Franchise Brands Plc · LSE:FRAN
Franchise Brands — H1 2022 Earnings Presentation
26 slides from Franchise Brands's earnings presentation, 2022
Slide 1: Empowering Franchisees: Interim Results Presentation 2022
Slide 2: Our purpose / Contents
Our purpose BUILDING MARKET-LEADING BRANDS Our purpose is to build market- leading businesses primarily via a franchise model. Contents 03 = Introduction to Franchise Brands Technology- 04 2022 interim results summary Financial pe O05 Franchise Brands: at a glance 22 Summary an 08 B2B Division Appen
Slide 3: Presenters
Interim Results Presentation 2022 2 Presenters STEPHEN HEMSLEY Executive Chairman Stephen co-founded Franchise Brands 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 with 3i as Investment Direct
Slide 4: An Introduction to Franchise Brands Plc
Interim Results Presentation 202 AN INTRODUCTION TO FRANCHISE BRANDS PLC Established in 2008 by Stephen Hemsley (Executive Chairman) and Nigel Wray (Non-executive Director). J Focused on building market-leading businesses in selected customer segments, primarily via a franchise model. 600 franchisee
Slide 5: Our Highlights
interim Results Prese Our Highlights BUOYANT H1 TRADING, AT TOP END OF EXPECTATIONS 50% INCREASE IN INTERIM DIVIDEND REVENUE £44.5m +60% H1 2021: £27.8m 4.07p +51% H1 2020: 2.70p ADJUSTED EARNINGS PER SHARE*™* ADJUSTED EBITDA* £7.3m +74% H1 2021: £4.2m DIVIDEND PER SHARE 0.90p +50% Interim 2021: 0.6
Slide 6: Our Leading Brands
interim Re Our Leading Brands FRANCHISE BRANDS: GROUP AT A GLANCE B2B Filta International B2C & Azura Va METR@ ROD ~\ Commercial drainage experts providing a full range of services via 42 franchisees with 50 depots nationwide METRQ PLUMB Specialist plumbing services, including those to water utiliti
Slide 7: The 2022 interim results at a glance
interim Results Presentation The 2022 interim results AT A GLANCE Adjusted EBITDA £m £0.1m £2.0m £0.Am £7.3m £(0.2)m £1.1m 2021 B2B Filta International B2c Group overheads 2022 METR@ ROD a METRO PLUMB WILLGW. filta Barking Mae
Slide 8: B2B Division
BUSINESS FORME PER r. METRO ROD a CAUTION §& § HIGH PRESSURE @ WATER JETTING § M IN.PROGRESS
Slide 9: Continued strong momentum and growth
interim Results Presentation 2022. 8 CONTINUED STRONG MOMENTUM AND GROWTH METR@ ROD METRQ PLUMB Metro Plumb continues to expand with recruitment of four new stand-alone franchisees, bringing the total to 11. Continued strong momentum with total system sales growing 20% to £28.5m. * 46 of the 53 Metr
Slide 10: Willow Pumps & Filta UK being integrated into B2B
interim Results Presentation 2022. 9 To further accelerate the B2B integration progress, we agreed the early settlement of the acquisition contingent consideration. New management team in place led by Kevin Perry, Managing Director and Joe Lawrence, Operations Director. Slower to recover from the im
Slide 11: Filta North America has performed strongly
interim Results P Filta North America has performed strongly, ahead of our expectations, driven by the bounce back in activity in Filta’s key customer sectors (hospitality, education and sporting venues) and the elevated price of cooking oil. The elevated price of cooking oil has a number of cumulat
Slide 12: B2C Division
Interim Results Presentation 202 ChipsAway LUKE IT NEVER HAPPENED The B2C franchise market is going through a highly unusual period. Two competing forces at work post Covid: work/life balance (+ve) and early retirement (ve). Underlying trading of all 3 brands remains robust due to reasonably resilie
Slide 13: Financial Performance
