Franchise Brands
plans to capitalise on growth opportunities and further acquisitions despite
COVID-19 outbreak
The coronavirus outbreak has taken a toll on businesses across the UK as companies temporarily shut down operations and thousands of workers remain quarantined at home. However, some businesses have still managed to rise despite the storm. Franchise Brands has shown tremendous success in the first quarter of this year, with a successful placing to raise £14 million of new equity, leaving them on track for further acquisitions and growth opportunities.
The coronavirus virus pandemic has caused serious economic slowdown as business desperately try to stay afloat. However, Franchise Brands has experienced year-on-year-growth despite the outbreak, starting the year strong with underlying trading from both is B2B and B2C divisions. Their Q1 success also comes from the back of significant investment in its existing franchise businesses and the acquisition of Willow Pumps in October 2019.
Franchise Brands has a combined network of over 450 franchises across five franchise brands, including its B2B division comprised of Metro Rod, Metro Plumb and Willow Pumps, and a B2C division incorporates ChipsAway, Ovenclean and Barking Mad. Franchise Brands focuses on sharing support services, specialist sector expertise, management experience and group resources to support the strategic development of their brands.
Franchise Brands has successfully raised £14 million through a placing of new shares, included an investment by the Directors and senior management. With the new funding, Franchise Brands will be able to strengthen its Group’s balance sheet, provide additional working capital, and position the multi-brand franchise business to explore new opportunities as they arise.
Franchise Brands is also interested in acquiring new businesses to further expand the range of services that its B2B brands provide, including Metro Rod, Metro Plumb and Willow Pumps, which hope to offer a full “Water in. Waste out.” drainage, pumps, and plumbing service to meet rising demand.
Franchise Brands also aims to expand its B2C division, which include ChipsAway, Ovenclean and Barking Mad. Franchise Brands hopes to take on new acquisitions, leveraging its existing structure and shared support services such as franchise recruitment, marketing, finance and technology.
“The Group had strong momentum ahead of the COVID-19 crisis, with Q1 trading showing significant growth on the prior year and a continuation of the accelerating rate of sales growth in its B2B division in particular,” Stephen Hemsley, Executive Chairman of Franchise Brands, said. “We see considerable opportunity across our businesses and the Placing will ensure that we are very well-positioned to capitalise on external growth opportunities as we emerge from the COVID-19 crisis.”
