TIDMFLTA
RNS Number : 6149L
Filta Group Holdings PLC
14 September 2021
14 September 2021
Filta Group Holdings plc
("Filta" or the "Company" or the "Group")
Interim Results for the 6 months ended 30 June 2021
Filta Group Holdings plc (AIM: FLTA), a market-leading
commercial kitchen services provider, is pleased to announce its
unaudited Interim Results for the 6 months ended 30 June 2021.
Financial Summary
-- Group Revenue increased 17% to GBP9.7m (H1 2020: GBP8.3m, H2 2020: GBP8.1m)
-- Gross profit, up in line with increased trading levels,
GBP3.9m (H1 2020: GBP3.4m, H2 2020: GBP3.5m)
-- Adjusted EBITDA* increased by 500% to GBP1.3m (H1 2020: GBP0.2m, H2 2020: GBP0.9m)
-- Cash inflow from operations doubled to GBP1.0m (H1 2020: GBP0.5m)
-- Net debt reduced by 50% to GBP0.8m (31 December 2020: GBP1.6m)
-- Cash balance of GBP4.2m (31 December 2020: GBP4.2m)
-- Basic loss per share of 0.19p (2020: loss of 3.11p)
-- Adjusted EPS** 3.19p (H1 2020: loss of 0.13p)
-- The Board considers it would be prudent not to pay an interim
dividend and to allow the trading recovery to continue to gather
momentum. Nonetheless, if the current trading trend carries on
through the remainder of the year, the Board expects to resume the
payment of a final dividend.
Operational Highlights
-- Strong performance through H1, despite ongoing lockdowns,
with Q2 revenues and gross profit growing 29% and 25%,
respectively, versus Q1
-- 8 new franchise sales in the period, including a first in France
-- 7 franchise resales as the Company continues to upgrade its
network to underpin future growth
-- 13 new Mobile Filtration Units ("MFUs") sales, the principal
driver of Fryer Management recurring revenue, added in the period
and in line with pre COVID-19 demand
-- The new Cyclone Grease Recovery Unit ("GRU"), introduced to
the market in Q4 2020, has gained significant traction, resulting
in 60% quarter-on-quarter revenue growth in H1
-- Initiatives to drive innovation, efficiency and
sustainability are accelerating the momentum of the business
*Adjusted EBITDA represents earnings before interest, taxes,
depreciation, amortisation, acquisition related costs and share
based payment expense.
**Adjusted EPS are earnings per share before depreciation and
amortisation, share based payment expense and non-recurring
items.
Jason Sayers, CEO of Filta, commented:
"We delivered strong performance for the first half of the year,
with underlying market fundamentals continuing to improve in our
primary markets of North America, the UK and mainland Europe.
"In the US, we have seen impressive growth, while our larger
customers, which include sports stadia and universities, remain on
track to fully reopen during the third quarter of the year. The UK
market has benefitted from the relaxation of restrictions and we
have worked hard to develop new business opportunities in Europe,
demonstrated by the first franchisee sale in France. We believe
these and further potential opportunities will put us in good stead
for when restrictions across Europe relax and trading returns to
more normalised pre-COVID levels.
"With rising vaccination rates and the continued reopening of
hospitality and leisure markets, we anticipate that our customers
will experience increased consumer demand, allowing us to focus our
efforts on capturing these growth opportunities. Internally, and in
conjunction with our major customers, we have targeted bringing new
initiatives to the market that will allow us to continue supporting
their needs whilst providing us additional avenues for growth. In
particular, we are committed to leading the way in addressing
sustainability issues and in providing more cost effective and
efficient solutions with innovations that are already generating
significant customer interest.
"We are carrying good momentum into the second half of the year
and, although we are mindful of continuing risks to the economic
recovery in the countries in which we operate, Filta is developing
initiatives focused on growing the core business and addressing one
of the key industry concerns of sustainability. We are excited
about the potential in our business pipeline and believe that we
are well placed to deliver attractive growth and shareholder
returns."
Management will host a presentation for analysts today at 3pm
(UK). For further details please email filta@yellowjerseypr.com
.
