Interim Results
Summary by AI BETAClose X
29 July 2026
FRANCHISE BRANDS PLC
("Franchise Brands", the "Group" or the "Company")
Interim results for the six months ended 30 June 2026
Return to stronger growth driven by strategic initiatives, and operational improvements
Highly cash generative, supporting deleveraging and increased dividend
Underpinning confidence in a full year performance in line with market expectations
Franchise Brands plc (AIM: FRAN), a platform of international B2B franchise business focused on essential services through a mobile workforce, is pleased to announce its unaudited results for the six months ended 30 June 2026 ("H1 2026").
Financial highlights
· Significant acceleration in System sales growth in H1 2026, increasing 6.7% to £229.2m (H1 2025: £214.9m1).
· Statutory revenue increased by 7.4% to £75.6m (H1 2025: £70.4m).
· Adjusted EBITDA2 increased by 6.5% to £18.5m (H1 2025: £17.4m).
· Adjusted profit before tax increased 7.8% to £12.6m (H1 2025: £11.7m). Profit before tax increased 42% to £8.4m (H1 2025: £5.9m).
· Adjusted EPS3 increased by 8.9% to 4.81p (H1 2025: 4.42p).
· Basic EPS increased by 45.0% to 3.20p (H1 2025: 2.21p).
· Continued deleveraging, with adjusted net debt4 reduced by £9.2m to £52.9m at 30 June 2026 (30 June 2025: £62.0m), reducing leverage to 1.5x5 (30 June 2025: 1.8x).
· Interest charge reduced by 16% to £2.6m (H1 2025: £3.0m) due to debt repayments, reductions in the base rate and reduced margin.
· Cash conversion6 was 81% (H1 2025: 83%), demonstrating the strong cashflow performance of the Group's predominantly franchise businesses.
· Interim dividend of 1.25p per share proposed (H1 2025: 1.15p per share), an increase of 9%.
Operational highlights
· Record System sales across our three core B2B businesses. The US was the standout performer, with System sales growth in both the UK and Europe recovering.
· Exceptionally strong performance of Filta International supported by the elevated UCO price and increased volume alongside the expansion of the range of services.
· Good progress being made with the execution of our Strategic plan as we focus on simplifying the Group to our three core B2B franchised businesses.
· Leveraging the One Franchise Brands platform, and ways of working, the benefits of which are becoming apparent, including a reduction in overheads as a percentage of sales.
· Strengthening of the executive team, with appointment of Neil Miller as Group CFO and Andrew Mallows appointed to newly created role of Group Delivery Director.
Outlook
· Our strategic initiatives position us well to continue to drive System sales growth and control costs. With macroeconomic conditions remaining volatile, we are prudently not assuming any tailwinds from improvements in market conditions in H2 2026.
· The One Franchise Brands initiatives we are taking to broaden our customer base and expand the range of services we offer, together with the essential, non-discretionary nature of our services, positions us well for continued growth.
· Our highly cash-generative franchise model continues to underpin swift deleveraging alongside an increased dividend.
· In addition to the above, the actions we are taking underpins our confidence that our full year performance will be in line with market expectations7.
1 Prior year adjustment. H1 2025 System sales were restated to £214.9m from £209.4m as certain Pirtek DLO operations were not included in system sales disclosures in prior years.
2 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, exchange differences, share-based payment expense and non-recurring items.
3Adjusted EPS is earnings per share before amortisation of acquired intangibles, share-based payment expense, and non-recurring items.
4Adjusted net debt is the key debt measure used for testing bank covenants and excludes debt of £8.7m on right-of-use assets.
5Leverage is calculated using Adjusted net debt at 30 June 2026 of £52.9m and Adjusted EBITDA for the last 12 months of £36.3m.
6 Cash conversion is the percentage of adjusted EBITDA converted to adjusted cash from operating activities
7Current market expectations of Adjusted EBITDA for the financial year ending 31 December 2026 are £35.9m to £38.0m.
Stephen Hemsley, Executive Chairman, commented:
"The Group returned to stronger growth during the half year, achieving record System sales across our core B2B businesses despite volatile macroeconomic conditions. Filta International, in the US, performed particularly strongly as a result of the elevated UCO price and increased volume supported by its expanded service range in new sectors. System sales growth in the UK and Europe is recovering.
"We are making good progress with the execution of our Strategic plan as we focus on simplifying the Group to our three core B2B franchised businesses. Through our One Franchise Brands initiatives, we are broadening our customer base and expanding our service range. Supported by a strengthened executive team, we expect the actions we are taking to refocus the Group and create a unified, scalable platform and ways of working which will enable us to accelerate growth in the coming years.
"With macroeconomic conditions remaining volatile, we are prudently not assuming any tailwinds from improvements in market conditions in H2 2026. However, our strategic initiatives position us well to continue to drive System sales growth and control costs. These initiatives, combined with our scale, diversification and the essential nature of most of our services, underpins our confidence in delivering a full-year performance in line with market expectations."
Enquiries:
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Franchise Brands plc |
+ 44 (0) 1625 813231 |
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Stephen Hemsley, Executive Chairman |
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Peter Molloy, Chief Executive Officer |
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Neil Miller, Chief Financial Officer |
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Julia Choudhury, Corporate Development Director |
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Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker) |
+44 (0) 20 7710 7600 |
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Matthew Blawat |
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Jason Grossman |
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Allenby Capital Limited (Joint Broker) |
+44 (0) 20 3328 5656 |
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Jeremy Porter / Liz Kirchner (Corporate Finance) |
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Amrit Nahal / Tony Quirke (Sales & Corporate Broking)
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MHP Group (Financial PR) |
+44 (0) 20 3128 8100 |
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Katie Hunt / Hugo Harris |
+44 (0) 7884 494112 |
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About Franchise Brands plc
Franchise Brands (FTSE AIM UK 50) is a platform of international B2B franchise brands focused on essential services through a mobile workforce. We have clarity of purpose which is acquire, develop and scale proven franchise businesses. Our focus is to help our franchise partners grow their businesses, so that "as they grow, we grow".
Our franchise partners benefit from our One Franchise Brands platform which includes shared, bespoke technology systems, a strategic growth maximisation methodology and management franchising expertise.
We have 7 franchise brands in 10 countries, 265 franchise partners in the three core B2B divisions, 261 B2C franchise partners and approximately 2,500 mobile service vehicles. We focus on resilient reactive and planned services and carry out approximately 1.3m jobs per year at an average value of approximately £340 for over 55,000 active commercial customers. We earn an average management service fee of 15% from each job undertaken by our franchise partners.
Our market-leading brands include Pirtek, Metro Rod and Filta. We employ approximately 600 people across the Group and there are over 3,000 people employed in the franchise community.
For further information, visit www.franchisebrands.co.uk.
CHAIRMAN'S STATEMENT
Introduction
Franchise Brands delivered a return to stronger growth in the first half despite continued mixed economic conditions across a number of our end markets. The increasing benefits of our One Franchise Brands strategy, and the resilience of our diversified portfolio has more than offset the macro challenges we have faced. This has enabled the Group to make further progress against its strategic priorities of profitable growth, operational improvement, debt reduction and value creation.
Underlying demand for our essential services remained robust, with System sales growing by 6.7%, reflecting the critical nature of the services we provide and our strong customer relationships across a broadening range of sectors. As I have stated previously, our business is not immune to the macroeconomic environment, but is resilient given the essential, mostly non-discretionary, nature of the service we provide. This is further enhanced by the diversity of services we provide and our geographic spread across 10 countries.
Capital allocation
Capital allocation will continue to balance deleveraging, investment in the organic expansion of the Group and the maintenance of a progressive dividend policy. Whilst our primary objective is to reduce debt, we will also continue purchasing our own shares into the Employee Benefit Trust (EBT) to cover share option dilution.
