Despite a drop in revenue for the financial year ending 30 June 2011, down 7.4% from $13.8m to $12.74m, the group lifted its consolidated profits by 35% from $1.9m to $3m.

Chief executive Grant Vernon, who will hand the reigns of the 150-franchise group to Steven Edwards next month, said: “We are very pleased with the results.

“There were some abnormal items this year and the year before relating to the sale of assets, but our network is strong, our strategy goes well beyond print and we are seeing the positive results.”

The profit surge was helped by the sale of four franchises, which are now run as independent businesses.

The sale of assets follows a similar move the previous year, when it shed seven franchises.

Vernon said that even without the one-off boosts generated by this year’s sell-off, Snap was “outperforming”.

“It was just part of our strategy to diminish our ownership. We think we can be focused as a franchisor by not competing with other franchises. Our model is therefore more transparent,” he said.

The results were an improvement over its 2009/10 figures, when revenues fell 18.4% and post-tax profits slumped 15.6%. Revenues are predominately made up of royalty fees from its franchise network, which includes almost 150 centres and three hubs in Australia, as well as locations in New Zealand, Ireland and China.

Vernon said that he was leaving the group with a strong strategy to further implement its ‘Level 2’ online and marketing services.

“This business will continue to grow and we look forward to continue building the success of our franchises into the future,” he said.

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