REG - Franchise Brands PLC - Trading Update, Final Dividend & AGM

Franchise BrandsAnnouncement

03/06/2024 07:00

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RNS Number : 7470Q  Franchise Brands PLC  03 June 2024

3 June 2024

Franchise Brands PLC

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

 

Trading Update, Final Dividend & AGM

 

Franchise Brands plc (AIM: FRAN), an international multi-brand franchise
business, provides an update on trading, its proposed final dividend for the
year ended 31 December 2023 ("FY23") and notice of its annual general meeting
("AGM").

 

Trading update

 

Further to the Company's year-end trading update announced on 18 January 2024,
the Group now expects to report Adjusted EBITDA* for FY23 at the top end of
the range of current market expectations of £29.3m to £30.1m.

 

Final dividend

 

At the forthcoming AGM, the Company will be seeking approval of a proposed
final dividend for FY23 of 1.2p per share (2022: 1.1p), which increases the
total dividend for the year by 10% to 2.2p per share (2022: 2.0p). Subject to
shareholder approval at the AGM, the final dividend will be paid on 25 July
2024 to those shareholders on the register at the close of business on 28 June
2024.

 

Notice of AGM

 

Under the Companies Act 2006 (the "Act"), the Company is required to convene
its AGM by 30 June 2024 on at least 21 clear days' notice and the notice of
AGM is therefore being sent to shareholders today to convene a meeting on 27
June 2024.  The notice of AGM will be available on the Company's website
shortly. The Act also requires that the annual report and accounts for the
year ended 31 December 2023 ("Annual Report") is laid before shareholders at a
general meeting and that the document must be posted at least 21 clear days
before the meeting at which it is to be laid.

 

Following the Group's recent material acquisition of Pirtek Europe and
subsequent increase in market capitalisation, the Group has become an Other
Entity of Public Interest ("OEPI") and as such the audit of its accounts is
now in scope for the purposes of the Financial Reporting Council's audit
quality review processes. This has meant that following challenges from the
Group's auditors, BDO LLP, the Group has extensively reviewed its existing
accounting policies to ensure they comply with the accounting standards and
are consistent across the enlarged Group. This has caused a significant delay
in publishing this year's results, recognising the need for a high-quality
audit. The Board of Franchise Brands is confident this will not re-occur in
future years.

 

The Company intends to post the Annual Report to shareholders, and announce
its full year results, in the week ending 21 June 2024.  Since that date is
less than 21 clear days before the date of the AGM, the Company intends to
immediately adjourn the AGM when it commences on 27 June 2024, with no formal
business being transacted, and then resume the meeting on 18 July 2024. Full
details of the business of the AGM, all of which will be considered on 18 July
2024, is set out in the letter to shareholders accompanying the notice of AGM
being published today.

 

*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation,
exchange differences, share-based payment expense, non-recurring items.

 

Enquiries:

 

 Franchise Brands plc                                                    + 44 (0) 1625 813231
 Stephen Hemsley, Executive Chairman
 Mark Fryer, Chief Financial Officer
 Julia Choudhury, Corporate Development Director

 Allenby Capital Limited (Nominated Adviser and Joint Broker)            +44 (0) 20 3328 5656
 Jeremy Porter / Liz Kirchner (Corporate Finance)

 Amrit Nahal / Joscelin Pinnington (Sales & Corporate Broking)

 Dowgate Capital Limited (Joint Broker)                                  +44 (0) 20 3903 7715
 James Serjeant / Nicholas Chambers

 Stifel Nicolaus Europe Limited (Joint Broker)                           +44 (0) 20 7710 7600
 Matthew Blawat

 MHP Group (Financial PR)                                                +44 (0) 20 3128 8100
 Katie Hunt / Catherine Chapman                                          +44 (0) 7884 494112
                                                                         franchisebrands@mhpgroup.com

 

 

About Franchise Brands plc

 

Franchise Brands is an international, multi-brand franchisor focused on
building market-leading businesses primarily via a franchise model. The Group
has a combined network of over 625 franchisees across seven franchise brands
in ten countries covering the UK, North America and Europe.

 

Franchise Brands' focus is on B2B van-based reactive and planned services. 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: "if they grow, we
grow".

 

Franchise Brands employs over 700 people across the Group.

 

For further information, visit www.franchisebrands.co.uk
(https://protect.checkpoint.com/v2/___http:/www.franchisebrands.co.uk/___.bXQtcHJvZC1jcC1ldXcyLTE6bmV4dDE1OmM6bzpjZWY1NTAzMjM5NzgwNzM5Mzg4MDk1MDY1ZDBhYWI3Mjo2OjAzODI6NTA0ZDU2ZDM2MWY2NmVhNjZjZDU2NTVlOTI4ZjQ4OTQ0MWUyOWFmMjBmZWM4MGNiY2I2M2I3ZWZjZjc5OGY1ZjpwOlQ)

 

 

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