LONDON (ShareCast) - (Sharecast News) - Multi-brand franchise business Franchise Brands said on Tuesday that FY24 saw "resilient underlying demand" for its services, resulting in system sales in all key divisions, despite "challenging macroeconomic conditions" in several key markets.
However, Franchise brands stated "slightly moderated system sales growth" combined with the relatively fixed nature of the cost base of its key franchise businesses, has led it to expect FY24 adjusted underlying earnings to be "very marginally below the current range of market expectations" of £35.5m - £36.0m.

Franchise Brands also said its adjusted net debt on 31 December was £65.1m, down from £74.7m at the same time a year earlier, comprised of gross debt of £78.0m and cash of £12.9m.

The AIM-listed group added that it was mindful of the macroeconomic uncertainty in many of the markets in which it operate, with higher levels of confidence in the US where robust growth was expected to continue. It said it anticipates "continued resilient demand" for its essential reactive and planned services, but retains "a more cautious view" on the timing of the recovery in project and other discretionary work.

As of 1035 GMT, Franchise Brands shares were down 3.42% at 134.25p.







Reporting by Iain Gilbert at Sharecast.com

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