Franchise Brands buys Barking Mad for £900,000

The company, which floated on AIM in August, said the acquisition broadens its portfolio of businesses with a strong management team and a similar customer base. The company now has over 400 franchisees in 12 countries.

Barking Mad, which has 75 franchised territories across the UK, operated by 71 franchisees, has the opportunity to increase the number of franchised territories and sales by supporting franchisees' growth with the company’s services, particularly marketing.

Of the £900,000, £400,000 was paid through the issue of 761,193 shares of 0.5p each at about 52.5p per share, which will be issued to Barking Mad's founder and managing director, Lee Dancy, and her husband, subject to a three year selling restriction, while the remaining £500,000 was paid in cash.

Following the acquisition, which is expected to be earnings enhancing, Dancy, has agreed to continue to manage the company and will join the company's leadership team.

Stephen Hemsley, executive chairman of Franchise Brands, said: "The acquisition of Barking Mad fits very well with our stated strategy of acquiring franchise businesses which could benefit from our central services, whilst addressing the same business to consumer market as our existing brands.“

Barking Mad’s revenue for the year ended 30 April rose 9.8% from last year to £616,000 and pre-tax profit increased 50.4% to £155,000, while it net assets was £115,000.

Shares in Franchise Brands were up 10.51% to 58.02p at 0823 BST.