FRANCHISE BRANDS PLC - Interim Results

Franchise Brands PLC’s H1 2026 investor update highlighted a return to organic growth, underpinned by the resilience of its B2B franchise model and continued execution of its growth strategy despite unchanged macroeconomic conditions. System sales increased 6.7%, adjusted EBITDA rose broadly in line, and EPS grew almost 9%, supported by record performances across the Group’s B2B divisions, particularly Filta International, where system sales climbed 20% and adjusted EBITDA increased 40%. The Group continued to strengthen its financial position through strong cash generation, 81% cash conversion, and reduced net debt, lowering leverage to 1.5x. Management highlighted progress with its One Franchise Brands transformation programme, including the rollout of NetSuite, HubSpot and its new works management platform, which is improving operational efficiency, cost control and customer insights. Growth was driven by expanding service offerings, higher average order values, cross-selling initiatives and strong franchisee performance, with 73% of franchisees growing year-on-year. While management expects macroeconomic headwinds to persist, the Company remains confident in meeting market expectations, supported by its diversified international operations, recurring demand for essential services, operational gearing benefits and disciplined capital allocation. Franchise Brands continues to focus on sustainable revenue growth, margin expansion, deleveraging and long-term shareholder returns through its scalable, highly cash-generative franchise model.