Franchise Brands Plc · LSE:FRAN
Franchise Brands — H1 2025 Earnings Presentation
38 slides from Franchise Brands's earnings presentation, 2025
Slide 1: 2025 Interim Results Presentation
B FRANCHISE. BRANDS. FRANCHISE BRANDS 2025 Interim Results Presentation Franchise Brands plc
Slide 2: Disclaimer
Disclaimer The information contained in this document (“Presentation”) and the presentation made to you verbally has been prepared by Franchise Brands ple (the *Company). Franchise Brands plc is a UK company quoted on AIM, a market operated by London Stock Exchange ple. This Presentation has not bee
Slide 3: Presenters
Presenters Stephen Hemsley Executive Chairman, Stephen co-founded Franchise Brands with Nigel Wray in 2008 and has led the development of the business, including the IPO and external growth. A Chartered Accountant by training, he spent nearly ten years at 3i as an Investment Director. He then joined
Slide 4: Introduction and overview
Introduction and overview Stephen Hemsley Executive Chairman
Slide 5: Resilient performance in a challenging market
Resilient performance in a challenging market Resilient performance in the first half of 2025, despite geopolitical uncertainty resulting in challenging macroeconomic conditions in most key markets although “green shoots” yet to appear in Europe. Significant earnings progression as a result of stron
Slide 6: Capital allocation
Capital allocation Capital allocation decisions will balance debt reduction, maintaining a progressive dividend policy and investment in the organic expansion of the Group. @) Acquisitions The Board does not anticipate making any further significant acquisitions until the outstanding debt is substan
Slide 7: Milestones in progression
Milestones in progression Transitioned trading of the Company’s shares Company became a constituent of the FTSE AIM UK from the London Stock 50 Index. Exchange’s SETSqx to SETS. f * Nw ap Nw 19 May 2025 23 June 2025 of Franchise Brands Preparatory steps towards a future listing on the Official List
Slide 8: Operational review
Operational review Peter Molloy CEO
Slide 9: H1 2025: financial & operational highlights
H1 2025: financial & operational highlights £209.4m System sales 2.5% Hi 2024: £204.2m £70.4m Revenue 0.2% H1 2024: £70.2m £17.4m Adjusted EBITDA' (1.7)% 412024: 817m £11.7m Profit before tax 9.6% 1 2024: £10.7m EBITDA is ear EPS is earnings net debt exclude: Note: System sales in Hi 2024 have been
Slide 10: Pirtek H1 2025 review
Pirtek H1 2025 review The business is mostly franchised in the major markets of the UK & Ireland, Germany & Austria, and Benelux Range of services being expanded in all markets, Total System sales of £93.7m, an increase of 1% (H1 2024: £92.8m). More pan-European customers being developed. All the ma
Slide 11: Pirtek System sales & adjusted EBITDA by country
Pirtek System sales & adjusted EBITDA by country System sales UK & Ireland 41413 ; "8 0.3% — Total System sales of £93.7m, an increase of 1.0%. Record System sales for key markets (95% of total Germany & Austria 34,648 , 909 2.7% System sales). Benelux 12,509 ; 219 1.8% — Administrative expenses ros
Slide 12: Metro Rod & Metro Plumb H1 2025 review
Metro Rod & Metro Plumb H1 2025 review i). iE NATION'S LOCAL PLUMBER — Overall System sales increased by 1% to £39.5m. — Metro Plumb System sales declined 4% to £3.7m. Due to a large national account moving to self-delivering a large — Expansion of range of services: Tanker & Pump sales now proporti
Slide 13: Willow Pumps & Filta UK H1 2025 review
Willow Pumps & Filta UK H1 2025 review N 8 SERVICING System sales of the business grew by 1%, with £0.8m of sales delivered for Filta customers under the optimised pump delivery method. Loss of major service customer in competitive tender process. Slow down in higher value project work. Special proj
Slide 14: Water & Waste Services division: financial results
Water & Waste Services division: financial results H1 2025 H1 2024 Change Change le) — The Division advanced its key objectives of transferring to a ‘System sales 54,861 54,999 (138) - predominately franchise model, reducing corporately owned franchises and further developing divisional integration.
