TR1 : Standard form for notification of major holdings – Ennismore21/03/2019
Full year audited results for the financial year ended 31 December 2018
*Adjusted for non-recurring items being acquisition related costs, share based payments as well as finance costs, taxes, depreciation and amortization.
- Total revenue from Continuing Operations increased 23% to £14.2m (2017: £11.5m).
- Recurring Revenue Fryer Management segment up 11% to £9.3m (2017: £8.4m).
- Adjusted EBITDA* from Continuing operations up 25% to £2.6m (2017: £2.1m).
- Increase in total deferred revenue balance of £0.7m (including £0.2m FX gain) to £3.7m of which £0.9m will be released in 2019.
- Revenue from FiltaSeal up 24% to £1.6m (2017: £1.3m).
- FiltaGMG revenue grew to £1.7m (2017, 4 months: £0.4m).
- Net cash of £2.1m at 31 December 2018.
- Proposed final dividend of 0.92 pence per share, which together with the interim dividend of 0.72 pence, makes a total dividend for the year of 1.64 pence per share, an 26% increase over prior year.
- Net increase in Franchise Owner base to 199 and a 14% increase in the number of MFUs (mobile filtration units) from 394 to 450.
- Two Franchise Owners achieved over $2m (£1.6m) in revenue and six (2017 - four) Franchise Owners recorded revenue over $1m (£0.8m).
- Significant growth in fryer management services driven by organic growth and new franchise development which, in turn, enlarges the platform for increasing Fryer Management Services.
- Robust revenue growth in Company-Owned Operations due to strong performances from, particularly, FiltaSeal whose revenues were up 24% and, a strong first full year from FiltaGMG.
- Buy-in of German master licence with 6 existing franchisees already grown to 12 franchisees and 15 MFUs providing a strong platform for further expansion into mainland Europe.
- Acquisition of Watbio Holdings Limited, a provider of grease and drain management solutions, which adds over £10m revenues to FiltaGMG business.
Jason Sayers, CEO, commented:
“2018 was an active year for the Group as we continued to experience strong organic growth whilst completing two strategically significant acquisitions. The buy-in of the German master franchise gave us an immediate foothold in the German market, where we are experiencing good initial results applying the US franchise model, provides a base for expansion into mainland Europe. Late in the year we completed the acquisition of Watbio Holdings Limited, which fits squarely with our strategy of increasing high margin repeat revenue business and moves Filta into a market-leading position in the FOG (fats, oils and greases) market.
We are focused on the integration of Watbio in the first half of 2019 and we anticipate an increase in its existing £10m revenue base and profitability as we grow its client base and we realise the benefits of already identified synergies.
Whilst we anticipate a slowdown in new franchise sales as our territory coverage gets closer to maturity in the US, our European operation has picked up the mantle and we are encouraged both by the strength of the new business pipeline and the opportunities that will come from a broader geographic base.
We also see a strong path for growth in FiltaSeal and our other company-operated offerings and, with the implementation of a new scheduling system, anticipate improved efficiencies and gross margin.”
15th April 2019