Filta Group Holdings plc share price, company news, analysis and interviews
Filta Group Holdings plc (LON:FLTA) is a market-leading, commercial kitchen services business, servicing restaurants, supermarkets, stadiums, healthcare, education, hotels and amusement parks. Trusted by many global brands, they specialise in Fryer Management and Grease & Drain Management, servicing businesses that require regular maintenance.
North America
In the US and Canada, Filta provides the FiltaFry Fryer Management service through its network of Franchise Owners, many of whom have built substantial businesses with many technicians.
These Franchise Owners are trained and supported from Filta’s offices in Orlando, Florida.
United Kingdom
In the UK, Filta provides the FiltaFry Fryer Management service through its network of Franchise Owners.
The other services are provided through our Company Owned operation which directly employs Technicians who provide service to customers.
Mainland Europe
In mainland Europe, Filta provides the FiltaFry Fryer Management service through its network of Franchise Owners who are trained and supported from Filta’s offices in The Netherlands.
Master Licenses
Filta Group awards, trains and supports Franchise Owners directly in North America, the UK, Germany, Austria and Spain.
In other countries, Filta may assign the rights to operators, via Master Licenses, who sub-franchise in their respective markets. It is the responsibility of the Master License holder to award, train and support their Franchisees.
Filta Group Holdings plc (LON:FLTA), a provider of fryer management and other services to commercial kitchens, has provided its trading update ahead of the results for the financial year ended 31 December 2021, which it expects to announce on 12 April 2022.
Revenues recovered strongly through 2021 and are now running at higher levels than they were before the impact of the pandemic. The record-setting third and fourth quarters helped the Group to finish the year with revenues of £23.6m (2020: £16.4m). This performance was led by a strong and early recovery in North America, where sales grew 82% year-on-year to a record of £14.2m (2020: £7.8m). Although the return to normality was slower in our UK operations, second half revenues increased by 37% over the first half, resulting in full year UK revenues of £8.9m, up 10% on 2020.
We have been particularly encouraged by the amount of new business that we have secured through the Covid-impacted months and since that threat has receded. It has also been encouraging to see how well-received our Cyclone GRU has been since its launch in 2020. We recently signed a 10-year supply agreement to be the exclusive global supplier of the unit and, following its strong acceptance in the UK, we introduced the Cyclone GRU to the European market in the second quarter, where we finished the year with 19 installations.
The Group’s cash position has continued to improve with net cash of £0.7m as of 31 December 2021 (31 December 2020: Net Debt £1.6m).
Although still early in the new year, trading continues to be positive with January 2022 revenue up 62% over the same period last year. The recovery and continued revenue growth reflects the resilience of our business model and the support and commitment of our people, both direct employees and franchisees, over the past two years. The Board, therefore, views the future with confidence and believes that Filta, with its strong balance sheet, ever-improving product offerings and growing franchise base, is well positioned to build on its 2021 performance as the US, UK and European hospitality and leisure markets continue their return to unrestricted trading conditions.
Jason Sayers, Filta Group Holdings Chief Executive Officer, commented:
“I am delighted with the Group’s performance in 2021 despite the ongoing challenges from Covid-19. The significant growth in revenue, whilst managing these challenges, is a testament to both the resilience of our business model and the exemplary efforts from all of the Filta team.
We plan to build on this performance in 2022 and remain confident in our ability to deliver continued growth in the coming year.”
Filta Group Holdings plc (LON:FLTA) has announced its ESG Commitment and a Trading Update.
Highlights
· Filta, through its proprietary FiltaFry process, helped US customers save over 9 million litres of cooking oil during 2020
· Cooking oil recycling during 2020 delivered CO2 reduction of 26,500 tonnes
· Second half trading for the Group has continued to be strong, posting record revenues for the third quarter and October, led by waste oil and equipment sales and installation
· The Group is confident of a positive finish to the trading year and anticipates full year revenue and adjusted EBITDA* will be slightly ahead of analyst forecasts
ESG Commitment and Environmental Impact Report 2020
For 25 years, Filta Group Holdings PLC, a provider of fryer management and other services to commercial kitchens, has been focussed on improving the environment and helping its customers operate more sustainably. All of the Group’s activities benefit the environment in many ways and the Board believes that it should provide its stakeholders with a clear statement of the Group’s ESG credentials and base year reporting metrics.