The implementation of our strategic plan is progressing well as we focus on simplifying the Group to focus on our three core B2B franchised businesses. This will allow us to maximise the benefits of the One Franchise Brands initiatives and put in place a scalable platform and ways of working, ready for future organic and acquisitive growth. Any disposal proceeds will be applied to accelerate debt repayment which will support faster EPS growth.
Strengthening of the team
As announced on 18 May 2026, I am very pleased to welcome Neil Miller as the Group's CFO. Neil comes with 30 years' experience across listed, Private Equity, and blue-chip multinational businesses. He has a proven track record of delivering transformational change in finance functions combined with strong commercial discipline, with a focus on driving value for stakeholders.
Andrew Mallows, who has held the role of CFO since June 2024, has been appointed to the newly created role of Group Delivery Director, where he is now focusing on driving the commercial benefits of the One Franchise Brands strategic initiatives, in particular enhancing efficiency across the Group and expanding revenue streams.
Share Premium cancellation
Following the High Court's approval, the cancellation of the Company's share premium account was duly completed on 4 June 2026. The effect of the Share Premium cancellation is to create approximately £131.1m of additional distributable reserves.
Outlook
Across the Group, we continue to see the benefits of a business model that combines resilient demand characteristics with significant growth opportunities. Our customers remain focused on maintaining critical customer assets, ensuring operational continuity and meeting compliance requirements, all of which support demand for the Group's services. Despite certain of our markets remaining subdued, particularly those exposed to industrial and construction activity, our broad sector exposure, international diversification and growing range of services have driven a stronger overall trading performance.
Our strategic initiatives position us well to continue to drive System sales growth and control costs. With macroeconomic conditions remaining volatile, we are prudently not assuming any tailwinds from improvements in market conditions in the second half of the year.
The One Franchise Brands initiatives we are taking to broaden our customer base and expand the range of services we offer, and the essential, non-discretionary nature of our services positions us well for continued growth. In addition to the above, the actions we are taking underpins our confidence that our full year performance will be in line with market expectations7.
Conclusion
The Group delivered stronger growth in the first half despite continued mixed economic conditions across a number of our end markets and is well placed to capitalise further on that in the second half of the year. The actions we are taking to re-focus the Group and create a scaleable platform should enable us to accelerate growth over the coming years and more rapidly integrate any future acquisitions. This plan is supported by further strengthening of our team of both franchise partners and within the Support Centres internationally. I would like to thank them all for their hard work and dedication.
Stephen Hemsley
Executive Chairman
OPERATIONAL REVIEW
Introduction
In a macro environment which remains broadly unchanged, our first half performance demonstrates that we can achieve growth through the strategic initiatives we are taking, operational improvements and the increasing benefits of scale. Whilst any recovery in European industrial markets would be welcome, our primary focus remains on the factors we can control: growing share of wallet, increasing service penetration, improving productivity, reducing complexity and leveraging the One Franchise Brands platform across the Group.
Although Pirtek is making progress, it is a larger and more complex international business, with a culture shaped by many years of multiple different private equity ownership, where change requires engagement, trust and consistent delivery. As confidence in our strategy, which has been successfully deployed at Metro Rod and Filta, continues to build across the Pirtek network, we see a significant opportunity to unlock growth, improve profitability and create value.
The Group achieved another period of record System sales in H1 2026, growing by 6.7% (H1 2025: 2.5%), with our three core B2B businesses each delivering record sales. Encouragingly, we have seen momentum build through H1 2026. The US was the standout performer, but it is also pleasing to see that sales growth is recovering in both the UK and Europe.
Administrative expenses, including group overheads, were well controlled and increased by only 1% resulting in these costs reducing as a percentage of System sales, by 0.6% to 11.1% (H1 2025: 11.7%). This was driven by both strict control of overheads and the benefits of the One Franchise Brands platform and ways of working becoming more apparent.
A key focus during the period has been the continued execution of the One Franchise Brands plan. Our investments in common systems (including Finance, Works Management and CRM), shared processes and group-wide capabilities are creating a more connected, scalable and efficient organisation. We are beginning to see tangible benefits through improved visibility, stronger financial controls, greater collaboration between businesses and enhanced operational consistency. The strategic rationale remains clear: by leveraging the scale of the Group while preserving the entrepreneurial strengths of our individual franchise partners, we can accelerate growth, reduce costs, improve profitability and create a stronger platform for future expansion. Standardisation of data and systems will provide a strong platform for deploying AI at scale.
Alongside these operational improvements, we have maintained a disciplined approach to cash generation and capital allocation. Debt reduction remains a priority, and the Group continues to deliver against this, benefiting from the highly cash-generative characteristics of its franchise and service fee-based business model. Our focus remains on converting operational progress into stronger cash flow and reducing debt.
The Group's divisional trading results may be summarised as follows:
|
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Pirtek |
Water & Waste Services |
Filta International |
B2C |
Azura |
Inter-co elimination |
H1 2026 |
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|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
System sales |
99,410 |
57,970 |
60,800 |
11,392 |
194 |
(548) |
229,218 |
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Statutory revenue |
32,367 |
21,742 |
20,327 |
2,418 |
194 |
(1,444) |
75,604 |
|
Cost of sales |
(11,346) |
(8,528) |
(12,819) |
(388) |
- |
1,420 |
(31,661) |
|
Gross profit |
21,021 |
13,214 |
7,508 |
2,030 |
194 |
(24) |
43,943 |
|
GM% |
65% |
61% |
37% |
84% |
100% |
2% |
58% |
|
Administrative expenses |
(11,323) |
(7,619) |
(2,476) |
(1,138) |
(205) |
24 |
(22,737) |
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Divisional EBITDA |
9,698 |
5,595 |
5,032 |
892 |
(11) |
- |
21,206 |
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Group Overheads |
- |
- |
- |
- |
- |
- |
(2,664) |
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Adjusted EBITDA |
- |
- |
- |
- |
- |
- |
18,542 |
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Adj. EBITDA/System sales |
|
|
|
|
|
|
8.1% |
|
|
|
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|
|
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Pirtek |
Water & Waste Services |
Filta International |
B2C |
Azura |
Inter-co elimination |
H1 2025 |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
System sales |
97,639 |
54,861 |
50,652 |
12,363 |
189 |
(800) |
214,905 |
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Statutory revenue |
32,358 |
22,494 |
14,342 |
2,792 |
189 |
(1,804) |
70,371 |
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Cost of sales |
(10,950) |
(9,417) |
(8,760) |
(469) |
- |
1,780 |
(27,816) |
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Gross profit |
21,408 |
13,077 |
5,582 |
2,323 |
189 |
(24) |
42,555 |
|
GM% |
66% |
58% |
39% |
83% |
100% |
1% |
60% |
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Administrative expenses |
(11,918) |
(7,365) |
(1,985) |
(1,332) |
(335) |
24 |
(22,911) |
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Divisional EBITDA |
9,490 |
5,712 |
3,597 |
991 |
(146) |
- |
19,644 |
|
Group Overheads |
- |
- |
- |
- |
- |
- |
(2,227) |
|
Adjusted EBITDA |
- |
- |
- |
- |
- |
- |
17,417 |
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Adj. EBITDA/System sales |
|
|
|
|
|
|
8.1% |
|
|
|
|
|
|
|
|
|
System sales are a primary Key Performance Indicator ("KPI") of the Group and are considered a valuable indicator of Group performance as it allows total sales to end customers to be visible on a comparable basis across all Group businesses. System sales comprise the underlying sales of the Group's franchise partners and the statutory revenue of the Direct Labour Organisations ("DLOs"). In H1 2026, System sales increased by 6.7% to £229.2m (H1 2025: £214.9m). H1 2025 System sales were restated to £214.9m from £209.4m as certain Pirtek DLO operations were not included in System sales disclosures in the prior year.
