Franchise Brands Plc · LSE:FRAN
Franchise Brands — Q3 2020 Earnings Presentation
19 slides from Franchise Brands's earnings presentation, Nov 11, 2020
Slide 1: Q3 2020 Trading Update Presentation
Q3 2020 TRADING UPDATE PRESENTATION
Slide 2: An Introduction to Franchise Brands Plc
AN INTRODUCTION TO FRANCHISE BRANDS PLC • Established in 2008 by Stephen Hemsley (Executive Chairman) and Nigel Wray (Non-executive Director). • Focused on building market-leading businesses in selected customer segments using primarily a franchise model. • The Group currently has a combined network
Slide 3: Franchise Brands: At a Glance (H1)
FRANCHISE BRANDS: AT A GLANCE (H1) B2B B2C Founded in 1983, commercial drainage specialist Founded in 1997, Willow Pumps is a leading ChipsAway, Ovenclean and Barking Mad Metro Rod provides a range of drain clearance, pump supply, installation and servicing business, each provide a high level of ser
Slide 4: Q3 Trading Update: Summary
Q3 TRADING UPDATE: SUMMARY • The Group saw a steady recovery in trading in Q3 from the previous quarter's lockdown-impacted performance, which had followed a strong Q1. • Whilst the environment is still uncertain, the Board is confident of meeting current consensus market expectations for revenue an
Slide 5: Q3 Trading Update: B2B
Q3 TRADING UPDATE: B2B • Metro Rod and Metro Plumb growth in system sales: • Height of lockdown: down by nearly 30% against the comparative period in 2019. • June onwards: grown by an average of 8% per month. • September: 9% higher than in the comparative month in the prior year. • Q3: down only 6%
Slide 6: Q3 Trading Update: B2C
Q3 TRADING UPDATE: B2C • Recovering at different speeds, driven by new franchisee recruitment. • ChipsAway and Ovenclean (89% of divisional income in 2019) trading at pre-COVID-19 levels. • Trading at Barking Mad (our smallest network) continues to be well below pre-COVID-19 levels given heavy depen
Slide 7: Acquisitions Update
ACQUISITIONS UPDATE • The short-term focus of the Group is the resumption of the organic growth achieved prior to the lockdown, which will be significantly assisted by the strengthened capital structure provided by the recent Placing. • We are interested in earnings-enhancing acquisitions in pursuit
Slide 8: Available Facilities
AVAILABLE FACILITIES 30 Sept 30 June 31 Dec 2020 2020 2019 £’000 £’000 £’000 Bank debt (5,411) (6,083) (9,274) • Statutory net cash position of £3.8m at 30 September 2020 (31 December 2019: net debt £11.1m). Hire purchase debt (1,531) (1,544) (1,588) − Placing in April 2020 of 15.6m new Ordinary Sha
Slide 9: Summary & Outlook
SUMMARY & OUTLOOK • Q3 saw a welcome recovery from the reduced levels of activity in Q2 and trading in October has continued to follow that trend. • If the "second wave" COVID-19 restrictions persist for any length of time, this could have an impact on the Group. • The Board is confident of meeting
Slide 10: Investment Summary
INVESTMENT SUMMARY • Market-leading brands in selected customer segments. Significant potential to grow our portfolio of brands. • Demonstrable track record of developing our businesses through our shared support services, specialist sector expertise, management experience and group resources. • Pot
Slide 11: FRANCHISE BRANDS PLC: Q3 2020 TRADING UPDATE PRESENTATION
FRANCHISE BRANDS PLC: Q3 2020 TRADING UPDATE PRESENTATION 10
Slide 12: Our Board
OUR BOARD Stephen Hemsley Chris Dent Peter Molloy Executive Chairman Chief Financial Officer Managing Director, Metro Rod Tim Harris Julia Choudhury Colin Ross Managing Director, B2C Division Corporate Development Director Chief Information Officer Nigel Wray David Poutney Rob Bellhouse Non-executiv
Slide 13: Our Senior Team
OUR SENIOR TEAM Ian Lawrence Andrew Mallows Robin Auld Rachel Stewart Managing Director, Deputy Managing Director, Commercial Director Group Marketing Director Willow Pumps B2C FRANCHISE BRANDS PLC: Q3 2020 TRADING UPDATE PRESENTATION 12
Slide 14: Strong Q1, Followed by Resilient Lockdown Performance and Recovery in June
STRONG Q1, FOLLOWED BY RESILIENT LOCKDOWN PERFORMANCE AND RECOVERY IN JUNE 2020 HALF YEAR FINANCIAL HIGHLIGHTS H1 OPERATIONAL HIGHLIGHTS • Strong Q1, followed by decreased REVENUE ADJUSTED EBITDA* ADJUSTED NET CASH** trading during the COVID-19 lockdown, +21% +13% with signs of recovery in June. • B
Slide 15: The 2020 Interim Results: At a Glance
ADJUSTED THE 2020 INTERIM RESULTS: AT A GLANCE EBITDA* +29% £0.8m £0.0m £2.8m £0.1m £(0.3)m £2.5m £(0.3)m Adjusted EBITDA £m FRANCHISE BRANDS PLC: Q3 2020 TRADING UPDATE PRESENTATION 14
Slide 16: Summary of Group Results
SUMMARY OF GROUP RESULTS H1 2020 H1 2019 Change Change Period Ending 30 June £’000 £’000 £’000 % Statutory revenue A 24,209 20,084 4,125 21% A • Revenue increased by 21% to £24.2m (H1 2019: £20.1m) including contribution from Franchise payments (9,488) (9,493) 5 0% Willow Pumps acquisition (like-for
Slide 17: Balance Sheet
BALANCE SHEET 30 June 31 Dec 2020 2019 Change Change A • Statutory net cash position of £2.6m (31 Dec 2019: Year ended 31 December £’000 £’000 £’000 % net debt £11.1m). Property, plant and equipment 4,486 4,781 (295) -6% − Placing of 15.6m new Ordinary Shares to raise a net £13.6m. Intangible assets
Slide 18: Disclaimer
DISCLAIMER The information contained in this document (“Presentation”) and the presentation made to you verbally has been prepared by Franchise Brands plc (the “Company”). Franchise Brands plc is a UK company quoted on AIM, a market operated by London Stock Exchange plc. This Presentation has not be
Slide 19: www.franchisebrands.co.uk @FB_PLC www.metrorod.co.uk
www.franchisebrands.co.uk www.metrorod.co.uk www.metrorod.co.uk www.willowpumps.co.uk @FB_PLC @MetroRodUK @MetroPlumbUK @WillowPumps Franchise Brands plc Ashwood Court Tytherington Business Park Macclesfield SK10 2XF mail@franchisebrands.co.uk www.chipsaway.co.uk www.ovenclean.com www.barkingmad.uk.