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Franchise Brands intends share buyback as sales rise in 2025

ALN

Franchise Brands PLC on Wednesday said it achieved ‘record’ System sales in 2025, up 2%, despite a challenging macroeconomic backdrop.

For 2025, the Macclesfield, England-based owner of franchise brands including Pirtek in Europe, Filta, Metro Rod and Metro Plumb expects to report adjusted earnings before interest, tax, depreciation and amortisation in line with market expectations, citing a range between £33.8 million and £35.8 million, which would be between 3.7% lower and 2.0% higher than £35.1 million in 2024.

The company said it made ‘good’ progress with the One Franchise Brands initiatives to boost sales and drive efficiencies, including group-wide IT initiatives. Franchise Brands added it ‘benefited from international diversification across its portfolio of market-leading franchise brands, with Filta International in the US performing particularly strongly.’

Further, the company announced its intention to launch a share buyback programme of up to £10 million.

Looking ahead, the firm said: ‘We anticipate that confidence may finally return to the German market in H2 2026 as a result of the expected infrastructure spending. The US market currently continues to be supportive.’

Executive Chair Stephen Hemsley said: ‘We remain focused on maximising the potential of our brands as they grow their modest shares of large, fragmented, markets by broadening our customer base and the range of services offered. The inherent operational gearing in our franchise business model, with a strengthened and integrated platform, means we are well positioned to deliver a more robust trading performance as macroeconomic conditions improve.’

Franchise Brands shares were 3.0% higher at 136.75 pence each on Wednesday afternoon in London.

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