Filta Group adjusted earnings tumble amid Covid-19 pandemic
Commercial kitchens services provider Filta Group said on Thursday that adjusted earnings had tumbled in 2020 amid the ongoing Covid-19 pandemic.
Filta expects to report adjusted underlying earnings in the region of £1.0m, well shy of the £3.2m recorded in 2019, while revenues were approximately one-third lower than the £24.9m achieved in the prior year.
The AIM-listed group said it had introduced efficiencies in the last quarter of 2019 and, through close attention to spending through 2020, had actually managed to achieve "a small improvement" in gross margins and a £1.4m reduction in overhead spending.
Filta highlighted that the effects of the pandemic had a greater impact on its European operations, where it was taking longer to return to normal market conditions. UK margins were "greatly improved" as a result of the firm's reorganisation, while US operations remained profitable throughout the year.
Chief executive Jason Sayers said: "We are strongly encouraged by the performance of the group during undoubtedly very challenging times. With the rollout of vaccine programmes making excellent progress, particularly in the UK and the US, the restaurant and leisure sectors are expected to open up as we approach the summer months.
"As a result of the proactive measures we implemented early in the pandemic, the group has a robust balance sheet and we believe we are coming out of this period as a more efficient organisation and with an exciting sales pipeline."
As of 1120 GMT, Filta shares were down 0.85% at 117.0p.