AGM Statement and Q1 Trading Update
Franchise Brands PLC reported a strong first quarter in 2026 with system sales growing by 4%, driven by all B2B divisions, particularly Filta International which saw a 12% increase in North American system sales in local currency and a 35% rise in used cooking oil sales. The Water & Waste Services division experienced an 8% system sales growth, and the eight European Pirtek markets achieved 2% growth, with notable improvement in March. The company is well-positioned for full-year performance within analysts' forecasts, which currently range from £35.9 million to £38.0 million in Adjusted EBITDA.
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System sales accelerated in Q1 across all B2B divisions, driven in particular by Filta International and Water & Waste Services
Franchise Brands plc (AIM: FRAN), an international multi-brand franchise business, will hold its Annual General Meeting at 11.00am today. Stephen Hemsley, Executive Chairman, will provide the following update:
The Group achieved another period of record System sales in Q1 2026, growing by 4% (FY 2025: 2%), with all B2B divisions returning to growth, supported by a strong performance in the US and some encouraging signs of recovery in Europe. Overall, this represents a resilient performance reflecting the essential nature of the majority of the Group's services, and the benefits of international, sector and service diversification.
In the Water & Waste Services division, System sales in Q1 grew by 8% (FY 2025: 0%), driven by strong trading at Metro Rod following a targeted move to focus on higher quality, higher value work and a catch-up on work delayed from Q4 2025. Willow Pumps also continued to perform well as a result of continued growth in Special Projects work.
System sales in the eight European Pirtek markets in which we operate grew by 2% in Q1 (FY 2025: 1%). Encouragingly, there was a noticeable improvement in March as trading conditions improved particularly in Germany and also in Benelux. This helped to offset a weak start to the year in Continental Europe due to the severe weather.
Filta International in North America continued to perform strongly, with System sales in Q1 increasing by 12% in local currency (FY 2025: 13%) and 5% in Sterling (FY 2025: 9%). We continued to expand the range of services with the launch of FiltaClean Pro, a new kitchen ceiling cleaning service, which saw strong take-up by Filta's franchise partners. Used cooking oil sales increased by 35% in local currency (FY 2025: 24%) and 27% in Sterling (FY 2025: 20%). This resulted from a 13% increase in volume (FY 2025: 11%) and a 20% increase in the price (FY 2025: 12%).
Following a healthy start to the year, the Group is well positioned for a full-year performance within the current range of analysts' forecasts1.
Stephen Hemsley, Executive Chairman, commented:
"I am pleased by the reacceleration of System sales in the early part of the financial year as we continue to diversify our customer base and expand the range of services.
"Filta International remains the standout performer, with a strong underlying performance and robust UCO volumes and pricing. We are confident of significant future momentum as a result of the successful launch of FiltaClean Pro, a new kitchen ceiling cleaning service which opens up new sector opportunities for us.
"Pirtek's performance reflected resilient underlying trading despite the impact of the severe weather in Continental Europe in the early part of the year. Encouragingly, there was a noticeable improvement in March as trading conditions improved particularly in Germany and also in Benelux.
"The Water & Waste Services division has traded well in the early part of the year following a targeted move to focus the business on higher quality, higher value work and a catch-up of work deferred from Q4 2025.
"As a result of a healthy start to the year, the Group is well positioned for a full-year performance within the current range of analysts' forecasts1".
1 Current market expectations of Adjusted EBITDA for the financial year ending 31 December 2026 are £35.9m to £38.0m. Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, exchange differences, share-based payment expense and non-recurring items.
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