first half of 2025 has been another challenging period for our colleagues
and franchisees. It is a testament to their resilience and entrepreneurial
spirit that we have delivered a solid result in difficult market conditions.
As ever, I would like to thank them for their efforts and look forward to
resuming more robust future growth in sales and profits.
Stephen Hemsley
Executive Chairman
OPERATIONAL REVIEW
The focus of my Operational Review is the financial and business performance
from System sales to Adjusted EBITDA.
The Group's divisional trading results may be summarised as follows:
Six months to 30 June 2025:
Pirtek Water & Waste Services Filta B2C Azura Inter- company elimination
Int'l H1 2025
£'000 £'000 £'000 £'000 £'000 £'000 £'000
System sales 93,656 54,861 50,652 12,363 189 (2,353) 209,368
Statutory revenue 32,358 22,494 14,342 2,792 189 (1,804) 70,371
Cost of sales (10,950) (9,417) (8,760) (469) - 1,780 (27,816)
Gross profit 21,408 13,077 5,582 2,323 189 (24) 42,555
GP% 66% 58% 39% 83% 100% 1% 60%
Administrative expenses (11,918) (7,365) (1,985) (1,332) (335) 24 (22,911)
Divisional EBITDA 9,490 5,712 3,597 991 (146) - 19,644
Group overheads (2,227)
Adjusted EBITDA 17,417
Adjusted EBITDA/ 8.3%
System sales
Six months to 30 June 2024:
Pirtek Water & Waste Services Filta B2C Azura Inter- company elimination
Int'l H1 2025
£'000 £'000 £'000 £'000 £'000 £'000 £'000
System sales 92,838 54,999 44,956 13,248 431 (2,308) 204,164
Statutory revenue 32,700 23,429 12,037 2,975 430 (1,348) 70,223
Cost of sales (11,464) (10,023) (7,185) (551) (0) 1,148 (28,075)
Gross profit 21,236 13,406 4,852 2,424 430 (200) 42,148
GP% 65% 57% 40% 81% 100% 15% 60%
Administrative expenses (10,883) (7,945) (1,925) (1,386) (363) 200 (22,302)
Divisional EBITDA 10,353 5,461 2,927 1,038 67 - 19,846
Group overheads (2,127)
Adjusted EBITDA 17,719
Adjusted EBITDA/ 8.7%
System sales
* H1 2024 have been restated to be consistent with the treatment in H1 2025
System sales are a KPI of the Group and are considered a good indicator of
Group performance as it allows total sales to end customers to be visible on a
comparable basis across all businesses within the Group as they comprise the
underlying sales of our franchisees and the statutory revenue of our Direct
Labour Operations ("DLO"). System sales increased by 3% to £209.4m in the
period (H1 2024: £204.2m). Although the rate of System sales growth was more
moderated in the period than in previous years, it still represents a record
performance for the three B2B divisions.
Statutory revenue increased by 0.2% to £70.4m (H1 2024: £70.2m). Statutory
revenue comprises many different types of revenue on different bases and is
not a KPI used in the operational management of the Group.
Administrative expenses grew by 3%, principally as a result of the IT spend on
One Franchise Brands strategic technology initiatives. Notwithstanding the
impact of National Insurance increases in the UK, salary costs fell in the
year due to efficiency gains across the Group. Adjusted EBITDA, which is the
main KPI of the business, decreased 1.7% to £17.4m (H1 2024: £17.7m).
Pirtek Europe
Pirtek operates in eight European countries: the UK and Ireland, Germany and
Austria, the Netherlands and Belgium (Benelux), and France and Sweden. In the
major markets of the UK and Ireland, Germany and Austria, and Benelux, the
business is mostly franchised, whereas the operations in the early-stage
markets of France and Sweden are corporately operated. The franchised
operations account for 96% of divisional Adjusted EBITDA.
The sterling results in H1 2025 may be summarised as follows:
Pirtek H1 2025 H1 2024 Change
£'000 £'000 %
System sales 93,656 92,838 1%
Statutory revenue 32,358 32,700 (1%)
Cost of sales (10,950) (11,464) (5%)
Gross profit 21,408 21,236 1%
GM% 66% 65% 1%
Administrative expenses (11,918) (10,883) (10%)
Adjusted EBITDA 9,490 10,353 (8%)
Adjusted EBITDA/System sales 10.1% 11.1%
The Pirtek Europe division generated total System sales of £93.7m, an
increase of 1% (H1 2024: £92.8m). All the main businesses, in the UK, Germany
& Austria and Benelux, grew System sales, with declines only in the
sub-scale direct labour businesses of France and Sweden.
