Overview
UK multi-brand franchise operator's 2025 system sales and revenue each rose 2% yr/yr
Adjusted EBITDA was flat yr/yr, while adjusted EPS increased 5%
Company reduced net debt and plans £10 mln share buy-back programme
Outlook
Franchise Brands expects 2026 performance within current analyst forecast range for adj EBITDA (£35.3-£38.0 mln)
Company to launch share buy-back programme of up to £10m, reflecting confidence in prospects
Company says early 2026 trading mixed; Filta International strong, Europe subdued by weather, macro uncertainty
Result Drivers
NON-DISCRETIONARY SERVICES - Co said demand for essential, non-discretionary services supported system sales and earnings growth despite challenging macro conditions
FILTA INTERNATIONAL & WILLOW PUMPS - Strong performance at Filta International and Willow Pumps divisions contributed to group results
STRATEGIC INITIATIVES & EFFICIENCY - Progress with One Franchise Brands initiatives expanded revenue streams and improved efficiency
Company press release: ID:nRSY9834Xa
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY System Sales
GBP 434.99 mln
FY Adjusted EBITDA
GBP 35.25 mln
FY Gross Profit
GBP 84.76 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the entertainment production peer group is "buy"
Wall Street's median 12-month price target for Franchise Brands PLC is GBp192.00, about 71.4% above its March 24 closing price of GBp112.00
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 14 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)