On Thursday 16 September at 1pm (UK) , the Company will host a
presentation and Q&A session for private investors on the
Investor Meet Company platform. Non-subscribers to Investor Meet
Company can sign up to join the presentation via:
https://www.investormeetcompany.com/filta-group-holdings-plc/register-investor
.
For further information please contact:
Filta Group Holdings plc Tel: +1 407 996 5550
Jason Sayers, Chief Executive Officer
Brian Hogan, Finance Director
Cenkos Securities (Nomad and Broker) Tel: +44 (0)20 7397
8900
Stephen Keys
Camilla Hume
Yellow Jersey PR Tel: +44(0)7747 788 221
Charles Goodwin
Joe Burgess
Henry Wilkinson
This announcement contains inside information.
Chief Executive's and Chairman's Statement
Overview
The first six months of the year have brought a steady increase
in business and revenues as our industry has continued to emerge
from lockdowns and social distancing restrictions. Our support for
our franchise base since the outbreak of the pandemic has brought
its rewards as the US business recovered at a rate well beyond our
expectations. In the UK, where the majority of our revenues are
derived from the provision of services direct to our customer base
through Company-owned activities, the pick-up has been slower,
reflecting a more cautious easing of restrictions, but is now
gaining momentum with monthly revenues in June some 60% higher than
in January. In mainland Europe, where the relaxing of social
distancing restrictions have persisted longer than the UK, revenues
remain suppressed, but there is an encouraging level of interest
from potential new franchisees.
The resulting revenue for the six months was GBP9.7 million (H1
2020: GBP8.3 million) and a gross profit of GBP3.9 million (H1
2020: GBP3.4 million), giving an adjusted EBITDA of GBP1.3 million
(H1 2020: GBP0.2 million). The reported profit before tax of GBP0.2
million (2020: loss of GBP0.8 million) is after incurring GBP1.0
million of non-cash or non-recurring charges (H1 2020: GBP0.9
million). It is encouraging that we have seen significant growth
through H1, with Q1 revenue and gross profit increasing from GBP4.2
million and GBP1.7 million to GBP5.5 million and GBP2.2 million,
respectively, for Q2.
In the early months of the year we remained focused on
cash-protection, continuing to implement efficiency measures and
taking advantage of the available government support schemes in the
UK and the US, but also made plans for a post-COVID-19 world as we
sought innovations, such as our new Cyclone GRU, and potential new
customer genres to drive revenue in the future. In the six months
the Group received GBP0.2 million (H1 2020: GBP0.5 million) in
funding through the UK business support scheme and GBP0.2 million
(H1 2020: GBP0.2 million) under the US scheme.
We generated an operating cash flow of GBP1.0 million (H1 2020:
GBP0.5 million) and overall cash inflow, after the repayment of
GBP0.8 million of debt, of GBP0.1 million (H1 2020: GBP0.2 million)
during the six months. The Group's gross cash at 30 June 2021 was
GBP4.2 million (31 December 2020: GBP4.2 million) and net debt,
including lease liabilities, was GBP0.8 million (31 December 2020:
GBP1.6 million).
Operating Review
Fryer Management
Fryer Management derives revenue from recurring franchise
royalties, national accounts income, waste oil sales and other
continuing income through our franchise network. Revenues in the
six months were up by 31% at GBP5.5 million (H1 2020: GBP4.1
million) and gross profit was GBP2.1 million (H1 2020: GBP1.8
million), an outcome which reflects the strength of our franchise
base. We added 13 MFUs during the period, of which two were sold in
Europe, and these will begin contributing to revenue over the
second half of the year and into future periods. Network revenue,
which represents the total revenue of our North American
franchisees for all services provided to customers, was up 31% in
H1 over H1 2020. We are continuing to see improvement in the first
half of Q3 as July represented the second highest month on record.
Many of the major customers, including sporting and events venues
and educational establishments, have not yet fully re-opened and
there will, therefore, provide a further revenue uplift as they
do.
