(Alliance News) - Filtration-focused engineering firm Filta Group Holdings PLC hiked its interim dividend Monday after revenue more than doubled following a recent acquisition, despite profit suffering as cost savings were slow to arrive.
Shares in Filta were 7.8% higher at 165.00 pence in London on Monday.
For the six months ended June, pretax profit halved to GBP473,593 from GBP1.0 million a year prior. This was despite revenue almost doubling to GBP12.2 million from GBP6.6 million the year before.
Profit performance was hurt by administrative costs doubling to GBP4.3 million from GBP2.3 million the year prior.
"The acquisition of Watbio has contributed to us becoming one of the leading providers of FOG, Pump, Drain and Seal services in the UK, whilst the steady growth of our franchisees and franchise numbers in North America and Europe is ever-increasing our profile and market footprint," Filta Chief Executive Officer Jason Sayers said.
In December, Filta acquired peer Watbio Holdings Ltd for up to GBP8.1 million. During the interim period, the Watbio acquisition generated GBP4.2 million in additional revenue for the combined group.
"Whilst some of the timings of the efficiencies expected at the time of Watbio's acquisition have come through slightly later than projected, we are pleased with its performance and the exciting opportunities it presents for next year and beyond," Sayers added. "We continue to see substantial opportunities for further growth in our respective markets, with our services being used by 2% or less of the available markets in each geography."
Filta proposed a 1.00 pence per share interim dividend, up 39% from 0.72p the year prior.
"The strength of our operations in the UK, North America and Europe will drive our ongoing growth in each of these regions and our focus on quality of customer service, franchisee support and innovations will ensure that we remain a market leader in our industry," Sayers continued. "At the same time, we envisage that the demand for our services will continue to grow hand in hand with the increasing regulation relating to hygiene standards across the food preparation and provision industries. "