Statutory revenue increased by 7.4% to £75.6m (H1 2025: £70.4m). Statutory revenue comprises many different types of revenue calculated on different bases, so it is not a KPI used in the operational management of the Group.
Adjusted EBITDA, which is the main KPI of the business, increased by 6.5% to £18.5m (H1 2025: £17.4m). The rate of increase is very slightly less than the growth in System sales, as while overheads grew by only 1%, the gross profit percentage declined slightly as a result of some changes in the System sales mix and some timing differences which should reverse later in the year.
Pirtek Europe
Pirtek's major markets of the UK & Ireland, Germany & Austria, and Benelux, which are largely franchised, account for 95% of System sales. Its franchised operations account for 91% of Pirtek's System sales and 95% of Adjusted EBITDA, while its smaller operations, in France and Sweden, are corporately operated.
Pirtek operated in challenging market conditions in parts of Europe, particularly Germany, where industrial activity remained muted and the business got off to a slow start to the year with severe weather in Continental Europe in January and February. However, its three core businesses continued to demonstrate the strength of its service proposition, supporting customers whose operations depend upon the availability and reliability of hydraulic equipment.
We remain focused on strengthening performance through expanding planned maintenance activities, increasing customer penetration and continuing to develop higher-value service offerings. Whilst certain margin pressures remain, the three core businesses demonstrated System sales momentum through H1 2026 resulting in growth of 2.1%. The business is well positioned to benefit from any improvement in industrial activity and infrastructure investment given the operational gearing inherent within the franchising model.
The sterling results for Pirtek Europe in H1 2026 may be summarised as follows:
|
Pirtek |
H1 2026 |
H1 2025 |
Change % |
|
|
£'000 |
£'000 |
|
|
System sales |
99,410 |
97,639 |
2% |
|
Statutory revenue |
32,367 |
32,358 |
0% |
|
Cost of sales |
(11,346) |
(10,950) |
(4%) |
|
Gross profit |
21,021 |
21,408 |
(2%) |
|
GM% |
65% |
66% |
(2%) |
|
Administrative expenses |
(11,323) |
(11,918) |
5% |
|
Adjusted EBITDA |
9,698 |
9,490 |
2% |
|
Adj. EBITDA/System sales |
9.8% |
9.7% |
0% |
Overall, Pirtek Europe generated total System sales of £99.4m, an increase of 2% (H1 2025: £97.6m). Administrative expenses were well controlled and reduced by £0.6m or 5% to £11.3m (H1 2025: £11.9m). This reduction resulted from continued integration and the benefits of the One Franchise Brands initiatives.
Adjusted EBITDA increased 2% to £9.7m (H1 2025: £9.5m). The ratio of Adjusted EBITDA to System sales increased 0.1% points from 9.7% to 9.8% as a result of good cost control and cost savings as a result of integration
The breakdown of each country in both Sterling and local currency may be summarised as follows:
|
System sales
|
H1 2026 £'000 |
H1 2025 £'000 |
Change % |
|
UK & Ireland |
43,334 |
42,246 |
3% |
|
Germany & Austria |
34,927 |
34,749 |
1% |
|
Benelux |
16,347 |
15,558 |
5% |
|
France |
3,509 |
3,873 |
(9%) |
|
Sweden |
1,294 |
1,213 |
7% |
|
Total |
99,410 |
97,639 |
2% |
|
System sales Local currency |
H1 2026 '000 |
H1 2025 '000 |
Change % |
|
|
UK & Ireland GBP |
43,334 |
42,246 |
3% |
|
|
Germany & Austria € |
40,272 |
41,300 |
(2%) |
|
|
Benelux € |
18,848 |
18,496 |
2% |
|
|
France € |
4,045 |
4,601 |
(12%) |
|
|
Sweden SEK |
16,159 |
15,970 |
1% |
|
UK & Ireland's System sales (which accounted for 44% of total Pirtek System sales) increased by 3%. Total job numbers were down 3%, but the Average Order Value ("AOV") increased 6% as part of a targeted move from higher volume, lower value work to higher quality, more technically-driven work. A key driver of growth was National Accounts, up 7%, securing larger, service-driven work in high-value work in areas such as rail, infrastructure, and utilities. Rail and transport was one of the strongest growth areas as these customers value our ability to respond to urgent breakdowns as well as deliver project work across multiple locations. The business targeted other growth sectors including facilities management, utilities, maritime, and manufacturing. Construction and plant hire also saw some recovery, growing by 2%.
Germany & Austria's System sales (which accounted for 35% of total Pirtek System sales) reduced 2% in local currency, as a result of a challenging manufacturing environment and weakness in plant hire, although the business did experience improved momentum in Q2 versus Q1. While demand for essential reactive services was resilient, with job numbers flat, larger, planned work declined 7%. Good progress was made in infrastructure, which includes rail, pipeline and power line construction and the expansion and renewal of the road and telecommunications networks. As a result, rail increased 27% and construction increased 2%. National accounts saw growth of 3%, supported by infrastructure projects.
System sales in Benelux (which accounted for 16% of Pirtek System sales) were up 2% in local currency. Job count was down 5%, due to macro weakness in construction and facilities, but the AOV was up 7% as a result of a targeted move to higher quality work. Maritime and maritime infrastructure experienced strong growth, with cross-border new customer wins for Total Hose Management (THM). Waste and recycling saw good growth, driven by national accounts, as did transport, driven by growth in fleet workshops and trailer service networks.
The performance of the non-franchised, DLO operations in France and Sweden (which accounted for a combined 5% of System sales) remains challenging. System sales in France were down 12% in local currency, driven by challenging macro conditions and aggressive price competition. System sales in Sweden improved by 1% in local currency as we make small inroads into new sectors.
Adjusted EBITDA on a country basis, in sterling, may be summarised as follows:
|
Adjusted EBITDA |
H1 2026 |
H1 2025 |
Change |
|
£'000 |
£'000 |
% |
|
|
UK & Ireland |
5,097 |
5,206 |
(2%) |
|
Germany & Austria |
2,835 |
2,847 |
(0%) |
|
Benelux |
2,094 |
2,011 |
4% |
|
France |
(223) |
(222) |
0% |
|
Sweden |
44 |
0 |
- |
|
Divisional Overheads |
(149) |
(352) |
(56%) |
|
Total |
9,698 |
9,490 |
2% |
Water and Waste Services division
|
|
Metro Rod |
Willow Pumps |
Filta UK |
H1 2026 |
Metro Rod |
Willow Pumps |
Filta UK |
H1 2025 |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
% |
|
System sales |
43,554 |
8,678 |
5,738 |
57,970 |
39,466 |
9,348 |
6,047 |
54,861 |
3,109 |
6% |
|
Statutory revenue |
9,648 |
8,678 |
3,416 |
21,742 |
9,143 |
9,348 |
4,003 |
22,494 |
(752) |
(3%) |
|
Cost of sales |
(1,125) |
(5,602) |
(1,801) |
(8,528) |
(1,058) |
(6,115) |
(2,244) |
(9,417) |
889 |
9% |
|
Gross profit |
8,523 |
3,076 |
1,615 |
13,214 |
8,085 |
3,233 |
1,759 |
13,077 |
137 |
1% |
|
GM% |
88% |
35% |
47% |
61% |
88% |
35% |
44% |
58% |
3% |
5% |
|
Administrative expenses |
(4,443) |
(2,167) |
(1,009) |
(7,619) |
(3,939) |
(2,272) |
(1,154) |
(7,365) |
(254) |
(3%) |
|
Adjusted EBITDA |
4,080 |
909 |
606 |
5,595 |
4,146 |
961 |
605 |
5,712 |
(117) |
(2%) |
|
Adj. EBITDA/System sales |
9.4% |
10.5% |
10.6% |
9.7% |
10.5% |
10.3% |
10.0% |
10.4% |
(0.8%) |
(7%) |
Water & Waste Services delivered an improved sales performance, with System sales increasing 6% to £58.0m (H1 2025: £54.9m) during the period supported by healthy demand for our expanded range of services. The division continues to benefit from demand drivers that are in part insulated from broader economic conditions and remains focused on increasing the value of work undertaken, improving productivity and expanding the breadth of services offered to customers. During the period, we continued to make progress in integrating capabilities across the division, improving customer reach and enhancing operational effectiveness. Whilst reported margins were impacted by a combination of work mix and timing effects, the underlying fundamentals of the business remain strong, and we expect a number of these factors to normalise during the remainder of the year.
