We have started to look for more bolt-on acquisitions with the integration of drain maintenance business MetroRod now largely finished.
Stephen Hemsley, executive chairman
How it is it doing
Bringing the two brands together, the long-term goal is to provide a “water in, waste out" range of plumbing-related services to commercial customers in the UK.
The AIM-listed company had a strong showing from Metro Rod which helped profits soar in the first half of 2019.
Pre-tax profit rose 27% to £1.8mln (H1 18: £1.4mln) in the six months ended 30 June, on revenue of £20.1mln (H1 18: £16.8mln) – a 19% year-on-year increase.
Metro Rod, which Franchise acquired two years ago, was the standout performer, with sales growth accelerating to 15%. Underlying earnings jumped by 44% to £1.73mln (H1 18: £1.20mln).
Car body repairer ChipsAway also saw earnings rise in the period, more than offsetting drops in profitability at OvenClean and dog groomer Barking Mad.
Franchise upped its interim by 43% to 0.30p per share (H1 18: 0.21p).
Looking ahead, Hemsley said he “remains very positive” on the outlook for the business and expects to deliver “further significant growth” in the current year and beyond.
What the boss says: Stephen Hemsley, executive chairman
“We have started to look for more bolt-on acquisitions with the integration of drain maintenance business MetroRod now largely finished.
“More than 40% of franchisees are seeing sales growth of more than 20%.
“We want to expand the services it offers to a complete ‘water in and waste out’ product.
Chipsaway is also being prepared for the advent of electric cars.
“Everything is in the bumper, so a bang or scrape there means everything has to be re-calibrated.”
Watch the interview
- At MetroRod, Franchise Brands has a five-year plan to boost franchisee fee income four-fold by 2023
- Company has spent heavily overhauling IT infrastructure and central support function
- More acquisitions likely to utilise this franchise network infrastructure