Franchise Development
Franchise Development revenue includes the sales and resales of
franchises as well as the additional territory sales to existing
franchisees. Eight new franchise agreements, three in Europe,
including our first in France, and five in North America represent
a strong start to the year. In addition, as we have highlighted
previously, we have embarked on an initiative to strengthen the
franchise network by supporting the resale of existing locations to
both current and new franchisees. This initiative allows us to
replace incumbent franchisees, who may not have plans for future
growth, by managing an orderly sale to a new franchisee with
greater ambitions. The number and quality of our franchisees is key
to the amount and reliability of the Fryer Management income in the
future. Through the first half of the year we have closed on seven
resales, generating commission income.
Site Services
FOG, Pump and Seal services, collectively Site Services, which
are currently provided directly by our own operatives and by
franchisees (in a sub-contract capacity), generate revenue from
recurring maintenance fees, either under contract or otherwise as
well as reactive callouts. This division delivered GBP2.8 million,
or 29%, of the Group's total revenue in the six months. Moreover,
the monthly revenue has grown steadily through the period and was
20% higher in Q2 than in Q1. Importantly, we expect our FOG
revenues to continue to expand on the strong acceptance of our new
Cyclone GRU which brings follow on service contracts. Additionally,
as more sites are opened or added, we expect the revenues from each
of these services to continue to grow.
Equipment Sales and Installation
This activity comprises FiltaFOG and FiltaPump Equipment Sales
and Installation and represents the entry point for customers to
our services. It delivered GBP0.8 million, or 8%, of Group revenue.
We anticipated a slower recovery in this division as our customers
remain more focused on preventative maintenance and less inclined
to incur larger one-time outlays during the resumption phase of
trading. However, we began to see a significant pick up in business
in May that allowed us to deliver quarter-on-quarter growth of 59%
and the demand has continued into the second half of the year.
New products
The Company has continued to innovate and seek additional
products and services to add to its portfolio with the objective of
driving additional income from our existing customer base and of
opening up new customer opportunities. Our existing services
provide strong environmental benefits, and our focus is on
enhancing and leveraging our environmental credentials to help our
customers in managing theirs. The launch and highly encouraging
market acceptance of our Cyclone GRU, which is both more efficient
and less costly to run than its predecessor models, is a perfect
example of such advances.
Dividends
Whilst we have experienced significant improvement in our
performance in the first half of 2021, there still remains ongoing
uncertainty arising from the COVID-19 pandemic and, therefore, the
Board considers that it would be prudent to withhold the interim
dividend for 2021. However, the Board is keen to resume the payment
of dividends, which are an important element of shareholder
returns, and, provided that the current trading trend continues
through H2, it anticipates that it will resume the payment of
dividends in respect of the full year.
Outlook
We have seen an improving sales trend in recent months with
quarter-on-quarter revenues growing 29% in Q2. As we look to the
remainder of the second half of the year, whilst we are mindful of
the ongoing wider macro-economic uncertainty caused by COVID-19, we
believe that, with customers still in the process of re-opening
their businesses, we are well placed to benefit from the
acceleration in demand that should follow.
The Group is in a strong financial position and is a market
leader in both of our major operating territories. We will continue
to support our near-term financial performance with cost
mitigations and cash actions where necessary or prudent, whilst
pursuing attractive investment opportunities as they become
available, in order to position ourselves to take full advantage of
future growth opportunities.
Whilst we do not underestimate the challenges and uncertainties,
nor how long they may remain, we believe that our business model,
our multiple sources of revenue, many of which are long-term and
recurring in nature, and our ability to adapt to changing
circumstances, means that Filta is well placed to continue to grow
and prosper as the impact of COVID-19 recedes.