TECHNOLOGY-ENABLEMENT CONTINUES TO DELIVER Drain Repair * Drain Sul Clearing Blocked Drait CNIS OLR- { veys & Sewer Insauem Planned Maints Vision Digital transformation of the business is progressing well with continued upgrades to the Vision works management system focused on improving engineer pro
Slide 14: Technology-enablement continues to deliver
Slide 15: Summary of Group Results
interim Results Presentation 2022.14 Summary of Group Results J J J H12022" H1 2021 Change Change Consolidated Group revenue increased by 60% to £44.5m (H1 £000 £7000 £7000 % 2021: £27.8m). Statutory revenue 44,508 27,793 16,715 60% ; _ ; 5 Overheads increased by 50% as a result of initial cost savi
Slide 16: B2B Division
interim Results Presentation 202215 B2B Division H1 2022 H1 2021 Metro Willow Metro Willow Rod Pumps _FiltaUK _H12022 Rod Pumps _H12024 1000s £'000s £'000s __£'000s 1000s £'000s_—£'000s Statutory 19506 8,773 3,563 31,842 16,621 7,805 «24,426 revenue Cost of sales (13,385) (6,150) (2,228) (21,763) (1
Slide 17: Filta International
interim Results Prese Filta International North America Europe H12022 £'000 £'000 £'000 Revenue 8,603 220 8,823 Cost of sales (5,647) (128) (5,775) Gross profit 2,956 92 3,048 GM% 34% 42% 35% Administrative can ma (063) expenses Divisional EBITDA 2,032 (22) 2,009 NORTH AMERICA KEY REVENUE AND PROFIT
Slide 18: B2C Division
Interim Results Presentation 2022.17 Revenue increased 2% in the period: * MSF income was flat in the period, due to the reduced recruitment and higher network churn. * Area Sales income was lower due to lower recruitment, particularly at ChipsAway. * Revenue benefited from the one-off sale of the M
Slide 19: Adjusted and statutory profit
Interim Results Presentation 2022 18 Adjusted and statutory profit H12022 H1 2021 Change Change £000 £000 £000 % Adjusted profit after tax 4,722 2,586 2,136 83% Amortisation of acquired intangibles (669) (196) (473) Share-based payment charge (351) (175) (176) Non-recurring costs (1,282) - (1,282) O
Slide 20: Adjusted EPS and Dividend
Interim Results Presentation 2022 19 Adjusted EPS and Dividend GROWTH IN ADJUSTED EPS AND DIVIDEND (PENCE PER SHARE) 2021 ER 270 Adjusted EPS increased 51% to 4.07p: * The total weighted average number of Ordinary Shares increased 21% from 96m to 116m as a result of the 34m new Ordinary Shares issue
Slide 21: Cash Flow
interim Results Presentation 2022 20 Cash Flow 14 Net cash of £4.7m at 30 June 2022 (31 Dec 2021: £6.5m). J The cash flow from operations included the working capital movements resulting from the Filta acquisition. J 12 10 The principal uses of cash during the period were: - the early repayment of F
Slide 22: Balance Sheet
interim Results Preset Balance Sheet 30 June 31 December 2022 2021 At 31 December £000 £000 Property, plant and equipment 6,685, 5,331 Intangible assets 86,224 35,278 Deferred tax liability (3,995) (2,139) Accounting assets 82,229 33,139 Inventories 2,040 908 Trade and other receivables 24,610 16,69
Slide 23: Summary and Outlook
Interim Results Presentation 2022 22 Summary and Outlook A highly productive and successful first half, with record organic growth primarily driven by Metro Rod and the transformational acquisition of Filta. In the near term we are focused on integration to capitalise on the opportunities the acquis
Slide 24: Appendix
FRANCHISE BRANDS
Slide 25: The Group's Franchise Systems as at 30 June 2022
interim Results Presentation 2022 24 The Group’s Franchise Systems* as at 30 June 2022 Network size New franchisees _ Franchisees leaving Net new Network size 31 December, recruited/added in the system in franchisees in 30 June 2021 1H 2022 H1 2022 1H 2022 2022 Metro Rod 42 2 + 2 = 10) 42 Metro Plum
Slide 26: Disclaimer
interim Results Presentation 2022 25 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 Exchan