Franchise Brands Share Discussion Threads

[skasher094] 13/3/2019 07:32

ProgressiveGood chance some of those redundancies earmarked in car industries etc could become new franchisees near future

[otemple3] 15/1/2019 09:53

Looks to be a solid update.I continue to hold as I believe in the long run this has great potential with superb cash generation

[topvest] 24/8/2018 20:54

Interesting group this one. Second time around for Nigel Wray on this. I was a shareholder in Myhome International which did really well on OFEX and AIM and then went bust over a decade ago. This business started with Chipsaway and Ovenclean in 2008 when the founders bought these businesses out of Myhome International administration. I was fortunate and did quite well out of the original business, having sold out on a multi-bag before it all went pear shaped, so interesting to follow this reincarnation. Seem to remember Myhome went from about 10p to a £1 and then to £nil...something like that anyway!

I think the share price has run away a bit (from the start really) and so I will just keep watching. Having reviewed the 2017 accounts, I don't really like the quality of earnings.

Trouble with franchise businesses is keeping good control of your franchisees and not building large debtors, when they can't pay you which is quite often! Trade receivables are £7.7m which is high and other receivables at £2.4m could be amounts lent to franchisees or something like that. Looks like Metro-Rod is the offending business and they have already fair valued £806k of the £9m of acquired debtors. These are quite big numbers for the size of the business. Bit of a red flag at this high valuation if you ask me as there are already lots of exceptional items in the numbers. Anyone any thoughts?

[skasher094] 08/8/2018 08:14

Rns repurchase approx 250000 shares not going to dent options much need to wait for improvement in next set of figures

[hatfullofsky] 26/7/2018 16:30

Fair stance Johnny, it's not got the best StockRank.

FY17 Revenue growth was from the MetroRod acquisition. Organic growth was flat but they hope to change that with MetroRod going forward.

From the HY results :

Statutory consolidated revenue has increased 88% from £8.9m to £16.8m with all the additional revenue coming from Metro Rod.

[matt123d] 26/7/2018 14:28

By the time you've waited this will be over 100p!

[johnnyoz777] 26/7/2018 14:25

Hi Hatfull, thanks for those figures. I was using Stockopedia and they have updated their figures to PE x 51.4 and 2018 revenue (est) £36m so still £20m to get. As mentioned the PEG might be a much better indicator, (and that is good) but relies on the growth coming though and the update was quite good but didn't shoot the lights out in my opinion. Clearly I was in because I like the story here and the revenue went up from circa £5m to £24m (2016-2017 full years) but the growth rate has slowed, est 2018 £36 (with £16 in the bag). I don't mind paying high prices for growth stocks providing the growth is in place. Just a bit concerned about the new franchisee numbers, across all divisions, which I part of the future growth story. I'll be very happy getting back in here as I still like it but will wait for more information on the growth.

[hatfullofsky] 26/7/2018 13:34

Johnny - Not sure where you're getting the PE's from

WFG - FORECAST

Year Rev(£m) PBT(£m) EPS P/E PEG EPS Growth Div Yield
2018-12-31 33.00 2.82 2.89p 28.2 1.8 16% 0.58p 0.7%
2019-12-31 34.00 3.48 3.57p 22.8 1.0 24% 0.71p 0.9%

Still punchy but nowhere near your estimates

[trt] 26/7/2018 12:16

Market likes the news today by the looks of it.

[johnnyoz777] 26/7/2018 12:02

I was slightly disappointed this morning. Sold my small position (3589 shares) for a very small profit. Update wasn't hugely upbeat for a company on a PE of approx. x 60 albeit with growth in Metro Rod. Demand and applications from new franchisees seems to have slowed a little with existing franchisees taking up some more franchises, 41 new franchises v 49 new H1 2017. Agree some positives, share purchases by Directors, estimate PEG ratio etc but I'll watch from sidelines for more news on definite growth, I'd rather wait and miss out on the next 10-15% upside just to make sure this company is growing.

[hatfullofsky] 26/7/2018 11:00

I joined the party today, good prospects for MetroRod and they seem to be doing the right things, expecting FY PBT c £3M x 22

A little punchy but they have a good growth brand that they are re-invigorating

[trt] 26/7/2018 09:12

Topped up my holding this morning

[otemple3] 26/7/2018 08:21

Very positive statement. Not a significant holding for me but very pleased with how it is progressing and see scope for significant upside if progress continues and awareness of brands continue to grow. Wife is a franchisee (barkingmad) and despite growing competition demand continues to grow

[matt123d] 26/7/2018 07:58

Looks good technically. A break of 95p opens up a large potential move with an upside target of 160p.

[mr. t] 26/7/2018 07:58

Larva - I’m no longer a shareholder here, but we must be reading different results.

Good organic growth, strong overall growth, PE <30, recent significant director purchases, great market opportunity, management track record.

Everything on course and I think FRAN is a good coffee can investment. However I run an increasingly concentrated portfolio and FRAN is one share I decided to let go of.

[trt] 26/7/2018 07:53

plus half year results !

[trt] 26/7/2018 07:52

Solid trading statement this morning !

[larva] 26/7/2018 07:27

Earnings per share 1.5p

Pe of 60

No organic growth

No thank you

[trt] 06/6/2018 08:39

Soon we will reach £1. Director buys inspire confidence in current trading so all good news.

[m1das_touch] 06/6/2018 08:24

Another nice director buy yesterday...momentum seems to be building.

[trt] 16/5/2018 12:30

Looking good and director buys as well.

[mr. t] 25/4/2018 07:25

Nice update today - metro rod and metro plumb jobs up 16% while headcount is down 16%. Bodes well for the coming period, and suggests that management's long term strategy is starting to pay dividends.

[trt] 09/4/2018 18:24

Nice comment in the money section of the daily mail today

[tp6] 31/3/2018 22:09

https://dailym.ai/2uyUoVX

[trt] 22/3/2018 10:47

Nice dividend uplift too