Full year audited results for the financial year ended 31 December 2019

Financial Highlights

• Revenue up 75% to £24.9m (2018: £14.2m) reflecting £8.6m Watbio contribution:
• Fryer Management revenue up 25% to £11.7m (2018: £9.3m).
• FiltaSeal revenue up 18% to £1.9m (2018: £1.6m).
• Organic revenue growth of 16% (2018: 17%).
• Franchise Development revenue £1.5m (2018: £1.5m).
• Gross profit up 44% to £10.2m (2018: £7.1m).
• Adjusted EBITDA* up 20% to £3.2m (2018: £2.6m).
• Profit before tax, excluding non-cash charges (amortization, depreciation and share based payments) of £2.6m (2018: 2.4m), a 7% increase.
• Net borrowings of £2.1m (2018: Net cash of £2.1m) inclusive of £1.2m of lease liabilities under newly adopted IFRS 16.
• The Board is not recommending the payment of a final dividend in light of the uncertainty surrounding COVID-19.

Jason Sayers, CEO, commented:

“The acquisition of Watbio in December 2018 established the Group as the leading independent provider of grease management services in the UK and provided us with a platform for further growth in FOG (Fat, Oil and Grease) services and related activities. Despite the challenges that we encountered in integrating the Watbio business, it contributed 34% of the Group’s revenue in 2019.

“We also saw some good performances from our other Company-owned businesses in the UK, where revenue grew by 18% and in North America, where revenue was up by 23%.

“We had been experiencing good trading in the period leading up to the lockdowns, which occurred in most of our operating territories during March. Revenues had exceeded management expectations and, with the rationalisation and improved productivity, operating margins were in line with our forecasts which were significantly improved over 2019.

“During the lockdown period, in response to requests from franchisees and customers, we have commenced a new service, FiltaShield, which is a sanitising service that will protect against COVID-19 for up to 30 days. We launched this service in April and are offering it, in the UK, as a direct service to our existing customers as well as to any other businesses or organisations which have to ensure safety for their staff and customers. In North America it is being provided through our franchise network. We would potentially look to do the same in Europe.

“Our long-term focus remains on growing the business both organically and through acquisitions of high margin, repeat revenue businesses in the grease management market."

28^th May 2020