Company posts 2.5% rise in system sales to £209.4 million, with profit before tax advancing 9.6% to £11.7 million
LONDON: Franchise Brands PLC (AIM: FRAN), the international multi-brand franchise group, reported resilient interim results for the six months ended 30 June 2025, underscoring its operational agility and robust cash generation despite geopolitical and macroeconomic headwinds.
In a statement, the company highlighted a 2.5% rise in system sales to £209.4m, with profit before tax advancing 9.6% to £11.7m. Adjusted EPS rose 7.8%, while basic EPS climbed 13.9%, reflecting benefits from deleveraging and reduced interest costs. Although adjusted EBITDA fell marginally to £17.4m, cash conversion surged to 83%, enabling continued investment and dividend growth.
Chairman Stephen Hemsley attributed the steady progress to resilient demand for essential services and the traction gained by strategic initiatives such as FiltaMax and the One Franchise Brands integration programme. Notably, the group’s digital infrastructure upgrades—One Finance, One CRM, and One Works Management—remain on schedule for year-end launch.
Looking ahead, the Board expects full-year adjusted EBITDA to be in line with 2024, but anticipates further gains in EPS as lower leverage and interest rates take effect. “We remain confident in our strategy to strengthen and streamline the business, ensuring it is well-positioned to capitalise on emerging opportunities,” Hemsley stated.
The interim dividend has been lifted 5% to 1.15p, reinforcing the company’s commitment to shareholder returns.