Fevara Plc · LSE:FVA
Fevara — Carr's Milling Industries — H1 2012 Earnings Presentation
15 slides from Fevara's earnings presentation, Apr 24, 2012
Slide 1: Carr's Milling Industries PLC Interim Results Presentation
CARR’S MILLING INDUSTRIES PLC “…profitable growth…” Interim Results Presentation 24 April 2012
Slide 2: Results Overview
RESULTS OVERVIEW* ● Revenue increased 11.7% to £196.0m (2011: £175.5m) ● Pre-tax profit increased 30.8% to £7.4m (2011: £5.7m) ● EBITDA increased 22.0% to £8.9m (2011: £7.4m) ● Fully diluted EPS increased 29.2% to 52.2p (2011: 40.4p) ● First interim DPS increased 11.5% to 7.25p (2011: 6.5p) ● £1.6m
Slide 3: Trading Overview
TRADING OVERVIEW ● Double-digit revenue and profit growth reflects Agriculture excellent feed block sales and strong retail performance ● Continued downward pressure on margins Food although sales resilient ● Excellent demand backdrop, both nuclear and Engineering non-nuclear Financial Summary & Bus
Slide 4: Agriculture – Animal Feed
AGRICULTURE – ANIMAL FEED ● Mixed UK trading environment ● Pricing background supportive ● Ruminant animal feed sales volume lower – mild weather ● AminoMax plant at Watertown, New York State now in production after short delay ● Contribution of Bibby Agriculture (JV) up 34% Financial Summary & Busi
Slide 5: Agriculture – Animal Feed
AGRICULTURE – ANIMAL FEED ● Low moisture feed block ● Strong recovery in demand in US – sales up 40% ● UK sales volumes maintained despite mild winter ● Strong demand continues for Crystalyx in Europe and New Zealand ● High moisture feed block ● Production efficiencies achieved from investment last
Slide 6: Agriculture – Retail and Farm Machinery
AGRICULTURE – RETAIL AND FARM MACHINERY ● Record H1 sales growth reflects increased range of animal health products ● Safe at Work, acquired April 2011, product range of specialist protective clothing extended to branch network ● New retail branch opened at Stirling ● Machinery sales growth with lar
Slide 7: Agriculture - Fuel
AGRICULTURE - FUEL ● Sales volumes similar to H1 last year despite milder winter weather, reflecting market share gains ● New depots opened at Hexham (August 2011) and Cockermouth (February 2012) ● Oil price more stable and margin lower ● Cross-selling with retail branches operating well Financial S
Slide 8: Food
FOOD ● Profit down 39% in 1H on sales up 8% ● Wheat price volatile during H1 – fluctuation c.£35/tonne ● New wheat handling facility re-opened in August 2011 at Kirkcaldy is working well ● Consolidation and rationalisation with UK milling industry continues Financial Summary & Business Overview H1 2
Slide 9: Engineering - UK
ENGINEERING - UK ● Profit up 175% to £1.6 million reflects strong H1 activity ● Bendalls, specialist fabricators, benefits from major contracts for pressure vessels, contract won for platform being built for BP Quad 204 area ● Bendalls Evaporator D project (Sellafield) to be completed H2, Handford,
Slide 10: Engineering - Wälischmiller
ENGINEERING - WÄLISCHMILLER ● Strong demand in France, Germany, Japan, Korea and Russia ● Strong H1 – increased design and production team ● Significant contracts to be completed H2 ● Order book grown to over €40 million ● Phase 1 of the new €4m replacement factory in Markdorf on schedule to complet
Slide 11: Segmental Analysis – Continuing Operations
Segmental Analysis – Continuing Operations H1 2012 H1 2011 Revenue PBT Revenue PBT £m £m £m £m Agriculture 147.2 5.2 131.6 4.4 Food 41.4 0.4 38.3 0.7 Engineering 7.4 1.6 5.6 0.6 Other - (0.6) - (0.6) 196.0 6.6 175.5 5.1 Retirement Benefit (0.3) (0.3) Profit on disposal of fixed assets 0.3 - Associat
Slide 12: Balance Sheet
Balance Sheet H1 2012 H1 2011 £m £m Non-current assets 48.5 48.0 Current assets (excluding cash) 89.7 116.8 Cash 28.2 11.6 Total assets 166.4 176.4 Loans and borrowings (26.6) (39.8) Trade & other payables (63.3) (77.1) Tax & deferred tax (5.7) (6.8) Retirement benefit obligation (5.5) (6.7) Total l
Slide 13: Cash Flow Statement
Cash Flow Statement H1 2012 H1 2011 £m £m Profit before tax 7.4 5.7 Interest (0.5) (0.5) Non-cash adjustments 2.0 1.8 Pension contributions (2.4) (1.4) Working capital (2.4) (2.0) Cash generated from operations 4.1 3.6 Tax paid (1.4) (0.7) Investing activities (2.5) (2.1) Financing activities (4.0)
Slide 14: Banking & Net Cash/(Debt)
Banking & Net Cash/(Debt) Expiry Facility H1 2012 £m £m Working capital facilities (UK) 12 month rolling (24.0) (12.4) Working capital facilities (US) 12 month rolling (0.6) - Term loan November 2014 (5.0) (5.0) Revolving credit facility November 2014 (10.0) (5.8) Other loans (1.2) (1.2) Cash - 28.2
Slide 15: Trading and Growth Prospects
TRADING AND GROWTH PROSPECTS ● Focus on feed blocks/supplements ● Product developments/new markets Agriculture ● Strength of retail/fuel network in its market underpins growth ● Benefit of investment at Kirkcaldy port Food ● Sustain H1 performance at best ● Strong order book through to 2014 Engineer
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