Metro Rod
|
|
H1 2026 |
H1 2025 |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
% |
|
System sales |
43,554 |
39,466 |
4,088 |
10% |
|
Statutory revenue |
9,648 |
9,143 |
505 |
6% |
|
Cost of sales |
(1,125) |
(1,058) |
(67) |
(6%) |
|
Gross profit |
8,523 |
8,085 |
438 |
5% |
|
GM% |
88% |
88% |
- |
0% |
|
Administrative expenses |
(4,443) |
(3,939) |
(504) |
(13%) |
|
Adjusted EBITDA |
4,080 |
4,146 |
(66) |
(2%) |
Metro Rod, which includes Metro Plumb and Kemac increased System sales by 10% to £43.6m (H1 2025: £39.5m) as it continued a targeted move to higher value work. This resulted in the number of jobs reducing by 8%, but the AOV increasing by 18%. Metro Rod franchise partners made significant progress in continuing to expand the range of services, with tanker sales up by 14%, pump sales up 31%, excavation by 34% and drain lining by 20%. As a result, these services now account for 44% of Metro Rod System sales (H1 2025: 40%) providing a strong competitive edge. The business also made good progress in sector diversification, targeting utilities, retail and construction, reducing reliance on facilities management, hospitality and insurance. Planned work was up 11%.
Gross profit increased 5%, which was less than the increase in System sales, as some of the most rapidly expanding services attract a lower royalty rate than the traditional drainage business. Administrative expenses increased by 13% year-on-year as a result of the increased reallocation of central IT costs to the operating divisions only being introduced midway through 2025. As a result, Adjusted EBITDA reduced modestly to £4.1m (H1 2025: £4.1m).
Willow Pumps
|
|
H1 2026 |
H1 2025 |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
% |
|
Statutory revenue |
8,678 |
9,348 |
(670) |
(7%) |
|
Cost of sales |
(5,602) |
(6,115) |
513 |
8% |
|
Gross profit |
3,076 |
3,233 |
(157) |
(5%) |
|
GM% |
35% |
35% |
1% |
2% |
|
Administrative expenses |
(2,167) |
(2,272) |
105 |
5% |
|
Adjusted EBITDA |
909 |
961 |
(52) |
(5%) |
Willow Pumps, which is a DLO, included the Metro Rod Exeter franchise in H1 2025, which had been operated corporately before being re-sold to a franchise partner. Excluding Meto Rod Exeter, statutory revenue for H1 2026 for the core business reduced by 1% to £8.7m primarily due to the deferral of Special Project work into H2 2026. Gross profit reduced slightly because of the sales mix, and core overheads were well controlled and remained flat, resulting in a £0.1m reduction in Adjusted EBITDA.
Filta UK
|
|
H1 2026 |
H1 2025 |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
% |
|
System sales |
5,738 |
6,047 |
(309) |
(5%) |
|
Statutory revenue |
3,416 |
4,003 |
(587) |
(15%) |
|
Cost of sales |
(1,801) |
(2,244) |
443 |
20% |
|
Gross profit |
1,615 |
1,759 |
(144) |
(8%) |
|
GM% |
47% |
44% |
3% |
8% |
|
Administrative expenses |
(1,009) |
(1,154) |
145 |
13% |
|
Adjusted EBITDA |
606 |
605 |
1 |
0% |
Filta UK comprises the Filta Environmental franchise network, the Filta Seal DLO and some remaining Fats, Oil and Grease ("FOG") installation work undertaken by direct labour. In line with the Group's strategy to migrate DLO work to franchise partners, all FOG servicing work and substantially all installation work has now been transferred to franchise partners.
System sales at Filta declined 5% to £5.7m (H1 2025: £6.0m) because of a slowdown in the roll-out of Grease Recovery Units by a large national account customer and reduced discretionary spending with Filta Seal.
Filta UK has become increasingly integrated within the Water & Waste Services division, which has allowed a 13% reduction in administrative expenses. As a result, Adjusted EBITDA was maintained at £0.6m (H1 2025: £0.6m).
Filta International
|
|
US Franchisor |
US Corporate franchises |
Europe |
H1 2026 |
US Franchisor |
US Corporate franchises |
Europe |
H1 2025 |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
% |
|
System sales |
57,408 |
1,658 |
1,734 |
60,800 |
48,888 |
69 |
1,695 |
50,652 |
10,148 |
20% |
|
Statutory revenue |
18,632 |
1,658 |
37 |
20,327 |
14,081 |
69 |
192 |
14,342 |
5,985 |
42% |
|
Cost of sales |
(11,881) |
(937) |
(1) |
(12,819) |
(8,604) |
(84) |
(73) |
(8,760) |
(4,059) |
(46%) |
|
Gross profit |
6,751 |
721 |
36 |
7,508 |
5,478 |
(14) |
119 |
5,582 |
1,926 |
35% |
|
GM% |
36% |
43% |
96% |
37% |
39% |
-21% |
62% |
39% |
(2%) |
(5%) |
|
Administrative expenses |
(2,160) |
(258) |
(58) |
(2,476) |
(1,774) |
(82) |
(130) |
(1,985) |
(491) |
(25%) |
|
Adjusted EBITDA |
4,591 |
463 |
(22) |
5,032 |
3,704 |
(96) |
(11) |
3,597 |
1,435 |
40% |
Filta International comprises the Filta franchise networks in North America & Europe and the corporate franchises covering four US territories taken on in H2 2025 and the early months of 2026 which are reported as corporate franchises. Two of the corporate franchises have subsequently been resold to franchise partners. The two remaining territories are performing strongly and will also be sold back into the franchise community in due course.
Overall, the division performed strongly in H1 2026 with System sales increasing by 20% to £60.8m (H1 2025: £50.7m) and by 24% in local currency to $79.2m (H1 2025: $64.0m), supported by strong growth in recurring service revenues and favourable conditions within the Used Cooking Oil ("UCO") market. Excluding the revenue from the sale of UCO, underlying Systems sales grew by 14% to £46.6m (H1 2025: £40.8m) and in local currency by 16% to $62.5m (H1 2025: $53.7m).
Sales of UCO in H1 2026 increased by 54% to £12.5m (H1 2025: £8.1m) and by 58% in local currency to $16.7m (H1 2025: $10.6m). This resulted from a 16% increase in volume and a 36% year-on-year increase in price, driven by strong demand from biodiesel and renewable-diesel producers and elevated crude oil prices.
Although commodity prices remain inherently volatile, the underlying operating performance of the franchise business (excluding UCO and corporate franchises) was encouraging with 13% System sales growth in local currency and 10% System sales growth in sterling in H1 2026.
Good traction continues to be made with the FiltaMax strategic growth initiative in the 55 metro markets, where franchise partners are being upgraded and the range of services is being expanded. The FiltaClean activity is also growing strongly with the expansion of this service into ceiling cleaning and the launch of FiltaClean Pro which opens up new sector opportunities for us. This initiative was launched in March this year, and 66 franchise partners, representing 56% of the North American network, have already purchased the licence that allows them to offer this additional service. This new service opens up the large Quick Service Restaurant (QSR) market but only accounts for 8% System sales currently, so we are expecting this activity to grow very strongly in the coming years.
