Kidderminster's Franchise Brands swoops in £28m takeover
Posted 23/03/2017 : By: Debbie Dennis
Kidderminster-based Franchise Brands has swooped in a major £28 million takeover just months after floating on the AIM stock market.
It comes as the company announced its maiden results for 2016, showing revenue up 11% to £4.87 million and underlying pre-tax profit of £1.24m, also up 11%.
The company floated on the AIM smaller stocks market in August, raising £2.9m, and bought up dog sitting service Barking Mad for £900,000 in October.
Today it announced the proposed £28m takeover of drain clearance and maintenance business Metro Rod, which has 40 franchisees.
Meanwhile, Franchise Brands said its total number of UK franchisees across all brands increased from 364 to 389 in 2016, with 69 sold.
Trading is in line with management expectations so far in 2017, which the company promises will be 'a year of further transformation and growth'.
Executive chairman Stephen Hemsley said: "2016 has been a successful and eventful year with the group's IPO putting the company in a position to make selective, complementary acquisitions of franchise businesses that could benefit from our central services, including marketing expertise and franchising experience.
"Our first acquisition of Barking Mad, the leading franchise provider of professionally-organised dog sitting services in the UK, is already starting to benefit from our shared support services and our Ovenclean and ChipsAway businesses have performed well. As a result, we are pleased to be able to recommend a maiden dividend in recognition of our confidence in the business model.
Read more at http://www.expressandstar.com/business/2017/03/23/...