- Franchise Brands
- 30 July 2025 14:50:30
Source: Sharecast
System sales rose 2.5% to £209.4m, while statutory revenue was broadly flat at £70.4m.
Adjusted EBITDA slipped 1.7% to £17.4m, but profit before tax increased 9.6% to £11.7m.
Adjusted earnings per share rose 7.8% to 4.42p, while basic earnings jumped 13.9% to 2.21p per share.
The AIM-traded company said its adjusted net debt reduced by £8.7m to £62m, bringing leverage down to 1.8x from 2.1x a year earlier.
Its board declared an interim dividend of 1.15p per share, up 5% on the prior year.
“The group delivered a resilient performance in challenging macroeconomic conditions, benefiting from its international diversification, with all key divisions achieving record system sales,” said executive chairman Stephen Hemsley.
“Adjusted EBITDA was broadly maintained with resilient underlying demand for our essential services offsetting cost pressures and continuing weaker demand due to the macroeconomic environment.
“The group's strong cash generation supported deleveraging which, combined with reduced interest rates, drove a significant increase in Adjusted earnings per share.”
Franchise Brands said the first half was characterised by robust demand for essential services, with an increase in the value of higher-margin jobs offsetting a small decline in lower-value work.
International operations, particularly Filta International, performed strongly, supported by the FiltaMax strategic growth initiative.
The company also highlighted progress on its ‘One Franchise Brands’ integration programme and group-wide technology upgrades, with new finance, CRM and works management platforms on track to go live by the end of the year.
Looking ahead, the group said it expected the second half to mirror the first, with resilient demand but continued macroeconomic headwinds.
Adjusted EBITDA for the full year was expected to be broadly in line with 2024, while adjusted earnings per share was forecast to increase, driven by deleveraging, lower interest costs and margin improvement.
“While we are adopting a cautious approach to guidance for the second half, the underlying business continues to go from strength to strength as we develop a platform to support resilience and future growth,” Hemsley added.
“We will emerge from this period of slower growth with a much fitter, leaner, more integrated business that can capitalise on the many opportunities that will be available as conditions improve.”
At 1423 BST, shares in Franchise Brands were down 8.09% at 125p.
Reporting by Josh White for Sharecast.com.