Further good progress is being made in converting the franchise partners onto a royalty-only model and away from the historic fixed monthly fee on each Mobile Filtration Unit. 53% of franchise partners who generate approximately 77% of System sales are now on a percentage royalty (H1 2025: 54%).
Adjusted EBITDA of the US franchisor grew by 24% to £4.6m (H1 2025: £3.7m), and on a local currency basis by 28% to $6.3m (H1 2025: $4.9m). The improvement in the quality of earnings as we move to an exclusively royalty model, combined with the continuing investment in the business by our franchise partners, provides much confidence in the future for this division.
B2C division
|
|
H1 2026 |
H1 2025 |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
% |
|
System sales |
11,392 |
12,363 |
(971) |
(8%) |
|
Statutory revenue |
2,418 |
2,792 |
(374) |
(13%) |
|
Cost of sales |
(388) |
(469) |
81 |
17% |
|
Gross profit |
2,030 |
2,323 |
(293) |
(13%) |
|
GM% |
84% |
83% |
1% |
(1%) |
|
Administrative expenses |
(1,138) |
(1,332) |
194 |
15% |
|
Adjusted EBITDA |
892 |
991 |
(99) |
(10%) |
The B2C division comprises the ChipsAway, Ovenclean and Barking Mad B2C brands. Its income is derived primarily from monthly fees paid by franchise partners for using the brands and from the fees generated on recruiting new franchise partners.
H1 2026 remained challenging for recruitment and retention with 15 new franchise partners recruited (H1 2025: 16), and 23 franchise partners leaving the system (H1 2025: 22) during the period. As a result, the total number of franchise partners reduced by 8 to 261 (H1 2025: 292).
Gross profit declined by 13% due to lower monthly fee income on the reduced franchise base and the lower income from franchise recruitment. Strict cost control resulted in a reduction in administrative expenses of 15%. As a result, Adjusted EBITDA declined by £0.1m to £0.9m (H1 2025: £1.0m) albeit the business remains highly cash generative.
Azura
|
|
H1 2026 |
H1 2025 |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
% |
|
System sales |
194 |
189 |
(5) |
(3%) |
|
Statutory revenue |
194 |
189 |
(5) |
(3%) |
|
Cost of sales |
- |
- |
- |
0% |
|
Gross profit |
194 |
189 |
(5) |
(3%) |
|
GM% |
100% |
100% |
0% |
0% |
|
Administrative expenses |
(205) |
(335) |
130 |
63% |
|
Adjusted EBITDA |
(11) |
(146) |
135 |
1,227% |
Statutory revenue is comprised of third-party income of £0.2m (H1 2025: £0.2m) and charges to Group companies of £0.0m (H1 2025: £0.2m). The Azura resources are focused on supporting the development and rollout of the Vision Works Management system to the Pirtek businesses. When completed, Azura will generate revenues which were previously paid to third-party software providers, and the capitalised cost will be amortised. The charges to Group companies are temporarily suspended during ongoing development work. The reduction of time spent on external customer systems has reduced development costs that are expensed and administrative expenses reduced 63% as a result. As a result, the business made only a modest loss at the Adjusted EBITDA level.
Peter Molloy
CEO
FINANCIAL REVIEW
Summary statement of income
|
|
H1 2026 |
H1 2025* |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
% |
|
System sales |
229,218 |
214,905 |
14,313 |
7% |
|
Revenue |
75,604 |
70,371 |
5,233 |
7% |
|
Cost of sales |
(31,661) |
(27,816) |
(3,845) |
(14%) |
|
Gross profit |
43,943 |
42,555 |
1,388 |
3% |
|
Administrative expenses |
(25,401) |
(25,138) |
(263) |
(1%) |
|
Adjusted EBITDA |
18,542 |
17,417 |
1,125 |
6% |
|
Depreciation & amortisation of software |
(3,244) |
(2,969) |
(275) |
(9%) |
|
Finance expense |
(2,562) |
(3,036) |
474 |
16% |
|
Foreign Exchange |
(130) |
281 |
(411) |
(146%) |
|
Adjusted profit before tax |
12,606 |
11,693 |
913 |
8% |
|
Tax expense |
(3,389) |
(3,191) |
(198) |
(6%) |
|
Adjusted profit after tax |
9,217 |
8,502 |
715 |
8% |
|
Amortisation of acquired intangibles |
(5,148) |
(5,148) |
0 |
|
|
Share-based payment expense |
899 |
(662) |
1,561 |
|
|
Tax on adjusting items |
1,164 |
1,554 |
(390) |
|
|
Statutory profit |
6,132 |
4,246 |
1,886 |
44% |
|
Total Profit and Other Comprehensive Income |
6,135 |
3,947 |
2,188 |
55% |
* Prior year adjustment. H1 2025 System sales were restated to £214.9m from £209.4m as certain Pirtek DLO operations were not included in System sales disclosures in prior years.
Adjusted EBITDA increased by 6.5% to £18.5m (H1 2025: £17.4m) driven by System sales growth of 6.7% combined with good control of administrative expenses.
Depreciation and amortisation of software increased by 9% to £3.2m (H1 2025: £3.0m) as we start to amortise the costs of One Franchise Brands IT projects.
The finance expense decreased by 16% to £2.6m (H1 2025: £3.0m) due to debt repayments and reductions in both the base rate and margin due to lower leverage. The Group continues to roll out the pooling arrangement with its primary lender (HSBC) to allow it to offset cash balances which previously attracted no interest.
The average interest rate payable on our UK bank facilities in H1 2026 reduced to 5.4% (H1 2025: 7.0%). Following both the reduction in leverage ratio and our renegotiated facility, the interest margin has reduced to 1.7% (H1 2025: 2.5%).
The overall effective tax rate reduced slightly to 27.2% (H1 2025: 27.8%).
Statutory profit after tax rose by 44% to £6.1m (H1 2025: £4.2m). The main driver of this was the change in share-based payments expense. Options granted in 2023 were subject to a performance condition that was not met. As a result, 2.2m options lapsed in May 2026, resulting in a credit in the accounts.
Earnings per share
The Adjusted and basic EPS are shown in the table below:
|
|
H1 2026 |
EPS |
H1 2025 |
EPS |
Change |
|
|
|
£'000 |
P |
£'000 |
P |
P |
% |
|
Adjusted profit after tax |
9,217 |
4.81 |
8,502 |
4.42 |
0.39 |
8.9% |
|
Amortisation of acquired intangibles |
(5,148) |
(2.69) |
(5,148) |
(2.68) |
(0.01) |
(0.4%) |
|
Share based payment |
899 |
0.47 |
(662) |
(0.34) |
0.81 |
236.5% |
|
Tax on adjusting items |
1,164 |
0.61 |
1,554 |
0.81 |
(0.20) |
(24.8%) |
|
Statutory profit after tax |
6,132 |
3.20 |
4,246 |
2.21 |
0.99 |
45.0% |
The total number of Ordinary Shares in issue on 30 June 2026 was 193,784,080 (H1 2025: 193,784,080).
The Employee Benefit Trust ("EBT") started the period holding 2,103,324 Ordinary Shares, purchased 180,000 Ordinary Shares and disposed of 80,804 Ordinary Shares in respect of the exercise of employees' share options. The EBT therefore ended the period holding 2,202,520 Ordinary Shares.
On 30 June 2026, there were 18,348,043 shares under option (9.5% of the total number of Ordinary Shares), of which 3,417,810 had vested and were exercisable. On 31 December 2025, there were 13,319,157 shares under option (6.9% of the total number of Ordinary Shares). 3,551,310 had vested and were exercisable (1.8% of the total number of Ordinary Shares), of which 1.1% were covered by the EBT holding, resulting in 0.7% currently being uncovered.
