- The company expects to report between £29.3 million and £30.1 million in adjusted profits over the last year.
- Franchise Brands is listed on the AIM market and controls more than 625 franchisees.
Franchise Brands expects annual profits to be at the high end of forecasts but has delayed publishing its accounts due to audit issues.
The Macclesfield-based group expects to report adjusted profits of between £29.3m and £30.1m over the last year.
Following the result, the company will seek approval at its next annual general meeting to pay investors a final dividend of 1.2 pence per share, increasing its full-year payout by 10 per cent to 2.2 pence per share. .
Acquired: Purchased for £200 million, Pirtek specializes in on-site hydraulic hose replacement and associated services in eight European countries.
However, the company’s Annual General Meeting was postponed from late June to July 18 due to issues with its auditor, BDO, in relation to the acquisition of Pirtek Europe.
Purchased for £200 million, Pirtek specializes in on-site hydraulic hose replacement and associated services in eight European countries.
Franchise Brands said that following the acquisition and subsequent increase in market capitalization, it became an “Other Public Interest Entity,” a business of significant public interest to stakeholders.
The company subsequently assessed its accounting policies “to ensure they comply with accounting standards and are consistent across the expanded group”, leading to a delay in publishing its 2023 results.
Bosses said they were confident this “will not happen again in the coming years”.
Franchise Brands, listed on the AIM market, controls more than 625 franchisees across the UK, Europe and North America.
Its B2B division comprises Metro Road, Metro Plumb, commercial kitchen services company Filta and water pump installation provider Willow Pumps.
Meanwhile, the company’s B2C division includes dog boarding service Barking Mad, home cleaning services company OvenClean and car paint repair specialist Chipsaway.
The group’s third quarter results reported that the B2B segment was trading at record levels despite lower demand during the summer season.
Stephen Hemsley, chief executive of Franchise Brands, said the company saw “significant potential” for growth by “expanding the range of services offered, increasing geographic penetration and cross-selling to a broader customer base.”
He added: “This scale, and our continued investment in IT infrastructure, will accelerate our operational gearing in the coming years and will be an additional driver of adjusted EBITDA.”
Franchise brand actions They rose 1.7 per cent to 192.8p early on Monday afternoon and have risen by around a fifth so far this year.