Slide 15: Filta International: H1 2025 review
Filta International: H1 2025 review North American System sales up 13% to £48.9m and in local currency by 17% to $63.9m. Supportive macroenvironment and good traction with the FiltaMax strategic growth initiative. Underlying System sales grew by 12% excluding UCO* revenue to £40.8m and in local curr
Slide 16: Filta International: financial results
Filta International: financial results System sales Statutory revenue Cost of sales Gross profit GP% Administrative expenses Adjusted EBITDA EBITDA/ System sales (%) 12025 £000 50,652 14,342 (8,760) 5,582 39% (1,985) 3,597 7.1% 12024 £000 4,852 40% (1,925) 2,927 6.5% Change £000 5,696 2,305 (1,575)
Slide 17: B2C division: H1 2025 review and financial results
B2C division: H1 2025 review and financial results H12025 12024 ChipsAway énclean 2» LIKE IT NEVER HAPPENED — Less anime, mone time — Bandas bce ‘System sales 12,363 13,248 (885) (7%) ; - - Revenue 2,792 2,975 (183) (6%) — H1 2025 remained challenging for franchisee recruitment and retention. — 16 n
Slide 18: Integration opportunities and strategy
Integration opportunities and strategy 3 FRANCHISE BRANDS Objectives . Creating an efficient Driving operational Enhancing sales . overhead structure gearing Breadth of G e integration opportunities ws Qa & Q 8 ly” Je Sa One One One One One Finance Reporting CRM Onell HR Procurement H———————__ Focus
Slide 19: H1 progress and year-end targets
H1 progress and year-end targets H1 Progress FRANCHISE BRANDS 2025 year-end targets One Finance Will be (Go-Live) ready for our core franchisor businesses by end of 2025. One Works Management System Will be deployed for our core franchisor and franchisee businesses in Q4 2025. With full adoption ant
Slide 20: Update on One Franchise Brands strategic initiative
Update on “One Franchise Brands” 3 strategic initiative FRANCHISE BRANDS 01 | Growing sales 02 | Spend smartly Reduce sector dependency Management of payroll costs Customer retention Decreases in administrative expenses Expand range of services Focusing the IT budget Group-wide cross selling Group-w
Slide 21: Financial review
Financial review Andrew Mallows CFO
Slide 22: Summary of group results
Summary of group results 12025 12024 ‘System sales 209,368 204,164 Statutory revenue 70,371 70,223 Cost of sales (27,816) (28,075) Gross profit 42,555 42,148 Administrative expenses (25,138) (24,429) Adjusted EBITDA 47,417 719 peprecration and amortisation (2,969) (2.996) Finance expense (3,036) (3,
Slide 23: Cash flow summary
Cash flow summary 12025 H12024 Shortform cashflow Adjusted EBITDA 47,417 47,719 — The Group generated cash from operating activities of £14.5m Working capital movements 2.918) (5,089) (H1 2024: £12.6m), resulting in a eash conversion rate of 83% (H1 2024: 71%). Adjusted cash generated from operation
Slide 24: Debt
Debt 30 June Change 2024 H1 24 vs — During Hi, the term loan balance was reduced Reet aed he by £5m (Ht 2024: £5m), and the RCF was eee Cee reduced by £3.8m (H1 2024: increase of £1.5m). Cash 7,537 13,674 12,921 (6,137) (5,384) — Adjusted net debt, as used to test the bank covenants, reduced by £8.7
Slide 25: Summary and outlook
Summary and outlook Stephen Hemsley Executive Chairman
Slide 26: Outlook and summary
Outlook and summary Resilient performance in H1. Record sales, but “green shoots” yet to materialise. Should demand improve, flows directly through to Adjusted EBITDA given relatively fixed cost nature of franchise business Continuing strong cash generation. Supports growing EPS & dividend, and full
Slide 27: Appendix
