Fevara Plc · LSE:FVA
Fevara — Carr's Group — H1 FY2024 Earnings Presentation
22 slides from Fevara's earnings presentation, Apr 18, 2024
Slide 1: Strategic update and interim results
Strategic update and interim results 18 April 2024 David White, Chief Executive Officer Gavin Manson, Chief Financial Officer 1
Slide 2: Strategic update
Strategic update 2
Slide 3: Optimisation of shareholder value
Optimisation of shareholder value Review of the performance, composition and organisation of the Group undertaken: • Post-Agricultural Supplies disposal we have two operating divisions Both divisions have strong brands, market leading products and growth opportunities, however, ➢ no synergies ➢ cent
Slide 4: Interim results
Interim results Carr's |
Slide 5: H1 2024: Agriculture challenging, Engineering strong
H1 2024: Agriculture challenging, Engineering strong Highlights Adjusted H1 FY24 H1 FY23 +/- (Continuing Operations) • Board and management appointments in anticipation of the transformation of the Group completed Revenue (£m) 81.4 79.8 +2.0% • Transformation of Agriculture Division underway with Ad
Slide 6: Balance sheet
Balance sheet At 29 February At 4 March • Fixed assets impacted by 2024 2023 intangible impairments of £m £m Change £3.8m at end FY23 Fixed assets 69.3 76.8 -9.7% • Working capital influenced by Net working capital 33.6 32.8 +2.3% increased input prices and timing of engineering contract Deferred co
Slide 7: Net cash movement – 6 months to end H1 FY24
Net cash movement – 6 months to end H1 FY24 Movement in net cash (excluding leases) Of note: • Main bank facility renewed and in place until December 2026 • Final £4m disposal proceeds from Agricultural Supplies received in October 2023 7
Slide 8: Focus, improve, deliver
Focus, improve, deliver Focus • Exploration of value for Engineering • Improving Agriculture in UK and US whilst assessing other opportunities • Right sizing group infrastructure and support Improve • Integration of UK Agriculture management underway • Detailed improvement plans across Agriculture’s
Slide 9: Leadership
Leadership Tim Jones David White Gavin Manson Martin Rowland Chair CEO CFO Executive Director of Transformation • Joined the Board in 2023 • Joined the Board in 2023 • Joined Carr’s in November • Joined the Board in in March • Chair Treatt Plc 2012-2023 2023 2023 originally as non- • Senior finance
Slide 10: Agriculture
Agriculture 10
Slide 11: Agriculture
Agriculture Opportunities • Demand driven by low intensity pasture-based grazing, part of a wider trend of sustainability-related H1 FY 2024 nutrition programmes and desire to reduce methane emissions REVENUE £52.8m • Our products contribute to nutrition programmes which help to: ➢ Optimise liveweig
Slide 12: Summary financials – Agriculture
Summary financials – Agriculture Trading £m Revenue 92.6 • Revenue down 8% on H1 FY23: 100.0 78.1 80.0 68.5 35.5 ➢ UK feed block volumes up 11%, on lower pricing 60.0 35.4 28.3 as raw material costs settle from H1 FY23 highs 40.0 57.1 52.8 ➢ US feed block volumes down 18% as continuing 20.0 40.2 42.
Slide 13: Lead indicators of market recovery
Lead indicators of market recovery US UK • Following three years of increasingly dry conditions, • Challenges in UK market in recent years driven by misalignment although later than previously anticipated, there is now a of farm input and output inflation – driven by wider economic reduced area affe
Slide 14: Outlook – Agriculture
Outlook Agriculture • Early signs of improvement in the UK market, US market expected to remain challenging into FY25 • New leadership team bring significant sector experience in global markets • Active product management: ➢ consider rationalisation of low-volume sales lines ➢ development of new pro
Slide 15: Engineering
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Slide 16: Engineering
Engineering • Strong customer relationships provide a base for supply of market leading technologies. Nuclear power remains key sector driven by activities including: • Decommissioning work on existing nuclear power plants including the safe removal, disposal and H1 FY 2024 storage of nuclear waste
Slide 17: Summary financials – Engineering
Summary financials – Engineering Revenue growth of 26% underpins margin improvement of 4pp £m Adjusted Operating Profit more than double H1 FY23 Revenue 51.9 50.6 60.0 46.2 • Fabrication and precision machinery 40.0 28.3 24.4 28.0 ➢ Continued high activity levels, revenue up 23% 20.0 23.6 21.8 22.6
Slide 18: Order book consistently ahead of historic levels
Order book consistently ahead of historic levels • Demand is international, supported by government policies and public funding • Long-term contracts provide security of earnings and visibility over next 18 to 24 months • Order book growth demonstrates sector demand, coupled with strong reputation f
Slide 19: Outlook – Engineering
Outlook Engineering • Order book at end of February at £58m with pipeline strong across all businesses • Working capital remains available to support bids for larger, higher-margin, contracts that will deliver earnings over the next 24 months • Increasing targeted capacity in existing business ➢ two
Slide 20: Outlook environment
Outlook environment Central functions • Transfer of key functional support activities from being centrally managed into both divisions ➢ avoiding duplication of costs ➢ focus on delivering to the requirements of each division • Central costs to significantly reduce following conclusion of Engineerin
Slide 21: Q&A
Q&A — Carr’s ~® Group ple S a eis , | Mai & {7 | HORSLYX” Ste,
Slide 22: Carr's Group plc
Carr’s Group plc Old Croft, Stanwix, Carlisle, Cumbria, CA3 9BA, UK Telephone: +44 (0) 1228 554600 Email: [email protected] or [email protected] www.carrsgroup.com Alternatively contact FTI Consulting Tel: +44 (0) 2037 271340 Email: [email protected]