System sales H1 2025 H1 2024 % Change
£'000 £'000
UK & Ireland 41,413 41,295 0.3%
Germany & Austria 34,648 33,739 2.7%
Benelux 12,509 12,290 1.8%
France 3,873 4,121 (6.0%)
Sweden 1,213 1,390 (12.7%)
Total 93,656 92,838 1.0%
The underlying local currency System sales growth may be analysed as follows:
System sales H1 2025 H1 2024 % Change
Local currency '000 '000
UK & Ireland GBP 41,413 41,295 0.3%
Germany & Austria € 41,179 39,538 4.2%
Benelux € 14,870 14,401 3.3%
France € 4,601 4,829 (4.7%)
Sweden SEK 15,970 18,665 (14.4%)
Pirtek UK & Ireland (which account for 44% of System sales) grew System
sales by 0.3%. The business demonstrated a high level of resilience in terms
of customer retention of national accounts. The previously reported slowdown
in construction and plant hire is being offset by targeting growth sectors,
including rail, mining & quarrying and public services, all which
experienced good growth. The business also expanded its range of services into
areas including ram and cylinder repairs and treatment for oil spills. We
have also invested in an automated "one click" repair service app making it
easier for our customers to place work and manage their assets.
Germany & Austria (which account for 37% of System sales) grew System
sales by 4.2% in local currency. The business is targeting under-represented
sectors, particularly the industrial services sector, driven by Total Hose
Management work ("THM") and an expansion of the service portfolio to include
hydraulic accumulators and cylinder oil filtration. Austria saw growth in
System sales of 4% although it remains an early-stage market.
Benelux (which accounts for 14% of System sales) achieved 3.3% growth in
System sales in local currency. Good growth was achieved in waste management
and recycling and also the agriculture sector, where specialist silicone hoses
were supplied to dairy customers. The business demonstrated a very high level
of resilience in terms of customer retention which positions it well as
markets recover. It has also further expanded its range of services with
more customers taking preventative maintenance services.
The performance of the early-stage, sub-scale DLO operations of France and
Sweden (which account for 5% of System sales) remains disappointing, with weak
sales. In France, our comparatives were affected by work on the 2024 Paris
Olympics which led to a more buoyant H1 2024. The Swedish economy remains
challenging with core construction and plant hire sectors still experiencing
significant declines.
Adjusted EBITDA on a country basis may be summarised as follows:
Adjusted EBITDA H1 2025 H1 2024 Change %
£'000 £'000
UK & Ireland 5,206 5,077 2.5%
Germany & Austria 2,847 3,386 (15.9%)
Benelux 2,011 1,980 1.6%
France (222) 201 (210.7%)
Sweden - 205 (100.0%)
Divisional overheads (352) (496) 29.0%
Total 9,490 10,353 (8.3%)
Administrative expenses for the Pirtek group rose by 10% to £11.9m (H1 2024:
£10.9m), with the primary driver of this being an increase in IT expenses, up
£0.6m to £1.9m (H1 2024: £1.3m). These increases were across all businesses
within Pirtek with the biggest impact being in the UK and Germany where we
allocated additional investment for Group-wide IT initiatives. Also, Austria
and France have not benefited from any exceptional income as they did in 2024.
Divisional overheads, however, reduced in the period as we continue with
Group integration. Overall, Adjusted EBITDA decreased by 8.3% to £9.5m (H1
2024: £10.4m).
Water & Waste Services division
The results of the Water & Waste Services division may be summarised as
follows:
Metro Rod Willow Pumps Filta UK H1 2025 Metro Rod Willow Pumps Filta UK H1 2024 Change Change
Restated*
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 %
System sales 39,466 9,348 6,047 54,861 39,286 9,237 6,476 54,999 (138) (0%)
Statutory revenue 9,143 9,348 4,003 22,494 9,276 9,237 4,916 23,429 (935) (4%)
Cost of sales (1,058) (6,115) (2,244) (9,417) (1,274) (5,882) (2,867) (10,023) 606 6%
Gross profit 8,085 3,233 1,759 13,077 8,002 3,355 2,049 13,406 (329) (2%)
GP% 88% 35% 44% 58% 86% 36% 42% 57% 1% 2%
Administrative expenses (3,939) (2,272) (1,154) (7,365) (4,189) (2,258) (1,498) (7,945) 580 7%
Adjusted EBITDA 4,146 961 605 5,712 3,813 1,097 551 5,461 251 5%
Adjusted EBITDA/System sales 10.5% 10.3% 10.0% 10.4% 9.7% 11.9% 8.5% 9.9%
*System sales in H1 2024 have been restated to be consistent with the
treatment in H1 2025.
The Water & Waste Services division continues to become more integrated
and grow its franchise focus by expanding its franchise networks and reducing
its DLO operations.
Metro Rod
The results for Metro Rod may be summarised as follows:
H1 2025 H1 2024 Change Change
£'000 £'000 £'000 %
System sales 39,466 39,286 180 0.5%
Statutory revenue 9,143 9,276 (133) (1.4%)
Cost of sales (1,058) (1,274) 216 17.0%
Gross profit 8,085 8,002 83 1.0%
GP% 88% 86% 2% 2.5%
Administrative expenses (3,939) (4,189) 250 6.0%
Adjusted EBITDA 4,146 3,813 333 8.7%
EBITDA/System sales 10.5% 9.7%
Metro Rod includes Metro Plumb and Kemac. With the sale of the Exeter
corporate franchise (operated by Willow Pumps) to a new franchise owner at the
end of the period, Metro Rod is now fully franchised for the first time since
acquisition in 2017.
