Notice of Results and Trading Update

RNS Number : 1981C

Franchise Brands PLC

18 January 2018

 

The information contained within this Announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon publication of this Announcement, this information is now considered to be in the public domain.

18 January 2018

Franchise Brands plc

("Franchise Brands" or the "Company")

Notice of Results and Trading Update

The board of Franchise Brands (AIM: FRAN) provides notice that it expects to announce the Company's annual results for the financial year ended 31 December 2017 on Thursday 22 March 2018 and the board looks forward to updating shareholders with further details at that time.

The board is pleased to advise that it expects these results to be ahead of current market expectations. Our principal existing brands have delivered strong growth and we are pleased with the progress that has been made with putting in place the strategic and operational foundations that are expected to help unlock the substantial potential we see for Metro Rod.

The board is also pleased to report that trading in the initial weeks of 2018 has been very positive, with order intake at Metro Rod significantly higher than in the same period in 2017.

The board notes the liquidation of Carillion, whose various facilities management clients accounted for approximately 3% of Metro Rod's system sales last year. We have fully provided for all outstanding amounts, which totalled £316,000, as an operating exceptional item in the results to 31 December 2017. Despite this, the results for the year are expected to be ahead of market expectations at both an adjusted and a statutory level. The board believes that Metro Rod is well placed to secure work from the underlying clients of Carillion and has already secured approved supplier status with a number of them.

Stephen Hemsley, Executive Chairman commented:

"Franchise Brands has entered 2018 with a great deal of optimism. The board is confident we will start to see the early benefits of the investment we are making in Metro Rod's IT systems, marketing and sales. In addition, ChipsAway, Ovenclean and Barking Mad have all started 2018 with good positive momentum. We look forward to a successful year ahead."

Enquiries:

Franchise Brands plc	[phone]
Stephen Hemsley, Executive Chairman
Chris Dent, Chief Financial Officer Julia Choudhury, Corporate Development Director
Allenby Capital Limited (Nominated Adviser and Joint Broker)	[phone]
Jeremy Porter/ James Thomas/ Liz Kirchner
Dowgate Capital Stockbrokers (Joint Broker)	[phone]
James Serjeant
MHP Communications (Financial PR)	[phone]
Katie Hunt/Ivana Petkova

 

END

 

 

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