The total number of Ordinary Shares in issue on 30 June 2026, net of the EBT holding, was 191,581,560 (31 December 2025: 191,680,756), and the basic weighted average number of Ordinary Shares in issue for H1 2026 was 191,616,966 (H1 2025: 192,317,519).
Adjusted basic EPS increased by 8.9% to 4.81p (H1 2025: 4.42p), and basic earnings per share increased by 45.0% to 3.20p (H1 2025: 2.21p).
Cash flow and working capital
A summary of the Group cash flow for the period is set out in the table below.
|
|
H1 2026 |
H1 2025 |
|
|
£'000 |
£'000 |
|
Adjusted EBITDA |
18,542 |
17,417 |
|
Working Capital movements |
(3,579) |
(2,918) |
|
Adjusted cash generated from operations |
14,963 |
14,499 |
|
Taxes Paid |
(2,917) |
(2,169) |
|
Purchase of property, plant and equipment |
(648) |
(572) |
|
Proceeds from sale of property, plant and equipment |
217 |
207 |
|
Purchase of Software |
(1,662) |
(611) |
|
Net bank loans repaid |
(2,700) |
(9,000) |
|
Overdraft utilised |
2,886 |
10,435 |
|
Interest Paid Bank and other loan |
(2,091) |
(2,667) |
|
Lease payments |
(2,288) |
(2,050) |
|
Funds supplied to the EBT |
(250) |
(600) |
|
Funds received from the EBT |
76 |
440 |
|
Dividends paid |
(2,586) |
(2,500) |
|
Other net movements |
37 |
(106) |
|
Net cash movement |
3,037 |
5,306 |
|
Net cash at the beginning of the year |
15,293 |
12,921 |
|
Exchange differences on cash and cash equivalents |
44 |
(255) |
|
Net Cash at the end of the half year |
18,374 |
17,972 |
The Group generated Adjusted cash from operating activities of £15.0m (H1 2025: £14.5m) resulting in a cash conversion of 81% (H1 2025: 83%).
The working capital outflow in H1 2026 was principally driven by the phasing of annual payments made in Q1, which are expected to normalise over the course of the year. Trade receivables also increased, reflecting continued revenue growth and support provided to franchisees for new services, through extended payment terms.
Taxes paid increased to £2.9m (H1 2025: £2.2m) and relate to both the UK and international payments.
Property, Plant and Equipment purchases were £0.6m (H1 2025: £0.6m) and related primarily to plant and equipment additions in the DLO businesses and corporate franchises. The software purchases of £1.7m (H1 2025: £0.6m) represent the capitalised component of our ongoing investment in developing our global IT platform.
Bank loans repaid represented the £5.0m term loan repayments offset by drawing on the RCF. Interest paid reflects the cost of servicing this debt. Lease payments increased by £0.2m to £2.3m (H1 2025: £2.1m) driven by corporate franchises.
Purchase of shares by the EBT of £0.2m relates to the net shares purchased in line with the share purchase programme announced in October 2024.
Dividends paid reflect the cash cost of the final 2025 dividend.
Net debt
The net debt of the Group may be summarised as follows:
|
|
30 June 2026 |
31 Dec 2025 |
Change |
Change |
30 June 2025 |
Change |
Change |
|
|
£'000 |
£'000 |
£'000 |
% |
£'000 |
£'000 |
% |
|
Cash |
18,374 |
15,293 |
3,081 |
20% |
17,972 |
402 |
2% |
|
Overdraft |
(10,428) |
(7,542) |
(2,886) |
(38%) |
(10,435) |
7 |
- |
|
Term Loan |
(27,500) |
(32,500) |
5,000 |
15% |
(35,000) |
7,500 |
21% |
|
RCF |
(31,702) |
(29,465) |
(2,237) |
(8%) |
(33,588) |
1,886 |
6% |
|
Loan Fee |
488 |
653 |
(165) |
(25%) |
612 |
(124) |
(20%) |
|
Hire Purchase debt |
(2,095) |
(2,006) |
(89) |
(4%) |
(1,610) |
(485) |
(30%) |
|
Adjusted net debt |
(52,863) |
(55,567) |
2,704 |
5% |
(62,049) |
9,186 |
15% |
|
Other Lease debt |
(8,694) |
(9,648) |
954 |
10% |
(9,297) |
603 |
6% |
|
Net Debt |
(61,557) |
(65,215) |
3,658 |
6% |
(71,346) |
9,789 |
14% |
During H1 2026, the term loan balance was reduced by £5.0m to £27.5m (H1 2025: £35.0m) in accordance with the banking agreement. Adjusted net debt, the metric used in calculating compliance with our banking covenants, reduced to £52.9m (H1 2025: £62.0m). This reduced the leverage ratio to 1.50x Adjusted EBITDA, down from 1.6x at the end of 2025, which was in line with management's expectations and comfortably within banking covenants.
Dividend
The Board is pleased to propose an interim dividend of 1.25 pence per share, an increase of 9% (H1 2025: 1.15 pence per share). The interim dividend will be paid on 25th September 2026 to those shareholders on the register at the close of business on 11th September 2026.
Neil Miller
Chief Financial Officer
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June 2026
|
|
Notes |
Unaudited 6 months ended 30 June 2026 |
Unaudited 6 months ended 30 June 2025 |
Audited Year ended 31 December 2025 |
|
||
|
|
|
£'000 |
£'000 |
£'000 |
|
||
|
|
|
|
|
|
|
||
|
Revenue |
|
75,604 |
70,371 |
142,152 |
|
||
|
Cost of sales |
|
(31,661) |
(27,816) |
(57,394) |
|
||
|
Gross profit |
|
43,943 |
42,555 |
84,758 |
|
||
|
Adjusted earnings before interest, tax, depreciation, amortisation, share-based payments & non-recurring items ("Adjusted EBITDA") |
|
18,542 |
17,417 |
35,245 |
|
||
|
Depreciation and amortisation on right-of-use assets |
|
(2,500) |
(2,387) |
(4,969) |
|
||
|
Amortisation of software |
|
(744) |
(582) |
(1,177) |
|
||
|
Amortisation of acquired intangibles |
|
(5,148) |
(5,148) |
(10,296) |
|
||
|
Share-based payment expense |
|
899 |
(662) |
(874) |
|
||
|
Total administrative expenses |
|
(32,635) |
(33,503) |
(65,492) |
|
||
|
Net impairment losses on financial assets |
|
(259) |
(414) |
(1,337) |
|
||
|
Operating profit |
|
11,049 |
8,638 |
17,929 |
|
||
|
Foreign exchange gain/(loss) |
|
(130) |
281 |
349 |
|
||
|
Finance expense |
|
(2,562) |
(3,036) |
(5,558) |
|
||
|
Profit before tax |
|
8,357 |
5,883 |
12,270 |
|
||
|
Tax expense |
|
(2,225) |
(1,637) |
(3,743) |
|
||
|
Profit attributable to equity holders of the Parent Company |
|
6,132 |
4,246 |
8,977 |
|
||
|
Other comprehensive income/(expense) |
|
|
|
|
|
||
|
Actuarial gains |
|
3 |
19 |
31 |
|
||
|
Exchange differences on translation of foreign operations |
|
131 |
(318) |
(510) |
|
||
|
Total comprehensive income attributable to equity holders of the Parent Company |
|
134 |
(299) |
(479) |
|
||
|
Total profit and other comprehensive income for the year attributable to equity holders of the Parent Company |
|
6,266 |
3,947 |
8,977 |
|
||
|
Earnings per share (p) |
|
|
|
|
|
||
|
Basic |
1 |
3.20 |
2.21 |
4.67 |
|
||
|
Diluted |
1 |
3.17 |
2.19 |
4.64 |
|
||
|
|
|
|
|
|
|||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2026
|
|
|
Unaudited 30 June 2026 |
