Commercial kitchen services provider Filta Group has revealed its unaudited interim results for the 6 months ended 30 June 2020.
During these 6 months, the supplier generated revenue of £8.3m, a reduction of 32% compared to the same period last year, where turnover was £12.2m. This year’s total was substantially impacted by Covid-19 lockdowns and social distancing restrictions.
The firm made an operating loss of £664k in these 6 months too, 207% down on the £614k profit from the same period in 2019. However, gross margin remained the same, at 41%.
Nevertheless, Filta reduced overhead costs in Q2 by 23% in response to impact of Covid-19.
In fact the company had a strong Q1 followed by reduction in trading due to the lockdown and then good month on month growth in May, June, and July.
Filta clinched six new franchise sales in the period. Following the outbreak of Covid-19 in March 2020, the group has been focused on supporting its franchisees and customers by reducing franchise fees and working with customers to prepare for re-openings in Q3.
Cost reductions were reportedly achieved through the lockdown period by making use of government schemes, wage cuts and reduced discretionary spending.
Plus the company launched its FiltaShield sanitisation service in May and recently secured an exclusive licensing agreement with NHS Trust owned support services group, NTH Solutions.
Filta is also reporting encouraging progress in North America and Europe, as continued interest from potential franchisees is said to have resulted in four new H2 franchise sales and a healthy pipeline.
Jason Sayers, CEO of Filta, commented: “While the Covid-19 pandemic had a material impact during the first half, our results demonstrate the resilience of our businesses and the fundamental strength of Filta. I am extremely proud of the way that Filta staff have stepped up to challenges we faced in each of our markets, and I thank all our employees and franchisees who have worked tirelessly to support our customers throughout these challenging times.
“We entered the year with good momentum, but with the pandemic causing lower demand for our services and widespread closures across our customer base from mid-March, we quickly adapted, placing emphasis on supporting our employees, franchisees and customers and protecting the long-term health of our business.
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“Despite the disruption, we remained committed to operational excellence whilst developing new and creative ways of working; all of which will ensure that the company-owned activities in the UK, in particular, remain ideally positioned for future success. The strength of our North American business model has been evidenced by the continued profitable trading that we have enjoyed throughout the Covid-19 affected period.
“With customer demand now coming back, we can focus on leveraging our solid capabilities to drive revenues back up. We are well-prepared for the resumption of trading by our ongoing end customers and believe that there will be growth opportunities as businesses have to become more innovative and efficient.
“Moreover, with the appointment of a new and industry experienced MD in the UK to drive the business forward, we are confident that we are well placed to achieve strong revenue growth.”
By CLARE NICHOLLS
Source: Catering Insight