Today's market reaction seems a bit unkind. 2-3 weeks ago I was fishing around for some more shorts, and FRAN didn't look enticing enough, so I missed out on its January slide. Had I taken a position I would have done OK - and would have counted myself lucky in not being hit by a little bounce on today's update. If it does fall further still I shall kick myself. |
Looks like it could break down to 100p, would equate to 10x 2025 with an expected net debt of £50m:
free stock charts from uk.advfn.com |
Slipped below 2024 support levels. Are the older (2021/22/23) ones too long ago to count? |
Anyone know if forecast numbers or broker targets have been revised / cut? Fall seems a bit undeserved otherwise as still a lot of growth to come here. |
 The results are also released today and the outlook statement is very cautious which is probably why there is selling pressure this morning...
Outlook
· The resilient underlying demand for the Group's essential reactive services means that the business continues to perform well and grow. The Group's key divisions all achieved record results in 2023, despite some softening in demand in the second half of the year in the construction and hire-fleet customer sectors which has continued into the current year.
· The fall in the price for used oil in the US also impacted profits in 2023, and whilst volumes continue to grow, the price continues to soften which will impact our income in 2024.
· The change in the accounting treatment of sale of franchise territories income from taking revenue upfront to spreading it over the life of the franchise agreement may also impact profit in 2024.
· The short-term operational focus is continuing the integration of all the Group's businesses and repaying the Pirtek acquisition debt, which is progressing well.
· The centralised international IT function will accelerate growth and new developments that can positively impact the Group although it will increase our IT expenditure in the short term.
· Capital allocation decisions will balance debt reduction, a progressive dividend policy and organic investment in the Group. The Board does not expect to make any further acquisitions of scale until the acquisition debt is substantially repaid. |
Sp tells its own story. |
Abrupt departure without thanks? Something amiss? |
Full year results are due any day now (last year they were March 9th). Unlike last year the company hasn't told us what date they will be which is rather remiss of them.
According to Stockopedia we should be expecting turnover (system sales) of £163M and adjusted EPS of 8.6p. |
Made Tech (MTEC) Interim results presentation - Febuary 24
Made Tech CEO, Rory MacDonald and CFO, Neil Elton present interim results for the six months ended 30 November 2023, followed by Q&A.
Watch the video here:
Or listen to the podcast here: |
Franchise Brands (FRAN) Capital Markets Day - February 24
Franchise Brands, an international multi-brand franchise business, hosted a Capital Markets event for analysts and investors on the 20 Febuary 2024. Executives and operational management provided an overview of the companies divisions and outlined their plan for growth.
Watch the video here:
Or listen to the podcast here: |
Slater Investments likes Franchised Brands and Stifel also has a 300p share price target. |
Franchise Brands are presenting at Mello London on the 29th November. |
Little bounce from a long term support level there |
Just to let shareholders and prospective investors know that Franchise Brands will be one of the companies presenting at MelloLondon.
The event will take place at the Clayton Conference Centre, Chiswick on Wednesday 29th and Thursday 30th November, where you can expect over 700 investors, 50 Aim listed companies and 10 or so Trusts and Funds.
Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.
For more information, visit |
Not much happening on this stock, thoughts? |
The new CFO is clearly a chartist, buying right on the 3 year support line. Or just maybe the share price was deliberately dropped to raise shares in order for him to get on board..... |
I exited today having held for several years. The acquisition/fundraise seems to have knackered the price and I always have a stop on the market. There has been zero momentum since that happened so a reluctant seller... good luck to those that hang with it but I do wonder if they have bitten off too much |
Franchise Brands says Pirtek Europe acquisition presents big growth opportunities... |
BGF Investments increase from 4.934% to 5.158%. |
4 May 2023
Franchise Brands plc
("Franchise Brands", the "Group" or the "Company")
Investor Presentation
Franchise Brands (AIM: FRAN), an international multi-brand franchise business, is pleased to announce that Stephen Hemsley, the Group's Executive Chairman, will be interviewed and will also be presenting at the UK Investor Show on 13 May 2023.
