Fevara Plc · LSE:FVA
Fevara — Carr's Group — H1 FY2023 Earnings Presentation
18 slides from Fevara's earnings presentation, May 2023
Slide 1: Interim Results Presentation
Interim Results Presentation May 2023 Peter Page, Chief Executive Officer David White, Chief Financial Officer 1
Slide 2: Highlights (Continuing Operations)
Highlights (Continuing Operations) • Revenue increased 24% on prior year, reflecting raw material cost recovery in Speciality Agriculture division • H1 profits impacted by volumes in Speciality Agriculture and contract timing in Engineering • Record Engineering order book of £57 million at 28 April,
Slide 3: Financial and Operational Review
Financial and Operational Review David White 3
Slide 4: Highlights (Continuing Operations)
Highlights (Continuing Operations) Adjusted1 H1 FY23 H1 FY22 (Continuing Operations) (restated2) +/- Revenue (£m) 79.8 64.5 +24% Adjusted operating profit (£m) 5.8 7.5 -23% Adjusted profit before tax (£m) 5.5 7.2 -23% Adjusted EPS (p) 4.9 6.1 -20% Net (cash)/debt (8.6) 29.9 N/A Interim dividend (p)
Slide 5: Group Financial Performance
Group Financial Performance (Continuing Operations) GBPm Revenue GBPm Adjusted profit before tax 150.0 11.2 120.3 124.2 12.0 10.4 10.0 100.0 3.0 4.0 56.5 59.7 H2 8.0 H2 H1 6.0 50.0 H1 79.8 4.0 7.4 7.2 63.8 64.5 FY 5.5 FY 2.0 0.0 0.0 2021 2022 (restated) 2023 2021 2022 (restated) 2023 GBPm Adjusted o
Slide 6: Speciality Agriculture
Speciality Agriculture Revenue Products and services GBPm 100 78.1 • Crystalyx® and Smartlic® feed blocks and minerals 80 68.5 • AminoMax® bypass protein 60 35.4 H2 28.3 40 H1 • Tracesure® trace element boluses 57.1 FY 20 40.2 42.7 Commentary 0 • Feed block volumes declined year on year 2021 2022 20
Slide 7: Engineering
Engineering Revenue Products and services GBPm 60.0 51.9 • Fabrication and precision engineering 50.0 46.2 • Robotics 40.0 28.3 H2 24.4 30.0 • Engineering solutions H1 20.0 FY Commentary 10.0 23.6 21.8 22.6 0.0 • Order book currently at £57m, up from £41m at FY22 2021 2022 restated 2023 • Fabricatio
Slide 8: Balance Sheet
Balance Sheet At 3 September At 26 February 2022 2022 At 4 March 2023 (restated) (restated) £m £m Change £m Fixed assets 76.8 76.2 +1% 112.9 Net working capital 37.6 30.1 +25% 65.1 Net assets held for resale - 44.2 N/A - Assets employed 114.4 150.6 -24% 178.1 Pension surplus 5.9 6.8 -14% 10.0 Net ca
Slide 9: Movement in Net Cash/(Debt)
Movement in Net Cash/(Debt) (Continuing Operations) GBPm Key points • Net proceeds on disposal reflect £24.7m received on sale, less professional fees paid in period • Working capital outflow reflects increase in receivables – now including Carr’s Billington • Dividends paid in H1 lower last year; f
Slide 10: Outlook
Outlook Financial Year 2023 • Board anticipates full year adjusted profit before tax c. £10m • Strong performance expected in H2 in Engineering; order book 30% ahead of year end and well spread across the business. Recent contract wins support delivery of year end target • Speciality Agriculture vol
Slide 11: Q&A
Q&A 11
Slide 12: Appendix
Appendix 12
Slide 13: Market context for Speciality Agriculture
Market context for Speciality Agriculture • USA has experienced a protracted period of drought causing a loss of grazing and reduction in herd sizes in parallel with the low point of a 10-year beef cycle. Both factors are reverting to more favourable positions • In 2022 prices for essential UK farm
Slide 14: USA drought conditions receding in 2023
USA drought conditions receding in 2023 Following three years of increasingly dry conditions, recent weather leads to a much reduced area affected by drought, improving prospects for grazing area and restocking of ranch herds Over 40% of the national cattle herd is situated in drought affected areas
Slide 15: USA beef cycle turning positive in 2024
USA beef cycle turning positive in 2024 Forecasts of a reduced culling rate from 2023 onwards will result in the national herd rebuilding over the next 5-6 years, increasing demand for feed blocks USA beef sector approaching turning point of 10-year cycle with the cow calf herd headcount at lowest s
Slide 16: UK farm input price inflation receding
UK farm input price inflation receding Fertilisers, essential to achieve strong grass growth for pasture-based grazing systems that use molasses based feed blocks, reached extraordinary prices in 2022 of £750 / tonne, now selling at c.£400, will enhance productivity and release spending capacity Con
Slide 17: Farmgate prices remain strong in the UK
Farmgate prices remain strong in the UK Milk, beef and lamb prices all remain strong compared to prior year and long-term trends rewarding expenditure on inputs to improve marginal productivity 17
Slide 18: Carr's Group plc
Carr’s Group plc Old Croft, Stanwix, Carlisle, Cumbria, CA3 9BA, UK Telephone: +44 (0) 1228 554600 Email: peter.page@carrsgroup.com or david.white@carrsgroup.com www.carrsgroup.com Alternatively contact FTI Consulting Tel: +44 (0) 2037 271340 Email: fti_carrs@fticonsulting.com 18