Filta Group (FLTA)

Filta Group FLTA Logo

A provider of various services to national and independent commercial kitchen operators and owners, the principle service is FiltaFry, which is the micro-filtration of cooking oil, the vacuum-based cleaning of deep fryers and full Fryer Management.

7-Feb-2018 – 173.52p – £47.1m – PER 24.1

Trading Update For The 12 Months To End December 2017 – Revenue in excess of £13.25m (up over 30% on the prior year (FY 16: £10.1m)). Slightly reduced gross margin owing to a change in revenue mix so profit just in-line with market expectations. Organic growth strong.

Like this enough to add it to the Watchlist, 150p.

17-Apr-2018 – 197.5p – £52.6m – PER 26.9

Results For The 12 Months To End December 2017 – PBT of £1.7m (2016: loss of £0.2m) with Revenue up by 34% at £13.5m (2016: £10.1m). Service and territory expansion seems to be progressing well. Outlook confident.

Nice update, remains on my Watchlist at 150p but perhaps it’s worth paying up here now. Will keep an eye on this this morning.

Subsequent note: Meeting my Technical Screen and after checking and liking the fundamentals I bought in here at the beginning of June.

5-Jun-2018 – 209p – £56.7m – PER 24.8

Trading Update – Strong progress YTD, in-line with management expectations. However, a weak USD has impacted revenue with EBITDA 11% ahead (23% CC).

I am long here and will remain so for now. I will however keep a close eye here on the market reaction to this USD impact.

10-Aug-2018 – 229p – £57.0m – PER 24.1

Trading Update For The 6 Months To End June 2018 – H1 Revenue and Profit in-line with management expectations – Confident for H2 to and beyond.

I hold here and although this is a reasonable update it does sound rather cautious – I remain long but will, as always, keep an eye on market reaction here.

4-Sep-2018 – 239p – £64.9m – PER 27.0

Interim Results For The 6 Months To End June 2018 – Revenue up 15% (22% in CC) to £6.6m, PBT up 13% (22% in CC) to £1.0m, Basic EPS up 24% to 3p and the Interim Dividend will be increased to 0.72p, from 0.65p last time (let’s call it 10%). It seems perhaps FX will affect FY here “The currency environment appears less challenging in the second half of the year which has begun with a stronger US dollar.  Should this continue it would be an encouraging sign supporting higher revenue and profit growth for the second half”.

I hold here but will monitor this morning – Potential here looks good (especially with the lower margin fridge business out of the way) but this is not really what I expect from a company trading on a PE of almost 30.

Subsequent note: I did decide to sell out here later in the day – I remain Neutral with an eye out for updates to hopefully see the 2 year forecasts improve.

14-Feb-2019 – 231p – £66.8m – PER 19.6

Trading Update For The 12 Months To End December 2018 – Revenue to be in excess of £14m (£11.5m last time), EBITDA to be in-line. Outlook including contribution from acquired Watbio seems encouraging.

As an ex-holder I am quite tempted to buy back in here – It’s on my Watchlist.

Subsequent note: Bought in here on 3rd April 2019.

15-Apr-2019 – 230p – £67m – PER 19.5

Results For The 12 Months To End December 2018 – Revenue up 23%, Gross Margin at 49.8% (49.2% last time), PBT £1.7m (£1.6m last time), Basic EPS of 4.86p (2.9p last time) and the Total Dividend is up 26%.

I am Long here, will check the market reaction to these results as the EPS figure seems a little strange to me, was expecting 5.4p versus 5.1p last time.

Subsequent note: Sold out here as a new Broker note from Cenkos indicated a fair value price (based on my Parity PEG Report) circa 250p. And, these results did little to move the price.

12-Jun-2019 – 225p – £65m – PER 21

Results For The 12 Months To End December 2018 – Expect a stronger H2 to mean FY will be in-line with market expectations.

This looks about fairly valued here to me, especially taking into account the H2 weighting mentioned today.

9-Sep-2019 – 153p – £45m – PER 32

Interim Results For The 6 Months To End June 2019 – Revenue up 85% (21% organic), Adjusted PBT up 14% and the Interim Dividend is up 39%.

This looks good but I do have concerns on the sustainability of this kind of growth.

5-Nov-2019 – 193p – £56m – PER 30

Trading Update For The 12 Months To End December 2019 – Revenue to be broadly in-line with market expectations, H2 Adjusted EBITDA to be similar to H1.

Why not provide numbers? I can’t be bothered checking, I guess the market will let us know how disappointing this is.

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