Filta is committed to achieving Net Zero Operational Impact on the environment across all its businesses by 2035. Equally important, Filta is also committed to helping its customers operate ever more sustainably and goes above and beyond this commitment by integrating sustainability into every customer-service delivery visit. To this end, Filta regularly provides Environmental Impact Reports to customers, a copy of which can be found in the ESG statement on the Company’s website.
Through its core service, FiltaFry, the regular cleaning of fryers and micro-filtration of the oil used in those fryers, Filta helped its US customers save 9.3 million litres of cooking oil during 2020. The EIR has calculated that producing this amount of cooking oil would normally emit over 5,000 tonnes of CO2 and has a carbon offset equivalent to planting 297,000 trees.
Although regular filtering can significantly extend the life of the oil, it does eventually need to be replaced. Filta provides collection and disposal services for the waste oil which is sold and converted into biodiesel. In 2020, 8.7 million litres of waste oil was collected by Filta and converted into biodiesel. Using this fuel instead of petroleum diesel generated a CO2 offset equivalent to planting more than 1.1 million trees.
The FiltaFry service is delivered through a network of franchisees who service over 7,000 kitchens every week through contracts with some of the world’s largest brands, including Sodexo, Compass, Aramark, Apex Companies, Whole Foods as well as restaurants, hospitals, supermarkets, universities and stadia.
The data detailed below are from the EIR which identifies the environmental savings Filta’s services achieved in 2020. This sets out a range of resource savings including water, agricultural land, fuel and also total CO2 reductions, which reached 26,500 tonnes.
Filta is pleased to report that its continuing commitment to delivering environmental benefits to its customers has contributed to strong growth in the current year. In particular, volumes of waste oil collections have continued to grow and this, combined with higher oil prices, has helped to deliver revenues in Q3 2021 which are 10% higher than in 2019, the latest year unaffected by COVID-19, and 63% higher than Q3 of 2020.
The Company can also report that trading remained robust in October as revenues set a record monthly high. Accordingly, although the waste oil revenues command lower gross margins than our other activities, having regard to the continued robust trading that has been seen through October, the Board is expecting the out-turn for the year to produce adjusted EBITDA slightly ahead of analyst forecasts.
Filta’s CEO, Jason Sayers, commented : “We have always been very conscious of the need to look after our environment and these latest statistics have measured in detail the significant reductions in waste and emissions linked to us and our customers. Whilst good progress is being made, there is still much to be done to help our customers reduce their impact further and achieve Filta’s goal of being net zero carbon by 2035.”
“We are delighted that the efforts that we made to support our customers through the worst times of the pandemic are now being rewarded by improving activity levels, underpinned by customer loyalty, and that we can look to the future with a confidence that was difficult to imagine 12 months ago.”
Apex Companies, customer of Filta Group, commented: “Filta provides us with used fryer oil management for approximately 25-30 facilities for which we currently provide water and environmental consulting services. They assist us in reducing the amount of waste oil disposed at these facilities by filtering the used fryer oil until it is no longer reusable, at which point it is taken offsite for conversion to biodiesel. Filta’s involvement with our program has reduced the amount of waste generated by these facilities and has also limited the potential for spills by eliminating the need for used cooking oil drums by removing oil directly from fryers at a number of the facilities. Filta provides Environmental Impact Reports (EIRs) that summarize the quantity of oil conserved from the filtering process as well as the amount of oil hauled off-site for conversion to biodiesel. The EIRs also outline how the filtering and recycling process relate to resource management, energy management, and the reduction of pollutants emitted to the environment. These reports are greatly appreciated by our clients, as they demonstrate a commitment to increase sustainability at their facilities.”
*Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and share-based payment expense and non-recurring items.
Surface Transforms revenue increased by 34% to £1.2m
Surface Transforms plc (LON:SCE) manufacturers of carbon fibre reinforced ceramic brake discs, announced this week its half-year financial results for the six months ended 30 June 2021. Highlights – Revenue increased by 34% to £1.2m (H1-2020: £0.9m) · Cash at 30 June 2021 was £17.2m (H1-2020: £2.0m) · Gross profit increased by 27% at £0.7m (H1-2020: £0.6m). Read the full article here:
Union Jack Oil important progress made at Wressle, West Newton and Biscathorpe
Union Jack Oil plc (LON:UJO), a UK focused onshore conventional oil and gas production, development and exploration company, announced on Monday its unaudited results for the Half Year ended 30 June 2021. It said that Wressle oil production, following successful proppant squeeze of the Ashover Grit reservoir, significantly exceeded initial expectations of the 500 barrels of oil per day well deliverability projections.
