Filta Group Holdings PLC Trading Update (6816M)
25 Enero 2021 - 01:00AM
UK Regulatory
TIDMFLTA
RNS Number : 6816M
Filta Group Holdings PLC
25 January 2021
25 January 2021
Filta Group Holdings plc
("Filta", the "Company" or the "Group")
Trading Update
Filta Group Holdings PLC (AIM: FLTA), a provider of fryer
management and other services to commercial kitchens, issues a
trading update for the financial year ended 31 December 2020.
As well documented in Filta's previous updates, the impact of
Covid-19 on the restaurant and leisure sector saw the Company focus
on its cash position in order to navigate an unexpectedly
challenging period. This focus produced the desired results and we
are pleased to say that net debt (excluding lease obligations) has
been reduced by 42% to GBP0.5m. Cash and cash equivalents at the
year-end was GBP4.2m (2019: GBP2.9m), up 45%, with the Company's
bank facility of GBP400k unutilised.
The Company delivered a much stronger performance in second half
of the year, with an increasing number of customers opening up
during the summer period. The Company also adapted to new customer
requirements resulting from Covid-19, introducing a new revenue
line, its FiltaShield service, in May. As a consequence of the rise
in service demand in the second half, margins have returned to the
levels achieved in Q1 2020 following the operational improvements
delivered at the end of 2019.
In the US, demand for our services in the second half came back
quicker than initially expected, helped by the acquisition of new
customers. With stadia, corporate dining and universities, all
major contributors in the past, still in lockdown, there remains
some significant future upside to trading revenues.
In the UK, the opening of restaurants in the summer also led to
a resurgence in demand from customers. Whilst social restrictions
were increased again in the autumn, demand for Filta's services has
remained resilient in the circumstances, with many customers still
operating food take-away and delivery, so requiring regular kitchen
servicing.
In Europe, which accounts for around 1% of revenue and is
predominantly weighted to Germany, activity continues to be heavily
restricted by lockdown, but costs have been cut to shield the
business until the market improves.
The pipeline of new sales, both services and franchises, is
certainly promising. We were encouraged by the pick-up in franchise
enquiries in H2 2020, with six franchises sold (making a total of
12 in 2020). This gives us the confidence that we will see improved
volume as and when the market restrictions are lifted, alongside
greater access to credit and higher unemployment, which has
historically led to a rise in demand for new franchises.
In terms of services, in the UK, the new GreaseMaster Cyclone
grease interceptor has been extremely well received by the market,
whilst in the US, our Fryer Management service has been rolled out
further to healthcare and supermarket customers. At the same time,
our FiltaShield offering has continued to register sales in each
market and this is complementing the existing services and
providing additional revenues.
Despite the further lockdown restrictions, particularly in the
UK and Europe, our stronger cash position and continued demand from
our major customers does provide more certainty than at any time
over the last twelve months. The actions that we have taken have
meant that the Company is well placed to perform strongly and
thrive, once more normal trading conditions return. Whilst it is
not yet possible to predict with certainty when that will be, the
vaccine roll-out and the pent-up demand for our customers' services
give us cause for optimism. We will continue to monitor all aspects
of our markets closely and will provide more detailed guidance as
soon as practicable. We intend to report our full year results in
April, and will certainly provide a further update at that time, if
not before.
CEO of Filta Group, Jason Sayers said: "The business has worked
hard to put itself in a much stronger position for when
restrictions are eased across all our territories. Importantly, our
cash position has improved and we have an encouraging sales
pipeline. Despite the difficult circumstances, we have won new
contracts, launched new services and sold new franchises, all of
which gives us a stronger platform for growth."
Contacts:
Filta Group Holdings plc
Jason Sayers, Chief Executive
Officer
Brian Hogan, Chief Financial
Officer +1 407 996 5550
Cenkos Securities
Stephen Keys, Camilla Hume +44 20 7397 8900
Yellow Jersey PR
Charles Goodwin
Joe Burgess
Henry Wilkinson +44 7747 788 221
About Filta Group
Filta Group is a market-leading, commercial kitchen services
business, servicing restaurants, supermarkets, stadiums,
healthcare, education, hotels and amusement parks. Trusted by many
global brands, we specialise in Fryer Management and Grease &
Drain Management, servicing businesses that require regular
maintenance. For more information visit our website:
https://filtaplc.com
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