Tim Worlledge Jason Sayers
Non-executive Chairman Chief Executive Officer
13 September 2021 13 September 2021
Condensed consolidated statement of comprehensive income
for the six months ended 30 June 2021
Unaudited Unaudited Audited
6 months 6 months Year ended
ended ended 31 December
30 June 30 June 2020
2021 2020
Notes GBP GBP GBP
Revenue 3 9,690,686 8,296,948 16,401,621
Cost of sales (5,768,456) (4,912,536) (9,484,035)
------------ ------------ -------------
Gross profit 3,922,230 3,384,412 6,917,586
Other income 68,822 24,659 76,922
Distribution costs (39,809) (73,195) (87,824)
Administrative expenses (3,643,983) (3,998,360) (7,495,905)
------------ ------------ -------------
Operating (loss)/profit 307,260 (662,484) (589,221)
----------------------------------------- ------ ------------ ------------ -------------
Analysed as:
Adjusted EBITDA 1,292,473 222,222 1,053,569
Acquisition and restructuring
related costs (95,156) (17,379) (187,465)
Depreciation and amortisation (663,919) (668,482) (1,370,258)
Share based payments, net of
cash settled 6 (226,138) (198,845) (85,067)
----------------------------------------- ------ ------------ ------------ -------------
307,260 (662,484) (589,221)
----------------------------------------- ------ ------------ ------------ -------------
Finance costs, net (100,725) (119,889) (277,010)
------------ ------------ -------------
Profit/(loss) before tax 206,535 (782,373) (866,231)
Income tax expense (261,906) (121,930) (139,748)
Net loss attributable to owners (55,371) (904,303) (1,005,979)
Other comprehensive Income
Exchange differences on translation
of foreign operations (46,368) 130,960 (168,192)
------------ ------------ -------------
Total other comprehensive (loss)/income (46,368) 130,960 (168,192)
Loss and total comprehensive
loss (101,739) (773,343) (1,174,171)
============ ============ =============
Earnings/(loss) per share
* Basic (pence) 2 (0.19) (3.11) (3.46)
* Diluted (pence) 2 (0.19) (3.11) (3.46)
Filta Group Holdings plc
Condensed consolidated statement of financial position
As at 30 June 2021
Unaudited Audited 31
30 June December
2021 2020
Notes GBP GBP
Non-current assets
Property, plant and equipment 1,190,229 1,251,656
Right of use asset 796,182 1,041,726
Deferred tax assets 788,190 796,414
Intangible assets 5,516,666 5,836,360
Goodwill 1,639,523 1,639,523
Deposits 11,270 11,398
Contract acquisition costs 365,571 419,913
Trade receivables 4 177,576 264,274
----------- -----------
10,485,207 11,261,264
----------- -----------
Current assets
Trade and other receivables 4 2,942,171 2,325,678
Contract acquisition costs 95,981 72,958
Inventories 1,358,192 1,604,451
Cash and cash equivalents 4,243,778 4,208,498
----------- -----------
8,640,122 8,211,585
----------- -----------
Total assets 19,125,329 19,472,849
=========== ===========
Current liabilities
Trade and other payables 5 3,142,446 2,289,889
Borrowings 1,217,119 1,076,927
Lease liability 299,171 319,480
Deferred income 527,600 592,065
----------- -----------
5,186,336 4,278,361
----------- -----------
Non-current liabilities
Deferred tax liability 908,558 1,027,498
Borrowings 3,006,143 3,647,088
Lease liability 543,840 770,119
Deferred income 1,837,995 2,086,565
----------- -----------
6,296,536 7,531,270
Total liabilities 11,482,872 11,809,631
----------- -----------
Equity
Share capital 2,913,816 2,909,816
Share premium 3,730,633 3,679,085
Other reserves 6 258,861 233,431
Translation reserve (747,635) (701,267)
Retained profits 1,486,782 1,542,153
Total equity 7,642,457 7,663,218
----------- -----------
Total equity and liabilities 19,125,329 19,472,849
=========== ===========
Filta Group Holdings plc
Condensed consolidated statement of changes in equity
for the six months ended 30 June 2021
Foreign
Share Share Other Merger Exchange Retained Total
Capital Premium Reserves Reserve Reserve Earnings Equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January
2021 2,909,816 3,679,085 573,118 (339,687) (701,267) 1,542,153 7,663,218
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Loss for the
year - - - - - (55,371) (55,371)
Translation
differences - - - - (46,368) - (46,368)
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Total
comprehensive
income (46,368) (55,371) (101,739)
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Dividends paid - - - - - - -
Issue of share
capital 4,000 51,600 - - - - 55,600
Return of
share premium - (52) - - - - (52)
Equity - - - - - - -
consideration
paid
Shares based
payments - - 25,430 - - - 25,430
--------------- ----------
Balance at 30
June
2021 2,913,816 3,730,633 598,548 (339,687) (747,635) 1,486,782 7,642,457
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Foreign
Share Share Other Merger Exchange Retained Total
Capital Premium Reserves Reserve Reserve Earnings Equity
GBP GBP GBP GBP GBP GBP GBP
Balance at 1
January
2020 2,908,535 3,659,204 367,102 (339,687) (533,075) 2,548,132 8,610,211