David Bramhill, Union Jack Oil Executive Chairman, commented:
“The period covered in this Half Yearly Report has seen important progress made at our three key project interests, namely, Wressle, West Newton and Biscathorpe plus the addition of an attractive royalty revenue stream. Developments at our three material projects where we have meaningful economic interests have generated a steady stream of encouraging news flow, which we expect will be continued based on current activities.
Filta Group deliver strong performance with group revenues up 17%
Filta Group Holdings plc (LON:FLTA), a market-leading commercial kitchen services provider, announced on Tuesday its unaudited Interim Results for the 6 months ended 30 June 2021. Group Revenue had increased 17% to £9.7m (H1 2020: £8.3m, H2 2020: £8.1m).
Jason Sayers, CEO of Filta Group, 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.”
Jubilee Metals Group successfully raises gross proceeds of £30 million (Interview)
Jubilee Metals Group plc (LON:JLP) announced that on the 15th, it raised gross proceeds of £30 million (ZAR 592 million) as result of fundraising. CEO Leon Coetzer joined DirectorsTalk Interviews to discuss the successful execution of three strategic transactions. Leon puts the 3 transactions into context, explains the value to Jubilee and shareholders and lets us know what else is on the horizon.
Filta Group Holdings plc (LON:FLTA), a market-leading commercial kitchen services provider, has announced its unaudited Interim Results for the 6 months ended 30 June 2021.
Financial Summary
· Group Revenue increased 17% to £9.7m (H1 2020: £8.3m, H2 2020: £8.1m)
· Gross profit, up in line with increased trading levels, £3.9m (H1 2020: £3.4m, H2 2020: £3.5m)
· Adjusted EBITDA* increased by 500% to £1.3m (H1 2020: £0.2m, H2 2020: £0.9m)
· Cash inflow from operations doubled to £1.0m (H1 2020: £0.5m)
· Net debt reduced by 50% to £0.8m (31 December 2020: £1.6m)
· Cash balance of £4.2m (31 December 2020: £4.2m)
· 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 Group, 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 [email protected].
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.
Filta Group Holdings plc (LON:FLTA) CEO Jason Sayers joins DirectorsTalk Interviews to discuss its unaudited Interim Results for the 6 months ended 30 June 2021. Jason explains how Q1 looked compared to Q2, the pace at which the UK, Germany and US bounced back post pandemic and how Jason feels about things going forward.
https://vimeo.com/606257605
Filta Group Holdings plc is a market-leading, commercial kitchen services business, servicing restaurants, supermarkets, stadiums, healthcare, education, hotels and amusement parks. Trusted by many global brands, they specialise in Fryer Management and Grease & Drain Management, servicing businesses that require regular maintenance.
Filta Group Holdings plc (LON:FLTA) Chief Executive Officer Jason Sayers caught up with DirectorsTalk for an exclusive interview to discuss first half results, the pace in which the UK, US and Germany came back and how he feels about things going forward.
Filta Group Holdings is a market leading commercial kitchen services business servicing restaurants, supermarkets, stadiums, healthcare, hotels, and amusement parks. Trusted by many global brands, they specialise in fryer management and grease drain management, servicing businesses that regularly require maintenance. Today, the company announced its interim results for the six months ended 30 June 2021 and joining me to discuss those results is CEO Jason Sayers.
Q1: It looks like you’ve had a great set of results for the first half. Just breaking down, how did Q1 look compared to Q2?
A1: Q1 was severe lockdowns in the UK still so revenues were held back a little bit in Q1 but Q2 we had almost a 30% increase in revenue over Q1 so the momentum really was strong coming into the end of the half and we’ve continued that into Q3 as well.
So, momentum is with us.
Q2: Now, you’re in the UK, Germany, and the US, have they all come back at the same pace?
A2: No, so taking the US first, that came back really quickly, like a train earlier in the year, it took us all a bit by surprise. We’re now back to revenues stronger than we’ve ever had before, network revenues and franchisees revenues and, only just now, end of September, are we getting the bigger customers coming back. So, some of the universities and the stadiums are now layering on top of the record revenues we have coming into this.
We put on around 1,000 new customers during COVID so now we’re servicing those plus the big stuff is coming back so it’s exciting.
