Fevara Plc · LSE:FVA
Fevara — Carr's Group — FY2017 Earnings Presentation
21 slides from Fevara's earnings presentation, November 2017
Slide 1: Preliminary Results Presentation November 2017
Preliminary Results Presentation November 2017 1
Slide 2: Agenda
AGENDA 1. Introduction | Tim Davies, CEO 2. Financial Results | Neil Austin, Group FD 3. Group Strategic Vision | Tim Davies, CEO 4. Divisional Review 5. Summary 6. Q&A 2 2
Slide 3: Results Overview
RESULTS OVERVIEW Revenue increased 9.9% to £346.2m (2016: £314.9m) Continuing operations EBITDA decreased 18.8% to £13.4m (2016: £16.5m) Underlying operating profit* decreased 28.5% to £9.3m (2016: £13.0m) Underlying profit before tax* decreased 20.2% to £11.4m (2016: £14.3m) Basic EPS dec
Slide 4: Financial Review: Segmental Analysis
FINANCIAL REVIEW: Segmental Analysis 2017 (£m) 2016 (£m) % Change Segmental revenue (continuing operations): Agriculture 315.9 284.8 +10.9 Engineering 30.3 30.1 +0.7 Total revenue 346.2 314.9 +9.9 EBITDA (continuing operations) 13.4 16.5 -18.8 Segmental underlying operating profit (continuing operat
Slide 5: Financial Review: Balance Sheet
FINANCIAL REVIEW: Balance Sheet At 2 September At 3 September % Change 2017 2016 £m £m Fixed assets 82.7 62.8 +31.7 Net working capital 36.3 40.9 -11.2 Assets employed 119.0 103.7 +14.8 Pension surplus 5.2 0.3 Net (debt) / cash (14.1) 8.1 Tax provisions (4.2) (2.0) Net assets 105.9 110.1 -3.8 Gearin
Slide 6: Financial Review: Cash Flow
FINANCIAL REVIEW: Cash Flow 2017 2016 Expiry Facility Utilised £m £m £m 2017 £m EBITDA (continuing operations) 13.4 16.5 Working capital facilities 12 month rolling 35.5 11.9 Working capital changes 1.6 (8.5) (UK) /2019 Net interest (0.7) (0.5) Working capital facilities 12 month rolling 1.2 0.3 Tax
Slide 7: Group Strategic Vision
GROUP STRATEGIC VISION To be recognised as a truly international business at the forefront of technology and innovation Strategic Objectives 1. Build value by focusing on markets with growth potential 2. Grow our international footprint 3. Differentiate through innovation and technology 4. Lead in o
Slide 8: UK Agriculture
UK AGRICULTURE • Manufactured feed volumes: 10.9% increase in tonnes sold against a national average increase of PERFORMANCE 6.6% • Machinery: 27.8% increase in total revenues. New tractor sales up 42% year on year versus a market increase of 21% • Fuel volumes: 3.5% decline in litres sold due to th
Slide 9: UK Agriculture
UK AGRICULTURE STRATEGY • Lead in dairy nutrition • Strengthen current geographical position • Expand into areas where current offer would be aligned OUTLOOK • Recovering farm incomes expected to continue • Improved farm gate prices • Return of farmer confidence • Brexit uncertainty • Diverse and st
Slide 10: Acquisition October 2017 Pearson Farm Supplies
ACQUISITION OCTOBER 2017 PEARSON FARM SUPPLIES • Pearson Farm Supplies located at Skipton, Gisburn, and Anglesey • Strong market position in Yorkshire and Lancashire particularly animal health, dairy products and feed blocks • Skipton and Gisburn closed and relocated in to Carrs Billington Skipton a
Slide 11: Feed Blocks
FEED BLOCKS PERFORMANCE • Global feed block sales down 2.1% • USA sales decline: 4.1% decrease in tonnes sold (including JVs) • Strength of brands, e.g. Crystalyx®, SmartLic®, Feed in a Drum® and Horslyx® • Developing export markets for Horslyx® • UK feed blocks – good performance INVESTMENT • Shelb
Slide 12: USA Feed Block Operations
USA FEED BLOCK OPERATIONS • Strategic location of feed block plants near cattle populations • Newer feed block plants, Nevada 3, Iowa 5 and Tennessee 4 • 1 Belle Fourche, Cattle and Calves Inventory South Dakota • 2 Poteau, Oklahoma • 3 Silver Springs, Nevada • 4 Gold-Bar Feed Supplements, Shelbyvil
Slide 13: Engineering
ENGINEERING Revenue PERFORMANCE • Overall divisional operating profit down 74.2% • Revenue from nuclear contracts 69% of total revenues, unchanged from last year 31% • Significant contract delay and poor profitability of certain 69% other contracts in UK Manufacturing • Acquisition of STABER GmbH in
Slide 14: Engineering
ENGINEERING UK MANUFACTURING REMOTE HANDLING • Significant contract delay and lower margin oil and gas • Performed ahead of expectations business affected financial performance • Relationship with Sellafield continues to be strong • Oil and gas market still adversely affected by low oil price • Succ
Slide 15: Engineering
ENGINEERING ACQUISITIONS OUTLOOK STABER • Improved order books in the short to medium term • Long term strategic partner supplying parts for remote • Significant opportunities in the USA nuclear market handling business • Synergies across the Engineering division • Designed and developed specialised
Slide 16: Summary
SUMMARY • Performance down in USA feed blocks against a challenging market backdrop and reduced profits in Engineering due to poor UK Manufacturing performance • UK agricultural market conditions improved • USA livestock market beginning to recover • Improved order book in Engineering • Acquisition
Slide 17: Questions & Answers
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Slide 18: The Appendices
THE APPENDICES 1. The Group | An Overview 2. Geographic Footprint 18 18
Slide 19: The Group: An Overview
THE GROUP AN OVERVIEW International business focused on two sectors: agriculture and engineering AGRICULTURE ENGINEERING • Manufacture of molasses-based branded feed • A remote handling business designing and blocks for farm animals in the UK, Germany and manufacturing bespoke manipulators and USA,
Slide 20: Geographic Footprint
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Slide 21: Carr's Group plc contact details
Carr’s Group plc, Old Croft, Stanwix, Carlisle, Cumbria, UK CA3 9BA Telephone: +44 (0) 1228 554600 Email: [email protected] 21 21 www.carrsgroup.com