TIDMFLTA
RNS Number : 4086T
Filta Group Holdings PLC
25 March 2021
25 March 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, provides the
following update on trading, ahead of the Group's full year results
for the year ended 31 December 2020, which it intends to announce
on 20 April 2021.
Despite the pandemic's impact on the restaurant and leisure
sectors, the Group was able to demonstrate the resilience of its
model and Filta is pleased to announce that it expects to report
adjusted EBITDA in the region of GBP1.0m (2019: GBP3.2m), from
revenues which were approximately one third lower than the GBP24.9m
achieved in 2019. The Group introduced efficiencies in the last
quarter of 2019 and, through close attention to spending through
2020, we have achieved a small improvement in gross margins and a
GBP1.4m reduction in overhead spending.
As stated in previous announcements to the market, the Group
took quick, decisive action to meet the challenges of the COVID-19
pandemic, with the principal focus being on the preservation of
cash. We are pleased to report that, with the benefit of delivering
positive EBITDA, the Group's operations were cash neutral and that,
having utilised the available government support schemes, the net
debt (excluding lease liabilities) has reduced from GBP0.9m to
GBP0.5m during the year, leaving us with a gross cash balance of
GBP4.2m at the year end.
In the US, we have supported our franchisees through the
pandemic with reduced royalties, based on revenues. Many states are
now reopening with the vaccine programmes being rolled out
successfully and this is allowing a rapid recovery within the
restaurant and leisure sectors. Our US operations have remained
profitable and cash generative throughout the period and, by the
end of 2020, recurring revenue levels had recovered to over 65% of
the levels being achieved in 2019, despite some of the Group's
major existing customers, including stadia and universities, not
having reopened. This has been achieved by some 20% growth in the
total US customer base and leaves us well-positioned to capitalise
on both the additional revenues that will derive from further
re-openings and from the US recovery generally, which we are seeing
this year. We achieved six US franchise sales in 2020 and continue
to receive encouraging levels of new franchisee interest. As such,
with unemployment likely to remain high and government-driven
market stimuli anticipated in the coming months, we expect to see
further interest from prospective franchisees.
In the UK, margins have greatly improved as a result of the
reorganisation and efficiency measures introduced at the end of the
previous year. As with the US, the Group's major UK customers are
yet to re-open and, in consequence, business levels are at
approximately 60% of pre-Covid levels. However, looking to the
future, we have invested in building our UK sales teams in order to
achieve closer relationships with our key customers. It is pleasing
to report that we have, as a result, seen an increase in sales
activity and have developed a strong sales pipeline. Additionally,
Filta's new GreaseMaster Cyclone grease interceptor has been
extremely well received by the market and its FiltaShield products
continue to register sales in the UK, US and Europe.
The effects of the pandemic have had a greater impact in Europe,
where it is taking longer to return to normal market conditions.
However, our operations in Europe make up less than 3% of the
Group's revenue and our exposure is, therefore, minimal at this
stage, but we remain positive about the opportunities for us in
Europe and believe that by maintaining a strong foothold we will be
well-positioned for rapid future growth.
While Filta charts its path ahead as the easing of restrictions
in the restaurant and leisure sectors allows for more of our
customers to re-open, the Group is actively looking to engage more
closely with private investors. It is therefore planning to
participate in a number of retail investor-facing events in the
coming months, including the Proactive One2One Investor Forum on 25
March 2021 and the MelloMonday Investor Event on 29 March 2021. The
Group hopes that both existing and prospective investors will take
the opportunity to learn more about Filta at these upcoming
events.
CEO of Filta Group, Jason Sayers, said: "We are strongly
encouraged by the performance of the Group during undoubtedly very
challenging times. With the rollout of vaccine programmes making
excellent progress, particularly in the UK and the US, the
restaurant and leisure sectors are expected to open up as we
approach the summer months. As a result of the proactive measures
we implemented early in the pandemic, the Group has a robust
balance sheet and we believe we are coming out of this period as a
more efficient organisation and with an exciting sales
pipeline.
"The OECD has predicted UK and US GDP growth for 2021 of 5.1%
and 6.5% respectively and we expect trading to continue
strengthening as we go through 2021. With markets expected to be
fully open and back to pre-pandemic levels by next year, we look
forward to further growth through 2022 and beyond.
"Once again, we would like to express our gratitude to all Filta
staff and franchise owners during these challenging times and
encourage them to look forward, as we are, to the brighter future
on the horizon."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
The Market Abuse Regulation (EU 596/2014) pursuant to the Market
Abuse (Amendment) (EU Exit) Regulations 2018 . Upon the publication
of this announcement via a Regulatory Information Service ("RIS"),
this inside information is now considered to be in the public
domain.
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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END
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