Franchise Brands PLC says full-year performance underpinned by strong

Franchise Brands PLC (AIM:FRAN) announced a strong performance for 2021, underpinned by robust sales growth at its Metro Rod drainage business.

The AIM-listed multi-brand franchise business said Metro Rod recorded system sales at a record £13.7mln in the fourth quarter, a rise of 22% on the same period in 2020. Full-year sales grew 24% to a record £50.4mln.

“I am very pleased by the 2021 performance of the Metro Rod business,” Stephen Hemsley, executive chairman of Franchise Brands, said. “To break through £50mln of system sales is a fantastic achievement and a testament to the hard work of our franchisees, our engineers, and the team at the Metro Rod support centre in Macclesfield led by Peter Molloy.” 

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The Willow Pumps subsidiary recorded service division sales of £13.8mln for the year to 31 December 2021, up 11% on the previous year, but the supply and install division has been slower to recover, the company said. 

The B2C division performed robustly with 57 new recruits year-to-date, compared with 58 a year earlier, strong cash generation and continued tight cost control, it added.

Franchise Brands said last year’s acquisition of franchise management software system developer Azura Group represents “an exciting new growth opportunity” for the group.

At the year end, the company had cash of £9.0mln and £5mln of unutilised debt facilities, placing it in a strong position to support its franchisees, invest in the business, support a progressive dividend policy and take advantage of acquisition opportunities.

“Although the COVID pandemic continues to impact certain parts of our business, the performance of the group in 2021 demonstrates the strength of our growth strategy and the dedication and commitment of our people. The ability of the group to meet and overcome these challenges means that I look forward to 2022 and beyond with great optimism,” said Hemsley.