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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Franchise Brands

October 2024

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • FRAN
  • Price:
  • 179p
Franchise Brands’ AGM update noted trading in line with expectations. System sales increased 41% to £206m (with Pirtek contributing for 10 weeks post acquisition) or 6% like-for-like. This has been achieved despite subdued activity in Pirtek’s construction and fleet hire markets in Germany, but the UK has better prospects given Labour’s focus on housing and infrastructure growth. Encouragingly, net debt is down from £74.7m to below £70m with net debt / EBITDA down to 2.0x and expected to fall to 1.8x by the year-end and 1.0x by FY’25.  Allenby Capital’s unchanged forecasts for eps to rise from 8.4p to 9.3p, 12.8p and then 15.7p in FY’26 suggest three-year growth of 87%! The shares have recovered from an earlier dip and look ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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