Audited 31 December 2025 |
|
|
|
|
£'000 |
£'000 |
|
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Intangible assets |
|
281,962 |
286,178 |
|
|
Property, plant and equipment |
|
4,226 |
4,334 |
|
|
Right-of-use assets |
|
10,833 |
11,601 |
|
|
Contract acquisition costs |
|
397 |
424 |
|
|
Trade and other receivables |
|
2,538 |
2,633 |
|
|
Total non-current assets |
|
299,956 |
305,170 |
|
|
Current assets |
|
|
|
|
|
Inventories |
|
7,521 |
7,265 |
|
|
Trade and other receivables |
|
50,664 |
43,949 |
|
|
Contract acquisition costs |
|
85 |
86 |
|
|
Current tax asset |
|
453 |
908 |
|
|
Cash and cash equivalents |
|
18,374 |
15,293 |
|
|
Total current assets |
|
77,097 |
67,501 |
|
|
Total assets |
|
377,053 |
372,671 |
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Overdraft |
|
10,428 |
7,542 |
|
|
Trade and other payables |
|
39,293 |
35,652 |
|
|
Loans and borrowings |
|
9,691 |
9,681 |
|
|
Obligations under leases |
|
3,266 |
3,250 |
|
|
Deferred income |
|
1,334 |
1,335 |
|
|
Current tax liability |
|
1,347 |
1,091 |
|
|
Total current liabilities |
|
65,359 |
58,551 |
|
|
Non-current liabilities |
|
|
|
|
|
Loans and borrowings |
|
49,022 |
51,631 |
|
|
Obligations under leases |
|
7,540 |
8,404 |
|
|
Deferred income |
|
3,012 |
3,205 |
|
|
Deferred tax liability |
|
27,956 |
29,366 |
|
|
Total non-current liabilities |
|
87,530 |
92,606 |
|
|
Total liabilities |
|
152,889 |
151,157 |
|
|
Total net assets |
|
224,164 |
221,514 |
|
|
Issued capital and reserves attributable to owners of the Parent |
|
|
|
|
|
Share capital |
|
969 |
969 |
|
|
Share premium |
|
- |
131,131 |
|
|
Share-based payment reserve |
|
3,224 |
4,080 |
|
|
Merger reserve |
|
69,754 |
69,754 |
|
|
EBT reserve |
|
(4,470) |
(4,296) |
|
|
Translation reserve |
|
(18) |
(149) |
|
|
Retained earnings |
|
154,705 |
20,025 |
|
|
Total equity attributable to equity holders |
|
224,164 |
221,514 |
|
|
|
|
|
|
|
Company Statement of Financial Position
At 31 December 2026
|
|
|
Unaudited 30 June 2026 |
Audited 31 December 2025 |
|
|
|
£'000 |
£'000 |
|
Assets |
|
|
|
|
Non-current assets |
|
|
|
|
Investment in group companies |
|
209,468 |
209,468 |
|
Property, plant and equipment |
|
5 |
8 |
|
Right-of-use assets |
|
18 |
22 |
|
Total non-current assets |
|
209,491 |
209,498 |
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
Trade and other receivables |
|
107,805 |
104,783 |
|
Cash and cash equivalents |
|
- |
3 |
|
Total current assets |
|
107,805 |
104,786 |
|
Total assets |
|
317,296 |
314,284 |
|
Liabilities |
|
|
|
|
Current liabilities |
|
|
|
|
Overdraft |
|
10,428 |
7,542 |
|
Trade and other payables |
|
43,986 |
37,686 |
|
Loans and borrowings |
|
9,691 |
9,681 |
|
Obligations under leases |
|
7 |
6 |
|
Total current liabilities |
|
64,112 |
54,915 |
|
Non-current liabilities |
|
|
|
|
Loans and borrowings |
|
49,022 |
51,631 |
|
Obligations under leases |
|
10 |
15 |
|
Total non-current liabilities |
|
49,032 |
51,646 |
|
Total liabilities |
|
113,144 |
106,561 |
|
Net assets |
|
204,152 |
207,723 |
|
Issued capital and reserves attributable to owners of the Company |
|
|
|
|
Share capital |
|
969 |
969 |
|
Share premium |
|
- |
131,131 |
|
Share-based payment reserve |
|
3,224 |
4,080 |
|
Merger reserve |
|
69,634 |
69,634 |
|
EBT reserve |
|
(4,470) |
(4,296) |
|
Retained earnings |
|
134,795 |
6,205 |
|
Total equity attributable to equity holders |
|
204,152 |
207,723 |
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 30 June 2026
|
|
Unaudited 6 months ended 30 June 2026 |
Unaudited 6 months ended 30 June 2025 |
Audited Year ended 31 December 2025 |
|
|
£'000 |
£'000 |
£'000 |
|
Cash flows from operating activities |
|
|
8,977
|
|
Profit for the period |
6,132 |
4,246 |
|
|
Adjustments for: |
|
|
1,278 |
|
Depreciation of property, plant and equipment |
589 |
704 |
|
|
Depreciation of right-of-use assets |
1,910 |
1,683 |
3,691 |
|
Amortisation of software |
744 |
582 |
1,177 |
|
Amortisation of acquired intangibles |
5,148 |
5,148 |
10,296 |
|
Non-recurring charges |
- |
(18) |
- |
|
Share-based payment expense |
(899) |
662 |
874 |
|
Gain on disposal of property, plant and equipment |
(50) |
(109) |
(699) |
|
Defined benefit obligation current service costs |
1 |
63 |
17 |
|
Finance expense |
2,562 |
3,036 |
5,558 |
|
Exchange differences on translation of foreign operations |
124 |
(291) |
(387) |
|
Income tax expense |
2,225 |
1,637 |
3,743 |
|
Operating cash flow before movements in working capital |
18,486 |
17,343 |
34,525 |
|
Increase in trade and other receivables |
(5,431) |
(4,749) |
(5,268) |
|
(Increase)/decrease in inventories |
(293) |
(290) |
123 |
|
Increase in trade and other payables |
2,145 |
2,122 |
4,347 |
|
Cash generated from operations |
14,907 |
14,426 |
33,727 |
|
Income taxes paid |
(2,917) |
(2,169) |
(5,608) |
|
Net cash generated from operating activities |
11,990 |
12,257 |
28,119 |
|
Cash flows from investing activities |
|
|
(996) |
|
Purchases of property, plant and equipment |
(648) |
(572) |
|
|
Purchase of software |
(1,662) |
(611) |
1,104 |
|
Proceeds from the sale of property, plant and equipment |
217 |
207 |
(2,104) |
|
Loans to franchisees |
(242) |
(194) |
(973) |
|
Loans to franchisees repaid |
336 |
161 |
423 |
|
Net cash used in investing activities |
(1,999) |
(1,009) |
(2,546) |
|
Cash flows from financing activities |
|
|
2,520 |
|
Bank loans - received |
2,300 |
- |
|
|
Bank loans - repaid |
(5,000) |
(9,000) |
(18,240) |
|
Overdraft utilised |
2,885 |
10,435 |
7,542 |
|
Capital element of lease obligations repaid |
(1,992) |
(1,768) |
(3,778) |
|
Interest paid - bank and other loan |
(2,091) |
(2,667) |
(4,315) |
|
Interest paid - finance leases |
(296) |
(282) |
(613) |
|
Proceeds from sale/(purchase) of shares by the Employee Benefit Trust |
(174) |
(160) |
(1,540) |
|
Dividends paid |
(2,586) |
(2,500) |
(4,711) |
|
Net cash used in financing activities |
(6,954) |
(5,942) |
(23,135) |
|
Net increase in cash and cash equivalents |
3,037 |
5,306 |
2,438 |
|
Cash and cash equivalents at beginning of period |
15,293 |
12,921 |
12,921 |
|
Exchange differences on cash and cash equivalents |
44 |
(255) |
(66) |
|
Cash and cash equivalents at end of period |
18,374 |
17,972 |
15,293 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2026
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Share capital |
Share premium account |
Share-based payment reserve |
Merger reserve |
Translation reserve |
