Franchise Brands PLC (GB:FRAN)
LSE:FRAN
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Franchise Brands
(LSE:FRAN)
Select Model
Select Model
Rating:65Neutral
Price Target:
168.00 p
▲(21.74% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by solid financial performance (growth, profitability improvement, and strong cash generation) tempered by increased leverage. Technicals are supportive on trend but look overextended, while valuation appears reasonable with a modest dividend.
Positive Factors
Franchise-led Business Model
A franchise-led model yields recurring royalty and fee income with low incremental capital needs, enabling scalable growth across brands. Combined company-owned units diversify revenue capture and provide control points for quality and expansion, supporting durable cash generation and margin leverage.
Negative Factors
Material Increase in Leverage
A large step-up in absolute debt elevates financial risk and reduces strategic flexibility. Higher leverage increases interest and covenant exposure, constrains ability to pursue M&A or buybacks, and makes cash flow more sensitive to downturns, weakening the balance sheet buffer over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise-led Business Model
A franchise-led model yields recurring royalty and fee income with low incremental capital needs, enabling scalable growth across brands. Combined company-owned units diversify revenue capture and provide control points for quality and expansion, supporting durable cash generation and margin leverage.
Read all positive factors
Franchise Brands (FRAN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£281.10M
Dividend Yield1.52%
Average Volume (3M)155.20K
Price to Earnings (P/E)14.1
Beta (1Y)0.32
Revenue Growth2.12%
EPS Growth23.22%
CountryUK
Employees646
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding193,784,070
10 Day Avg. Volume150,954
30 Day Avg. Volume155,200
Financial Highlights & Ratios
PEG Ratio1.27
Price to Book (P/B)1.21
Price to Sales (P/S)1.89
P/FCF Ratio11.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£197.50Price Target Upside43.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.1
Revenue Forecast (FY)£146.99M
Franchise Brands Business Overview & Revenue Model
Company Description
Franchise 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...
How the Company Makes Money
Franchise Brands primarily makes money through a franchise-led model combined with company-owned operations in certain brands and territories. Key revenue streams typically include: (1) upfront franchise fees earned when new franchisees (or master...
Franchise Brands Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 142.15M | 139.21M | 121.27M | 92.73M | 57.69M |
| Gross Profit | 68.32M | 83.32M | 68.23M | 30.79M | 21.93M |
| EBITDA | 34.37M | 32.81M | 23.01M | 14.25M | 5.87M |
| Net Income | 8.98M | 7.28M | 3.04M | 8.13M | 4.23M |
Balance Sheet | |||||
| Total Assets | 372.67M | 373.30M | 382.44M | 132.44M | 67.27M |
| Cash, Cash Equivalents and Short-Term Investments | 15.29M | 12.92M | 12.28M | 10.94M | 9.05M |
| Total Debt | 80.51M | 87.98M | 94.56M | 2.46M | 2.53M |
| Total Liabilities | 151.16M | 154.74M | 168.05M | 29.40M | 19.94M |
| Stockholders Equity | 221.51M | 218.56M | 214.39M | 102.38M | 47.33M |
Cash Flow | |||||
| Free Cash Flow | 22.81M | 25.02M | 16.89M | 6.27M | 5.12M |
| Operating Cash Flow | 23.80M | 28.16M | 19.95M | 7.73M | 7.27M |
| Investing Cash Flow | -2.55M | -2.71M | -51.44M | 2.56M | -3.02M |
| Financing Cash Flow | -18.82M | -24.72M | 33.11M | -8.74M | -8.40M |
Franchise Brands Technical Analysis
Positive
138.00
Price Trends
129.56
Positive
130.63
Positive
130.41
Positive
Market Momentum
6.44
Negative
61.25
Neutral
50.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRAN, the sentiment is Positive. The current price of 138 is below the 20-day moving average (MA) of 141.48, above the 50-day MA of 129.56, and above the 200-day MA of 130.41, indicating a bullish trend. The MACD of 6.44 indicates Negative momentum. The RSI at 61.25 is Neutral, neither overbought nor oversold. The STOCH value of 50.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FRAN.