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Loss for the
year - - - - - (904,303) (904,303)
Foreign
exchange
translation - - - - 130,960 - 130,960
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Total
comprehensive
income - - - - 130,960 (904,303) (773,343)
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Dividends paid - - - - - - -
Issue of share
capital 1,281 19,881 - - - - 21,162
Equity - - - - - - -
consideration
paid
Share based
payments - - 149,905 - - - 149,905
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Balance at 30
June
2020 2,909,816 3,679,085 517,007 (339,687) (402,115) 1,643,829 8,007,935
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Loss for the
year - - - - - (101,676) (101,676)
Foreign
exchange
translation - - - - (299,152) - (299,152)
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Total
comprehensive
income - - - - (299,152) (101,676) (400,828)
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Dividends paid - - - - - - -
Issue of share - - - - - - -
capital
Equity - - - - - - -
consideration
due
Share based
payments - - 56,111 - - - 56,111
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Balance at 31
December
2020 2,909,816 3,679,085 573,118 (339,687) (701,267) 1,542,153 7,663,218
--------------- ---------- ---------- --------- ------------------------ ------------------- ---------- ------------
Filta Group Holdings plc
Condensed consolidated statement of cash flows
for the six months ended 30 June 2021
Unaudited Unaudited Audited
6 months 6 months Year
ended 30 June ended 30 ended 31
2021 June December
2020 2020
GBP GBP GBP
Operating activities
(Loss)/profit before tax 206,535 (782,373) (866,231)
Adjustments for non-cash operating
transactions:
Finance costs 100,725 119,889 277,010
Depreciation 78,361 38,658 172,560
Amortisation of intangible assets 425,665 467,630 867,269
Amortisation of right of use assets 159,892 162,194 330,429
(Gain)/loss on disposal of tangible
fixed assets (21,545) (3,451) (12,215)
Share based payment charge 226,138 198,845 85,067
--------- --------- ---------------------
1,175,771 201,392 853,889
--------- --------- -------------------
Movements in working capital:
Decrease/(increase) in trade and
other receivables (510,720) 1,162,681 1,606,223
Increase in contract acquisition
costs 31,319 (43,200) (19,018)
(Decrease)/increase in trade and
other payables 394,354 (628,625) (795,266)
Decrease in cash settled share option
liability (14,700) - -
Increase in proceeds from government
grants 208,328 - -
(Increase)/decrease in inventories 246,258 (13,431) 155,505
(Decrease)/increase in deferred revenue (313,036) (26,732) (351,609)
--------- --------- ---------
Cash flow from operations 1,217,574 652,085 1,676,205
--------- --------- ---------
Taxes paid (211,769) (162,307) (393,249)
--------- --------- ---------
Net cash flow (used in)/generated
from operations 1,005,805 489,778 1,282,956
--------- --------- ---------
Investing activities
Purchase of property, plant, and
equipment (29,936) (8,760) (100,166)
Proceeds from disposals of property,
plant, and equipment 23,807 3,525 13,831
Purchase of other intangible assets (103,913) (163,310) (194,985)
--------- --------- ---------
Net cash (used in)/generated from
investing activities (110,042) (168,545) (281,320)
--------- --------- ---------
Financing activities
Repayments of borrowings (508,366) (31,385) (302,538)
Net proceeds from borrowings - 54,759 1,200,000
Net proceeds from issue of share
capital 38,800 - 21,162
Payment of lease liabilities (244,514) (95,376) (231,005)
Dividends paid to shareholders - - -
Interest paid (81,588) (95,643) (232,463)
--------- --------- ---------
Net cash used in financing activities (795,668) (167,645) 455,156
--------- --------- ---------
Net change in cash and cash equivalents 100,095 153,588 1,456,792
Cash and cash equivalents, beginning
of period 4,208,498 2,891,014 2,891,014
Exchange differences on cash and
cash equivalents (64,815) 168,523 (139,308)
--------- --------- ---------
Cash and cash equivalents at end
of period 4,243,778 3,213,125 4,208,498
--------- --------- ---------
Filta Group Holdings plc
Notes to the condensed consolidated interim financial
statements
for the six months ended 30 June 2021
1. Accounting Policies
Basis of preparation
The condensed consolidated financial statements for the six
months ended 30 June 2021 and 2020 are unaudited and were approved
by the Directors on 13 September 2021. They do not constitute
statutory accounts as defined in section 434 of the Companies Act
2006. The financial statements for the year ended 31 December 2020
were prepared in accordance with International Financial Reporting
Standards as adopted by the EU and have been delivered to the
Registrar of Companies. The report of the auditor on those
financial statements was unqualified and did not draw attention to
any matters by way of emphasis of matter.