EBT reserve |
Retained earnings |
Total |
|
||||||||||||
|
Group |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
||||||||||||
|
At 1 January 2025 |
969 |
131,131 |
1,936 |
69,754 |
24 |
(2,679) |
13,258 |
214,393 |
|
||||||||||||
|
Profit for the period |
- |
- |
- |
- |
- |
- |
4,246 |
4,246 |
|
||||||||||||
|
Actuarial gain |
- |
- |
- |
- |
- |
- |
19 |
19 |
|
||||||||||||
|
Foreign exchange translation differences |
- |
- |
- |
- |
(318) |
- |
- |
(318) |
|
||||||||||||
|
Profit for the year and total comprehensive income |
- |
- |
- |
- |
(318) |
- |
4,265 |
3,947 |
|
||||||||||||
|
Contributions by and distributions to owners: |
|
|
|
|
|
|
|
|
|
||||||||||||
|
Dividend paid |
- |
- |
- |
- |
- |
- |
(2,500) |
(2,500) |
|
||||||||||||
|
Contributions to Employee Benefit Trust |
- |
- |
- |
- |
- |
(160) |
- |
(160) |
|
||||||||||||
|
Share-based payment |
- |
- |
617 |
- |
- |
- |
- |
617 |
|
||||||||||||
|
At 30 June 2025 |
969 |
131,131 |
3,830 |
69,754 |
43 |
(2,916) |
17,656 |
220,467 |
|
||||||||||||
|
Profit for the period |
- |
- |
- |
- |
- |
- |
4,731 |
4,731 |
|
||||||||||||
|
Actuarial gain |
- |
- |
- |
- |
- |
- |
12 |
12 |
|
||||||||||||
|
Foreign exchange translation differences |
- |
- |
- |
- |
(192) |
- |
- |
(192) |
|
||||||||||||
|
Profit for the year and total comprehensive income |
- |
- |
- |
- |
(192) |
- |
4,743 |
4,551 |
|
||||||||||||
|
Contributions by and distributions to owners: |
|
|
|
|
|
|
|
|
|
||||||||||||
|
Dividend paid |
- |
- |
- |
- |
- |
- |
(2,211) |
(2,211) |
|
||||||||||||
|
Contributions to Employee Benefit Trust |
- |
- |
- |
- |
- |
(1,380) |
- |
(1,380) |
|
||||||||||||
|
Share-based payment |
- |
- |
250 |
- |
- |
- |
- |
250 |
|
||||||||||||
|
Tax on share-based payment expense |
- |
- |
- |
- |
- |
- |
(163) |
(163) |
|
||||||||||||
|
At 31 December 2025 |
969 |
131,131 |
4,080 |
69,754 |
(149) |
(4,296) |
20,025 |
221,514 |
|
||||||||||||
|
Profit for the period |
- |
- |
- |
- |
- |
- |
6,132 |
6,132 |
|
||||||||||||
|
Actuarial gain |
- |
- |
- |
- |
- |
- |
3 |
3 |
|
||||||||||||
|
Foreign exchange translation differences |
- |
- |
- |
- |
131 |
- |
- |
131 |
|
||||||||||||
|
Profit for the year and total comprehensive income |
- |
- |
- |
- |
131 |
- |
6,135 |
6,266 |
|
||||||||||||
|
Contributions by and distributions to owners: |
|
|
|
|
|
|
|
|
|
||||||||||||
|
Share premium cancellation |
- |
(131,131) |
- |
- |
- |
- |
131,131 |
- |
|
||||||||||||
|
Dividend paid |
- |
- |
- |
- |
- |
- |
(2,586) |
(2,586) |
|
||||||||||||
|
Contributions to Employee Benefit Trust |
- |
- |
- |
- |
- |
(174) |
- |
(174) |
|
||||||||||||
|
Share-based payment |
- |
- |
(856) |
- |
- |
- |
- |
(856) |
|
||||||||||||
|
At 30 June 2026 |
969 |
- |
3,224 |
69,754 |
(18) |
(4,470) |
154,705 |
224,164 |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Accounting policies
Basis of preparation
The consolidated financial statements for the six months ended 30 June 2026 are unaudited and were approved by the Directors on 28 July 2026. They do not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial statements for the year ended 31 December 2025 were prepared in accordance with IFRS and have been delivered to the Registrar of Companies. The report of the auditor on those financial statements was unqualified and did not draw attention to any matters by way of emphasis of matter. The Group's financial statements consolidate the financial statements of Franchise Brands plc and its subsidiaries.
Applicable standards
These unaudited consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union, under the historical cost convention. They have not been prepared in accordance with IAS 34, the application of which is not required to the interim financial statements of AIM companies. The interim financial statements have been prepared in accordance with the accounting policies set out in the Group's Annual Report and Accounts for the year ended 31 December 2025.
Going concern
The condensed financial statements have been prepared on a going concern basis. The Group has generated profits both during the period covered by these financial statements and in previous years. These profits have resulted in operating cash inflows into the Group, and the Group has sufficient current financial assets to meet its current liabilities as they fall due.
Notes to the unaudited results for the six months ended 30 June 2026
1. Earnings per share
Basic earnings per share amounts are calculated by dividing profit for the period attributable to equity holders of the Parent by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share are calculated by dividing the profit attributable to Ordinary equity holders of the Parent Company by the weighted average number of Ordinary Shares outstanding during the period plus the weighted average number of Ordinary Shares that would have been issued on the conversion of all dilutive share options at the start of the period or, if later, the date of issue.
Earnings per share
|
|
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Year ended 31 December 2025 |
|
||||||
|
|
£'000 |
£'000 |
£'000 |
|
||||||
|
Profit attributable to owners of the Parent Company |
6,132 |
4,246 |
8,977 |
|
||||||
|
Amortisation of acquired intangibles |
5,148 |
5,148 |
10,296 |
|
||||||
|
Share-based payment expense |
(899) |
662 |
874 |
|
||||||
|
Tax on adjusting items |
(1,164) |
(1,554) |
(2,831) |
|
||||||
|
Adjusted profit attributable to owners of the Parent Company |
9,217 |
8,502 |
17,316 |
|
||||||
|
|
|
|
|
|
|
|||||
|
|
Number |
Number |
Number |
|
||||||
|
Basic weighted average number of shares |
191,616,966 |
192,452,647 |
192,317,519 |
|
||||||
|
Dilutive effect of share options |
1,849,774 |
1,443,993 |
1,057,043 |
|
||||||
|
Diluted weighted average number of shares |
193,466,740 |
194,896,640 |
193,374,562 |
|
||||||
|
|
|
|
|
|
||||||
|
|
Pence |
Pence |
Pence |
|
||||||
|
Basic earnings per share |
3.20 |
2.21 |
4.67 |
|
||||||
|
Diluted earnings per share |
3.17 |
2.19 |
4.64 |
|
||||||
|
Adjusted earnings per share |
4.81 |
4.42 |
9.00 |
|
||||||
|
Adjusted diluted earnings per share |
4.76 |
4.38 |
8.95 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
2. Availability of this report
This half-year results report will not be sent to shareholders but is available on the Company's website at https://www.franchisebrands.co.uk/key-documents/.
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