Fevara Plc · LSE:FVA
Fevara — Carr's Milling Industries — H1 2014 Earnings Presentation
21 slides from Fevara's earnings presentation, April 2014
Slide 1: Reaping the Benefits of Geographical and Operational Diversity
[Title from Nick Dibden] REAPING THE BENEFITS OF GEOGRAPHICAL AND OPERATIONAL DIVERSITY Preliminary results Interim results presentation presentation CEO: Tim Davies April April2014 2014 FD: Neil Austin www.carrs-milling.com Tel: +44 (0) 1228 554600
Slide 2: Contents
Contents Page • The Business 3 • Results Overview 4 • Group Strategic Plan 5 • Trading Overview 6 Business Review • Feed Blocks 7-8 • Overseas Agriculture Operations 9 • AminoMax® 10 • UK Agriculture 11 • UK Agriculture Operations 12 • Engineering 13 - 14 • Food 15 • Financial Review 16 - 19 • Strat
Slide 3: The Business
The Business International business focused on three sectors: agriculture, food and engineering Agriculture • Manufacture of molasses-based branded feedblocks for farm animals both in the UK, Germany and USA e.g. Crystalyx®, Megalix® and SmartLic® • Own and operate 26 rural retail outlets across the
Slide 4: Results Overview
Results Overview • Pre-tax profit increased 2.0% to £10.1m (H1 2013: £9.9m*) • EBITDA increased 3.1% to £13.3m (H1 2013: £12.9m*) • Adjusted EPS increased 0.6% to 78.1p (H1 2013: 77.6p*) • First interim DPS increased 9.7% to 8.5p (H1 2013: 7.75p) • £25.3m net debt (£22.1m as at 31 August 2013) • NAV
Slide 5: Group Strategic Plan
Group Strategic Plan VISION Recognised as a truly international business at the forefront of technology and innovation Investing in people that Seen and recognised as Acquisition strategy for Investment in assets to will shape business in leaders in innovation growth and JVs with ensure long term te
Slide 6: Trading Overview
Trading Overview Agriculture Food Engineering • Weather impact • Financial step • Investment at change Wälischmiller • AminoMax® • New flour mill • MSM growth • Feed blocks • Market dynamics • Bendalls • Developments • Next steps – New contracts Sioux City continued delivery of oil and gas (USA)
Slide 7: Feed Blocks
Feed Blocks Technology • Research Ongoing research programmes in UK, Europe and USA • Production Investment in facilities and production techniques • Products Pig Block - new market UK and Europe Pick Block - new market Europe Flaxlic® - improved performance and fertility Megastart® - im
Slide 8: Feed Blocks
Feed Blocks Performance • Underlying growth continues despite vagaries of weather (+5% volume) JVs • Shelbyville, Tennessee, USA Record tonnages in first half (+66% volume) • Crystalyx GmbH, Oldenberg, Germany Sales growth continues (+20% volume) Future growth • Europe Export growth using Crys
Slide 9: Overseas Agriculture Operations
Overseas Agriculture Operations 9
Slide 10: AminoMax®
AminoMax® Technology • Research University research programmes and on-farm trials in the USA and UK • Production New techniques and efficiencies in place Investment • Lancaster UK Investment complete and at capacity (£1.4m) • Watertown USA Expansion completed December 2013 ($2.4m) Strategy •
Slide 11: UK Agriculture
UK Agriculture Compounds and blends feed • Reduced sales (-12% volume) compared to last year but in line with expectations Retail sales and distribution • Country Store developments Berwick, Bakewell, Skipton open Annan on track to open summer 2014 • Sales performance Impacted by weather but o
Slide 12: UK Agricultural Operations
UK Agricultural Operations 12
Slide 13: Engineering
Engineering Wälischmiller, Markdorf, Germany • Investment in new factory completed January 2014 • Product research and development V1000 (Robbie) – work ongoing with clients Telbot – Statoil Shell project progressing • New contract – first contract for Wälischmiller in the USA • Outlook – positi
Slide 14: Engineering
Engineering MSM • Strong performance continues • Additional to Sellafield work replacing MSM products in power stations in Heysham II, Hinckley and Hartlepool • Tendering for contracts within UK Nuclear Decommissioning Programme for remote handling equipment • Outlook good Bendalls • New contract
Slide 15: Food
Food • New mill complete and commissioned driving efficiencies • Resultant step change in financial performance • Market dynamics Wheat harvest 2013 Wheat prospects 2014 UK harvest Flour market changes • Outlook Continued delivery of benefits of investment including a “halo” effect Home ba
Slide 16: Segmental Analysis
Segmental Analysis 1H 1H 2013 2014 (restated) Revenue PBT Revenue PBT £m £m £m £m Agriculture 159.9 6.8 173.4 6.3 Food 44.8 1.0 44.7 0.4 Engineering 10.0 1.8 13.5 2.2 214.7 9.6 231.6 8.9 Head office/other (0.6) (0.3) Retirement benefits (0.4) (0.4) Associate & JVs (post tax) 1.5 1.7 10.1 9.9 EPS (p)
Slide 17: Balance Sheet
Balance Sheet At 1 March At 31 August 2014 2013 £m £m Non-current assets 75.0 72.0 Current assets (excluding cash) 107.0 100.1 Total assets (excluding cash) 182.0 172.1 Net debt (25.3) (22.1) Trade & other payables (64.4) (63.3) Tax & deferred tax (6.7) (5.4) Retirement benefit obligation (2.4) (3.3
Slide 18: Cash Flow
Cash Flow Half year to Half year to 2 March 2013 1 March 2014 (Restated) £m £m Profit before tax 10.1 9.9 Share of post-tax profit from associate and JV’s (1.5) (1.7) Depreciation and amortisation 2.5 2.6 Pension contributions (1.4) (1.4) Working capital (5.9) (12.7) Tax paid (0.7) (0.9) Other 0.6 (
Slide 19: Banking and Net Debt
Banking and Net Debt As at Facility 1 March 2014 Expiry £m £m Working capital facilities (UK) 12 month rolling (38.0) (14.9) Working capital facilities (USA) 12 month rolling (0.6) (0.4) Working capital facilities (Eu) 12 month rolling (3.3) - Term loans September 2015 (7.3) (4.4) Revolving credit f
Slide 20: Strategic Delivery For Future Growth
Strategic Delivery For Future Growth Group Strategic Divisional Plans Delivery Objectives Agriculture • AminoMax® • Lead in dairy nutrition • Research • Investment in targeted research • New plants • Innovation • New markets • New products • Consolidate UK position • New markets • Acquisitions • Ret
Slide 21: Growing internationally - continuing investment
Growing internationally - continuing investment [Title from Nick Dibden] Preliminary results presentation April 2014 www.carrs-milling.com Tel: +44 (0) 1228 554600
Carr's Milling Industries — H1 2014 Earnings Presentation on 6ix