Filta Group Holdings PLC (AIM: FLTA), a provider of fryer management and other services to commercial kitchens, provides the following update on its trading.
The Company is pleased to report that it continues to experience an increasing level of demand for its services in all of its operating territories, with a clear link to the success of the vaccine rollouts and exiting of lockdown phases.
In the US, the hospitality and leisure sectors are reopening quicker than previously anticipated, with Filta's franchisees delivering a record $4.6m of network revenue in April, up from $3.1m in January and well ahead of April 2019 ($4.3m), when $52m was achieved in the full year.
A number of Filta's larger customers, particularly sports stadia and universities, have opened slightly earlier than expected, with the majority of the remainder scheduled to reopen during the third quarter. As the larger customers continue to reopen, Filta expects the franchisee monthly network revenue to rise further. The network revenue performance is being reflected in continued growth in Filta's own US revenues.
In the UK, the reopening of the leisure and hospitality sector has been more cautious than in the US but is now gathering momentum. The Company's decision to focus on supermarkets and fast food chains has been a major factor in driving revenues whilst the hospitality venues have been closed, resulting in an increase in equipment installations and a robust sales pipeline, as our recently launched Cyclone grease interceptor becomes recognised as the "best of breed". In line with Filta's shift to a more capital-light model for the provision of its services, much of the Fat, Oil and Grease ("FOG") service work in the UK is now being performed by franchisees rather than by directly employed technicians.
In Europe, although the vaccine rollout has been slower, the hospitality and leisure sectors are now beginning to reopen. In the past month alone, Filta has installed several new Cyclone grease interceptors, marking the introduction of Filta's FOG business into mainland Europe. Whilst currently representing less than 2% of Group revenue, we see great opportunity for growth in Europe, and the Company believes it is in the process of developing a strong platform from which it can generate growth.
Filta continues to engage proactively with private investors and is participating in a number of investor-facing events in the coming months, including Cenkos and Proactive Investors' Virtual Growth & Innovation Forum at 13:30 on Tuesday, 08 June 2021. To register for the event, please visit the following link: https://event.webinarjam.com/register/1097/yyy0gsq4r.
The Group hopes that both existing and prospective investors will take the opportunity to learn more about Filta at this and other upcoming events.
CEO of Filta Group, Jason Sayers, said: "The success of the vaccine rollouts is certainly helping to drive the reopening of our markets and to instil greater confidence in the restaurant and hospitality sector. In the US, our revenue run-rate is now ahead of pre-Covid levels and we were delighted to deliver record network revenue in April. With a majority of our largest customers expected to have reopened during the third quarter, we expect further revenue growth in the second half of the year."