LONDON (Alliance News) - Filtration-focused engineering firm Filta Group Holdings PLC hiked its 2018 dividend Monday after profit and revenue both grew strongly as organic and acquisitive growth delivered.
In 2018, pretax profit widened 6.3% to GBP1.7 million from GBP1.6 million the year prior. This was after revenue rose 23% to GBP14.2 million from GBP11.5 million the year before.
"2018 was an active year for the group as we continued to experience strong organic growth whilst completing two strategically significant acquisitions," Filta Chief Executive Officer Jason Sayers said.
"The buy-in of the German master franchise gave us an immediate foothold in the German market, where we are experiencing good initial results applying the US franchise model, provides a base for expansion into mainland Europe," Sayers added. "Late in the year we completed the acquisition of Watbio Holdings Ltd, which fits squarely with our strategy of increasing high margin repeat revenue business and moves Filta into a market-leading position in the FOG (fats, oils and greases) market."
Filta proposed a 0.92 pence per share final dividend, up 42% from 0.65p the year prior. For the full year, the dividend rose 26% to 1.64p from 1.30p the year before.
"Whilst we anticipate a slowdown in new franchise sales as our territory coverage gets closer to maturity in the US, our European operation has picked up the mantle and we are encouraged both by the strength of the new business pipeline and the opportunities that will come from a broader geographic base," Sayers continued.
"We also see a strong path for growth in FiltaSeal and our other company-operated offerings and, with the implementation of a new scheduling system, anticipate improved efficiencies and gross margin", Sayers concluded.
Shares in Filta were 2.6% lower at 224.00 pence on Monday.