tiprankstipranks
Trending News
More News >
Franchise Brands PLC (GB:FRAN)
LSE:FRAN
UK Market

Franchise Brands (FRAN) AI Stock Analysis

Compare
7 Followers

Top Page

GB

Franchise Brands

(LSE:FRAN)

Rating:70Outperform
Price Target:
161.00p
▲( 11.81% Upside)
Franchise Brands is supported by robust financial performance and strong corporate events that underscore insider confidence and strategic growth initiatives. Despite potential technical downside risks due to current trading below key moving averages, and the high P/E ratio that might concern value investors, the company's strategic initiatives and strong cash flow position it well for future growth.
Positive Factors
Leadership and governance
The appointment of Ms George is seen as a strategic move, given her past success in growing a business to a multi-brand franchise group of scale.
Strategic initiatives
The 'One Franchise Brands' strategic initiative is making good progress to enhance sales, create an efficient overhead structure, and drive operational gearing.
Valuation
The current valuation is seen as compelling, with potential for the company to reach a medium-term market cap of £702m to £810m, significantly higher than the current level.
Negative Factors
Earnings forecast
Adj. EBITDA is expected to be very marginally below the current consensus range, leading to a slight trim in the forecast.
Macroeconomic conditions
Franchise Brands has delivered a resilient performance with record system sales in all key divisions despite challenging macroeconomic conditions.

Franchise Brands (FRAN) vs. iShares MSCI United Kingdom ETF (EWC)

Franchise Brands Business Overview & Revenue Model

Company DescriptionFranchise Brands plc, through its subsidiaries, engages in franchising and related activities in the United Kingdom and internationally. It provides vehicle repair services, which comprise bumper scuffs, paintwork scratches, minor dents, and alloy wheel repairs under the ChipsAway brand name; oven cleaning services include cleaning of domestic oven brands and models, such as electric and gas ovens, ranges, microwaves, hobs, extractor fans, and barbecues, as well as various removable components consisting of racks and other removable parts under the Ovenclean brand; and various emergency plumbing services under the Metro Plumb brand name. The company also operates dog home boarding franchise services under the Barking Mad brand; offers drain clearance solutions to commercial customers, including facilities management, construction, manufacturing, education, retail, insurance, water utilities, and public sectors under the Metro Rod brand name; and engages in the design. installation, and maintenance of adoptable and non-adoptable pump stations under the Willow Pumps brand name. It operates 430 franchisees. The company was formerly known as FB Holdings plc. Franchise Brands plc was founded in 2008 and is based in Macclesfield, the United Kingdom.
How the Company Makes MoneyFranchise Brands makes money primarily through franchise fees and royalty payments from its network of franchisees. Franchise fees are typically paid upfront by franchisees for the right to operate under one of the company's brand names, while ongoing royalties are based on a percentage of franchisees' sales. Additionally, the company may earn revenue from selling products and services to franchisees, as well as from providing marketing, technology, and operational support. Strategic partnerships and acquisitions also play a role in expanding its portfolio and increasing revenue opportunities.

Franchise Brands Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
147.07M121.27M92.73M57.69M49.29M44.01M
Gross Profit
101.41M59.07M30.79M21.93M20.93M16.38M
EBIT
20.69M10.87M8.42M5.84M3.98M3.66M
EBITDA
30.15M22.86M14.25M5.87M5.88M4.65M
Net Income Common Stockholders
9.89M3.04M8.13M4.23M2.79M2.71M
Balance SheetCash, Cash Equivalents and Short-Term Investments
12.28M12.28M10.80M9.05M13.20M1.68M
Total Assets
382.44M382.44M132.44M67.27M68.55M59.05M
Total Debt
94.56M94.56M2.46M2.53M8.24M12.76M
Net Debt
82.28M82.28M-8.34M-6.52M-4.96M11.08M
Total Liabilities
168.05M168.05M29.40M19.94M24.71M31.19M
Stockholders Equity
214.39M214.39M103.04M47.33M43.84M27.86M
Cash FlowFree Cash Flow
35.01M16.89M6.27M5.12M4.46M2.81M
Operating Cash Flow
36.71M19.95M7.73M7.27M5.24M4.52M
Investing Cash Flow
18.55M-51.44M2.56M-3.02M-779.00K-5.66M
Financing Cash Flow
-66.61M33.11M-8.74M-8.40M7.06M-114.00K

