Business
Trading and dividend update, notice of AGM
Trading and dividend update, notice of AGM.
About this update from Franchise Brands Plc
[{"type":"text","content":"\n \n \n RNS Number : 9564H\n Franchise Brands PLC\n 30 March 2020\n \n \n \n \n 30 March 2020\n \n \n \n \n \n Franchise Brands plc\n \n \n (\"Franchise Brands\", or the \"Company\", or \"Group\")\n \n \n \n \n \n Trading update, posting of Annual Report, notice of AGM and dividend update \n \n \n \n \n \n Franchise Brands plc \n (AIM: FRAN)\n , a multi-brand franchise business, provides an update on trading and the final dividend, and announces that it has posted to shareholders its \n annual report and accounts for the year ended 31 December 2019 and notice of the Annual General Meeting (\"AGM\").\n \n Trading update\n Franchise Brands started the year with strong underlying trading from each of our divisions and, despite the Covid-19 disruption which started in the second half of March, the business has traded in-line with management's expectations for the first quarter as a whole.\n However, like many others, our business has been impacted by the effects of the COVID-19 pandemic, and the evolving Government guidelines and interventions. We are continuing to model a range of scenarios and mitigating actions to understand the potential impact on sales, profit and cashflow. Whilst we are confident that the post-pandemic future of the business remains strong, trading in the near term is likely to be impacted by the effects of the pandemic.\n In this context, the Board's objective is to ensure that the Group is as well placed as possible to resume normal trading once the Covid-19 situation has abated, and we have taken a number of proactive steps to ensure the business remains resilient during this period, as set out in the divisional commentary below.\n B2B Division\n Our B2B division, which comprises Metro Rod, Metro Plumb and Willow Pumps, provides a \"Water in. Waste out\" range of national drainage, plumbing and pump services to the commercial market. On a pro-forma basis, had Willow Pumps been part of the Group for a full twelve months in 2019, this division would have contributed 67% of Adjusted EBITDA (excluding group overheads).\n \n Most of the services provided by this division have been designated by the Government as essential services to ensure the smooth running of public utilities and other key businesses. Therefore, we and our franchisees have the legal flexibility to remain trading as no...