Applicable standards
These unaudited consolidated interim financial statements have
been prepared in accordance with International Financial Reporting
Standards as adopted by the European Union, under the historical
cost convention. They have not been prepared in accordance with IAS
34, the application of which is not required to the interim
financial statements of AIM companies. The interim financial
statements have been prepared in accordance with the accounting
policies set out in the Group's Annual Report and Accounts for the
year ended 31 December 2020.
Basis of consolidation
The Group's financial statements consolidate the financial
statements of Filta Group Holdings plc and its subsidiaries.
Going concern
The Board has undertaken a review of the Group's forecasts and
associated risks and sensitivities, considering the expected impact
of COVID-19 on trading in the period from the date of approval of
the interim financial statements to December 2022. The Group had
GBP4.2m of cash as of 30 June 2021, with debt of GBP5.1m which
included GBP0.8m of IFRS 16 lease liabilities. The Group also has
access to an undrawn GBP0.4m UK bank overdraft facility.
Throughout the first half of the year, activity levels have
picked up resulting in improved revenue and profits.
Notwithstanding this increased activity the Board is mindful that a
degree of uncertainty due to the ongoing impact of the pandemic
remains. However, given the analysis performed on the forecasts,
the strength of performance in H1 and into the early months of H2,
the level of cash in the business and additional borrowing
availability, our geographical and service diversification, as well
as our ability to manage our cost base, the Board has concluded
that the Group has adequate resources to continue in operational
existence for the period through December 2022. Accordingly, the
financial statements are prepared on a going concern basis.
2. Earnings per share
The calculation of earnings per share is based on the following
earnings and number of shares:
Unaudited Unaudited Audited
6 months 6 months Year ended
ended 30 June ended 30 31 December
2021 June 2020
2020
GBP GBP GBP
Earnings attributable to equity
holders of the Company (55,371) (904,303) (1,005,979)
Weighted average number of shares
Basic 29,108,992 29,096,123 29,097,146
Dilutive effect of share options - - -
and awards
----------------------------- ---------------------- -------------------------
Diluted 29,108,992 29,096,123 29,097,146
----------------------------- ---------------------- -------------------------
3. Segmental Analysis
The Company continues to have four reportable segments as
follows:
The Site Service's segment consists of our preventive
maintenance and reactive services, including our Seal replacement
service. The Equipment Sales & Installation segment represents
the provision of design, sale and installation solutions. The
Franchise Development and Fryer Management segments encompass our
franchise model and consist of the sale of franchises and the
ongoing recurring revenue on royalties and other supplied services,
respectively. The Group also has three geographic segments: United
Kingdom, North America and Europe.
The segments represent components of the Company for which
separate financial information is available that is utilised on a
regular basis by the chief operating decision maker (which takes
the form of the Board of Directors), in determining how to allocate
resources and evaluate performance. The segments are determined
based on several factors, including client base, homogeneity of
products, technology, delivery channels and similar economic
characteristics.