Franchise Brands Technical Analysis

Technical Analysis Sentiment
Negative
Last Price144.00
Price Trends
50DMA
140.68
Positive
100DMA
142.54
Positive
200DMA
152.37
Negative
Market Momentum
MACD
2.52
Positive
RSI
48.67
Neutral
STOCH
13.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRAN, the sentiment is Negative. The current price of 144 is below the 20-day moving average (MA) of 146.48, above the 50-day MA of 140.68, and below the 200-day MA of 152.37, indicating a neutral trend. The MACD of 2.52 indicates Positive momentum. The RSI at 48.67 is Neutral, neither overbought nor oversold. The STOCH value of 13.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FRAN.

Franchise Brands Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£192.72M22.5145.84%3.06%12.22%7.48%
70
Outperform
£277.25M38.103.36%1.57%14.79%165.03%
GBRWS
70
Outperform
£289.93M6.135.03%15.60%-2.13%
GBRST
68
Neutral
£360.11M28.775.32%2.02%-0.65%
64
Neutral
$4.39B11.815.20%249.38%3.96%-12.36%
GBBEG
64
Neutral
£156.54M64.053.11%4.25%13.88%512.00%
GBCPI
62
Neutral
£202.28M3.1849.03%-10.33%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FRAN
Franchise Brands
144.00
-39.87
-21.68%
GB:BEG
Begbies Traynor
100.00
-4.37
-4.19%
GB:CPI
Capita plc
216.20
0.50
0.23%
GB:RST
Restore
263.00
-0.70
-0.27%
GB:RWS
RWS Holdings
78.40
-86.15
-52.35%
GB:KEYS
Keystone Law Group Plc
595.00
-85.37
-12.55%

Franchise Brands Corporate Events

Delistings and Listing Changes
Franchise Brands Enhances Trading Liquidity with SETS Transition
Neutral
May 19, 2025

Franchise Brands plc announced the transition of its share trading on AIM from the London Stock Exchange’s SETSqx to SETS, effective May 19, 2025. This move aims to enhance liquidity for investors by providing access to traditional order book trades and two-way quotes from market makers, potentially impacting the company’s market positioning and offering improved trading conditions for stakeholders.

The most recent analyst rating on (GB:FRAN) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Franchise Brands stock, see the GB:FRAN Stock Forecast page.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Franchise Brands Secures Shareholder Support at AGM
Positive
May 7, 2025

Franchise Brands plc announced that all resolutions at its Annual General Meeting were passed, reflecting strong shareholder support. The resolutions included the re-election of key board members and the approval of financial statements, which underscores the company’s stable governance and strategic direction, potentially strengthening its market position and stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
Franchise Brands PLC Shows Resilience Amid Market Challenges
Positive
May 7, 2025

Franchise Brands PLC reports resilient demand for its essential services and signs of market improvement in its Q1 trading update. Despite challenging macroeconomic conditions, the company has seen growth in system sales, particularly in its Pirtek and Filta North America divisions, and is making progress with strategic initiatives like ‘One Franchise Brands’ to enhance sales and operational efficiency. The company is also diversifying into growth markets to reduce sector dependency.

Other
Franchise Brands Directors Increase Shareholdings
Positive
Apr 9, 2025

Franchise Brands PLC announced that two of its directors, Stephen Hemsley and Nigel Wray, have each purchased 15,000 ordinary shares at 137.5 pence per share. This transaction reflects a significant vote of confidence in the company’s future prospects by its leadership, potentially strengthening investor trust and enhancing the company’s market position.

Business Operations and Strategy
Franchise Brands Directors Increase Shareholdings, Signaling Confidence in Growth
Positive
Apr 8, 2025

Franchise Brands PLC announced that two of its directors, Stephen Hemsley and Nigel Wray, have each purchased 25,000 ordinary shares at 134 pence per share. This move increases their stakes in the company, with Hemsley now holding 11.78% and Wray 8.26% of the issued share capital. This acquisition reflects the directors’ confidence in the company’s strategic direction and potential for growth, potentially strengthening its market position and signaling positive prospects to stakeholders.

