Fevara Plc · LSE:FVA
Fevara — Carr's Group — H1 FY2021 Earnings Presentation
32 slides from Fevara's earnings presentation, April 2021
Slide 1: Carr's Group plc Interim Results Presentation
Carr’s Group plc Interim Results Presentation April 2021
Slide 2: Highlights
Highlights Hugh Pelham - CEO 2
Slide 3: Highlights
Highlights £201.4m £10.4m £(10.6m) 1.175p +0.7% +8.1% -58.5% Increased Revenue Adjusted PBT Net debt dividend 318kt 101kt £44m Reduced +0.4% +8.4% -7.9% Accident frequency rate Total feed Feed blocks / minerals Engineering order book 3
Slide 4: Highlights
Highlights • Initial business review complete • Group now organised into three divisions: Speciality Agriculture, Agricultural Supplies and Engineering • Resilient group business model despite COVID-19 and Brexit uncertainty • COVID-19 controls effective and reportable accident frequency rates reduc
Slide 5: Structure and Strategy
Structure and Strategy Hugh Pelham - CEO 5
Slide 6: New Group Structure
New Group Structure • Molasses based feed blocks and minerals Carr’s Group plc Speciality Agriculture • AminoMax® bypass protein • Trace element boluses • Feed for ruminant livestock • Country stores – agricultural and rural supplies Agricultural Supplies • Agricultural machinery • Fuel supply • Eng
Slide 7: Group Vision, Strategy and Values
Group Vision, Strategy and Values 7
Slide 8: Operating Performance and Future Priorities
Operating Performance and Future Priorities Hugh Pelham - CEO 8
Slide 9: Speciality Agriculture
Speciality Agriculture Revenue Products and services 80 61.1 61.9 • Molasses based feed blocks and minerals 60 • AminoMax® bypass protein 23.8 25.3 H2 40 • Trace element boluses H1 20 37.3 36.6 40.2 FY Commentary 0 • 101 kt + 8.4% vs prior year 2019 2020 2021 • Increased demand due to strong livesto
Slide 10: Strategy – Speciality Agriculture
Strategy – Speciality Agriculture Enhanced livestock nutrition and unique animal health solutions Our target market / customer are farmers that value a scientifically proven approach to livestock diet Differentiate Optimise Consolidate Grow • Patented process for • Supply chain • Potential acquisiti
Slide 11: Agricultural Supplies
Agricultural Supplies Products and services Revenue 400 • Feed for ruminant livestock 296.3 • Country stores – agricultural and rural supplies 280.7 300 • Agricultural machinery 148.5 H2 • Fuel supply 200 142.3 H1 100 FY Commentary 147.8 138.4 137.7 0 • 318kt feed delivered +0.4% year on year 2019 2
Slide 12: Strategy – Agricultural Supplies
Strategy – Agricultural Supplies Providing all a farmer needs Our target market / customers are farmers that value service, higher quality feed and long-term relationships Differentiate Optimise Consolidate Grow • Product range – one • Supply chain • Potential acquisitions • New store(s) stop shop •
Slide 13: Engineering
Engineering Revenue Products and services 60.0 53.0 50.0 46.5 • Engineering solutions 40.0 • Fabrication and precision engineering 28.1 H2 25.5 • Robotics 30.0 H1 20.0 FY Commentary 10.0 21.0 24.9 23.6 0.0 • Revenues impacted by COVID-19 and low oil & gas prices 2019 2020 2021 • Non core body repair
Slide 14: Strategy – Engineering
Strategy – Engineering Unique high quality engineered solutions Our target markets are niche / specialist services in the nuclear, defence and oil & gas sectors Differentiate Optimise Consolidate Grow • Patented MSIP® • Shared back-office • Potential acquisitions • Potential acquisitions process for
Slide 15: Engineering Services
Engineering Services Revenue FY21 H1 Engineering Solutions £4.4m • Design, procurement and installation USA of specialist mechanical services Geography Europe £13.2m • MSIP®, Power Fluidics™ and passive UK £6.0m cooling technology Robotics • Master slave manipulators • Handling equipment • Telbot ro
Slide 16: Financial Results
Financial Results Neil Austin - CFO 16
Slide 17: Group Financial Performance
