Fryer management firm sees revenue soar

Filta’s fryer management revenue has grown.

Rugby-based Filta Group Holdings has reported its 2017 financial results, which show huge growth for the fryer and grease management enterprise.

The firm numbers FiltaFry – offering fryer management and cooking oil services, FiltaSeal – providing a commercial refrigeration seal replacement service and FiltaGMG – grease management services, as its UK divisions, with FiltaFry bases also in the USA, Canada and Germany.

For the year ending 31 December 2017 the company as a whole generated £13.5m revenue, a 34% increase on 2016’s £10.1m. This included continuing and discontinued operations.

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Revenue from only continuing operations increased 36% to £11.5m (2016: £8.5m).

Adjusted EBITDA from continuing and discontinued operations was up 67% from 2016’s £1.3m to this year’s £2.2m and up 77% to £2.1m from 2016’s £1.2m for continuing operations.

In the fryer management segment, recurring revenue grew 36% to £8.4m, from 2016’s £6.2m.

Revenue from FiltaSeal was up by 31% to £1.3m whilst FiltaGMG contributed £0.4m of revenue since its acquisition in late August.

Operationally, the Filta group increased its franchise owner base to 184, while the number of allocated territories rose by 49 to 347. Mobile filtration unit (MFU) numbers also grew by 16% from 341 to 394.

The highest grossing franchise owner achieved over $2m (£1.5m) in revenue and six (2016 – four) franchise owners recorded revenue over $1m (£0.8m).

Significant growth in fryer management services was cited as being driven by organic growth and new franchise development which, in turn, enlarged the platform for increasing fryer management services.

Fryer management activities expanded to new regions to add complementary activities and improve operating margins. This involved launching FiltaFry in Canada; the acquisition of drain management business Grease Management Ltd, enabling the expansion of Filta’s UK company-owned services to include higher margin drain management activities; the sale of Filta Refrigeration Limited, the company’s refrigeration and air conditioning installation and maintenance business; and the acquisition of FiltaFry Deutschland GmbH, being the Filta German master licence in Germany, providing a platform for franchise expansion in Europe.

Jason Sayers, CEO, commented: “In 2017 we continued to build our franchise base and took several strategic steps, including the entry into Canada and the acquisition of Grease Management Limited. This has been followed, more recently, by the purchase of FiltaFry Deutschland GmbH, all of which laid the ground for further growth and improved margins in the years ahead.

“Early 2018 has seen the benefit of these actions with further growth in fryer management revenues, the recurring revenue engine, while FiltaSeal volumes have experienced a good start to the year. We continue to integrate FiltaGMG and we anticipate an acceleration in revenue and profitability as it builds its client base through the year.

“Franchise development remains important to the growth of fryer management revenues. We have continued to add new franchises, territories and MFUs to our franchise platform through the first quarter and are encouraged by the strength of the new business pipeline.

“Finally, we are already seeing a modest improvement in our gross margins as a result of the strategic moves outlined above and we expect this trend to continue through the year.”

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