Share Premium Cancellation

In brief · summary, not quotable

Franchise Brands PLC has announced the effective Share Premium Cancellation, which has created approximately £131.1 million in distributable reserves. This move, approved by shareholders and sanctioned by the High Court, provides the company with increased financial flexibility for potential future share buybacks, dividend payments, and other corporate purposes without altering the rights or number of ordinary shares in issue.

Full announcement

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Franchise Brands plc (AIM: FRAN), a platform of international B2B franchise brands focused on essential services through a mobile workforce, announces that the Share Premium Cancellation has now become effective.

Following the sanction by the High Court of England and Wales (the "Court") of the reduction of capital by way of cancellation of the Company's share premium account (the "Share Premium Cancellation") on 2 June 2026, the order of the Court confirming the Share Premium Cancellation and a statement of capital approved by the Court were registered by the Registrar of Companies on 4 June 2026.

Details of the Share Premium Cancellation were set out in the Notice of General Meeting and explanatory circular dated 24 March 2026, and the Share Premium Cancellation was approved by the shareholders of the Company at a general meeting of the Company on 30 April 2026. The effect of the Share Premium Cancellation is to create approximately £131.1m of distributable reserves in the accounts of the Company. This will provide the flexibility to enable the following, should circumstances make them appropriate: (i) further share buybacks; (ii) the future payment by the Company of dividends to its shareholders; and (iii) other corporate purposes of the Company.

The Share Premium Cancellation does not affect the rights attached to the Ordinary Shares and there is no change in the number of Ordinary Shares in issue (or their nominal value).

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.