FRANCHISE BRANDS PLC - Annual results for the year ended 2025

Franchise Brands PLC (FRAN:AIM) delivered a resilient 2025 investor update, reporting modest growth in system sales to a record level and stable financial results despite challenging market conditions. The group generated revenue supported by essential services demand, with adjusted EBITDA of £35.2 million, pre tax profit of £12.7 million, and strong cash conversion of 98 percent. Margins were maintained through cost control and operational efficiency, while net debt reduced to £55 million, improving the balance sheet and supporting EPS growth. The company continues to execute its growth strategy focused on franchise expansion, sector diversification, and cross selling, supported by a capital light, cash generative model and a strong order book outlook. Strategic priorities include deleveraging, share buybacks, a progressive dividend, and a review of non core assets to enhance returns. Management highlighted long term growth potential through its maximum potential model targeting £2.1 billion in system sales, alongside investments in AI, CRM systems, and franchisee development. Trading remains in line with expectations, with confidence in recovery across key markets and continued international expansion driving shareholder value.