F I LTA
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.