Franchise Brands PLC on Monday said it expects adjusted earnings in 2023 to be at the top end of current market expectations, although publication of the results has been delayed.
Updating on trading, the Manchester-based owner of the ChipsAway, Willow Pumps and Metro Rod brands said it now expects to report adjusted earnings before interest, tax, depreciation and amortisation in 2023 at the top end of the range of current market expectations of £29.3 million to £30.1 million.
Franchise Brands plans a final dividend of 1.2 pence per share compared to 1.1p a year prior, taking the total payout for the year to 2.2p per share, up 10% from 2.0p a year before.
The company explained that given the recent material acquisition of Pirtek Europe and subsequent increase in market capitalisation, it has become an ‘Other Entity of Public Interest’.
As such, the audit of its accounts is now in scope for the purposes of the Financial Reporting Council’s audit quality review processes.
This has meant that following challenges from the group’s auditors, BDO LLP, Franchise Brands has extensively reviewed its existing accounting policies to ensure they comply with the accounting standards and are consistent across the enlarged group.
This has caused a significant delay in publishing this year’s results, recognising the need for a high-quality audit.
Franchise Brands intends to announce its full year 2023 results, in the week ending June 21.
The company expects to delay its annual general meeting to July 18 from June 27.
Shares in Franchise Brands fell 0.7% to 188.10 pence in London on Monday.
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