Metro Rod System sales increased marginally to £39.5m (H1 2024: £39.3m).
Gross profit increased 1.0% as a result of a 2.2% improvement in the gross
profit percentage to 88% (H1 2024: 86%). Franchisees continued to expand their
range of services. Tanker and pump sales grew by 8% and 9%, respectively, and
now account for 23% of total System sales. Administrative expenses decreased
by 6% illustrating focused cost control in the face of flat sales. Adjusted
EBITDA increased by a creditable 8.7% to £4.1m (H1 2024: £3.8m)
Metro Plumb System sales declined by 3.9% (H1 2024: 14.4%). This was due to a
large national account moving to self-delivering a large proportion of their
work. Franchisees continued to expand their range of services into gas and air
source heat pumps which are now offered by the majority of franchisees.
Willow Pumps
The results for Willow Pumps may be summarised as follows:
H1 2025 H1 2024 Change Change
£'000 £'000 £'000 %
System sales 9,348 9,237 111 1.2%
Cost of sales (6,115) (5,882) (233) (4.0%)
Gross profit 3,233 3,355 (122) (3.6%)
GP% 35% 36% (2%) (4.8%)
Administrative expenses (2,272) (2,258) (14) (0.6%)
Adjusted EBITDA 961 1,097 (136) (12.4%)
The business has three distinct income streams: service revenue, supply and
installation ("S&I") revenue and Special Projects.
System sales increased by 1.2% to £9.4m (H1 2024: £9.3m) as, despite the
transfer of the Filta Pumps work to Willow, a major service customer was lost
in a competitive tender process. At the end of the period, the Exeter
corporate franchise was also sold to a new franchisee. Gross profit fell
marginally, primarily due to a change in the way in which margin is recognised
on longer-term S&I contracts.
Overheads were well controlled, but flat sales and the loss of gross margin
(which will be recognised in future periods) resulted in Adjusted EBITDA
declining 12.4% to £1.0m (H1 2024: £1.1m).
Filta UK
The results of Filta UK may be summarised as follows:
H1 2025 H1 2024 Change Change
Restated*
£'000 £'000 £'000 %
System sales 6,047 6,477 (430) (6.6%)
Statutory revenue 4,003 4,916 (913) (18.6%)
Cost of sales (2,244) (2,867) 623 21.7%
Gross profit 1,759 2,049 (290) (14.2%)
GP% 44% 42% 2% 5.5%
Administrative expenses (1,154) (1,498) 344 23.0%
Adjusted EBITDA 605 551 54 9.8%
*System sales in H1 2024 have been restated to be consistent with the
treatment in H1 2025.
Filta UK comprises the Filta Environmental franchise network, the Filta Seal
DLO and some remaining Fats, Oil and Grease ("FOG") installation work
undertaken by direct labour.
During this period, we completed the transfer of all FOG serving work and
approximately half of the installation work to the franchisees and transferred
the Filta pump business to Willow Pumps. The pump work is still currently
invoiced from Filta at zero margin, and the double counting of the System
sales in both businesses is eliminated in the consolidation. System sales have
declined 6.6% to £6.0m (H1 2024: £6.5m), driven by a reduction in FOG
installations due to a slow down in a national account roll out programme and
reduced discretionary spending with Filta Seal.
Statutory revenue has fallen as only the Management Service Fee ("MSF") is
recognised in respect of sales by franchisees. This is consistent with the
accounting treatment for franchise revenue across the Group.
As a result of these developments, Filta UK has become increasingly integrated
within the Water & Waste services division, which has allowed us to move
transactional finance to the Metro Rod Support Centre and reduce our office
footprint. These efficiencies have resulted in a 22.9% decrease in
administrative expenses and a 9.8% increase in Adjusted EBITDA.
Filta International
The results for Filta International may be summarised as follows:
North America Europe H1 2025 North America Europe H1 2024 Change Change
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 %
System sales 48,957 1,695 50,652 43,261 1,695 44,956 5,696 13%
Statutory revenue 14,151 191 14,342 11,754 283 12,037 2,305 19%
Cost of sales (8,688) (72) (8,760) (7,046) (139) (7,185) (1,575) (22%)
Gross profit 5,463 119 5,582 4,708 144 4,852 730 15%
GP% 39% 62% 39% 40% 51% 40% (1%) (3%)
Administrative expenses (1,855) (130) (1,985) (1,763) (162) (1,925) (60) (3%)
Adjusted EBITDA 3,608 (11) 3,597 2,945 (18) 2,927 670 23%
Adjusted EBITDA/ 7.4% 7.1% 6.8% 6.5%
System sales
Filta International comprises the Filta franchise networks in North America
and Europe.
System sales in North America increased by 13% to £48.9m (H1 2024: £43.3m)
and in local currency by 17% to $63.9m (H1 2024: $54.7m), benefiting from a
supportive macro-environment. Excluding the revenue from used cooking oil
("UCO"), underlying Systems sales grew by 12% to £40.8m (H1 2024: £36.4m)
and in local currency by 16% to $53.3m (H1 2024: $46.0m).
