LONDON (ShareCast) - (ShareCast News) - Multi-brand international franchisor Franchise Brands announced its maiden interim results for the six months to 30 June on Thursday, in line with management expectations.


The AIM-traded firm's total revenue was up 10% to £2.5m, and its gross profit margin increased by 1.2% to 66.8%.

Profit before tax was up 18.3% to £0.72mm with earnings per share reported at 4.79p, up from 4.05p a year ago, or equivalent to 1.22p - up from 1.03p - on the basis of the number of shares in issue following admission.

Franchise Brands generated cash of £0.67m, against a £44,000 outflow in the first half of 2015, and it had a cash balance at period end of £1.16m, up from £1.01m.

"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," said executive chairman Stephen Hemsley.

"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."

Hemsley said the company's two main brands, Chips Away and Ovenclean, continue to trade well, giving the board confidence in the full year outcome.

"With our highly experienced management team and Board, we have a firm foundation for continuing to build on our success to date."

At 1531 BST, shares in Franchise Brands were up 2.93% at 42.2p.

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