Franchise Brands Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £2.19B | 13.52 | 20.41% | 2.58% | 11.42% | -17.18% | |
65 Neutral | £281.10M | 14.12 | 4.06% | 1.52% | 2.12% | 23.22% | |
65 Neutral | £11.97B | 13.41 | 6.51% | 1.68% | -3.59% | 15.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | £357.75M | -45.29 | 0.58% | 2.31% | 10.68% | -89.58% | |
42 Neutral | £1.81B | 81.71 | -5.79% | 0.36% | -2.90% | -2.16% | |
41 Neutral | £410.84M | -0.78 | -142.88% | ― | -7.30% | -311.68% |
* Industrials Sector Average
GB:FRAN
Franchise Brands
147.00
1.13
0.77%
GB:CPI
Capita plc
354.50
132.70
59.83%
GB:MTO
Mitie Group plc
173.20
22.10
14.63%
GB:RTO
Rentokil Initial
472.70
127.80
37.06%
GB:RST
Restore
264.00
13.81
5.52%
GB:IWG
IWG plc
188.20
-1.36
-0.72%
Franchise Brands Corporate Events
Business Operations and StrategyShareholder Meetings
Franchise Brands Wins Shareholder Backing for Share Premium Cancellation
Positive
Apr 30, 2026
Franchise Brands plc said shareholders have overwhelmingly approved a special resolution at a general meeting to cancel the amount standing to the credit of the company’s share premium account, with 100% of votes cast in favour. The move is ...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Franchise Brands AGM Backs Core Resolutions but Rejects Pre-emption Proposals
Neutral
Apr 30, 2026
Franchise Brands plc reported the results of its Annual General Meeting, where shareholders approved the receipt of the 2025 annual report and financial statements, a final dividend, the re-election of all directors, the reappointment and remunera...
Business Operations and StrategyFinancial Disclosures
Franchise Brands posts record Q1 system sales as Filta and water services drive growth
Positive
Apr 30, 2026
Franchise Brands reported a reacceleration in system sales in the first quarter of 2026, with overall group sales up 4% versus 2% in 2025, underscoring the resilience of its essential B2B services and the benefits of its diversified international ...
Financial DisclosuresShareholder Meetings
Franchise Brands Publishes 2025 Annual Report and Sets April AGM
Neutral
Mar 31, 2026
Franchise Brands plc has published its Annual Report and Accounts for the year ended 31 December 2025, making the documents available on its website and dispatching hard copies to shareholders who have opted for physical communications. The compan...
Business Operations and StrategyStock BuybackShareholder Meetings
Franchise Brands Plans £131m Share Premium Cancellation to Boost Distributable Reserves
Positive
Mar 31, 2026
Franchise Brands plc has called a General Meeting to seek shareholder approval for the cancellation of its share premium account, a move designed to create about £131.1m of distributable reserves. The franchisor, which employs just over 600 s...
Business Operations and Strategy
Franchise Brands directors lift stakes with fresh share purchases
Positive
Mar 27, 2026
Franchise Brands disclosed that Executive Chairman Stephen Hemsley and non-executive director Nigel Wray have increased their stakes in the company through open-market share purchases. Hemsley acquired 27,500 shares at 119p, taking his holding to ...
Business Operations and StrategyExecutive/Board Changes
Franchise Brands Ties Executive Share Options to EPS Growth Targets
Positive
Mar 27, 2026
Franchise Brands has granted share options over 540,000 ordinary shares to chief executive Peter Molloy and 495,000 shares to chief financial officer Andrew Mallows under its Employee Share Option Plan, with an exercise price of 118.5p and a vesti...
Business Operations and Strategy
Franchise Brands Executive Chairman Increases Stake to 11.85% After Share Purchase
Positive
Mar 26, 2026
Franchise Brands plc disclosed that Executive Chairman Stephen Hemsley purchased 72,500 ordinary shares in the company on 25 March 2026 at a weighted average price of 116.1379 pence per share. Following this transaction, Hemsley’s holding ha...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Franchise Brands Delivers Resilient 2025, Cuts Debt and Plans £10m Buy-back
Positive
Mar 25, 2026
Franchise Brands reported a resilient 2025 performance, with system sales up 2% to £435m, statutory revenue up 2% to £142.2m and adjusted EBITDA broadly flat at £35.2m, while adjusted profit before tax rose 12% and basic EPS climbed...
Business Operations and StrategyFinancial Disclosures
Franchise Brands Sets March Investor Presentation for 2025 Annual Results
Neutral
Mar 18, 2026
Franchise Brands plc will publish its annual results for the year ended 2025 on 25 March 2026 and will follow up with a live online investor presentation on 31 March 2026, hosted via the Investor Meet Company platform by Executive Chairman Stephen...
Business Operations and StrategyFinancial Disclosures
Franchise Brands Sets Date to Unveil 2025 Final Results
Neutral
Mar 5, 2026
Franchise Brands plc, the FTSE AIM-listed international multi-brand franchise group focused on B2B van-based services, operates seven franchise brands across 10 countries with a network of more than 600 franchisees. The company’s market-lead...
Business Operations and StrategyFinancial Disclosures
Franchise Brands sets date for 2025 final results and investor presentation
Neutral
Mar 5, 2026
Franchise Brands plc has announced that it will publish its final results for the year ended 31 December 2025 on 25 March 2026, accompanied by an analyst and investor presentation at broker Stifel’s London offices with a live webcast availab...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.