Good traction continues to be made with the FiltaMax strategic growth
initiative in the 55 metro markets where the range of services is being
expanded and franchisees upgraded. The business experienced continued momentum
in growing the royalty-based FiltaGold and FiltaClean services, which now
account for 23% of System sales.
Good progress is also being made converting the franchisees onto a
royalty-only model and away from the historic fixed monthly fee on each Mobile
Filtration Unit ("MFU"). 33% of franchisees (H1 2024: 10%) who contribute 54%
of the System sales (H1 2024: 35%) had transitioned to the royalty model by
end June 2025.
Sales of UCO in H1 2025 increased by 18% to £8.1m (H1 2024: £6.9m) and in
local currency by 22% to $10.6m (H1 2024: $8.7m). This resulted from a rise in
the price of UCO of 13% in local currency and an 8% increase in volume. Recent
US legislation is shifting biofuel incentives towards domestic sources of UCO
which should enable the price to be well supported.
Administrative expenses in North America increased by 5%. Adjusted EBITDA in
North America grew by 22.5% to £3.6m (H1 2024: £2.9m), and on a local
currency basis by 33% to $4.9m (H1 2024: $3.7m).
As anticipated, Filta Europe was sold to a Master Franchisee at the end of Q1
and will in future be reported as the System sales achieved by our master
franchise and revenue will be our MSF.
B2C Division
The results of the B2C division may be summarised as follows:
H1 2025 H1 2024 Change Change
£'000 £'000 £'000 %
System sales 12,363 13,248 (885) (7%)
Statutory revenue 2,792 2,975 (183) (6%)
Cost of sales (469) (551) 82 15%
Gross profit 2,323 2,424 (101) (4%)
GP% 83% 81% 2% 2%
Administrative expenses (1,332) (1,386) 54 4%
Adjusted EBITDA 991 1,038 (47) (5%)
The B2C division includes ChipsAway, Ovenclean, and Barking Mad consumer
brands. Its income is derived mainly from monthly fees paid by franchisees for
using the brands and from the fees generated on recruiting new franchisees.
While H1 2025 remained challenging for franchisee recruitment and retention,
16 new franchisees were recruited (H1 2024: 16), and 22 franchisees left the
system (H1 2024: 25), resulting in a net decline of 6 franchisees (H1 2024:
9). The B2C division ended the period with 292 franchisees (30 June 2024:
318).
Gross profit declined by 4% due to lower monthly fee income on the reduced
franchise base and the lower income from franchise recruitment. Strict cost
control resulted in a reduction in overhead of 4%. As a result, Adjusted
EBITDA declined by only 5% to £1.0m (H1 2024: £1.0m), which we consider a
solid result given the economic backdrop.
Azura
Azura is a SaaS supplier of franchise management software to the Group and
third-party franchise businesses. The results for the period may be summarised
as follows:
H1 2025 H1 2024 Change Change
£'000 £'000 £'000 %
System sales 189 431 (242) (56%)
Statutory revenue 189 430 (241) (56%)
Cost of sales - - 0 0%
Gross profit 189 430 (241) (56%)
GP% 100% 100% - -
Administrative expenses (335) (363) 28 8%
Adjusted EBITDA (146) 67 (213) (318%)
Statutory revenue is comprised of third-party income of £0.2m (H1 2024:
£0.2m) and charges to Group companies of £0.0m (H1 2024: £0.2m). In H1
2024, the Azura resources were re-focused to support the development and roll
out of the Vision Works Management system throughout the Group.
During the first half of the year, charges to Group companies were temporarily
suspended during ongoing development work. These will recommence once the
rollout of the One Works Management is finalised. When completed, Azura will
generate revenues which were previously paid to third party software
providers.
One Franchise Brands
I am pleased to report encouraging progress for the One Franchise Brands
strategic initiative. An objective is to develop Group-wide sales
opportunities. A cross-selling steering group and a sales incentive scheme
have been established to support these efforts on a pan-European basis.
Additionally, we have accelerated the development of the One CRM initiative to
provide a Group-wide platform to drive cross-selling and upselling.
All the larger businesses have progressed the expansion of their range of
services which helps us grow System sales by attracting new customers and
retain existing ones. We are also seeing traction in reducing sector
dependency by targeting growth opportunities which builds resilience. This is
evident in the main Pirtek businesses where a real focus is being applied to
reduce the historic dependency on construction and plant hire.
Good progress has also been made on the key Group-wide technology initiatives
of One Finance, One Works Management System, One CRM and One Reporting. Our
new global finance system (Netsuite) will be "go live" ready for our core
franchisor businesses by end of the year. Similarly, the Group's own works
management system (Vision) will be deployed for our core franchisor and
franchisee businesses in Q4 2025, with full adoption anticipated in Q1 2026.
