(Alliance News) - Filta Group Holdings PLC said Thursday it expects to deliver a "much improved performance" in 2020, following good progress made in the final quarter of 2019.
Filta shares were trading 16% higher in London at 161.70 pence each on Thursday.
Filta provides cooking oil filtration and fryer management services to commercial kitchens. It expects to report adjusted earnings before interest, tax, depreciation and amortization of GBP3.2 million on turnover of approximately GBP25 million.
The company said both the North American and mainland Europe operations have delivered results in line with expectations. Meanwhile in the UK the company took actions to deliver cost savings of around GBP100,000 per month.
Filta said good progress made in the final quarter of 2019, together with "strong interest" from potential franchises in North America, gives the company confidence that it will "deliver a much-improved performance in 2020."
Filta acquired Watbio Holdings Ltd, which provides oil, fat and grease removal and sewage treatment services, in December 2018 and has encountered "some challenges" in 2019 as it was integrating Watbion in its FOG and Seal business.
Jason Sayers, chief executive officer, said: "However, following a number of management changes, new hires and investment in software systems, it is pleasing to report that these difficulties have now been addressed, and we look forward to delivering the higher margins of which we know the business is capable."
"At the same time, Filta's North America business continues to grow through our focus on helping franchisees to improve and expand their own operations, which is increasing the level of reoccurring royalty revenues flowing to the company," Sayers said.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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