Franchise Brands Share Discussion Threads

[someuwin] 05/4/2023 11:50

Acquisition debt should fall rapidly. Much quicker if they sell the B2C biz.

[simon gordon] 05/4/2023 11:39

Disco,

Allenby have PIR contributing the following:

2023
-T/O: 39.6m
-Adj. EBITDA: 10.8m
-Adj. PBT: 5.6m

2024
-T/O: 55.6m
-Adj. EBITDA: 16.5m
-Adj. PBT: 10.5m

[disc0dave45] 05/4/2023 11:34

Thanks for that.On face value it looks like shares are cheap but their debt now is a concern (interest circa 7% pa which seems high), also IMO they paid too much for Pirtek Europe. From their accounts they made net profit of £8.6m, £6.8m and £10.1m for FY20, FY21 and FY22 respectively, that's only a CAGR for the 3 years (I used 3 as that's what Fran used but they prorated to year ends Dec not March for some reason) of 5.5%.They paid 25 times the 3 year average net profit......that's way too much IMO.Will do a bit more digging as their forecast numbers do seem like there's value but the actual accounts don't?.

[simon gordon] 05/4/2023 11:14

New forecasts according to Allenby:

2023
-T/O: 155.1m
-EPS: 9.3
-Net Debt: 75.2m

2024
-T/O: 182.1m
-EPS: 11
-Net Debt: 61.5m

[someuwin] 05/4/2023 11:01

Directors and senior management are buying £7 million worth at 180p.

[someuwin] 05/4/2023 10:54

Can now buy cheaper than the placing price.

[check your facts] 04/4/2023 17:39

That's usually the kiss of death.

someuwin4 Apr '23 - 10:10 - 157 of 166

I like the sound of this deal. And the broader move from B2c to B2B. So I'm buying.

[skasher094] 04/4/2023 16:34

Directors were part of domino pizza board before buying franchise brands 13/14 yrs ago

[davr0s] 04/4/2023 16:20

We will see - 25% is a very big discount for a placing like this. I just hope they haven't bitten too much off. The one saving grace is it looks like the mgt team had decent holdings prior so they knew what this would do to their existing holdings as they have also taken the hit today

[trt] 04/4/2023 15:57

Once the penny drops on how transformative this deal is the share price will rise pretty quickly, hence the reason the funding was fulfilled so quickly. Grabbed a few more today couldn't resist.

[someuwin] 04/4/2023 15:52

Allenby note:

Complementary and transformational acquisition of Pirtek - available to download here...



"...Our fair value rises from 275p to 330p with the risk to the upside."

[trt] 04/4/2023 12:17

Fundraising now complete.

[iamnoone] 04/4/2023 11:56

It's a good strategic move, but not without its risk regarding the debt and integration.

[someuwin] 04/4/2023 10:10

I like the sound of this deal. And the broader move from B2c to B2B. So I'm buying.

[davr0s] 04/4/2023 09:37

The nutters have arrived...

[scepticalinvestor] 04/4/2023 09:28

Why add at 182p today when you will get them at 50p in a month?

[wjccghcc] 04/4/2023 08:36

I suspect they started talking to investors about raising the funds when the share price was 200p or below. At least I can add at 182p today.

[davr0s] 04/4/2023 07:38

Fund raise at a 25% discount - ho hum

[tomps2] 10/3/2023 15:01

Franchise Brands (LON:FRAN) reported full year results yesterday, here is the presentation they gave to analysts at the LSE

Video: hxxps://www.piworld.co.uk/company-videos/franchise-brands-fran-full-year-2022-presentation-march-2023/
Podcast: hxxps://piworld.podbean.com/e/franchise-brands-fran-full-year-2022-presentation-march-2023/

Executive Chairman, Stephen Hemsley (ex Dominos Pizza) and Peter Molloy, Managing Director, B2B Division gave a very comprehensive presentation. The figures are strong with a big contribution from the 2022 acquisition of Filta, which was previously AIM listed.

Revenue £99.2m +72%
aEBITDA £15.3m +80%
aEPS 8.38p +51%
Dividend 2p +33%
Net cash £8m

They run through each of the brands and go into detail on Filta. They plan to sell the B2C division; to grow the B2B division through cross-sell and upsell; to use technology to drive efficiency and continue to look for further earnings-enhancing acquisitions. Stocko is showing an upgrade to forecasts, yesterday.

[trt] 09/3/2023 15:54

Press coverage of the results tomorrow will bring in new buyers pushing the share price even higher. Got to be in it to win it.

[kemche] 09/3/2023 08:47

Good results.