Franchise Brands Plc · LSE:FRAN
Franchise Brands — Investor Presentation (November 2019)
14 slides from Franchise Brands's investor presentation, November 2019
Slide 1: Franchise Brands Plc: An Introduction 2019
FRANCHISE BRANDS PLC AN INTRODUCTION 2019
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). Multi-brand franchise business with over 450 franchisees. B2B and B2C brands. Highly experienced Board and senior management team who are significant sharehold
Slide 3: Franchise Brands: At a Glance
FRANCHISE BRANDS: AT A GLANCE B2B B2C 2018 EBITDA* 1H 2019 EBITDA* 2018 EBITDA* 1H 2019 EBITDA* £2.7m £1.7m £2.5m £1.2m CASH CONVERSION CASH CONVERSION 1H 2019: 63% 1H 2019: 98% *EBITDA excludes head office costs B2B EBITDA excludes Willow Pumps which was acquired in October 2019 F R A N C H I S E B
Slide 4: Our Strategy & Business Model
OUR STRATEGY & BUSINESS MODEL Our strategy is to develop established franchise businesses into market leaders F R A N C H I S E B R A N D S P L C : A N I N TR O D U C TI O N 4
Slide 5: Our Guiding Principles
OUR GUIDING PRINCIPLES We have five guiding principles that inform the way we work with each other, support our franchisees and serve our customers and communities in which we operate: 01 02 03 04 05 We demand We empower We are We work integrity our people challenging We are fair as a team of oursel
Slide 6: Our Team
OUR TEAM Stephen Hemsley Chris Dent Peter Molloy Tim Harris Julia Choudhury Executive Chairman Chief Financial Officer Managing Director Managing Director Corporate Development Metro Rod ChipsAway & Ovenclean Director Colin Rees Nigel Wray David Poutney Rob Bellhouse Chief Information Officer Non-ex
Slide 7: Metro Rod
METRO ROD Metro Rod’s rate of growth is accelerating under Vision 2023 strategy: Returned responsibility to franchisees. New systems and new ways of working: investment in technology. Strengthened marketing and sales support; introduced incentive schemes. 1H 2019 growth metrics: – System sales growt
Slide 8: The Maximum Potential Model
THE MAXIMUM POTENTIAL MODEL November 2018 June 2019 November 2019 Maximum Potential Maximum Potential Maximum Potential £110m £161m £188m Maximum penetration: Maximum penetration: Maximum penetration: 4.61% 6.23% 7.29% Maximum yield per postcode: Maximum yield per postcode: Maximum yield per postcod
Slide 9: Willow Pumps
WILLOW PUMPS Acquisition of Willow Pumps on 7 October 2019 adds highly complementary services to Metro Rod: Leading pump supply, installation and servicing business. Below ground and above ground. Strong strategic rationale. Initial consideration of £5m plus potential deferred consideration of up to
Slide 10: Water In, Waste Out
WATER IN, WASTE OUT Longer term aim is to serve the commercial market with a range of “water in, waste out” range of services: Drainage. Pumps: below and above ground. Plumbing. Truly national service. 2m commercial addresses. F R A N C H I S E B R A N D S P L C : A N I N TR O D U C TI O N 10
Slide 11: The B2C Brands
THE B2C BRANDS Shared Support Services Car paintwork Domestic oven Dog home Marketing repairs cleaning boarding Franchisees Franchisees Franchisees Franchise Recruitment 204 109 82 Franchise Support Finance Technology F R A N C H I S E B R A N D S P L C : A N I N TR O D U C TI O N 11
Slide 12: A Strong Performance in H1 2019 Driven by Accelerating Metro Rod System Sales
A STRONG PERFORMANCE IN H1 2019 DRIVEN BY ACCELERATING METRO ROD SYSTEM SALES Half year financial highlights Revenue Adjusted EPS** £20.1m +19% 2.06p +22% 2019 £20.1m 2019 2.06p 2018 £16.8m 2018 1.69p Fee income Dividend per share £10.6m +25% 0.30p +43% 2019 £10.6m 2019 0.30p 2018 £8.4m 2018 0.21p A
Slide 13: Consensus Forecasts
CONSENSUS FORECASTS Consensus* Consensus* Year to December (£m) 2018 A 2019E 2020E Revenues 35.5 40.5 56.6 EBITDA 4.0 5.2 7.4 Growth rate (%) 30% 44% Adjusted PBT 3.2 4.1 5.8 Growth rate (%) 27% 41% Adjusted EPS (p) 3.37 4.26 5.89 Growth rate (%) 25% 38% DPS (p) 0.67 0.86 1.20 Growth rate (%) 28% 42
Slide 14: Summary & Outlook
SUMMARY & OUTLOOK The Group is performing strongly driven by accelerating Metro Rod system sales. The acquisition of Willow Pumps has added highly complementary services to Metro Rod. The Board believes the acquisition will be significantly earnings enhancing for the Group. Growth opportunities for
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