Fevara Plc · LSE:FVA
Fevara — Carr's Group — H1 2022 Earnings Presentation
26 slides from Fevara's earnings presentation, April 2022
Slide 1: Interim Results Presentation
Interim Results Presentation April 2022
Slide 2: Highlights
Highlights Peter Page – Executive Chairman 2
Slide 3: Highlights
Highlights Full year performance expectations unchanged £222.7m £10.3m 1.175p +10.6% -2.3% Unchanged Revenue Adjusted* PBT Interim dividend 259kt 102kt £44.2m -2.5% +0.8% +13.8% Total feed Feed blocks / minerals Engineering order book * Adjusted PBT is consistent with how business performance is mea
Slide 4: Highlights (continued)
Highlights (continued) • Strong performance in Agricultural Supplies despite significant raw material cost increases • Engineering order book value increased 14% during H1 with improved utilisation and stronger margins • Speciality Agriculture margins impacted by timing difference between input cost
Slide 5: Financial and Operational Review
Financial and Operational Review Neil Austin – Chief Financial Officer 5
Slide 6: Group Financial Performance
Group Financial Performance Revenue Adjusted profit before tax (restated)* 500.0 417.3 20.0 395.6 16.6 400.0 15.0 15.0 300.0 195.6 215.9 H2 6.1 5.4 H2 H1 10.0 200.0 H1 100.0 200.0 201.4 222.7 FY 5.0 9.6 10.5 10.3 FY 0.0 0.0 2020 2021 2022 2020 2021 2022 Adjusted operating profit (restated)* Net debt
Slide 7: Income Statement
Income Statement H1 2021 H1 2022 Restated (£m) (£m) Change Revenue: Speciality Agriculture 42.7 40.2 +6.2% Agricultural Supplies 158.7 137.7 +15.3% Engineering 21.3 23.6 -9.6% Total revenue 222.7 201.4 +10.6% Adjusted EBITDA 12.4 12.2 +2.0% Segmental adjusted operating profit: Speciality Agriculture
Slide 8: Balance Sheet
Balance Sheet At 27 February At 26 February At 28 August 2021 2022 2021 (restated) £m £m Change £m Fixed assets 112.9 114.0 -0.9% 115.4 Net working capital 65.5 40.1 +63.1% 38.7 Assets employed 178.4 154.1 +15.7% 154.1 Pension surplus 10.0 9.4 +6.3% 7.8 Net debt (excluding leases) (29.9) (10.0) +199
Slide 9: Movement in Net Debt
Movement in Net Debt Movement in net debt (excluding leases) Key points • Working capital increase expected to substantially reverse in H2 • Majority of bank facilities mature in late 2023, intention to renew in 2022 9
Slide 10: Speciality Agriculture
Speciality Agriculture Revenue Feed Block Volumes 80 68.5 1% 61.9 Products and services 60 9% 28.3 20% 25.3 H2 • Molasses based feed blocks and minerals 40 H1 • AminoMax® bypass protein 20 36.6 40.2 42.7 FY • Trace element boluses 0 Commentary 70% 2020 2021 2022 • Feed blocks Adjusted operating prof
Slide 11: Agricultural Supplies
Agricultural Supplies Revenue Products and services 400 297.5 • Feed for ruminant livestock 280.7 300 • Country stores – agricultural and rural supplies H2 • Agricultural machinery 200 142.3 159.8 H1 • Fuel supply 100 FY 138.4 137.7 158.7 Commentary 0 2020 2021 2022 • 259kt total feed delivered -2.5
Slide 12: Engineering
Engineering Products and services Revenue 60.0 53.0 51.3 • Engineering solutions 50.0 • Fabrication and precision engineering 40.0 28.1 27.7 H2 • Robotics 30.0 H1 20.0 Commentary 24.9 23.6 FY 10.0 21.3 0.0 • Fabrication and precision machinery 2020 2021 2022 ➢ Strong performance benefiting from high
Slide 13: Key Takeaways and Outlook
Key Takeaways and Outlook • Robust overall performance • Strong performance expected in H2 in Engineering; order books at record levels • Outlook for Speciality Agriculture remains challenging in H2 due to continuing drought in parts of USA • Agricultural Supplies expected to continue to trade posit
Slide 14: Strategic Review and Board Succession
Strategic Review and Board Succession Peter Page – Chairman 14
Slide 15: Strategic Review and Board Succession
Strategic Review and Board Succession • Review of strategic options for each division progressing well, with focus on mid to long term growth in Shareholder value • Non-Executive Director recruitment process progressing well • CEO succession process in hand with external recruitment consultants mana
Slide 16: Outlook
Outlook Outlook H2 • Further improvement in Engineering • Continued positive trading in Agricultural Supplies • Volumes and pricing challenges in Speciality Agriculture • Full year expectations remain unchanged 16
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: Engineering Services
Engineering Services Revenue FY22 H1 Engineering Solutions £3.3m • Design, procurement and installation (H121: £4.4m) USA of specialist mechanical services Geography Europe £12.7m £5.3m • MSIP®, Power Fluidics™ and passive (H121: £6.0m) UK (H121: £13.2m) cooling technology Robotics • Master slave ma
Slide 20: Adjusting Items
Adjusting Items H1 H1 2021 2022 (restated) (£m) (£m) Reported profit before tax 9.5 9.5 Amortisation of acquired intangible assets 0.5 0.6 Adjustments to contingent consideration (1.3) (0.7) Restructuring/closure costs - 0.2 Strategic review costs 0.4 - Cloud configuration and customisation costs -
Slide 21: Additional information
Additional information 21
Slide 22: 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 23: Agricultural Divisions and Brands
Agricultural Divisions and Brands Carr’s Engineering Speciality Agriculture Agricultural Supplies ➢ Manufacturing molasses-based branded feed blocks for ➢ Operating over 38 rural retail outlets across the north of farm animals in the UK, Germany and USA, including England and Scotland, including 9 m
Slide 24: Engineering Division and Brands
Engineering Division and Brands Carr’s Engineering Fabrication and Precision Engineering Solutions Robotics Engineering 24
Slide 25: International Presence
International Presence UK Locations • Head Office Europe • Agricultural Supplies and Speciality Agriculture • Oldenburg, Germany International Locations • Markdorf, Germany • Engineering • Speciality Agriculture • Engineering Oceania • Auckland, New Zealand North America • South Dakota • Oklahoma •
Slide 26: 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 Sam.Austrums@powe