Our new global technology platform will allow us to streamline and automate
processes, drive efficiencies and cost savings, standardise management
information and reporting and unlock further opportunities to grow sales and
spend smartly. It also provides a platform to leverage new technologies,
including AI.
Everyone has embraced opportunities to spend smartly. We have launched a
number of Group-wide initiatives to review how we procure services, products
and supplies, with tender processes assisting how we can buy more
competitively. These are starting to deliver tangible cost savings.
Finally, we are making good progress in establishing a more connected group.
The management teams from around the world have embraced the One Franchise
Brands strategy, evidenced by the sharing of innovations, best practice and
experience. The strong foundations we are laying gives me confidence that we
are creating a more resilient, leaner and progressive group.
Peter Molloy
Chief Executive Officer
FINANCIAL REVIEW
Summary statement of income
H1 2025 H1 2024 restated* Change Change
£'000 £'000 £'000 %
System sales 209,368 204,164 5,204 2.5%
Statutory revenue 70,371 70,223 148 0.2%
Cost of sales (27,816) (28,075) 259 0.9%
Gross profit 42,555 42,148 407 1.0%
Administrative expenses (25,138) (24,429) (709) (2.9%)
Adjusted EBITDA 17,417 17,719 (302) (1.7%)
Depreciation & amortisation of software (2,969) (2,996) 27 0.9%
Finance expense (3,036) (3,852) 816 21.2%
Foreign exchange 281 (200) 481 240.5%
Adjusted profit before tax 11,693 10,671 1,022 9.6%
Tax expense (3,191) (2,792) (399) (14.3%)
Adjusted profit after tax 8,502 7,879 623 7.9%
Amortisation of acquired intangibles (5,148) (5,111) (37)
Share-based payment expense (662) (557) (105)
Tax on adjusting items 1,554 1,512 42
Statutory profit 4,246 3,723 523 14.0%
Other Comprehensive Income (299) 101 (400)
Total Profit and Other Comprehensive Income 3,947 3,824 123 3.2%
*Restated to reflect 2024 year end restatement as detailed in note 1 of the
2024 Annual Report
Adjusted EBITDA declined by 1.7%, primarily as a result of modest growth in
System sales offset being by overhead increases mainly in the area of IT
expenditure.
Depreciation and amortisation of software decreased by 0.9% to £3.0m (H1
2024: £3.0m) demonstrating the capital light nature of our substantially
franchised business.
The finance expense decreased by 21.2% to £3.0m (H1 2024: £3.9m) due to the
repayment of the term loan and reduction in the base rate. The average
interest rate payable on the bank loans reduced to 7.0% (H1 2024: 7.7%).
During the first half the Group took proactive steps to reduce the cost of its
banking facilities. We have entered into a UK pooling arrangement with our
primary lender enabling us to offset cash balances which previously attracted
no interest. The Group is also entering into an agreement with our primary
lender to provide all of the debt facility. This renegotiation will both
reduce the interest payable on our debt and our administrative costs
associated with a syndicate of four lenders. This will also allow us to create
a global cash pooling arrangement.
Foreign exchange differences reflect the realised and unrealised losses
primarily associated with internal and external debt funding arrangements for
both the Pirtek acquisition and the Pirtek intercompany loans.
The overall effective tax rate has risen to 27.3% (H1 2024: 26.2%) as a result
of the higher taxes rates in the US and overseas operations.
Statutory profit after tax rose by 14% to £4.3m (H1 2024: £3.7m).
Earnings per share
The Adjusted and basic EPS are shown in the table below:
H1 2025 EPS H1 2024 EPS Change Change
£'000 p £'000 p p %
Adjusted profit after tax 8,502 4.42 7,879 4.10 0.32 7.8%
(5,148) (2.68) (5,111) (2.66)
Amortisation of acquired intangibles
(0.02) (0.8%)
(662) (0.34) (557) (0.29)
Share based payment (0.05) (17.2%)
1,554 0.81 1,512 0.79
Tax on adjusting items 0.02 2.5%
Statutory profit after tax 4,246 2.21 3,723 1.94 0.27 13.9%
The total number of Ordinary Shares in issue on 30 June 2025 was 193,784,080
(31 December 2024: 193,784,080).
The EBT started the period holding 1,247,122 Ordinary Shares, purchased
330,311 and disposed of 225,261 Ordinary Shares in respect of the exercise of
employees' shares options. The EBT therefore ended the period holding
1,352,172 Ordinary Shares.
On 30 June 2025 there were 14,087,881 shares under option (7.3% of the total
number of Ordinary Shares), of which 4,502,585 have vested and are capable of
exercise.
The total number of Ordinary Shares in issue on 30 June 2025 net of the EBT
holding was 192,431,908 (31 December 2024: 192,536,958), and the basic
weighted average number of Ordinary Shares in issue for was 192,452,647 (31
December 2024: 192,221,395).
Adjusted basic EPS increased by 7.8% to 4.42p (H1 2024: 4.10p), and basic
earnings per share increased by 13.9% to 2.21p (H1 2024: 1.94p).
