REG - Franchise Brands PLC - Q3 Trading Update

Franchise BrandsAnnouncement

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RNS Number : 1220H  Franchise Brands PLC  12 November 2025

12 November 2025

 

FRANCHISE BRANDS PLC

 

("Franchise Brands", the "Group" or the "Company")

 

Q3 Trading Update

 

Expect to deliver a highly resilient performance, with Adjusted EBITDA for the
full year in line with market expectations

Franchise Brands plc (AIM: FRAN), an international multi-brand franchise
business, provides the following trading update for the three months to 30
September 2025 ("Q3").

Trading in Q3 has continued the trend of the first half of the year, with
resilient underlying demand for the Group's essential reactive and planned
services despite a continued challenging macroeconomic and geopolitical
backdrop in most key markets. Good progress has been made with the One
Franchise Brands initiatives to accelerate integration and drive efficiencies.
The Group's strong cash flow generation continues to support deleveraging. The
Board expects that the Group's Adjusted EBITDA(1) for the year ending 31
December 2025 will be in line with market expectations(2).

 

Divisional performance

At Pirtek, demand for essential reactive and planned services has remained
resilient in most sectors. However, project work and other discretionary
spending were held back, particularly in the construction and plant hire
sectors. Customer retention remained strong, which positions the business well
as markets recover. We continue to focus on diversifying sectors and expanding
the range of services. In the sub-scale Direct Labour Organisations of France
and Sweden, we are pleased to report that the underlying performance has
improved.

In the Water & Waste Services division, demand for essential reactive and
planned services at Metro Rod has also remained resilient. Filta UK continues
to benefit from divisional integration. Willow Pumps saw good growth in sales
as a result of special project work being delivered.

Filta North America's core franchise business (excluding used cooking oil)
experienced good growth in System sales. The used cooking oil price has
improved further, and we continue to drive volume. Good traction continues to
be made with the FiltaMax strategic growth initiative, and franchisees
continue to expand the range of services offered.

Trading in the B2C division remains stable despite the challenging franchise
recruitment and retention environment.

The Group-wide IT initiatives of One Finance, One Works Management System and
One CRM are progressing on time and well within budget. The roll-out of One
Finance and One CRM are now underway and the One Works Management System is on
track for roll-out from January.

 

Stephen Hemsley, Executive Chairman, commented:

"The Group is expected to deliver a highly resilient performance, with
adjusted EBITDA for the full year expected to be in line with market
expectations, despite the ongoing challenging macroeconomic and geopolitical
backdrop.  This reflects the essential nature of the majority of the Group's
services, strong customer retention and our international diversification,
coupled with the strategic initiatives we have undertaken to broaden the
sectors targeted and services provided.

"We are also making strong progress with our One Franchise Brands IT
initiatives to accelerate integration and drive efficiencies, which will
provide a significant competitive advantage with the benefits starting to be
realised during 2026.  We are, therefore, confident we will emerge from the
current challenging market backdrop well-positioned, with a strengthened
platform from which to capitalise on the many opportunities in our large and
fragmented markets."

(1)Adjusted EBITDA is earnings before interest, tax, depreciation,
amortisation, impairment losses, exchange differences, share-based payment
expense and non-recurring items.

(2)Current market expectations of Adjusted EBITDA for the financial year
ending 31 December 2025 are £33.8m to £35.3m.

 

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 and Joint Broker)  +44 (0) 20 7710 7600
 Matthew Blawat
 Jason Grossman

 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

 Paul Richards

 Amber Higgs

 MHP Group (Financial PR)                                             +44 (0) 20 3128 8100
 Katie Hunt / Catherine Chapman/ Hugo Harris                          +44 (0)7711 191518
                                                                      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
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