Purchase of FiltaFry Deutschland GmbH, master franchise owner in Germany31/01/2018
FILTA GROUP HOLDINGS PLC
("Filta", the "Company" or the "Group")
PRE-CLOSE TRADING UPDATE
Filta Group Holdings plc (AIM: FLTA), a provider of fryer management and other services to commercial kitchens, provides its trading update (unaudited) for the financial year ended 31 December 2017.
The Group’s revenue was in excess of £13.25m, up over 30% on the prior year (FY 16: £10.1m), albeit at a slightly reduced gross margin owing to a change in revenue mix. The increased revenue has allowed us to deliver a profit in line with market expectations, despite increased overheads as we invested in people and systems to support our future growth. Strong organic growth has remained a feature of the Group’s performance in both our US and UK businesses. Moreover, following the sale of our lower margin Refrigeration business, we anticipate a return to overall higher margins in the year ahead. The US growth was driven by an increase in the number of franchises and Mobile Filtration Units (“MFU’s”) being utilized in the market, while the UK growth was a result of strong performance in the Group’s FiltaSeal business, supplemented by the acquisition of Grease Management Ltd (“FiltaGMG”) in August 2017.
Despite a weakening USD, which impacted US revenues modestly in the second half, Deferred Revenue has risen, year on year, by a further c. £0.2m (c. £0.5m on a constant currency basis).
The Directors have also noted the enactment of the Tax Cuts and Jobs Act in the United States, which reduced the corporate tax rate to 21%. The Company expects to give updated guidance on the impact of these provisions together with our final results later this year.
Jason Sayers, Chief Executive Officer, commented:
“We had a record year with each of our core service offerings delivering double digit revenue growth. Further, our MFU count rose 15% to 392 at year end. In parallel, our acquisition of Filta GMG and expansion of Filta’s fryer management franchise business in Europe supports our strategy of making investments that strengthen our product offerings and expand our customer base. As a result, I believe we are well positioned to grow the Group over the long term.”
Our objective remains growth through both acquisitive and organic means over the short, medium, and long term. Our initial success with this in 2017 has set the Group up well for the future. Consequently, the Board anticipates that 2018 will be another year in which Filta delivers a strong financial performance.
The Group expects to report its 2017 results on 17 April 2018.