28th May 2020 13:10
(Alliance News) - Filta Group Holdings PLC posted a sharp annual revenue rise, but decided against a final dividend due to the Covid-19 pandemic.
In 2019, revenue was 75% higher at GBP24.9 million from GBP14.2 million, numbers from the cooking oil filtration and fryer management services showed.
Pretax profit however, was 46% lower at GBP936,284 from GBP1.7 million.
Administrative expenses were 73% higher at GBP8.9 million and finance costs multiplied to GBP278,259 from GBP41,984.
Revenue was helped by the GBP8.6 million contribution from Watbio, the peer it acquired for up to GBP8.1 million back in December 2018.
Filta Chief Executive Officer Jason Sayers said: "The acquisition of Watbio in December 2018 established the group as the leading independent provider of grease management services in the UK and provided us with a platform for further growth in fat, oil and grease services and related activities. Despite the challenges that we encountered in integrating the Watbio business, it contributed 34% of the group's revenue in 2019.
"We also saw some good performances from our other company-owned businesses in the UK, where revenue grew by 18% and in North America, where revenue was up by 23%."
Filta opted not to declare a final payout, as a result of Covid-19 uncertainty, meaning its total dividend for the year is 1.00 pence per share, down by 39% from 1.64p in 2018.
CEO Sayers added: "We had been experiencing good trading in the period leading up to the lockdowns, which occurred in most of our operating territories during March. Revenues had exceeded management expectations and, with the rationalisation and improved productivity, operating margins were in line with our forecasts which were significantly improved over 2019.
"During the lockdown period, in response to requests from franchisees and customers, we have commenced a new service, FiltaShield, which is a sanitising service that will protect against Covid-19 for up to 30 days. We launched this service in April and are offering it, in the UK, as a direct service to our existing customers as well as to any other businesses or organisations which have to ensure safety for their staff and customers. In North America it is being provided through our franchise network. We would potentially look to do the same in Europe."
Shares in the company were 3.3% higher at 110.00p each in London on Thursday afternoon.
By Eric Cunha; [email protected]
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