Fevara Plc · LSE:FVA
Fevara — Carr's Milling Industries — FY2011 Earnings Presentation
19 slides from Fevara's earnings presentation, Nov 11, 2011
Slide 1: Carr's Milling Industries PLC Preliminary Results Presentation
CARR’S MILLING INDUSTRIES PLC “extending our reach” Preliminary Results Presentation 11 November 2011
Slide 2: A Year of Substantial Progress
A YEAR OF SUBSTANTIAL PROGRESS ● Successfully building on Carr’s strengths ● Developing niche products ● UK and international expansion ● Organic and acquisitive growth ● £19m disposal of Carrs Fertilisers ● Balance sheet transformed ● Volatility and seasonal working capital requirements reduced ● S
Slide 3: Results Overview
RESULTS OVERVIEW* ● Revenue increased 25.2% to £373.3m (2010: £298.1m) ● Pre-tax profit increased 36.5% to £10.1m (2010: £7.4m) ● EBITDA increased 30.4% to £15.4m (2010: £11.8m) ● Fully diluted EPS increased 47.0% to 76.3p (2010: 51.9p) ● Final DPS increased 8.3% to 13p: total DPS 26p (2010: 24p) ●
Slide 4: Trading Overview
TRADING OVERVIEW ● Expansion of feedblock and supplement markets/sales Expansion of retail sites Agriculture ● ● Oil market share grown Food ● Speciality flour growth ● Growing order book due to nuclear plant building and Engineering decommissioning ● Emerging market – non-nuclear remote handling ●
Slide 5: Agriculture – Animal Feed
AGRICULTURE – ANIMAL FEED ● Strong volume growth ● Margin improved through forward buying, efficiencies and higher volumes ● Contribution of Bibby Agriculture (JV) up 38% ● Integration of Scotmin completed ● Short term profit impact of reorganisation and investment to reduce costs and support future
Slide 6: Agriculture – Animal Feed
AGRICULTURE – ANIMAL FEED ● Product growth achieved ● Strong demand for Crystalyx in New Zealand ● Early success of German JV in France and elsewhere in Europe ● Strong H2 in US partially offsetting impact of severe winter ● US expansion ● £1m AminoMax plant scheduled to open November 2011 ● New hig
Slide 7: Agriculture – Retail and Farm Machinery
AGRICULTURE – RETAIL AND FARM MACHINERY ● Expansion of retail sites ● Acquired Forsyths of Wooler ● Acquired Safe at Work ● New branch at Stirling ● Machinery sales up 18% with encouraging performance by Massey Tractors and first year’s contribution from Kuhn ● Profit impact of Kuhn franchise start
Slide 8: Agriculture - Fuel
AGRICULTURE - FUEL ● 37% sales increase through strong organic growth, including impact of Lancaster depot and higher oil price ● Market share gained during winter through competitive pricing and excellent service ● New depot opened at Hexham (August 2011) with Cockermouth scheduled to open in sprin
Slide 9: Food
FOOD ● Flour industry overcapacity greatest for 40 years ● Margins hit by high wheat price and intense competition ● Selective investment in automation continues along with strong focus on cost reduction (labour and power) ● £0.8m investment in re-opened port at Kirkcaldy has secured quality wheat s
Slide 10: Engineering - UK
ENGINEERING - UK ● Profit up 68.7% reflects strong H2 with growing order book ● Bendalls, specialist fabricators, benefiting from ongoing work for 2 major contracts – Evaporator D (Sellafield) & Hanford, Washington ● Renewed 3 year preferred supplier to Sellafield ● Increased demand for Carrs MSM in
Slide 11: Engineering - Wälischmiller
ENGINEERING - WÄLISCHMILLER ● Strong demand in France, Germany, Japan, Korea and Russia ● Order book strong for 2012 and 2013, with broad customer base, now quoting for 2014 and beyond ● Oil industry – potential new market ● New €4m replacement factory in Markdorf scheduled for completion in 2013 Fi
Slide 12: Segmental Analysis – Continuing Operations
Segmental Analysis – Continuing Operations 2011 2010 Revenue PBT Revenue PBT £m £m £m £m Agriculture 272.7 6.4 215.2 6.2 Food 82.6 1.3 67.1 1.5 Engineering 18.0 1.7 15.8 1.0 Other - (0.4) - (0.9) 373.3 9.0 298.1 7.8 Retirement Benefit (0.7) (1.2) Associate & JVs (post tax) 1.8 0.8 10.1 7.4 EPS (p) –
Slide 13: Disposal of Fertiliser Business
Disposal of Fertiliser Business £m Consideration 19.0 Cost of disposal (0.8) 18.2 Net assets disposed of (3.3) Profit on disposal 14.9 Profit after taxation of discontinued operations 1.7 16.6 Date of disposal was 13 July 2011 Revenue 46 weeks £78.4m PBT 46 weeks £3.1m Financial Summary & Business O
Slide 14: Balance Sheet
Balance Sheet 2011 2010 £m £m Non-current assets 47.2 47.9 Current assets (excluding cash) 79.8 76.1 Cash 33.3 13.7 Total assets 160.3 137.7 Loans and borrowings (28.7) (29.2) Trade & other payables (57.0) (52.4) Tax & deferred tax (5.7) (6.1) Retirement benefit obligation (6.0) (10.7) Total liabili
Slide 15: Cash Flow Statement
Cash Flow Statement Year to Year to 3 September 2011 28 August 2010 £m £m Profit before tax 8.1 5.8 Interest (1.0) (0.9) Non-cash adjustments 6.8 6.2 Pension contributions (4.8) (2.8) Working capital 4.0 1.9 Cash generated from operations 13.1 10.2 Tax paid (1.7) (2.1) Investing activities (7.7) (8.
Slide 16: Banking & Net Cash/(Debt)
Banking & Net Cash/(Debt) Expiry Facility 2011 £m £m Working capital facilities (UK) 12 month rolling (28.0) (15.6) Working capital facilities (US) 12 month rolling (0.6) (0.2) Term loan November 2014 (5.0) - Revolving credit facility November 2014 (10.0) (10.0) Other loans (1.2) (1.2) Cash - 33.3 (
Slide 17: Underlying PBT - 2011
Underlying PBT - 2011 Agriculture Food Engineering Associate Other Total JVs £m £m £m £m £m £m Reported PBT 6.4 1.3 1.6 1.8 (1.1) 10.0 Severe winter (0.5) - - - - (0.5) Amortisation 0.3 - - - - 0.3 Impairment of assets 0.4 - 0.2 - - 0.6 Profit on disposal of trade (0.2) - - - - (0.2) Reorganisation
Slide 18: Platform for 2012 performance
Platform for 2012 performance Agriculture Food Engineering Associate Other Total JVs £m £m £m £m £m £m Underlying PBT – 2011 6.7 1.3 1.8 1.9 (1.1) 10.6 Safe at Work 0.2 - - - - 0.2 Fertiliser margin 0.2 - - - - 0.2 JV – USA - - - 0.1 - 0.1 Kirkcaldy port - 0.1 - - - 0.1 Interest - - - - 0.4 0.4 Pens
Slide 19: Trading and Growth Prospects
TRADING AND GROWTH PROSPECTS ● Continuing expansion of feedblock and supplements with contributions from new plants Agriculture ● Increase fuel sales from new depots ● Benefit of increasing UK milk price ● Benefit of automation Food ● Benefit of investment at Kirkcaldy port ● Strong order book – exp
Carr's Milling Industries — FY2011 Earnings Presentation on 6ix