Franchise Brands (FRAN)

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Franchise Brands FRAN Logo

A multi-brand international franchisor with a network of over 400 franchisees in approximately 12 countries, the company’s brands include ChipsAway, Ovenclean, Barking Mad and MyHome.

18-Jan-2018 – 55p – £42.8m – PER 18.6

Trading Update For The 12 Months To End December 2017 – Results to be ahead of market expectations. 2018 started well.

I’m tempted here, it’s going on my Watchlist, 50p.

Subsequently revised Watchlist price, 54p.

22-Mar-2018 – 72p – £56.0m – PER 24.3

Results For The 12 Months To End December 2017 – Revenue up five-fold to £24.3m (2016: £4.9m) but Profits and EPS are down, Net debt of £6.3m (2016: Cash of £2.5m, Final Dividend doubled.

There seems to be potential here but for now I am just going to leave it on the Watchlist, 54p.

26-Jul-2018 – 82p – £63.7m – PER 51.4

Half Year Results For The 6 Months To End June 2018 –  Revenue up 88% to £16.8m (H1 2017: £8.9m). Adjusted PBT up 41% to £1.4m (H1 2017: £1.0m).  EPS ahead by 15%, Interim Dividend will be increased by 24%. ChipsAway, Ovenclean and Barking Mad have performed solidly and Metro Rod strategy delivers, capable of significant growth.

Still quite like this, going to keep it on my Watchlist at 54p just to make sure I monitor for a potential entry.

Subsequent note: Further research suggested, on a 2 year view this is probably fairly priced here so I am now Neutral awaiting updates.

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