Filta Share Discussion Threads

[battlebus2] 03/4/2017 10:54

Yes not as rosy a picture as they paint but are we still looking at a company with great growth prospects going forward

[nfs] 03/4/2017 10:47

When it's a messy presentation , always look at the cash flowThat doesn't lie

[nurdin] 03/4/2017 10:27

yes I see what you mean.I have emailed the company to get an explanation.

But of course the exceptional costs will not be there in the current year or going forward which should give some faith in the numbers brokers come out with. All in all,while I too am not happy about what you call underhand, looks to me the underlying business is quite robust and profitable, if you ignore the extras.

[ramridge] 03/4/2017 09:49

Results are not only messy but misleading too.
The underlying eps (before exceptional costs such as Aim admission and payments to previous directors) is stated to be 5.05p
But if you look at section 12 which gives details of calculations, this figure is based on ^adjusted operating profit^ and not adjusted net profit.
Why? because the adjusted net profit is probably negative when you make allowance for the adjustments mentioned above. So the adjusted eps calculated on a generally agreed basis ( adj np) is probably negative.

This is pretty underhanded by the management.
Not an investor and not likely to be with this sort of hoodwinking management

[nurdin] 03/4/2017 07:46

The results look a bit messy but the underlying performance is pretty good.Net cash of £4.3m which equates to 16p a share!

I specially like their outlook statement:

Current Trading & Outlook

We have had a good start to 2017.

-- Franchise Development remains strong in the US.

-- We established Filta Canada and attended the Toronto Franchise Show as a first step to launching in Canada during 2017.

-- The year commenced with significantly higher revenue visibility on the Fryer Management side.

-- Signed and started Fita-Seal contract with a major national U.K. pub chain with over 1,700 sites.

[msarwar014] 03/4/2017 07:34

Good set of results

[battlebus2] 31/3/2017 16:36

And a dividend

[nurdin] 31/3/2017 15:01

2016 results,to be reported on Monday, will be muddied by a few exceptional items including listing costs,settlement of some Directors loans and such like.The reported results therefore will not make a brilliant reading but adjusted numbers could be interesting.I am expecting clean EBITDA of around £2m.

What will be more interesting is growth in franchisee numbers and the outlook for the current year.I think that will most probably make for pleasant reading on both counts.Just a guess.

[battlebus2] 27/3/2017 17:12

Yes looking forward to results

[nurdin] 27/3/2017 16:25

I say..nice rise on a bad market day !

[battlebus2] 13/3/2017 13:33

Thanks centnous...

[battlebus2] 13/3/2017 13:27

Moving back to previous highs??

[battlebus2] 13/3/2017 10:13

Bought a few of these on the dip last week, looking forward to the first dividend being declared with results.

[nurdin] 06/3/2017 13:09

Shareholders..for interest:

Shareholders
Name Equities %
Jason Charles Sayers 11,614,680 43.1%
Victor Clewes 4,558,750 16.9%
Livingbridge VC LLP 2,644,000 9.81%
Roy Charles Sayers 1,762,160 6.54%
Ennismore Fund Management 1,538,480 5.71%
Jlubomir Urosevic 1,309,690 4.86%
Miton Asset Management Ltd. 964,520 3.58%
BlackRock Investment Management 850,0003.15%
Cavendish Asset Management Ltd. 440,000 1.63%
Timothy John Worlledge 30,000 0.11%

[nurdin] 03/3/2017 17:21

Interesting read...



"Franchisees benefit from having little competition (unlike a lot of other home-based/mobile opportunities) and also from repeat business."

[nurdin] 02/3/2017 11:05

Hadnt realised they operate in 20 countries..

"Since 1996, The Filta Group has been providing unparalleled service around the world to restaurants and other food establishments.

The Filta Group was established with a single machine in the UK and now operates in over 20 countries with the Filta, FiltaFry, FiltaFry Plus, FiltaCool, and FiltaBio brands.

Filta’s “Green” services naturally preserve the environment by extending the life of cooking oil with the FiltaFry service, and reducing energy consumption and food waste with the FiltaCool and product."

[nurdin] 27/2/2017 16:00

cheers for your comment.The bulls on G4M are forecasting prices of £10 to £20 which is a sign the price has probably reached its peak!

Todays fall here is not too surprising...it got ahead of itself after the SCSW tip.Some profit taking was perhaps inevitable and the fall has been exaggerated by the lack of liquidity.I have my buy order in already!

[woodcutter] 27/2/2017 15:38

nurdin i'm not in G4M my view is it is overhyped and at some point it will came back to earth as they say. it's way over priced and as you note no barriers to entry. I don't see it the same as ASOS but i could be wrong.

i just googled restaurant cleaning systems when i last posted and there looked to be lots of competition which you've got to displace to gain market share and revenue.

the recent drop is beginning to attract my attention.

woody

[nurdin] 22/2/2017 18:37

..and another thing.If you are worried about rating and barriers to entry etc then look at G4M .Trading at 50x this years earnings and their main business is selling musical instruments and other paraphernalia on the internet.No barriers to entry that I can see there and yet the market is happy to rate them at 50x !Admit however that it is a different kind of business but that does not detract from the point I am trying to make

[nurdin] 22/2/2017 10:54

Hi woodcutter

Filta were tipped recently by SCSW at 95.5p.Here is their concluding remark:


"Trading is running strongly across the group. It is adding new franchisees and new services are being launched at regular intervals. Current year sales to end December are expected to reach £9.6m with analysts at Cenkos pencilling in £11.3m and £13.2m for the following two years. Adjusting for cash raised, the current year PE of c.15x is expected to drop to less than 9x within two years. This compares to another quoted franchise business that has also recently joined AIM, Franchise Brands (FRAN; 68.5p), which has had much fanfare and fuss since listing and is on a current year PE of almost 40x despite having a less interesting mix of work, like grass cutting and dog sitting.
I think this one has hallmarks of a winner. Buy before the masses"

Note that their PE value is cash adjusted which perhaps lightens the number.

However imo companies like these thrive on efficient management of the business,customer care and a fast response set up,rather than technology.The time,effort and marketing expense involved in setting up a successful franchise business are perhaps the main barriers to entry here...

[bennodean] 16/2/2017 13:38

All very sage advice... my concerns are lot simpler.. the sheer number of establishments per day a franchisee was expected to visit.

And really... does anybody clean their drains until they have to? So don't see that bringing much value add.

[woodcutter] 15/2/2017 16:02

spent hours reviewing this today and despite the business model having excellent reviews from franchisees and looking favourable for expansion and long term growth, i can't see any moat. Is there any patent protection on their technology?

If not what's preventing others from starting a similar operation. Granted there's a capital requirement to do so but there will be competion at some point and the current forecasts look to be in the share price to me for some considerable years hence.

Indeed there are already other companies in the fryer cleaning space so unless their technology is better, more efficient or less expensive I see risk at the current sp

On my watch list but it needs to drop a fair bit before I'll take the plunge

woody

[nurdin] 08/2/2017 12:25

Couldnt resist taking a small position here last week despite my reservation about the rating.The more I look into it the more I feel this is a great business with considerable potential for global expansion.This appears to be happening already.

I await the announcement of the year end results which I understand will be declares on around 3 April

[essential] 09/1/2017 12:27

I think scsw readers pulling money out to invest in identified naps