Cash flow and working capital
A summary of the Group cash flow for the period is set out in the table below.
H1 2025
H1 2024
Restated *
£'000 £'000
Adjusted EBITDA 17,417 17,719
Working capital movements (2,918) (5,089)
Adjusted cash generated from operations 14,499 12,630
Taxes paid (2,169) (1,007)
Purchases of property, plant and equipment (net of proceeds) (365) (592)
Purchase/capitalisation of software (611) (670)
Purchase of IP - (11)
Net bank loans repaid (9,000) (3,500)
Interest paid bank and other loan (2,667) (3,548)
Lease payments (2,050) (2,039)
Proceeds from the exercise of share options 440 115
Purchase of shares by the EBT (600) -
Dividends paid (2,500) -
Other net movements (106) 93
Net cash movement (5,129) 1,471
Net cash at beginning of period 12,921 12,278
Exchange differences on cash and cash equivalents (255) (75)
Net cash at end period 7,537 13,674
*Restated to reflect 2024 year-end restatement as detailed in Note 1 of the
2024 Annual Report.
The Group generated Adjusted cash from operating activities of £14.5m (H1
2024: £12.6m) resulting in a cash conversion rate of 83% (H1 2024: 71%).
Taxes paid rose as a result of the two scheduled quarterly payments compared
to one such payment being made in H1 2024.
Property, Plant and Equipment purchases were £0.4m (H1 2024: £0.6m) and
related mostly to plant and equipment additions in the DLO businesses. The
software purchases represent the capitalised element of our continued
investment in the development or our global group platforms.
Bank loans repaid represent both the term loan repayments of £5.0m and a
£4.0m repayment on the revolving credit facility ("RCF") as the Group
utilises its new pooling facility to maximise the benefits of its cash
holdings. Interest paid reflects the cost of servicing this debt. Lease
payments remain constant with the previous year.
Purchase of shares by the EBT relate to the re-commencement of the share
purchase programme announced last October.
Dividend payments reflect the payment of the final dividend in respect of the
2024 financial year. The final dividend in respect of the 2023 results was
paid in the second half of 2024.
The net debt of the Group may be summarised as follows:
30 June 2025 30 June 2024 31 December 2024 Change H1 2024 v H1 2025 Change
Restated* FY 2024 v H1 2025
£'000 £'000 £'000 £'000 £'000
Cash 7,537 13,674 12,921 (6,137) (5,384)
Term loan (35,000) (45,000) (40,000) 10,000 5,000
RCF (33,588) (38,289) (37,431) 4,701 3,843
Loan fee 612 823 689 (211) (77)
Hire purchase debt (1,610) (1,926) (1,266) 316 (344)
Adjusted (net debt)/net cash (62,049) 8,669 3,038
(70,718) (65,087)
Other lease debt (9,297) (9,813) (9,975) 516 678
(Net Debt) / Net cash (71,346) (80,531) (75,062) 9,185 3,716
*Restated to reflect 2024 year end restatement in respect of IFRS 16 as
detailed in note 1 of the 2024 Annual Report
Since 31 December 2024 the term loan balance was reduced by £5.0m (H1 2024:
£5.0m) in accordance with the banking agreement and the RCF was reduced by
£3.8m (H1 2024 increased £1.5m). Since 30 June 2024, we have repaid £10.0m
of the term loan and £4.7m of the RCF. Adjusted net debt, the metric used in
calculating compliance with our banking covenants, reduced to £62.0m (31
December 2024: £65.1m). This reduced our leverage to 1.8x times Adjusted
EBITDA, down from 1.9x at the year end and 2.1x at the end of June 2024, which
was in line with management's expectations and comfortably within our banking
covenants.
