27 May 2004
Myhome joins British Franchise Association
Myhome has announced today that it has been admitted to the British Franchise Association, the UK's only voluntary accreditation body. Chairman Simon McNeil-Ritchie commented on the admission stating that the admission was a key milestone as 'it will undoubtedly attract further prospective franchises to Myhome'. And in conversation with Unquoted Analyst he confirmed that the number of franchises had increased to 7 from 4 since the last announcement. The company has ambitious plans of selling 30 franchises a year and McNeil Ritchie admits they may not achieve those figures.
Based on our cautious estimates, we believe the company needs to sell 10 franchises a year to break even in September 2005. The company looks like it might be able to sell 3 more franchises by year end to September 2004, so recording a small full year loss, but moving ahead to record pre-tax profits of £330,00 trading on a 2005 PE of 4 next year. Myhome hinted at news in the near future regarding appointments of senior staff and potential institutional investment it might receive. We should have more on this later shortly. At 8.25p, valued at £1.27 million, Myhome is a strong buy.