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The price of shares in AIM-listed kitchen services provider Filta Group (LON:FLTA) jumped 15.50% to 161.70p (as of 10:00 GMT) as they reported significant cost savings in the UK as well as productivity improvements linked to recent software upgrades. As a consequence, the company has lifted its adjusted EBITDA guidance for the year.
CEO Jason Sayers said: “The acquisition of Watbio in December 2018 was a significant transaction for the Group, given that it is a well-established company with a high-quality customer base and was almost twice the size of Filta’s existing UK business. The rationale and opportunities presented by the acquisition remain compelling but, as previously reported, we did encounter some challenges in 2019 as we sought to integrate Watbio with our existing FOG and Seal business. However, following a number of management changes, new hires and investment in software systems, it is pleasing to report that these difficulties have now been addressed, and we look forward to delivering the higher margins of which we know the business is capable.
“At the same time, Filta’s North America business continues to grow through our focus on helping franchisees to improve and expand their own operations, which is increasing the level of reoccurring royalty revenues flowing to the Company“.