Franchise Brands Plc · LSE:FRAN
Franchise Brands — UK Investor Show 2019
16 slides from Franchise Brands's conference presentation, 2019
Slide 1: Franchise Brands Plc: An Introduction
FRANCHISE BRANDS PLC AN INTRODUCTION
Slide 2: Stephen Hemsley, Executive Chairman
+ STEPHEN HEMSLEY EXECUTIVE CHAIRMAN FRANCHISE BRANDS PLC 1
Slide 3: Introduction to Franchise Brands Plc
INTRODUCTION TO FRANCHISE BRANDS PLC Established in 2008 by Stephen Hemsley and Nigel Wray International multi-brand franchisor with over 450 franchisees in 12 countries across four brands Highly experienced Board and senior management team who are significant shareholders (68.3%) Admitted to AIM in
Slide 4: Multi-brand franchisor
MULTI-BRAND FRANCHISOR Franchisees Franchisees Franchisees Franchisees 40 201 106 80 EBITDA EBITDA EBITDA EBITDA £2.5m £1.9m £0.3m £0.2m 3
Slide 5: Our strategy & business model
OUR STRATEGY & BUSINESS MODEL Our strategy is to develop established franchise businesses into market leaders 4
Slide 6: Our sources of fee income as franchisor
OUR SOURCES OF FEE INCOME AS FRANCHISOR Monthly Management Service Fees (MSF) paid by franchisees Fixed monthly fees or turnover related Fees from the sale or resale of franchise territories 59 new franchisees recruited in 2018 £17.9m Direct labour income Specialist plumbing business and corporate M
Slide 7: Metro Rod's Vision 2023 growth strategy
METRO ROD’S VISION 2023 GROWTH STRATEGY Acquired business where System sales franchisees dependent on HQ for systems and sales £37m Launched Vision 2023 strategy which returned responsibility to franchisees Jobs in 2018 Developed new IT systems 174,000 to automate processes Incentivised growth of No
Slide 8: Creating a digitally enabled business
CREATING A DIGITALLY ENABLED BUSINESS Inherited systems put into the Total Group IT Cloud to increase speed and Spend in 2018 reliability Automating manual, repetitive £1.5m tasks using robotics Most important system to % of jobs logged be updated is the Works automatically Management System and a l
Slide 9: Maximum potential model: Metro Rod
MAXIMUM POTENTIAL MODEL: METRO ROD Average penetration Maximum penetration 2.8% 4.6% Average yield per Maximum yield per commercial address commercial address £608 £1,105 System Sales System Sales £37m £110m 8
Slide 10: ChipsAway: a brand in transition
CHIPSAWAY: A BRAND IN TRANSITION The automotive market Number of Car will experience significant Care Centres disruption, ie: • ADAS 33 • Electric and hybrid vehicles Strategic shift for ChipsAway Franchisees with from a van-based operation expanded operations to Car Care Centres Corresponding trans
Slide 11: A strong performance in 2018
A STRONG PERFORMANCE IN 2018 Fee income Adjusted earnings per share £17.9m +41% 3.0p +21% 2018 £17.9 2018 3.00 2017 £12.7 2017 2.47 2016 £4.9 2016 2.40 Adjusted EBITDA Dividend per share £3.7m +37% 0.67p +34% 2018 £3.7 2018 0.67 2017 £2.7 2017 0.50 2016 £1.4 2016 0.17 Profit/(loss) before tax (Net d
Slide 12: Financials: 2018 results & consensus forecasts
FINANCIALS: 2018 RESULTS & CONSENSUS FORECASTS Year to December Consensus* Consensus* (£m) 2018 A 2019E 2020E Revenues 35.5 37.5 41.3 EBITDA 3.7 4.7 5.4 Growth rate (%) 28% 15% PBT 2.9 3.5 4.2 Growth rate (%) 22% 20% EPS (p) 3.0 3.6 4.4 Growth rate (%) 22% 20% DPS (p) 0.67 0.91 1.20 Growth rate (%)
Slide 13: Share price since IPO
SHARE PRICE SINCE IPO FRAN.L 115 95 p 75 55 35 15 04/08/2016 04/02/2017 04/08/2017 04/02/2018 04/08/2018 04/02/2019 12
Slide 14: Outlook for Franchise Brands
OUTLOOK FOR FRANCHISE BRANDS A strong performance in 2018 as we start to unlock Metro Rod’s significant potential Benefits of the Metro Rod investment to be increasingly more visible in the current year and beyond Potential to transition ChipsAway from a mobile-based operation to Car Care Centres Ac
Slide 15: 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 16: Contact details
www.metrorod.co.uk www.chipsaway.co.uk www.ovenclean.com www.barkingmad.uk.com @MetroRodUK @ChipsAwayUK @Oven_Clean @BarkingMadHQ Franchise Brands plc Ashwood Court Tytherington Business Park Macclesfield SK10 2XF mail@franchisebrands.co.uk www.franchisebrands.co.uk 01562 826705 @FB_PLC