(Sharecast News) - Filta Group, a provider of fryer management and other services to commercial kitchens, said on Friday that its first-half revenue and profit are in line with management's expectations.
In a trading update for the six months to 30 June, AIM-listed company said it enjoyed strong trading, with revenue growth from new franchisees added in the latter part of last year, further growth in its UK-based seals business and an increasing contribution from GMG, which it bought last August.
That acquisition, and the sale of the refrigeration business at the end of 2017, led to higher overall gross margins and improved profitability. In addition, Filta said the acquisition and integration of the master franchise in Germany has gone smoothly and it has added two new franchises in Europe. The company gained 10 new franchisees in the first half and now has 422 mobile filtration units (MFU) in operation, up from 394 at the end of last year.
It said the franchisee and MFU count are the drivers of its business, and together with the revenue growth in its company-owned businesses, FiltaSeal and FiltaGMG, give it confidence in further progress in the second half of the year and beyond. Chief executive officer Jason Sayers said: "We have had a strong start to the year and have successfully completed a number of strategic initiatives, including the disposal of our lower margin refrigeration business, the integration of GMG and the changed structure of our European activities. "We continue to seek growth opportunities through both acquisitions and the continued development of our existing businesses over the short, medium, and long term." At 1005 BST, the shares were down 2% to 224.50p.
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