Filta Group Holdings (LON:FLTA) said it believes revenues and margins will return to levels seen in the first quarter once social distancing restrictions are lifted and the restaurant and hospitality industries return to normality.
“Albeit that there has to be some uncertainty as to how long, and to what extent the restrictions may persist, we believe that, by the actions we have taken, we will be able to manage the group through that period and to be in a strong position thereafter,” said Filta's chairman Tim Worlledge.
His comments accompanied full-year 2019 results from the oil filtration and fryer management group.
The numbers reveal a company, which until the coronavirus outbreak, was making real financial progress.
Revenues for the 12 months ended December 31, 2019, were up 75% to £24.9mln, reflecting an £8.6mln contribution from the 2018 acquisition, Watbio.
Organic growth was a none-too-shabby 16% while underlying earnings (adjusted EBITDA) grew by a fifth to £3.2mln.
In an interview with Proactive, chief executive Jason Sayers said the business had adapted to cope with the lockdown.
Indeed, it has also innovated to come up with FiltaShield, which is a sanitising service that will protect against the coronavirus for up to 30 days.
“We launched this service in April and are offering it, in the UK, as a direct service to our existing customers as well as to any other businesses or organisations which have to ensure safety for their staff and customers,” Sayers said.
“In North America, it is being provided through our franchise network. We would potentially look to do the same in Europe.”
READ: The full interview with Jason Sayers by clicking here
The shares, up from 63p a month ago, were trading 1.4% higher at 108p in late morning trade.
Investment research house Hardman said of the company: “Filta is an attractive business, in our view, combining the capital-light franchise model in North America and Europe with company-owned operations in the UK.
“As businesses begin to reopen, the focus on cleanliness, efficiency and environmental friendliness is unlikely to be abated.”
---adds share price and analyst comment---