Franchise Brands says it is on track to meet earnings targets following smooth Pirtek integration
October 26, 2023 at 09:29 am EDT
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Franchise Brands PLC executive chairman Stephen Hemsley told Proactive's Stephen Gunnion that , despite seeing some softer demand during the summer, the B2B businesses of the company are trading at record levels.
Contributing factors for this dip in summer demand include unusually poor UK weather in July and August and a general economic slowdown in Europe. However, there was a notable uptick in the fourth quarter, with October and November registering strong months for the business. The acquisition of Pirtek in April this year has been beneficial, even with the challenges of managing acquisitions. Hemsley expressed satisfaction with Pirtek's integration into the Franchise Brands business, particularly with IT integration.
A forthcoming "growth summit" in Amsterdam will provide a platform for further idea exchange. Hemsley said he remains confident that the company will deliver adjusted EBITDA in line with market expectations. One challenge has been higher interest rates than initially budgeted. After reducing group net debt from £79.1 million in June to £76 million at the end of September, Hemsley also highlighted that management of working capital and debt, particularly after the Pirtek acquisition, remains a priority.
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Franchise Brands plc is a holding company. The Company is a multi-brand franchisor focused on building businesses primarily using a franchise model. It operates through four segments: B2B, Filta International, B2C, Azura, and Other operations. The B2B division comprises Metro Rod, Metro Plumb, Filta, and Willow Pumps. Filta International includes Filta North America and Filta Europe. The B2C division includes ChipsAway, Ovenclean and Barking Mad. The Azura is a franchise software system developer. It has a combined network of 650 franchisees across seven franchise brands in 10 countries covering the United States, North America, and Europe. Metro Rod provides solutions to a range of commercial customers. Metro Plumb provides a range of emergency plumbing services. Filta provides environmental services to commercial customers. Pirtek is a provider of on-site hydraulic hose replacement and associated services. Willow Pumps is a pump design, installation, and servicing business.