Fevara Plc · LSE:FVA
Fevara — Carr's Milling Industries — H1 2013 Earnings Presentation
21 slides from Fevara's earnings presentation, Apr 16, 2013
Slide 1: Growing internationally; continuing investment
Growing internationally; continuing investment Interim results presentation April 16th 2013
Slide 2: Results Overview
Results Overview ● Revenue increased 18.1% to £231.6m (2012: £196.0m) ● Pre-tax profit increased 36.2% to £10.1m (2012: £7.4m) ● Adjusted EPS increased 53.7% to 79.9p (2012: 52.0p) ● First interim dividend increased 6.9% to 7.75p (2012: 7.25p) ● £19.0m net debt (2012: £1.6m net debt) ● NAV per share
Slide 3: Trading Overview
Trading Overview Agriculture ● ‘Perfect storm’ – £1.1m profit benefit ● Underlying growth in feed block sales continues, reflecting product quality and marketing ● Compound feed sales up ● Retail sales up, machinery sales down ● Prolonged winter weather in the UK boosts fuel sales Food ● Trading env
Slide 4: Animal Feed, Retail & Farm Machinery, Fuel
• Animal Feed • Retail & Farm Machinery • Fuel
Slide 5: Animal Feed
Animal Feed Weather patterns have created favourable market conditions for demand - £1.1m one off benefit Low moisture feed block ● High demand in both the UK and overseas – sales up by 24% ● Production capacity increased at South Dakota plant ● Demand continues to be strong in New Zealand ● Other o
Slide 6: Animal Feed
Animal Feed Weather patterns have created favourable market conditions for demand - £1.1m one off benefit ●Increases for compound feed largely volume related, benefitting our feed manufacturing associate company (Carrs Billington Operations, 49% owned) ●AminoMax plant (50% JV) in New York State oper
Slide 7: Retail & Farm Machinery
Retail & Farm Machinery ● Retail products achieved 33% sales growth, reflecting enlarged branch network and extended product ranges ● Laycocks, acquired in July 2012, generating incremental profit ● Machinery sales depressed at present but workshops and parts holding up well (inventory impact) ● Red
Slide 8: Fuel
Fuel ● Prolonged winter increased demand – volumes up 10% ● Margins restored following fall in 2012 ● Cockermouth branch, opened February 2012, generates incremental profit ● Benefit of cross-selling being realised in retail branches
Slide 9: Food
Food ) Carr's Milling Industries PLC www.carrs-milling.com | Tel: +44 (0) 1228 554600 | Fax: +44 (0) 1228 554601
Slide 10: Food
Food ● Revenues up 8% and operating margins improved ● Poor UK wheat harvest has benefited9% our mills located at ports ● 10% Competitor capacity exited from our core Scottish market in March 15% ● New £17m mill at Kirkcaldy progressing on schedule and due to begin operation in September 15% 58% 66%
Slide 11: Strategic Reason for Investment
Strategic Reason for Investment ● Existing mill is close to end of natural life – capex for new mill £17m ● Port project makes Kirkcaldy a good location for wheat sourcing ● Port mills benefit from poor UK harvest ● CFM has strong customer base across Scotland and N X England (70% share of free mark
Slide 12: Engineering
Carr's Milling Industries PLC www.carrs-milling.com | Tel: +44 (0) 1228 554600 | Fax +44 (0) 1228 554601
Slide 13: Engineering: UK
UK ● Carrs MSM 6 months record result – life of plant contract at Sellafield to supply critical parts ● Clive Walton Engineering, precision machinery specialist, expands Bendalls capabilities – now successfully integrated ● Bechtel contract issues resolved ● UK nuclear contracts slow to be awarded,
Slide 14: Wälischmiller
WÄLISCHMILLER ● Significant contracts completed 1H ● Japan – Telbot with telescope and crane ● South Korea – Standard A100 MSM ● Order book strong through 2013/2014 ● Telbot development agreement – Norwegian consortium – new market ● Phase 2 factory at Markdorf now complete – final phase to be compl
Slide 15: Segmental Analysis
Segmental Analysis Segmental Analysis 1H 2013 1H 2012 Revenue PBT Revenue PBT £m £m £m £m Agriculture 173.4 6.3 147.2 5.2 Food 44.7 0.4 41.4 0.4 Engineering 13.5 2.2 7.4 1.6 Other - (0.4) - (0.2) 231.6 8.5 196.0 7.0 Retirement Benefit (0.1) (0.3) Associate & JVs (post tax) 1.7 0.7 10.1 7.4 EPS (p) –
Slide 16: Balance Sheet
Balance Sheet Balance Sheet At 2 March 2013 At 1 September 2012 £m £m Non-current assets 63.2 54.6 Current assets (excluding cash) 113.2 86.8 Cash 19.8 23.3 Total assets 196.2 164.7 Loans and borrowings (38.8) (25.8) Trade & other payables (72.7) (60.4) Tax & deferred tax (6.7) (5.3) Retirement bene
Slide 17: Cash Flow
Cash Flow Cash Flow Statement Half Year to Half Year to 2 March 2013 3 March 2012 £m £m Profit before tax 10.1 7.4 Share of profit from associate and JV’s (1.7) (0.8) Depreciation and amortisation 2.6 2.3 Non-cash adjustments (0.1) (0.1) Pension contributions (1.4) (2.4) Working capital (12.7) (2.4)
Slide 18: Working Capital Movements
Working Capital Movements £m Comments Quantity £4.7m – high machinery and Agriculture (4.9) retail products inventory Inventory (6.6) Quantity £1.7m – more imported Food (2.0) wheat and low August 2012 inventory Engineering 0.3 Trade (14.8) Sales activity up 32% = £15.1m (12.7) Receivables (18.6) In
Slide 19: Banking & Net Debt
Banking & Net Debt Banking & Net Debt Expiry Facility 2013 £m £m Working capital facilities (UK) 12 month rolling (32.0) (19.7) Working capital facilities (US) 12 month rolling (0.7) (0.2) Working capital facilities (Eu) 12 month rolling (1.7) - Term loans Up to January 2016 (7.3) (6.0) Revolving cr
Slide 20: Trading & Growth Prospects
Trading & Growth Prospects Agriculture ●Weather related benefits continuing into Q3, but unlikely to be repeated to same extent next year ●Investment in UK AminoMax plant will capture market share ●New retail branches will further enhance profitability Food ●Poor harvest expected again this season w
Slide 21: Growing internationally; continuing investment
Growing internationally; continuing investment Interim results presentation April 16th 2013
Carr's Milling Industries — H1 2013 Earnings Presentation on 6ix