Car repair and Ovenclean owner Franchise Brands polishes off double-digit revenues after August IPO

Francesca Washtell
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One of Franchise Brands' main brands is the car repair service ChipsAway (Source: Getty)

Recently-listed international group Franchise Brands posted double-digit turnover in its maiden results today.

The figures

Franchise's two main brands, DIY disrupters Ovenclean and minor car repair service ChipsAway, traded well in the six months to 30 June, with group revenue rising 10 per cent to £2.5m.

Profit before tax nudged up 18.3 per cent for the firm to £724,000, while earnings per share grew to 4.7p per share.

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This was up from 4.05p in the first half of 2015 and was equivalent to 1.22p on the basis of the number of the number of shares in issue following its Aim admission on 5 August.

Franchise Brands' stock was up one per cent to 42p in early afternoon trading.

Why it's interesting

The group, which was founded in 2008, floated on the junior market in a £2.9m listing last month, which valued it at 33p per share.

Read more: Meet the companies that have ignored London's EU referendum IPO freeze

Franchise Brands has said there has been no discernible effect on franchisee recruitment or trading as a result of the Brexit vote in June, and added that it has a strong pipeline of acquisition prospects.

What Franchise Brands said

Executive chairman Stephen Hemsley said:

I am pleased to be reporting our maiden interim results following the group’s successful IPO in which we raised £2.9m net and were well supported by institutional and retail shareholders, the management team, employees and franchisees.

A key objective set out at the time of the IPO was to expand the group through targeted acquisitions of high quality franchise businesses and we are actively reviewing a number of opportunities, leaving us hopeful that we will be able to announce our first transaction shortly.

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