Buy to date: 26.5% Orig­i­nal entry point: Buy at 170p, 14 Septem­ber 2017

A TRAD­ING UP­DATE from fry­ers-to-drains cleaning spe­cial­ist Filta (FLTA) on 5 June has gone down well with in­vestors. It has signed six new fran­chises so far this year in­clud­ing one in each of its new­est op­er­at­ing lo­ca­tions, Canada and Germany.

It has also se­cured 17 MFU sales, re­fer­ring to mo­bile fil­tra­tion units which are the driv­ers for repeat revenue.

EBITDA (earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion) is up 11% so far this year, com­pared with the same pe­riod in 2017. That equates to 23% growth at con­stant ex­change rates. This per­for­mance is very en­cour­ag­ing given that the weak US dol­lar had an ad­verse im­pact on its revenue in the early part of the year.

The com­pany told share­hold­ers at its an­nual meet­ing that it has a good pipeline of en­quiries from ‘high-qual­ity as­pir­ing fran­chisees’ in North Amer­ica and Europe, giv­ing it con­fi­dence about the prospects for this year and be­yond.

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