Franchise Brands (LSE:FRAN) reported a 2% increase in system sales for 2025, reaching £434.99 million, reflecting steady demand for its franchise services despite a challenging macroeconomic environment.
Group revenue also rose 2% year-on-year, while adjusted EBITDA remained broadly unchanged at £35.25 million. Gross profit for the period totalled £84.76 million, and adjusted earnings per share increased 5% compared with the previous year. The company also reported a reduction in net debt over the period, strengthening its balance sheet.
Franchise Brands said demand for essential, non-discretionary services continued to support system sales and profitability. Strong contributions from the Filta International and Willow Pumps divisions played an important role in the group’s performance during the year.
The company added that its One Franchise Brands strategy is delivering operational benefits by expanding revenue opportunities and improving efficiency across its franchise network.
Looking ahead to 2026, Franchise Brands expects adjusted EBITDA to fall within the current analyst forecast range of £35.3 million to £38.0 million. The company also announced plans to launch a share buyback programme of up to £10 million, signalling confidence in its future prospects.
Early trading in 2026 has been mixed. While Filta International has continued to perform strongly, the company noted softer conditions across its European operations due to adverse weather and ongoing macroeconomic uncertainty.
More about Franchise Brands
Franchise Brands plc is a UK-based multi-brand franchise operator providing a range of essential business-to-business and consumer services. Its portfolio includes brands operating in areas such as drainage, plumbing, pump maintenance and commercial kitchen services. The group focuses on expanding through franchising, acquisitions and operational integration across its international network.
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