Andrew Mallows
Chief Financial Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2025
Unaudited *Restated unaudited Audited
6 months 6 months Year
ended ended ended
30 June 30 June 31 December
Notes 2025 2024 2024
£'000 £'000 £'000
Revenue 70,371 70,223 139,206
Cost of sales (27,816) (26,476) (55,887)
Gross profit 42,555 43,747 83,319
Adjusted EBITDA 35,121
17,417 17,719
Depreciation (2,387) (2,427) (4,837)
Amortisation of software (582) (569) (1,235)
Amortisation of acquired intangibles (5,148) (5,111) (10,156)
Share-based payment expense (662) - (1,480)
Non-recurring items - (557) (444)
Total administrative expenses (33,503) (34,544) (65,858)
Impairment loss (414) (148) (492)
Operating profit 8,638 9,055 16,969
Foreign exchange gain/(loss) 281 (200) (386)
Finance expense (3,036) (3,852) (7,378)
Profit before tax 5,883 5,003 9,205
Tax expense (1,637) (1,280) (1,921)
Profit attributable to equity holders of the Parent Company 4,246 3,723 7,284
Other comprehensive (expense)/income
Actuarial gains 19 26 12
Exchange differences on translation of foreign operations (318) 75 337
Total comprehensive income attributable to equity holders of the Parent (299) 101 349
Company
Total profit and other comprehensive (expense)/income for the year 3,947 3,824 7,633
attributable to equity holders of the Parent Company
Earnings per share (p)
Basic 2 2.21 1.94 3.78p
Diluted 2 2.19 1.91 3.74p
*See Note 1 of the 2024 Annual Report for details
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2025
Unaudited
30 June 2025 Audited
31 December
2024
£'000 £'000
Assets
Non-current assets
Intangible assets 290,616 295,536
Property, plant and equipment 4,749 4,667
Right-of-use assets 10,850 11,106
Contract acquisition costs 433 454
Trade and other receivables 238 333
Total non-current assets 306,886 312,096
Current assets
Inventories 7,595 7,577
Trade and other receivables 45,116 40,217
Contract acquisition costs 83 98
Current tax asset 104 390
Cash and cash equivalents 7,537 12,921
Total current assets 60,435 61,203
Total assets 367,321 373,299
Liabilities
Current liabilities
Trade and other payables 33,284 31,018
Loans and borrowings 9,388 9,311
Obligations under leases 3,132 3,062
Deferred income 1,309 2,237
Current tax liability 1,367 778
Total current liabilities 48,480 46,406
Non-current liabilities
Loans and borrowings 58,588 67,431
Obligations under leases 7,775 8,179
Deferred income 2,577 1,892
Deferred tax liability 29,434 30,828
Total non-current liabilities 98,374 108,330
Total liabilities 146,854 154,736
Total net assets 220,467 218,563
Issued capital and reserves attributable to owners of the Parent
Share capital 969 969
Share premium 131,131 131,131
Share-based payment reserve 3,830 3,213
Merger reserve 69,754 69,754
EBT reserve (2,916) (2,756)
Translation reserve 43 361
Retained earnings 17,656 15,891
Total equity attributable to equity holders 220,467 218,563
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2025
Unaudited *Restated unaudited Audited
6 months ended 6 months Year
30 June ended ended
2025 30 June 31 December
2024 2024
£'000 £'000 £'000
Cash flows from operating activities 7,284
Profit for the period 4,246 3,723
Adjustments for: 1,122
Depreciation of property, plant and equipment 704 616
Depreciation of right-of-use assets 1,683 1,811 3,715
Amortisation of software 582 569 1,235
Amortisation of acquired intangibles 5,148 5,111 10,156
Stock provision adjustment - - (313)
Non-recurring charges (18) - (491)
Share-based payment expense 662 557 1,480
Gain on disposal of property, plant and equipment (109) (5) (102)
Defined benefit obligation current service costs 63 11 (18)
Finance expense 3,036 3,852 7,378
Exchange differences on translation of foreign operations (291) 185 357
Income tax expense 1,637 1,280 1,921
Operating cash flow before movements in working capital 17,343 17,710 33,724
(Increase)/decrease in trade and other receivables (4,749) (4,246) 421
(Increase)/decrease in inventories (290) (239) (344)
(Decrease)/increase in trade and other payables 2,122 (602) (1,654)
Cash generated from operations 14,426 12,623 32,147
Income taxes (paid)/received (2,169) (1,007) (3,991)
Net cash generated from operating activities 12,257 11,616 28,156
Cash flows from investing activities
(1,470)
Purchases of property, plant and equipment (572) (646)
Purchase of software (611) (670) (1,657)
Proceeds from the sale of property, plant and equipment 207 54 248
Purchase of intellectual property - (11) (9)
Loans to franchisees (194) (81) (164)
Loans to franchisees repaid 161 181 341
Net cash used in investing activities (1,009) (1,173) (2,711)
Cash flows from financing activities 2,000
Bank loans - received - 2,000
Bank loans - repaid (9,000) (5,500) (11,250)
Capital element of lease obligations repaid (1,768) (1,744) (3,666)
Interest paid - bank and other loan (2,667) (3,548) (6,704)
Interest paid - finance leases (282) (295) (598)
Proceeds from sale/(purchase) of shares by the Employee Benefit Trust (160) 115 (77)
Dividends paid (2,500) - (4,429)
Net cash generated from/(used) in financing activities (16,377) (8,972) (24,724)
Net increase/(decrease) in cash and cash equivalents (5,129) 1,471 721
Cash and cash equivalents at beginning of period 12,921 12,278 12,278
Exchange differences on cash and cash equivalents (255) (75) (78)
Cash and cash equivalents at end of period 7,537 13,674 12,921
*See Note 1 of the 2024 Annual Report for details
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2025
Share capital Share premium account Share-based payment reserve Merger reserve Translation reserve *Restated EBT reserve *Restated Retained earnings Total
Group £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 969 131,131 1,936 69,754 24 (2,679) 13,258 214,393
Correction of errors - - - - - - (357) (357)
*Restated At 1 January 2024 969 131,131 1,936 69,754 24 (2,679) 12,901 214,036
Profit for the period - - - - - - 3,723 3,723
Other comprehensive income - - - - - - 26 26
Foreign exchange translation differences - - - - 75 - - 75
Total comprehensive income - - - - 75 - 3,749 3,824
Contributions by and distributions to owners:
Contributions to Employee Benefit Trust - - - - - 114 - 114
Share-based payment - - 533 - - - - 533
Tax on share-based payment expense - - - - - - (296) (296)
At 30 June 2024 969 131,131 2,469 69,754 99 (2,565) 16,354 218,211
Profit for the period - - - - - - 3,561 3,561
Other comprehensive income - - - - - - (14) (14)
Foreign exchange translation differences - - - - 262 - - 262
Profit for the year and total comprehensive income - - - - 262 - 3,547 3,809
Contributions by and distributions to owners:
Dividend paid - - - - - - (4,429) (4,429)
Contributions to Employee Benefit Trust - - - - - (191) - (191)
Share-based payment - - 744 - - - - 744
Tax on share-based payment expense - - - - - - 419 419
At 31 December 2024 969 131,131 3,213 69,754 361 (2,756) 15,891 218,563
Profit for the period - - - - - - 4,246 4,246
Other comprehensive income - - - - - - 19 19
Foreign exchange translation differences - - - - (318) - - (318)
Profit for the year and total comprehensive income - - - - (318) - 4,265 3,947
Contributions by and distributions to owners:
Dividend paid - - - - - - (2,500) (2,500)
Contributions to Employee Benefit Trust - - - - - (160) - (160)
Share-based payment - - 617 - - - - 617
At 30 June 2025 969 131,131 3,830 69,754 43 (2,916) 17,656 220,467
*See Note 1 of the 2024 Annual Report for details.
