Franchise Brands plc Annual Report and Accounts 2018 49 Financial Statements Governance Strategic Report Note 2018 £'000 2017 Restated £'000 Revenue 4 35,470 24,867 Cost of sales (22,341) (15,152) Gross profit 13,129 9,715 Adjusted earnings before interest, tax, depreciation, amortisation, share-based payments & non-recurring items (“Adjusted EBITDA”) 3,700 2,697 Depreciation 5 (131) (96) Amortisation 5 (253) (156) Share-based payment expense 5 (138) (58) Costs of acquisition of subsidiaries 5 – (1,144) Costs of transition of subsidiary 5 – (734) Bad debt provision 5 – (316) Total administrative expenses (9,951) (9,522) Operating profit 5 3,178 193 Finance expense 8 (310) (277) Profit/(loss) before tax 2,868 (84) Tax expense 9 (536) (43) Profit/(loss) for the year and total comprehensive income attributable to equity holders of the Parent Company 2,332 (128) All amounts relate to continuing operations Earnings per share Basic 10 3.00 (0.18) Diluted 10 2.96 (0.18) The notes on pages 55 to 70 form part of these financial statements. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2018