The UK Investor Show will take place at the Queen Elizabeth II Conference Centre, Westminster, London, SW1P 3EE. Stephen Hemsley will be interviewed on the Main Stage at 10am and will then be presenting at 11:30am in the City Index breakout room. Further information can be found at .
The presentation will be available in the investor section of the Company's website ( www.franchisebrands.co.uk ) shortly after the event.
The Company looks forward to meeting current and prospective investors at the event. |
Large fundraise seems to have trashed the share price. I remain long but won't hang on forever if it keeps drifing - there are examples out there where price lost a lot more following chunky fundraising, and I won't be giving back all my profit here |
Dowgate note out. Can only see the headline:
"Franchise Brands has announced the transformational acquisition of Pirtek Europe for £200m, partly funded by a £114m fundraise, which we believe will generate very significant value for shareholders..." |
18 April 2023
Franchise Brands plc
("Franchise Brands" or the "Group")
AGM Statement and Q1 Trading Update
Strong momentum continued in Q1 2023
Announcement of transformational acquisition of Pirtek Europe
Franchise Brands plc (AIM: FRAN), an international multi-brand franchise business, will hold its Annual General Meeting today at 11.00am, at which Stephen Hemsley, Executive Chairman, will provide the following update:
"As reported in our annual results, the excellent momentum in the B2B Division that was a feature of 2022 has continued. Metro Rod experienced strong growth in system sales, achieving record levels in Q1. The integration of Filta UK within this division continues with the combined objectives of improving customer service and reducing costs in the medium term. The defensive, mainly essential services provided by this division have proved resilient despite the current macro-economic uncertainties.
"Filta in North America has continued to perform robustly in Q1 with franchise and equipment sales driving growth. Revenue from the sale of used cooking oil for biodiesel production was in line with expectations, with increased volumes compensating for the anticipated lower price of used oil. The outlook for used oil revenues remains unchanged. The FiltaMax expansion strategy is gathering momentum, underpinning our confidence in the continued growth of Filta in North America.
"As expected, franchisee recruitment in the B2C division has improved in Q1 compared to Q4 2022. ChipsAway, the largest brand in the division, is now back to the same level as achieved in Q1 2022. The level of attrition has also reduced to below the five-year average. However, as anticipated, the loss of franchisees in 2022 and increased overheads generally have impacted income in Q1 2023.
"On 3 April 2023, Franchise Brands announced the proposed transformational acquisition of Hydraulic Authority I Limited, the owner of Pirtek Europe, the leading European provider of on-site hydraulic hose replacement and associated services, for a consideration of £200 million, plus a working capital adjustment of £12.2m. Subject to shareholder approval at the General Meeting on 20 April, the acquisition is expected to complete on 21 April.
"Pirtek Europe provides a mission-critical, emergency response service to a diverse portfolio of customers, principally via a network of 70 franchisees. The business has 213 service centres and 838 mobile service vehicles in eight countries - the UK, Republic of Ireland, Germany, France, Austria, Belgium, Sweden and the Netherlands. Pirtek Europe has a royalty-free, indefinite Master Franchise Licence Agreement in respect of 16 countries in Europe, so has significant opportunities for expansion.
"The acquisition of Pirtek Europe, which will expand the Group's operations into ten countries, will significantly advance the Board's ambition of creating a market-leading international B2B multi-brand franchisor that generates its income equally from the UK, North America and continental Europe. It also provides a low-cost platform from which to launch the Group's current brands into new markets and the opportunity to further leverage central services efficiently, principally in the areas of technology, marketing and finance. The acquisition is expected to be immediately earnings accretive.
"In conclusion, the existing Group has had a good start to 2023. The acquisition of Pirtek Europe will further transform the Group by diversifying the range of emergency response services provided and our geographical reach and customer base. This will provide greater resilience to earnings and provide a platform for the acceleration in the growth of our business. We, therefore, look forward to the rest of 2023 and beyond with great confidence." |
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