Fevara Plc · LSE:FVA
Fevara — Carr's Group — FY2021 Earnings Presentation
28 slides from Fevara's earnings presentation, December 2021
Slide 1: Carr's Group plc Preliminary Results Presentation
Carr’s Group plc Preliminary Results Presentation December 2021
Slide 2: Highlights
Highlights Peter Page – Executive Chairman 2
Slide 3: Highlights
Highlights £417.3m £16.6m £(10.0m) 5.0p +5.5% +11.1% Reduction of £8.9m +5.3% Revenue Adjusted PBT Net debt Total Dividend 491kt 162kt £38.8m 2.03 +2.6% +12.3% +15.9% Down from 3.76 in FY20 Total feed Feed blocks / minerals Engineering order book Injury frequency rate 3
Slide 4: Highlights
Highlights • Results ahead of Board’s improved expectations set out in 19 July trading update • Substantial increase in profitability of both Agriculture divisions: ➢ Strong performance in Speciality Agriculture assisted by livestock prices in the UK and USA ➢ Successful year in Agricultural Supplie
Slide 5: Financial and Operational Review
Financial and Operational Review Neil Austin – Chief Financial Officer 5
Slide 6: Group financial performance
Group financial performance Key figures Revenue Adjusted profit before tax 500.0 417.3 20.0 18.0 403.9 395.6 16.6 400.0 14.9 15.0 6.6 300.0 197.7 195.6 215.9 H2 6.2 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
Slide 7: Income statement
Income statement 2021 2020 Change (£m) (£m) Revenue: Speciality Agriculture 68.5 61.9 +10.6% Agricultural Supplies 297.5 280.7 +6.0% Engineering 51.3 53.0 -3.2% Total revenue 417.3 395.6 +5.5% Adjusted EBITDA 20.9 20.8 +0.7% Segmental adjusted* operating profit: Speciality Agriculture 9.5 7.6 +25.0%
Slide 8: Balance Sheet
Balance Sheet At 28 August At 29 August Change 2021 2020 £m £m Fixed assets 114.0 116.4 -2.0% Net working capital 40.1 42.8 -6.2% Assets employed 154.1 159.2 -3.2% Pension surplus 9.4 8.0 +16.6% Net debt (excluding leases) (10.0) (18.9) -47.2% Lease liabilities (15.4) (13.9) +10.6% Tax provisions (2
Slide 9: Movement in net debt
Movement in net debt Key points • Strong EBITDA performance reflected in cashflow • Interest paid reduced by £0.5m • Dividends paid £2.1m higher – impact of prior year Covid deferred interim dividend included in current year • Majority of bank facilities mature in late 2023 9
Slide 10: Speciality Agriculture
Speciality Agriculture Strong performance across all geographies Products and services Feed Block Volumes 7% Revenue 1% 22% • Molasses based feed blocks 80 68.5 • AminoMax® bypass protein 61.1 61.9 60 • Trace element boluses 70% 28.3 23.8 25.3 H2 UK USA EU NZ 40 Commentary H1 20 37.3 36.6 40.2 FY •
Slide 11: Agricultural Supplies
Agricultural Supplies Successful year despite significant increases in commodity prices Products and services Revenue 400 • Compound feed for ruminant livestock 296.3 280.7 297.5 • Country stores – agricultural and rural supplies 300 • Agricultural machinery H2 200 148.5 142.3 159.8 • Fuel supply H1
Slide 12: Engineering
Engineering A positive year Revenue Products and services 60.0 53.0 51.3 46.5 • Engineering solutions 50.0 40.0 • Fabrication and precision engineering 28.1 27.7 H2 30.0 25.5 • Remote handling and robotics H1 20.0 24.9 23.6 FY Commentary 10.0 21.0 0.0 2019 2020 2021 • Fabrication and precision engin
Slide 13: Engineering Services
Engineering Services Revenue FY21 Engineering Solutions £9.7m 4.4 £9.7m -16% • Design, procurement and installation of USA specialist mechanical services Europe Geography • MSIP®, Power Fluidics™ and HIP 13.2 £28.1m £28.1m 6.0 UK -9% £13.5m £13.5m technology +27% Robotics • Master slave manipulators
Slide 14: Outlook
Outlook • Livestock and milk prices remain strong, underpinning strong demand for Speciality Agriculture • Continued investment in Agricultural Supplies, across people, processes and technology • Strong enquiry levels in Engineering and order book strengthened further since the year end to £44.6m •
Slide 15: Interim Leadership and Strategy Development
Interim Leadership and Strategy Development Peter Page – Executive Chairman 15
Slide 16: Leadership and direction
Leadership and direction • Effective management arrangements in place ➢ Interim Executive Chairman: ten years FTSE CEO experience - Leading strategy, ESG, H&S - Full-time commitment and presence ➢ CFO: nine years FTSE CFO experience - Day to day operational responsibility - Strong knowledge of the b
Slide 17: ESG
ESG Developing a coherent, rational approach to all three elements of ESG that will be core parts of our strategy • Environment ➢ Statutory reporting in place for Scope 1 and Scope 2 ➢ Start of our journey for targets, change and reduction ➢ Business opportunities and risks • Social ➢ Structured app
Slide 18: Strategy: current
Strategy: current Continuity in strategy: • Develop and grow Speciality Agriculture in UK, USA, Europe and international markets • Optimise Agricultural Supplies by: (i) enhancing efficiencies and with geographical expansion in the UK organically; and (ii) by acquisition • Engineering focused on nuc
Slide 19: Strategy: external environment
Strategy: external environment • External environment changes ➢ Regional and local versus global ➢ Post EU membership effects on UK trade ➢ Climate change implications • Agriculture sector priorities ➢ Raw material cost inflation ➢ Sourcing and traceability ➢ Greenhouse gases, zero carbon 2040 • Nuc
Slide 20: Outlook
Outlook • Livestock and milk prices remain strong, underpinning strong demand for Speciality Agriculture • Continued investment in Agricultural Supplies, across people, processes and technology • Strong enquiry levels in Engineering and order book strengthened further since the year end to £44.6m •
Slide 21: Appendix
Appendix 21
Slide 22: Adjusting Items
Adjusting Items 2020 2021 (restated) (£m) (£m) Reported profit before tax 12.1 10.9 Amortisation of acquired intangible assets 1.2 1.4 Adjustments to contingent consideration (1.0) (0.9) Restructuring/closure costs 0.2 2.0 Cloud configuration and customisation costs - Group 1.4 1.4 Cloud configurati
Slide 23: Additional information
Additional information 23
Slide 24: Group structure and operating model
Group structure and operating model Carr’s Group plc • Molasses based feed blocks Speciality Agriculture • AminoMax® bypass protein • Trace element boluses • Compound feed for ruminant livestock • Country stores – agricultural and rural supplies Agricultural Supplies • Agricultural machinery • Fuel
Slide 25: Agricultural division and brands
Agricultural division 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 ma
Slide 26: Engineering division and brands
Engineering division and brands Carr’s Engineering Fabrication and Precision Engineering Solutions Robotics Engineering 26
Slide 27: 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 28: Carr's Group plc
Carr’s Group plc Old Croft, Stanwix, Carlisle, Cumbria, CA3 9BA, UK Telephone: +44 (0) 1228 554600 Email: [email protected] www.carrsgroup.com