Business Operations and Strategy
Franchise Brands Directors Increase Shareholdings
Positive
Apr 7, 2025

Franchise Brands PLC announced that two of its directors, Stephen Hemsley and Nigel Wray, have each purchased 25,000 ordinary shares in the company at an average price of 137.1 pence per share. This transaction underscores the directors’ confidence in the company’s growth prospects and could positively influence investor sentiment, potentially impacting the company’s market position and shareholder value.

Regulatory Filings and Compliance
Franchise Brands PLC Announces Change in Voting Rights
Neutral
Apr 4, 2025

Franchise Brands PLC, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of voting rights. Rathbones Investment Management Ltd and Investec Wealth & Investment Limited, both based in London, are involved in this notification. The voting rights attached to shares have decreased slightly from 5.040800% to 4.997900%, indicating a minor shift in shareholder influence. This adjustment may affect the company’s governance dynamics but remains within a stable range, suggesting limited immediate impact on its operations or market positioning.

Business Operations and StrategyFinancial Disclosures
Franchise Brands PLC Announces Live Investor Presentation for 2024 Financial Results
Positive
Apr 2, 2025

Franchise Brands PLC announced a live investor presentation scheduled for April 9, 2025, to discuss its financial results for the year ending December 31, 2024. The presentation, led by key executives, is open to current and potential shareholders, emphasizing the company’s commitment to transparency and stakeholder engagement. This initiative reflects Franchise Brands’ strategic focus on growth and market leadership, potentially enhancing its industry positioning and stakeholder relations.

Shareholder MeetingsFinancial Disclosures
Franchise Brands Releases 2024 Annual Report and AGM Notice
Neutral
Apr 1, 2025

Franchise Brands plc has published its Annual Report and Accounts for the year ending December 31, 2024, which are now accessible on the company’s website. Additionally, materials for the upcoming Annual General Meeting on May 7, 2025, have been distributed to shareholders. This publication is a routine part of the company’s operations, providing transparency and maintaining shareholder engagement, which is crucial for its continued growth and market presence.

Business Operations and Strategy
Franchise Brands Director Increases Shareholding, Signaling Confidence in Growth
Positive
Mar 31, 2025

Franchise Brands PLC announced that Louise George, an Independent Non-Executive Director, has purchased 50,000 ordinary shares, increasing her total shareholding to 150,000 shares, which represents 0.077% of the company’s voting rights. This transaction reflects confidence in the company’s strategic direction and may positively influence stakeholder perception, highlighting the commitment of its leadership to the company’s growth and market position.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Franchise Brands Achieves Record Sales and Strengthens Leadership Amid Challenging Conditions
Positive
Mar 27, 2025

Franchise Brands PLC reported a strong financial performance for the year ending December 2024, with a 20% increase in system sales and a 16% rise in adjusted EBITDA, despite challenging macroeconomic conditions. The company launched the ‘One Franchise Brands’ initiative to integrate its operations, enhance sales, and improve efficiency. The appointment of a new CEO and other leadership roles aims to strengthen the company’s strategic execution. The Group’s geographic diversification and focus on essential services have positioned it well for future growth, with an optimistic outlook for 2025.

Financial Disclosures
Franchise Brands to Announce Year-End Financial Results
Neutral
Mar 17, 2025

Franchise Brands plc announced it will release its final results for the year ending December 31, 2024, on March 27, 2025. This announcement is significant as it provides insights into the company’s financial performance and strategic positioning, potentially impacting stakeholders’ perceptions and the company’s market standing.

Business Operations and StrategyRegulatory Filings and Compliance
Franchise Brands PLC Announces Change in Voting Rights
Neutral
Feb 25, 2025

Franchise Brands PLC, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of shares by Slater Investments. As a result, Slater Investments now holds 15.03% of the voting rights in Franchise Brands, up from a previous 14.72%. This change in voting rights could impact the company’s governance and decision-making processes, potentially influencing its strategic direction and operations.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.