Franchise Brands ups FY dividend payout, underlying earnings seen at top end of guidance

Multi-brand franchise business Franchise Brands said on Monday that it will look to up its full-year dividend payout as it now expects to report adjusted underlying earnings at the top end of current market expectations.

Franchise Brands will seek approval of a proposed final dividend for FY23 of 1.2p per share, up from 1.1p a year earlier, which increases the total dividend for the year by 10% to 2.2p per share. Subject to shareholder approval at its annual general meeting on 30 June, the final dividend will be paid on 25 July.

The AIM-listed group also stated full-year adjusted underlying earnings were seen at the top end of £29.3m to £30.1m.

Franchise Brands added that following its acquisition of Pirtek Europe and subsequent increase in market capitalisation, it has become an "Other Entity of Public Interest" and as such the audit of its accounts was 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, the group 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. The board of Franchise Brands is confident this will not re-occur in future years," added the firm.

As of 1145 BST, Franchise Brands shares were up 0.79% at 191.0p.

Reporting by Iain Gilbert at Sharecast.com