Group Financial Performance Revenue Adjusted profit before tax 500.0 20.0 18.0 403.9 395.6 400.0 14.9 15.0 6.6 300.0 197.7 195.6 H2 5.3 H2 H1 10.0 200.0 H1 100.0 206.2 200.0 201.4 FY 5.0 11.4 9.6 10.4 FY 0.0 0.0 2019 2020 2021 2019 2020 2021 Adjusted operating profit Net debt (excluding leases) 18.9
Slide 18: Income Statement
Income Statement H1 2021 H1 2020 Change (£m) (£m) Revenue: Speciality Agriculture 40.2 36.6 +9.8% Agricultural Supplies 137.7 138.4 -0.5% Engineering 23.6 24.9 -5.4% Total revenue 201.4 200.0 +0.7% Adjusted EBITDA 12.2 11.7 +3.5% Segmental adjusted operating profit: Speciality Agriculture 8.2 6.5 +2
Slide 19: Balance Sheet
Balance Sheet At 27 February At 29 August Change At 29 February 2021 2020 2020 £m £m £m Fixed assets 119.1 119.4 -0.3% 118.5 Net working capital 38.7 42.8 -9.6% 50.5 Assets employed 157.8 162.2 -2.7% 169.0 Pension surplus 7.8 8.0 -2.9% 6.6 Net debt (excluding leases) (10.6) (18.9) -44.1% (25.4) Leas
Slide 20: Movement in Net Debt
Movement in Net Debt Movement in net debt (excluding leases) Key points • Strong operating cashflow underpinned by EBITDA performance and close management of working capital • Capex slightly reduced versus prior year – increased spend expected in H2 taking total to c£7m • Majority of bank facilities
Slide 21: Key Takeaways
Key Takeaways • Resilient overall performance • Line of sight of profitability of Speciality Agriculture but note seasonality H1/H2 • Strong cash management • Engineering materially impacted by low oil & gas prices and travel restrictions in H1 21
Slide 22: Business Outlook
Business Outlook Hugh Pelham - CEO 22
Slide 23: Business Outlook
Business Outlook • Year end expectations remain unchanged • Brexit uncertainty removed but experiencing some export/import delays • Continued positive performance expected in Agricultural Supplies • Raw material prices expected to remain firm • Normal seasonal pattern of trading expected in Speciali
Slide 24: Additional Information
Additional Information 24
Slide 25: Group Structure and Operating Model
Group Structure and Operating Model Carr’s Group plc • Molasses based feed blocks and minerals Speciality Agriculture • AminoMax® bypass protein • Trace element boluses • Feed for ruminant livestock • Country stores – agricultural and rural supplies Agricultural Supplies • Agricultural machinery • F
Slide 26: Agricultural Divisions and Brands
Agricultural Divisions and Brands Carr’s Engineering Speciality Agriculture Agricultural Supplies ➢ Manufacturing molasses-based branded feed blocks for ➢ Operating over 37 rural retail outlets across the north of farm animals in the UK, Germany and USA, including England and Scotland, including 7 m
Slide 27: Engineering Division and Brands
Engineering Division and Brands Carr’s Engineering Fabrication and Precision Engineering Solutions Robotics Engineering 27
Slide 28: Geographic Footprint
Geographic Footprint UK Locations • Head Office International Locations Carr’s • Agricultural Supplies and Speciality Agriculture • Engineering • Speciality Agriculture • Engineering Europe • Engineering Oldenburg, Germany • Markdorf, Germany USA • South Dakota • Oklahoma • Nevada • Tennessee • Iowa
Slide 29: Sustainability Initiatives
Sustainability Initiatives • Development of sustainable packaging • Changes to logistics arrangements to reduce fuel consumption • Upgrades to manufacturing to reduce power consumption and utilise renewable energy sources • Strong links to the community • Improved HSE standards and guidance • Policy
Slide 30: Livestock Price Trends
Livestock Price Trends GB Deadweight Cattle (overall) p/kg GB Deadweight Sheep Prices Overall SQQ* p/kg 400.0 650.0 390.0 380.0 600.0 370.0 550.0 360.0 350.0 FY20 500.0 FY20 FY21 FY21 340.0 450.0 330.0 320.0 400.0 310.0 350.0 300.0 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Slide 31: Oil Price Trends
Oil Price Trends $75 $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 2016 2017 2018 2019 2020 31
Slide 32: 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 Powerscourt on +44 (0) 20 7250 1446 Email: [email protected] or Lisa.Kavanagh@po