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Filta Group cooks up a record year in 2017

Strong organic growth both in the UK and the US means Filta expects revenues to have grown by over 30% when it reports its 2017 results later this year
deep fat fryer
Filta’s technology allows commercial kitchens to clean and reuse their cooking oil, while the firm will also use it to create biofuel when it’s finished

Sales at Filta Group Holdings PLC (LON:FLTA) jumped in 2017 as demand for its mobile frying oil cleaning services soared.

In a pre-close trading update, the company – whose technology cleans deep fat frying machines and the oil used in them – said revenues for the year to December 31 would be in excess of US$13.25mln, a 30% year-on-year rise (2016: £10.1mln).

US and UK both strong

Growth was driven by “strong organic growth” in both the US and the UK, with the latter benefitting from a solid showing from its commercial fridge door seal business, FiltaSeal, as well as last summer’s acquisition of FiltaGMG.

Profits for the period are expected to be in line with expectations, despite reduced margins and increased overheads as Filta invested in its people and systems to support future growth.

The AIM-quoted firm – which counts Pizza Hut and KFC among its clients – said margins are expected to pick up in 2018 following the sale of its lower margin refrigeration business at the start of January.

Despite a weakening US dollar which affected revenues “modestly” in the second half, deferred revenue rose by a further £0.2mln year-on-year.

Record year

“We had a record year with each of our core service offerings delivering double digit revenue growth.  Further, our mobile filtration unit count rose 15% to 392 at year end,” said chief executive Jason Sayers.

“In parallel, our acquisition of Filta GMG and expansion of Filta's fryer management franchise business in Europe supports our strategy of making investments that strengthen our product offerings and expand our customer base.”

“The board anticipates that 2018 will be another year in which Filta delivers a strong financial performance.”

Final results are expected to be published on April 17.

Filta shares gained 3.3% to 179.7p on Wednesday morning.

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