Accounting policies
Basis of preparation
The consolidated financial statements for the six months ended 30 June 2025
and 2024 are unaudited and were approved by the Directors on 29 July 2025.
They do not constitute statutory accounts as defined in section 434 of the
Companies Act 2006. The financial statements for the year ended 31 December
2024 were prepared in accordance with IFRS and have been delivered to the
Registrar of Companies. The report of the auditor on those financial
statements was unqualified and did not draw attention to any matters by way of
emphasis of matter. The Group's financial statements consolidate the financial
statements of Franchise Brands plc and its subsidiaries.
Applicable standards
These unaudited consolidated interim financial statements have been prepared
in accordance with International Financial Reporting Standards as adopted by
the European Union, under the historical cost convention. They have not been
prepared in accordance with IAS 34, the application of which is not required
to the interim financial statements of AIM companies. The interim financial
statements have been prepared in accordance with the accounting policies set
out in the Group's Annual Report and Accounts for the year ended 31 December
2024.
Going concern
The condensed financial statements have been prepared on a going concern
basis. The Group has generated profits both during the period covered by these
financial statements and in previous years. These profits have resulted in
operating cash inflows into the Group, and the Group has sufficient current
financial assets to meet its current liabilities as they fall due.
Notes to the unaudited results for the six months ended 30 June 2025
1. Restatements
During the prior year we identified a small number of errors that have given
rise to a restatement of the June 2024 accounts.
2. Earnings per share
Basic earnings per share amounts are calculated by dividing profit for the
period attributable to equity holders of the Parent by the weighted average
number of Ordinary Shares outstanding during the period. Diluted earnings per
share are calculated by dividing the profit attributable to Ordinary equity
holders of the Parent Company by the weighted average number of Ordinary
Shares outstanding during the period plus the weighted average number of
Ordinary Shares that would have been issued on the conversion of all dilutive
share options at the start of the period or, if later, the date of issue.
Earnings per share
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Profit attributable to owners of the Parent Company 4,246 3,723 7,284
Non-recurring costs - - 444
Amortisation of acquired intangibles 5,148 5,111 10,156
Share-based payment expense 662 557 1,480
Tax on adjusting items (1,554) (1,512) (2,822)
Adjusted profit attributable to owners of the Parent Company 8,502 7,879 16,542
Number Number Number
Basic weighted average number of shares 192,452,647 192,290,101 192,471,897
Dilutive effect of share options 1,443,993 2,268,174 2,231,135
Diluted weighted average number of shares 193,896,640 194,558,275 194,703,032
Pence Pence Pence
Basic earnings per share 2.21 1.94 3.78
Diluted earnings per share 2.19 1.91 3.74
Adjusted earnings per share 4.42 4.10 8.59
Adjusted diluted earnings per share 4.38 4.05 8.50
3. Availability of this report
This half-year results report will not be sent to shareholders but is
available on the Company's website
at https://www.franchisebrands.co.uk/key-documents/
(https://protect.checkpoint.com/v2/r06/___https:/www.franchisebrands.co.uk/pjD-ithzrjsyxd___.ZXV3MjpuZXh0MTU6YzpvOjcyZGVhMWI0NmU5ODkyMzEzZWMzMDQ1MjdhZGY2ZWY3Ojc6NjU3MTo0YTA5Yzg1NjlkYTA2OWE0OWM3MWJkNmFjNjMxOTYzNWE3MGM4MzFlOTUwZTc5MGE3Y2QwMjExMTFhNmFlOWQ3OnA6RjpU)
.
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Announcement