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Highlights
- Last year in March, Franchise Brands announced the acquisition of Filta Group Holdings plc through an all-share deal.
- Filta's acquisition helped FRAN take its UK-focused business to one with an international scale.
- For FY22 ending 31 December 2022, FRAN reported a 72% jump in its revenue at GBP 99.3 million, while its adjusted EBITDA surged by 80% to GBP 15.3 million.
Franchise Brands PLC (LSE:FRAN) is an FTSE AIM 100 index-listed company focused on building market-leading businesses primarily via a franchise model. Last March, the company announced the acquisition of Filta Group Holdings plc, a market leader in the commercial kitchen services sector, through an all-share deal.
Filta's acquisition helped FRAN take its UK-focused business to an international scale as its expanded management helped the group develop its business in North America, the UK and Europe. The company offered a range of complementary services to a combined larger base.
For FY22 ended 31 December 2022, FRAN reported a 72% jump in its revenue at GBP 99.3 million, while its adjusted EBITDA surged by 80% to GBP 15.3 million, compared to GBP 8.5 million in FY21. Filta alone contributed GBP 5.2 million to the company's adjusted EBITDA.
For the uninitiated, Filta provides oil filtration and frayer management services to commercial customers through FiltaFry. Its franchisees also supply cooking oil to customers and collect used oil, which is sold to be recycled into biodisel. This company has 133 franchisees in North America and 27 in Europe.
Adjusted earnings per share of FRAN jumped by 51% to 8.38p in Fy22 as compared to 5.55p in FY21.
Filta's financial performance in FY22 was supported by the recovery of key commercial customer sectors and the elevated price of cooking oil.
FRAN FY23 Outlook
The company is seeking organic, acquisitive and international growth within the B2B franchise sector. It will also continue to leverage efficiency-enhancing technology over the medium term.
On 18 April 2023, when the company shared its Q1FY23 updates, it said Metro Rod achieved record levels in the first quarter. It further said that Pirtek Europe, another company it had acquired earlier, would expand its operations into ten countries and FiltaMax expansion strategy gained further momentum during Q1FY23.
FRAN Top 10 Shareholders
The top 10 shareholders of the company collectively form around 54.02% of the total shareholdings. Wray (Nigel William) holds the maximum number of shares with ~11.83% shareholding, followed by Hemsley (Stephen Glen) with ~11.74% shareholding, as depicted in the chart below:
Stock Price Performance
The stock has witnessed a decline of ~1.42% in the last one month and over the last 6 months, it has decreased by ~10.83%. The stock has a 52-week low and 52-week high of GBX 133.00 & GBX 250.00, respectively and is currently trading below the average of 52-week high-low.
Please note markets are trading in a highly volatile zone currently due to certain macroeconomic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 20 June 2023. The reference data in this report has been partly sourced from EODHD/Others.
