Fevara Plc · LSE:FVA
Fevara — FY2023 Earnings Presentation
16 slides from Fevara's earnings presentation, December 2023
Slide 1: Full Year Results Presentation 2023
Full Year Results Presentation 2023 December 2023 David White, Chief Executive Officer Gavin Manson, Chief Financial Officer 1
Slide 2: 2023: Agriculture challenging, Engineering strong
2023: Agriculture challenging, Engineering strong Highlights Adjusted FY23 FY22 +/- (Continuing Operations) • Continuing operations revenue for the year increased 15.3% Revenue (£m) 143.2 124.2 +15.3% • Strong second half performance in Engineering, Adjusted1 operating profit (£m) 8.0 11.9 -33.2% su
Slide 3: Disposal of Agricultural Supplies division reshaped the business and focus
Disposal of Agricultural Supplies division reshaped the business and focus What we said What we are doing • Future focus on two divisions with international • Experienced management team in Engineering businesses, differentiated products and high division delivered improved performance in H2 and mar
Slide 4: Speciality Agriculture offers growth opportunities
Speciality Agriculture offers growth opportunities Opportunities Market Trends • Demand driven by growth in low intensity pasture-based Medium / Long Term Opportunity grazing, part of a wider trend of sustainability-related nutrition • Global beef production is projected to grow by 8%1 in the progra
Slide 5: Lead indicators of market recovery
Lead indicators of market recovery US UK • Following three years of increasingly dry conditions, • UK agricultural prices lead indicator improved in second half of although later than anticipated there is now a reduced FY23 area affected by drought, improving prospects for grazing • Reduced gap betw
Slide 6: Engineering demand continues to grow
Engineering demand continues to grow Our products and services Engineering Fabrication and • Market leading technologies, supported by long- Engineering standing customer relationships allow the division to Robotics Precision Solutions support the nuclear power sector globally, including: Engineerin
Slide 7: Order book growth will deliver increased revenue
Order book growth will deliver increased revenue • 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
Slide 8: Board changes and restructured leadership team
Board changes and restructured leadership team Board changes Restructured leadership team • Experienced Non-Executive Board members will lead the • UK Speciality Agriculture structure updated to bring Group’s ongoing strategic change: additional commercial expertise, renewed focus on marketing our b
Slide 9: Financial Review
Financial Review 9
Slide 10: Focus on continuing activities
“Focus on continuing activities” FY23 – FY22 – FY21 – Speciality Speciality Speciality Agriculture and Agriculture and Agriculture and Engineering Engineering Engineering £m £m £m Revenue 143.2 124.2 120.3 Adjusted EBITDA 10.9 15.1 13.9 Adjusted operating profit 8.0 11.9 11.1 Adjusted PBT 7.5 11.2 1
Slide 11: 2023 summary financials – Speciality Agriculture
2023 summary financials – Speciality Agriculture Trading conditions £m Revenue 92.6 100.0 78.1 • US and UK feed block volumes down 16% on FY22 on 80.0 68.5 35.5 a LFL basis 60.0 28.3 35.4 40.0 • Revenue increase on lower volumes driven by 57.1 20.0 40.2 42.7 0.0 ➢ continued impact of high raw materi
Slide 12: 2023 summary financials – Engineering
2023 summary financials – Engineering Trading £m Revenue • Revenue up 10% over FY22 51.9 50.6 60.0 46.2 • Strong performance in H2 40.0 28.3 28.0 ➢ Revenue up 15% on second half of FY22 24.4 ➢ Operating profit up 24% on second half of FY22 and 20.0 273% on H1 FY23 23.6 21.8 22.6 0.0 2021 2022 2023 •
Slide 13: Net cash/(debt) movement
Net cash/(debt) movement Movement in net cash/(debt) (excluding leases) £m Key points • Working capital outflow primarily linked to raw materials price inflation and strategically higher levels of inventories in Speciality Agriculture • Main bank facility in place until December 2026 Post year end •
Slide 14: Balance sheet
Balance sheet Disposal of Agricultural Supplies division completed in October 2022 At 3 September At 2 September 2022 2023 Restated £m £m Change Fixed assets 68.6 75.8 -6.9% • Fixed assets impacted by intangible impairments of Net working capital 33.3 30.1 +11.6% £3.8m Assets/liabilities held for 4.
Slide 15: Outlook
Outlook Speciality Agriculture • Improved volumes as raw material prices stabilise • Focus on operating efficiencies to drive further cost savings into finished products • Active product management, to consider rationalisation of low-volume sales lines and development of new products • New leadershi
Slide 16: Q&A
Q&A 16