Fevara Plc · LSE:FVA
Fevara — Carr's Group — H1 2018 Earnings Presentation
20 slides from Fevara's earnings presentation, April 2018
Slide 1: Building on Foundations for Growth: Interim Results Presentation
BUILDING ON FOUNDATIONS GROWTH FOR Interim Results Presentation April 2018 1
Slide 2: The Agenda
THE AGENDA 1. Introduction | Tim Davies, CEO 2. Financial Results | Neil Austin, Group FD 3. Group Strategic Vision | Tim Davies, CEO 4. Divisional Review 5. Summary 6. Q&A 2 2
Slide 3: Results Overview
RESULTS OVERVIEW Revenue increased 13.2% to £200.1m (H1 2017: £176.8m) EBITDA increased 18.6% to £11.3m (H1 2017: £9.6m) Adjusted* operating profit increased 21.0% to £9.2m (H1 2017: £7.6m) Adjusted* pre-tax profit increased 22.0% to £10.9m (H1 2017: £9.0m) Pre-tax profit increased 28.2% t
Slide 4: Financial Review: Segmental Analysis
FINANCIAL REVIEW Segmental Analysis H1 2018 (£m) H1 2017 (£m) % Change Segmental revenue Agriculture 178.3 160.5 11.1 Engineering 21.8 16.3 34.5 Total revenue 200.1 176.8 13.2 EBITDA 11.3 9.6 18.6 Segmental adjusted* operating profit Agriculture 7.8 7.3 6.3 Engineering 1.4 0.3 382.5 Total adjusted*
Slide 5: Financial Review: Balance Sheet
FINANCIAL REVIEW Balance Sheet At 3 March 2018 At 2 September 2017 % Change £m £m Fixed assets 83.5 82.7 1.0 Net working capital 42.3 36.3 16.6 Assets employed 125.8 119.0 5.7 Pension surplus 6.0 5.2 14.6 Net debt (16.1) (14.1) 13.8 Tax provisions (4.5) (4.2) 8.3 Net assets 111.2 105.9 5.0 Gearing 1
Slide 6: Financial Review: Cash Flow
FINANCIAL REVIEW Cash Flow H1 H1 Expiry Facility Utilised 2018 2017 £m H1 2018 £m £m £m EBITDA 11.3 9.6 Working capital 12 month rolling 35.5 23.1 facilities (UK) /2019 Working capital movements (5.0) (3.1) Working capital 12 month rolling 0.7 - Net interest (0.4) (0.4) facilities (US) Taxation (1.0
Slide 7: Group Strategic Vision
GROUP STRATEGIC VISION To be recognised as a truly international business at the forefront of technology and innovation Strategic Objectives 1. Build value by focusing on markets with growth potential 2. Grow our international footprint 3. Differentiate through innovation and technology 4. Lead in o
Slide 8: UK Agriculture
UK AGRICULTURE PERFORMANCE Total feed volumes: 6.3% increase in tonnes sold Fuel volumes: 5.6% increase in litres sold Retail: 15.7% sales increase, 3.5% in like for like sales Machinery: 8.9% increase in sales as confidence continues to improve Successful integration of Pearson Farm Suppl
Slide 9: UK Agriculture: Strategy and Outlook
UK AGRICULTURE STRATEGY Lead in dairy nutrition Strengthen current geographical position Expand into areas where current offer would be aligned OUTLOOK Improving farm incomes Milk price declined from peak level but stable Raw material price increases Brexit uncertainty particularly rel
Slide 10: Feed Blocks
FEED BLOCKS PERFORMANCE Global feed block sales up 11.2% UK feed block sales up 9.3% USA sales up 11.0% (including JVs) USA feed block sales recovering as expected Strength of brands, e.g. Crystalyx®, SmartLic®, Feed in a Drum® and Horslyx® INVESTMENT Shelbyville, Tennessee new low moist
Slide 11: USA Feed Block Operations
USA FEED BLOCK OPERATIONS • Strategic location of feed block plants near cattle populations • Newer feed block plants, Nevada 3, Iowa 5 and Tennessee 4 Cattle and Calves Inventory • 1 Belle Fourche, South Dakota • 2 Poteau, Oklahoma • 3 Silver Springs, Nevada • 4 Gold-Bar Feed 1 Supplements, Shelbyv
Slide 12: Engineering
ENGINEERING PERFORMANCE 16% Overall divisional revenue up 34.5% Overall divisional adjusted operating profit up 382.5% 84% Revenue from nuclear contracts 84% of total revenues up from 71% last year Appointment of Engineering Division, MD Nuclear Oil & Gas/Other 12 12
Slide 13: Engineering: UK Manufacturing and Remote Handling
ENGINEERING UK MANUFACTURING REMOTE HANDLING Significant improvement in performance Excellent H1 performance in line with expectations Order book strong Order book strong Major contract delayed in prior year now in place and working well Product development programme progressing well S
Slide 14: Engineering: USA Engineering and Outlook
ENGINEERING USA ENGINEERING OUTLOOK Performance ahead of expectation Strong recovery from prior year and set to continue Integration going well with succession and recruitment plan successfully Integration of NuVision going well implemented USA expansion plans underway Showroom of Wälisc
Slide 15: Summary
SUMMARY Very strong first half year performance UK Agriculture good performance driven by: - retail sales growth - feed volume growth - improved machinery sales - stable farming income Recovery in USA feed block performance as expected Integration of NuVision into our Engineering division co
Slide 16: Questions & Answers
QUESTIONS & ANSWERS BUILDING ON FOUNDATIONS GROWTH FOR 16 16
Slide 17: The Appendices
THE APPENDICES 1. The Group | An Overview 2. Geographic Footprint 17 17
Slide 18: The Group: An Overview
THE GROUP AN OVERVIEW International business focused on two sectors: agriculture and engineering AGRICULTURE ENGINEERING Manufacture of molasses-based branded feed A remote handling business designing and blocks for farm animals in the UK, Germany manufacturing bespoke manipulators and and USA e
Slide 19: Geographic Footprint
GEOGRAPHIC FOOTPRINT INTERNATIONAL DISTRIBUTION AGRICULTURE ENGINEERING os EUROPEAN DISTRIBUTION EUROPEAN DISTRIBUTION #3 Tig Wf enovorce erence emcee §=6<Carrs a 19
Slide 20: Contact details
BUILDING ON FOUNDATIONS GROWTH FOR Carr’s Group plc, Old Croft, Stanwix, Carlisle, Cumbria, UK CA3 9BA Telephone: +44 (0) 1228 554600 Email: [email protected] 20 20 www.carrsgroup.com