Franchise Brands (FRAN) H1 2026 earnings summary

Executive summary

• Achieved record system sales of £229.2m, up 6.7% year-over-year, with strong growth in core B2B businesses and standout performance in the US.

• Strategic focus on simplifying operations to three core B2B franchises, leveraging the One Franchise Brands platform for integration and efficiency.

• Strengthened executive team with new CFO and Group Delivery Director appointments to drive strategic execution.

• Continued deleveraging, strong cash generation, and a 9% increase in interim dividend underpin confidence in meeting full-year market expectations.

Financial highlights

• System sales grew 6.7% to £229.2m; statutory revenue up 7.4% to £75.6m year-over-year.

• Adjusted EBITDA rose 6.5% to £18.5m; adjusted EPS up 8.9% to 4.81p.

• Adjusted net debt reduced by £9.2m to £52.9m; leverage ratio improved to 1.5x from 1.8x.

• Cash conversion remained strong at 81%.

• Interim dividend increased 9% to 1.25p per share.

Outlook and guidance

• No macroeconomic tailwinds expected for H2 2026 or into 2027; guidance remains pragmatic and in line with market expectations.

• Strategic initiatives and essential service focus position the group for continued growth and cost control.

• Ongoing investment in the One Franchise Brands platform to broaden customer base and expand service range.

• Highly cash-generative model supports further deleveraging and increased dividends.