Filta Share Discussion Threads

[nurdin] 09/9/2017 16:59

Do remember the eps figure reported for H1 (2.54p) is the basic eps ,struck after deducting a number of non-cash items such as depreciation,amortisation,share based payments etc Adjusted for these we get a much rosier picture of the actual 'operating eps'.The cashflow statement has the details which I am trying to work out...

[maiken] 09/9/2017 10:22

Hi Jonwig,
Are those revised eps forecasts post the results?
Prior to the results they were forecasting £11.3m revenue this yr and £13.2m next.
Given they've just reported £6.6m for the 1st half Filta are likely going to beat next yr's revenues 12 months early.
I appreciate the co. have made clear their working capital costs have risen too, as they put in place stronger infrastructure this year, so the rise in eps will lag revenue growth for the time being.

[jonwig] 09/9/2017 08:52

Publicity for the first Canadian franchise:



I've only just seen the results. Good, yes, but that good? The house broker forecasts eps of 6.0p for the full year (PER 29x) and 7.3p for next. They've probably understated these, of course.

[hpcg] 08/9/2017 13:23

OK, written up by Graham Neary on Paul Scott's Small Cap Value Report on Stockopedia. I guess it wasn't my occasional name drop on another board.

Edit, having read it it meshes well with what I wrote, and I think that message will resonate with the readership. He also ends with "tempted to take a position". Act first, publish later ;-)

[hpcg] 08/9/2017 13:18

Which is nice, as I bought more first thing before the breakout! When I bought yesterday and today had to pay right near the top of the spread, 157 yesterday and 159.5 today. Any attempt to order at even 156p was knocked back, so definitely short of stock, as the price action informs us.

[nurdin] 08/9/2017 11:51

On a breakout!

[scottishfield] 07/9/2017 15:54

nicely put hpcg

[hpcg] 07/9/2017 10:51

I think more that this just hovers below the horizon of most investors as a micro cap with a relatively recent listing and in an industry which is less than glamorous. I have bought more today as I wrote I would if results were positive. There is a growth runway here, it has a few decent niches and I would suggest it sits in a consumer staples category, as immune to the ebbs and flows of the economies as it can be. There are limits to the size it can grow as it can only ever be a tiny fraction of the market it serves, but which is an enormous market. I don't think the growth rate will be fast enough to attract the crowds, but I can comfortably find a place in my portfolio for it.

[nurdin] 07/9/2017 07:56

Cracking results but perhaps expected...?

[deej4y] 22/8/2017 21:50

A good article in the Share mag in June on the Flita Group

[luckymouse] 22/8/2017 17:55

Well I think they've worked out that huge stadiums, hotel groups, national restaurant chains etc is where the real bacon fat is :)

[hpcg] 22/8/2017 17:05

Wanting secure and viable franchisees is very important. These are a cheap way of growing the business because they grow it for you. You want your franchisee to expand into adjacent territories and to be looking to build significant businesses of their own. You don't really want one man and his dog happy doing the rounds of their local chippies or equivalent and looking forward to doing that until retirement.

[opodio] 22/8/2017 16:08

breakout


DING DONG!

[luckymouse] 22/8/2017 15:32

HaHa - thats true - the yanks will never give up fried food :)🍗🍔🍟
I don't know how aggressive they are - but I liked the way they talked in the RNS - they seemed to genuinely care basically which I thought was refreshing/sustainable

[hpcg] 22/8/2017 14:58

LM - my plan here, if all goes well, is to add on positive results at higher levels. There is still a reasonable amount of risk and given the age of the company progress has been slow. The business is certainly suited to a franchise model, and the yanks aren't giving up fried food anytime soon. I do have it marked down as a potential steady or staircase climber which is why I'm here, but I'd like to see a bit more urgency. I'm hoping the prospect of stock market riches provides the motivation for management to step it up a gear.

[nurdin] 22/8/2017 14:48

Hope we get the same rating as Franchise Brands which are trading at over 40x prospective earnings!

[jonwig] 22/8/2017 14:48

"It is the Board’s current intention that approximately
30 per cent. of the Group’s post-tax profits per annum
will be paid to Shareholders as a dividend. The Directors
believe that this represents an attractive, progressive
and sustainable dividend policy, having regard to the
anticipated amount of the Group’s distributable profits
and funds required to finance future growth."

Over 3x cover seems reasonable to me, but I won't get heated over the issue.

luckymouse - the franchising model is great until it gets stressed by high inflation. New potential franchisees want a discount, not a premium for expected future costs. Sub-5% isn't a problem.

[luckymouse] 22/8/2017 14:39

hpcg - agree div should be halved - but also does have the hallmarks of a Domino's Poland climber where they relentlessly keep grinding out the franchises. Its already up 40% from base & prob has further to go.

[hpcg] 22/8/2017 09:52

I agree about the IP and the potential for an offer, but can't agree about the dividend. This is a tiny company with no right to be paying a dividend - there is no way a US company would do this. There is absolutely no way the institutions are demanding a dividend. At 2p the payout is £454k. The company is still owned 2/3 by the former owners, so the massive sum of £154360 is heading to "institutions", none of which own more than 3%, or in dividend pounds, less than £4630 worth.

The company should IMO be concentrating on growing its existing franchisees (this is a stated aim) and opening up new franchise territories in the US (it's a bit more woolly about this). The IPO describes the vast market opportunity so it should be going out and grabbing that. Removing 30% of the free cash each year will simply hinder that growth.

Anyway, sensible corporate action

[jonwig] 22/8/2017 07:20

Acquisition of Grease management Ltd -



"Filta reaches the parts others don't want to talk about."

maiken - for FY, revenue £12.10m, PBT £2.30m, eps 5.90p, div 2.0p. (Sorry, overlooked your post earlier.)

[maiken] 14/8/2017 20:15

any idea what current year expectations are?

[jonwig] 10/8/2017 07:50

Another new franchise with good PR article here: