Filta Group Holdings PLC PRE-CLOSE TRADING UPDATE (8301C)
February 13 2020 - 2:00AM
UK Regulatory
TIDMFLTA
RNS Number : 8301C
Filta Group Holdings PLC
13 February 2020
13 February 2020
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
2019.
The Company expects to report adjusted EBITDA* for the full year
in the order of GBP3.2 million on turnover of approximately GBP25
million. The Group intends to report its 2019 results on 21 April
2020.
Both the North American and mainland Europe operations have
delivered results in line with expectations and, in the UK, we have
taken the actions referred to in the announcement of 5 November
2019 to deliver cost savings in the UK business of some GBP100,000
per month. We are also pleased to report that the new scheduling
software introduced in 2019 is now delivering improvements in
productivity, which will continue over the coming months and
further increase both revenues and margins.
Although still early in the new year, we are seeing strong
interest from potential franchisees in North America, where we have
added two new franchises and completed one resale, and in Europe we
have added one new franchise each in Germany and Switzerland, which
will drive higher revenues in the year ahead. This, together with
the good progress made in the final quarter of 2019 in both
reducing costs and improving productivity in the UK, gives the
Board confidence that Filta will deliver a much-improved
performance in 2020.
Jason Sayers, Chief Executive Officer, commented:
"The acquisition of Watbio in December 2018 was a significant
transaction for the Group, given that it is a well-established
company with a high-quality customer base and was almost twice the
size of Filta's existing UK business. The rationale and
opportunities presented by the acquisition remain compelling but,
as previously reported, we did encounter some challenges in 2019 as
we sought to integrate Watbio with our existing FOG and Seal
business. However, following a number of management changes, new
hires and investment in software systems, it is pleasing to report
that these difficulties have now been addressed, and we look
forward to delivering the higher margins of which we know the
business is capable.
At the same time, Filta's North America business continues to
grow through our focus on helping franchisees to improve and expand
their own operations, which is increasing the level of reoccurring
royalty revenues flowing to the Company".
* Adjusted EBITDA represents earnings before interest, taxes,
depreciation, amortisation, acquisition related costs and share
based payment expense
For further information:
Filta Group Holdings plc
Jason Sayers, Chief Executive
Officer
Brian Hogan, Chief Financial
Officer +1 407 996 5550
Cenkos Securities
Stephen Keys, Harry Hargreaves +44 20 7397 8900
Yellow Jersey PR
Charles Goodwin
Joe Burgess +44 20 3004 9512
Henry Wilkinson +44 7747 788 221
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END
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