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Franchise Brands profits jump as Metro Rod starts to pull weight

As the Beast from the East thawed it was the busiest period ever dealing with cracked pipes
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Franchise Brands PLC (LON:FRAN) swung into an interim profit as all four brands - Metro Rod, ChipsAway, Barking Mad and Ovenclean –  improved their performance.

Metro Rod, the largest of the franchise operations, completed 88,000 jobs during the period said Stephen Hemsley, executive chairman, a 15% rise on the same period a year ago.

WATCH: Metro Rod 'beginning to significantly contribute' to Franchise Brands performance

As the Beast from the East thawed in March it was its busiest period ever dealing with cracked pipes, but this was doubled-edged as it restricted higher value repair work.

Hemsley said the group is now starting to see the benefit of the work it is putting in at Metro Rod following its acquisition in 2017.

For the group overall, interim revenue jumped by 88% to £16.8mln, while underlying profits improved 41% to £1.4mln.

Recurring management fees rose by 86% to £5.4mln, while on a statutory basis the group swung from a loss of £200,000 to a profit of £1.4mln.

 “The outlook for the group remains very positive,” Hemsley added.

“Metro Rod is capable of significant growth and the investment required to unlock this potential is underway and bearing fruit.”

The interim dividend rose by 24% to 0.21p.

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