a .s cry" ZY ah Spats: i‘) Sis A om omy po es f ! s a Appendix
Slide 28: Divisional trading results
Divisional trading results Pirtek H1 2025 12024 Inter-co Inter-co Waws Filta Intl B2c Azura elimination Filta Intl B2c Azura elimination ‘System sales Statutory revenue Cost of sales Gross profit GP% Administrative expenses, Divisional EBITDA Group overheads Adjusted EBITDA ‘System sales/ Adjusted E
Slide 29: Adjusted and statutory profit
Adjusted and statutory profit 12025 12024 Change — Amortisation of acquired intangibles has remained level as the Group continues to integrate through Adjusted profit after tax 8,502 7,879 623 8% the One Franchise Brands Initiative. — The increase in the share-based payment expense Amortisation of a
Slide 30: Pirtek: financial results
Pirtek: financial results H12025 H12024 Customer segm: — Total System sales of £93.7m, an increase of 1%. — All the main businesses grew System sales. System sales 93,656 92,838 1% — Administrative expenses rose by 10% to £11.9m with the primary driver of this being an increase in IT expenses, up St
Slide 31: Adjusted EPS and dividend (p)
Adjusted EPS and dividend (p) — Adjusted EPS increased 8% to 4.42p H1 2025 (H1 2024: 4.10p). — Interim dividend of 115p per share proposed (H1 2024: 110p), an increase H1 2024 of 5%, broadly in line with the increase in Adjusted EPS.
Slide 32: Pirtek: at a glance H1 2025
Pirtek: at a glance H1 2025 UK& Germany Belgium & Ireland & Austri Netherlands System sales (H12025) £41m £35m £13m £4m £im £94m Franchisees 37 21 1 69 Centres 83 97 24 8 2 214 Mobile Service Units 330 373 108 AV 7 874
Slide 33: Pirtek's range of services
Pirtek’s range of services Reactive — Emergency onsite hydraulic repair — Preventive Maintenance — Ram and cylinder repairs Crm eepllorserTTEI — Reducing total cost of operation — Hose flushing, testing, fluid analysis ~ EVA inoue, resteing un-seinsshltse — New customer base & evolution — Treatment
Slide 34: Pirtek
Pirtek Pirtek Europe Franchised £'000 12025 £1000 Franchised £'000 H12024 £'000 System sales Statutory revenue Cost of sales Gross profit GP% Administrative expenses. Adjusted EBITDA Adjusted EBITDA / System Sales 84,586 23,611 (5,898) 17,713 75% (8,241) 9,472 9,070 9,070 (5,349) 3,721 41% (8,351) 3
Slide 35: Water & Waste Services: at a glance
Water & Waste Services: at a glance NET: .) ij AW Lye: | Ba =all | <Z METRO METRQ PLUMB filta WILLOW Drain Clearance Emergency Plumbing — FOG Management, including Pump Station Supply & Install installations, Servicing & Repair Drain Repair Gas Boiler Services Pump Rehabilitation, Repair — Fry Manag
Slide 36: Filta International: at a glance
Filta International: at a glance Oil services filta — Oil removed from fryer filta — Oil removed from fryer into mobile filtration unit ("MFU") — Oil collected by franchisee — Total of 550 MFUs and stored at their depots — Oil micro filtered to — Oil sold to be recycled into bio remove impurities di
Slide 37: Used cooking oil
Used cooking oil Volume t 3% H1 2025 Price t 13% H1 2025 Revenue t 22% H1 2025 $30m $25m $20m $5m $0m Volume 26.8m Ibs 24.8m Ibs $0.39 Price $10.6m $8.7m $0.35 H1 2024 H1 2025 mam System Sales ($m) mms Our royalty —»> Volume (Lbs) — Avg Price achieved $ per lb $0.40 $0.39 $0.38 $0.37 $0.36 $0.35 $0.
Slide 38: Franchise Brands contact details
FRANCHISE BRANDS www.franchisebrands.co.uk Franchise Brands plc Ashwood Court Tytherington Business Park Macclesfield SK10 2XF mail@franchisebrands.co.uk 01625 507910 www.pirtek.eu METR@ ROD www.metrorod.co.uk METRO PLUMB www.metrorod.co.uk ny WILLOW PUMPS www.willowpumps.co.uk Ze filta www.filta.co