In the US, the biggest barrier to our growth right now is getting enough staff on, our franchisees getting technicians out there, and we’ve actually put on two full-time recruiters to help our franchisees hire new technicians. I think a month ago, we were hiring 100, we’re now down to 45 so we’re knocking through it but it’s busy keeping up with the pace of the work in the States is tricky.
The UK, as people on this call are more aware, severe lockdowns really until March/April time, going into May so that was behind the US coming back but we’re seeing it in Q3 stream ahead as well. So, it was a bit slower but it’s coming back nicely.
Germany is a much smaller market for us, less than 2% of our revenue but really the lockdowns have been more severe there and slower coming back but I’m pleased to say that last month was the first month of seeing all of franchisees out there gaining a lot of their customers back. So, things are looking good out there too.
The UK, Germany and the US have come back at different paces to us.
Q3: It certainly sounds like Filta Group is in a good position, the first half was positive. How do you feel about things going forward?
A3: Again, momentum from Q1 to Q2 was good, we are seeing similar momentum coming into Q3, an expansion on Q2 , things are coming back.
We did well managing cash during COVID, we’ve come out of this now net cash positive in the business so pleased with that and we’re gaining more cash in Q3, it’s accelerating.
So, things are accelerating nicely for the second half and looking forward to performing in the second half.
Filta Group plc (LON:FLTA) announced 1H’21 results in line with expectations. Our forecasts are largely unchanged. What is even more clear is that the business has performed robustly during COVID-19, adding new clients and becoming an important part of its clients’ processes. Revenues were back to 80% of 1H’19, with the US leading the way, and with its largest clients yet to reopen, Filta is emerging from this fog stronger than ever. Assuming that there is no reversion to widescale lockdowns, our forecasts should prove conservative.
1H’21 results: Revenue was up 17% YoY, and adjusted EBITDA came in at £1.3m, higher than FY’20 as a whole. The company ended the half year with net debt of just £0.8m including leases, showing very effective cash management. Overheads were reduced, and efficiency gains were made throughout the business.
2021 outlook: The US has been better than the UK, which has been better than Europe (only 2% of business). We are forecasting a 24% pick-up in revenue for 2021, followed by 27% in 2022. Business is bouncing back strongly, with economic stimulus and huge pent-up demand. Filta Group has shifted its FOG business in the UK to a capital-light franchise model, and its Cyclone model is now well-established.
Valuation: Our DCF-derived valuation delivers a central value of £52m, or 178p per share, and equates to 11x 2022E EV/EBITDA.
Risks: The clear risk for Filta is that COVID-19 returns aggressively and its customers are unable to stay open or reopen. In the UK-owned operations, the business is heavily weighted towards 20 large operations that are well-positioned to survive. Its balance sheet is relatively strong, with cash balances and low net debt.
Investment summary: Filta Group is an attractive business, in our view, focusing on the capital-light franchise model developed in North America, and now widespread in the UK and growing in Europe. As businesses continue to reopen, the focus on compliance, cleanliness, efficiency and environmental friendliness is unlikely to be abated. This is a business that did not sit idly by while its customers were shut; it has improved efficiency across the operations, which we believe will drive profitability this year and next. The company is currently hiring staff to cope with the resurgent demand, and, with its FiltaFOG Cyclone product being specified for exclusive use in some of the world’s largest restaurant chains, we believe it will thrive for the foreseeable future.
Filta Group Holdings plc (LON:FLTA) announced FY’20 results in line with expectations. We are not changing the forecasts we published last month. What is clear is that the business has performed robustly during COVID-19, adding new clients and becoming an important part of its clients’ processes. With business levels back to 70% of pre-COVID-19 levels and with its largest clients yet to reopen, Filta is emerging from this fog stronger than ever. Assuming there is no reversion to widescale lockdowns, our forecasts should prove conservative.
FY’20 results: Revenue was down by a third, and adjusted EBITDA came in at £1.05m. The company ended the year with net debt of just £0.5m, showing the effectiveness of its cash management in a very tricky period. Overheads were reduced by £1.4m, and efficiency gains were made throughout the business.
2021 outlook: The US has been better than the UK, which has been better than Europe (only 3% of business). We are forecasting a 22% pickup in revenue for 2021, followed by 30% in 2022. Business is bouncing back strongly, with economic stimulus and huge pent-up demand. The company has shifted its FOG business in the UK to a capital-light franchise model, and its Cyclone model is now well-established.
