Franchise Brands reports maiden interim results

The IPO raised £2.9m (net of expenses) and was well supported by both institutional and retail shareholders. I was particularly pleased with the level of support from our management team, employees and franchisees who subscribed for over 20% of the issue. I also note that none of the original shareholders who backed our buyout in 2008 sold any shares in the IPO process, meaning that all the net proceeds are available to the Group to support its ambitious growth plan.

One of the key objectives of Franchise Brands is to build the franchise Group by the selective, earnings enhancing acquisition of high quality franchise businesses that can benefit from our central services, whilst addressing the same B2C market as our existing brands. We are actively reviewing a number of opportunities at present, leaving us hopeful that we will be able to announce our first transaction shortly.

The Group’s two main franchise brands, Chips Away an automotive repair franchise and Ovenclean an oven cleaning franchise continued to trade well, with both franchise networks growing in the six months ended 30 June 2016 and the Group’s results for the period are line with management’s expectations. Cash generation remained strong which enabled us to clear almost all the outstanding shareholder debt immediately before the IPO.

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