Revenue and non-current assets by origin of geographical segment
for all entities in the Group is as follows:
Revenue
Audited
Unaudited Unaudited Year
6 months 6 months ended
ended 30 June ended 30 June 31 December
2021 2020 2020
GBP GBP GBP
United Kingdom 3,778,283 4,014,968 8,154,425
North America 5,707,206 4,051,751 7,762,771
Europe 205,197 230,229 484,425
--------------- --------------- -------------
Total 9,690,686 8,296,948 16,401,621
Non-current assets
Audited
Unaudited As at
As at 30 June 31 December
2021 2020
GBP GBP
United Kingdom 8,510,068 8,972,757
North America 1,701,764 1,882,302
Europe 273,375 406,205
--------------- ---------------
Total 10,485,207 11,261,264
--------------- ---------------
Product and services revenue analysis
Revenue
Audited
Unaudited Unaudited Year
6 months 6 months ended
ended 30 June ended 30 June 31 December
2021 2020 2020
GBP GBP GBP
Franchise Development 608,744 521,204 1,038,287
Fryer Management 5,494,941 4,131,325 7,812,833
Equipment Sales & Installation 766,259 755,572 1,377,210
Site Services 2,820,742 2,888,847 6,173,291
--------------- --------------- -------------
Total 9,690,686 8,296,948 16,401,621
--------------- --------------- -------------
No customer has accounted for more than 10% of total revenue
during the periods presented.
4. Trade and other receivables
Trade and other receivables consist of the following:
Group Unaudited Audited
6 months Year
ended ended
30 June 31 December
2021 2020
GBP GBP
Trade receivables, net 2,600,433 2,039,735
Prepayments and other receivables 244,071 258,937
Franchise payment plans 275,243 291,280
---------- -------------
3,119,747 2,589,952
---------- -------------
Accounts receivable include amounts that the Filta Group has
agreed may be settled over extended repayment terms.
5. Trade and other payables
Group Unaudited Audited
6 months Year
ended ended
30 June 31 December
2021 2020
GBP GBP
Trade payables 1,420,027 1,294,512
Taxes and social security 691,598 531,763
Accruals and other payables 1,030,821 463,614
---------- -------------
3,142,446 2,289,889
---------- -------------
Analysis of trade and other payables
These are classified as short term and are expected to be
settled within 12 months from the reporting date.
6. Share option scheme
The Company maintains an EMI Share Option Scheme to incentivise
executives and employees of Filta Group Holdings and its
subsidiaries. For U.K. employees, Options have been awarded over a
total of 2,497,500 ordinary shares, equivalent to 8.5% of the
Company's current issued share capital. The options vest, subject
to the satisfaction of certain conditions, over a period of 4 years
from the date of grant. All options issued will have met or will
meet the vesting conditions between 2021 and 2025 and are
exercisable at any time after vesting and within 10 years from the
grant date.
Additionally, all qualifying U.S. employees have been awarded
share acquisition rights (SARs). The SARs are conditional bonuses
whose value will be calculated by reference to the amount by which
the price of the Company's ordinary shares has risen above the base
price at the date of exercise, thus providing holders of SARs the
same reward value as if the SARs were share options. The qualifying
conditions and timing of vesting are identical to those within the
share option scheme for UK employees. All SARs are settled in cash
when exercised. A total of 872,500 SARs have been awarded.
In the ordinary course of business, an option will normally only
be exercisable to the extent it has fully vested, and any
applicable non-market performance conditions have been satisfied or
waived. Options shall lapse to the extent unexercised on the tenth
anniversary of the date of grant or such earlier date as specified
by the Board at the date of grant.
As at 30 June 2021, a total of 1,711,500 (2020: 1,550,000) were
outstanding, having a range of exercise prices from 0.97p to 2.30p
(2020: 0.97p to 2.30p) and a weighted average exercise price of
1.62p (2020:1.81p). These outstanding awards have a weighted
average contractual life of 7.17 years (2020: 7.73 years).