Valuation: Our DCF-derived valuation delivers a central value of £49m, or 169p per share, and equates to 10x 2023E EV/EBITDA.
Risks: The clear risk for the company is that COVID-19 returns aggressively and its customers are unable to stay open or reopen. In the UK-owned operations, the business is heavily weighted towards 20 large operations that are well-positioned to survive. Its balance sheet is relatively strong, with cash balances and low net debt.
Investment summary: Filta Group is an attractive business, in our view, focusing on the capital-light franchise model developed in North America, and now widespread in the UK and growing in Europe. As businesses continue to reopen, the focus on cleanliness, efficiency and environmental friendliness is unlikely to be abated. This is a business that did not sit idly by while its customers were shut; it has improved efficiency across the operations, which will drive profitability this year and next. The company is currently hiring 100 staff to cope with the resurgent demand, and, with its FiltaFOG Cyclone product being specified for exclusive use in some of the world’s largest restaurant chains, we believe it is here to thrive for the foreseeable future.
Filta Group Holdings plc (LON:FLTA) announced that it had remained EBITDA-positive in 2020, despite most of its customers closing for part of the period and revenue falling by a third. Net debt fell to £0.5m. The US reopening is accelerating, while the UK is due to follow in April. Filta has used the period to reduce costs and improve its business model. We expect it to emerge as an even better business as COVID-19 is tamed. Our forecasts are reinstated: we see 2021 EBITDA similar to 2018, and we estimate a record £4.5m for 2022.
Trading update: Revenue was down by a third, and adjusted EBITDA came in at around £1m. The company ended the year with net debt of just £0.5m, showing the effectiveness of its cash management in a very tricky period. Overheads were reduced by £1.4m, and efficiency gains were made throughout the business.
2021 outlook: The US has been better than the UK, which has been better than Europe (only 3% of business). We are forecasting a 22% pickup in revenue for 2021, followed by 30% in 2022. We estimate a 44% gross margin in both years, and expect the overhead proportion to drop sharply as sales pick up. There were six franchise sales in the US in 2020, and there remains strong interest.
Valuation: Our DCF-derived valuation delivers a central value of £45m, or 156p per share, and equates to a 10x 2022E EBITDA multiple.
Risks: The clear risk for Filta is that COVID-19 returns aggressively and its customers are unable to stay open or reopen. In the UK-owned operations, the business is heavily weighted towards 20 large operations that are well positioned to survive. Its balance sheet is relatively strong, with cash balances and low net debt.
Investment summary: Filta Group Holdings is an attractive business, in our view, combining the capital-light franchise model in North America and Europe with company-owned operations in the UK. As businesses continue to reopen, the focus on cleanliness, efficiency and environmental friendliness is unlikely to be abated. This is a business that has not sat idly by while its customers were shut; it has improved efficiency across the operations that will drive profitability this year and next.
Filta Group Holdings plc (LON:FLTA) announced that it remained EBITDA-positive in 1H’20, despite most of its customers closing for part of the period. Business is returning as customers reopen, with sports stadia expected to be the last to resume catering. Filta has used the period to reduce costs and improve its business model. We expect it to emerge as an even better business when COVID-19 is tamed. Our 2020 forecasts remain suspended.
1H’20 results: Revenue was down 32%, at £8m, and adjusted EBITDA came in at £200k, after a £300k bad debt provision. The company ended the half year with net debt of £1.9m, a small improvement on the year-end, showing the effectiveness of its cash management in a very tricky period.
2H’20 outlook: Business is picking up month-on-month, and is back to around 70% of pre-COVID-19 levels. Strong franchisees will prosper and weaker ones may not survive, but an economic downturn tends to lead to increased interest in franchise businesses, and Filta’s recurring revenue model is an attractive one. Filta has maintained its 40% gross margin and reduced fixed overheads.
Valuation: Along with our forecasts, we have suspended our valuation.
Risks: The clear risk for Filta is that COVID-19 returns aggressively and its customers are unable to stay open. In the UK-owned operations, the business is heavily weighted towards 20 large operations that are well positioned to survive. Its balance sheet is relatively strong, with cash balances and low net debt.
Investment summary: Filta Group is an attractive business, in our view, combining the capital-light franchise model in North America and Europe with company-owned operations in the UK. As businesses continue to reopen, the focus on cleanliness, efficiency and environmental friendliness is unlikely to be abated.
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