Movement in the number of share options and SARs outstanding
during the year, including grants, exercises and forfeitures were
as follows:
Share acquisition
Share Options rights Total
Outstanding at 1 January
2020 1,175,000 515,000 1,690,000
------------------------- ----------------------------------- ------------------------ ----------------------------
Granted on 15 July 2020
(0.965p) 300,000 132,500 432,500
Total granted during the
year 300,000 132,500 432,500
------------------------- ----------------------------------- ------------------------ ----------------------------
Exercised during the
year - - -
Total exercised during
the
year - - -
------------------------- ----------------------------------- ------------------------ ----------------------------
Forfeited during the
year
(0.97p) (15,000) (20,000) (35,000)
Forfeited during the
year
(1.74p) - - -
Forfeited during the
year
(2.15p) (195,000) (22,500) (217,500)
Forfeited during the
year
(2.30p) (15,000) - (15,000)
Forfeited during the
year
(1.46p) (120,000) (15,000) (135,000)
Forfeited during the
year
(0.965p) (22,500) (7,500) (30,000)
Total forfeited during
the
year (367,500) (65,000) (432,500)
------------------------- ----------------------------------- ------------------------ ----------------------------
Total outstanding at 31
December 2020 1,107,500 582,500 1,690,000
------------------------- ----------------------------------- ------------------------ ----------------------------
Granted on 1 June 2021
(1.55p) 212,500 72,500 285,000
Total granted during the
year 212,500 72,500 285,000
------------------------- ----------------------------------- ------------------------ ----------------------------
Exercised during the
year (40,000) (20,000) (60,000)
Total exercised during
the
year (40,000) (20,000) (60,000)
------------------------- ----------------------------------- ------------------------ ----------------------------
Forfeited during the
period
(0.97p) (7,500) - (7,500)
Forfeited during the
year
(2.15p) (75,000) - (75,000)
Forfeited during the
year
(2.30p) (7,500) - (7,500)
Forfeited during the
year
(1.46p) (67,500) - (67,500)
Forfeited during the
year
(0.965p) (31,000) - (31,000)
Forfeited during the
year
(1.55p) (15,000) - (15,000)
Total forfeited during
the
period (203,500) - (203,500)
------------------------- ----------------------------------- ------------------------ ----------------------------
Total outstanding at 30
June 2021 1,076,500 635,000 1,711,500
------------------------- ----------------------------------- ------------------------ ----------------------------
Exercisable at 30 June
2021 192,500 207,500 400,000
------------------------- ----------------------------------- ------------------------ ----------------------------
During the period ended 30 June 2021 the Company recognised
total expense; net of cash settled awards of GBP226,138 (2020:
GBP198,845) related to the fair value of the share-based payment
arrangements. This included GBP42,230 (2020: GBP149,905) related to
equity-settled share options and GBP183,908 (2020: GBP48,940) from
cash-settled SARs.
These amounts were determined using the Black Scholes model,
with the following assumptions for each type of award granted:
Stock Options
Weighted average fair value 0.886p
----------------
Weighted average exercise
price 165.0p
----------------
Expected life of options
(years) 8.4
----------------
Risk free rate 1.70%
----------------
Dividend yield 0.0%
----------------
Volatility 53.0%
----------------
Share Appreciation Rights
Weighted average fair value 0.986p
---------------
Weighted average exercise
price 151.7p
---------------
Expected life of options
(years) 7.7
---------------
Risk free rate 1.25%
---------------
Dividend yield 0.0%
---------------
Volatility 62.6%
---------------
7. Dividends
The Board is not recommending the payment of an interim dividend
in respect of the period ended 30 June 2021. It does, however,
anticipate that, should the business continue to progress
favourably in H2, the Group will be in a position to pay a full
year dividend.
8. Date of approval of interim financial statements
The unaudited consolidated interim financial statements were
approved by the Board on 13 September 2021. Electronic copies are
available on the Filta Group Holdings plc website,
www.filtaplc.com.
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END
IR BUGDCXXBDGBX
(END) Dow Jones Newswires
September 14, 2021 02:00 ET (06:00 GMT)
Filta (LSE:FLTA)
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