Fevara Plc · LSE:FVA
Fevara — Carr's Group — H1 FY2008 Earnings Presentation
25 slides from Fevara's earnings presentation, April 2008
Slide 1: Interim Results Presentation April 2008
“the trends are positive” Interim Results Presentation April 2008 1 1
Slide 2: Presenters
Presenters Chris Holmes Chief Executive Ron Wood Finance Director 2
Slide 3: Activities
Activities Agriculture (73% of Group revenue) • Animal feed • Fertilisers • Farm supplies and machinery • Fuel oils Food (25% of Group revenue) • Flour (for bread, biscuits and confectionery) Engineering (2% of Group revenue) • Nuclear and petrochemicals (Bendalls) • Nuclear (Carrs MSM) • Vehi
Slide 4: Financial Highlights
Financial Highlights • Revenue up 45.9% to £161.87m • Adjusted pre-tax profit up 38.7% to £5.56m • Adjusted basic EPS up 35.7% to 44.1p • Dividend per share up 9.1% to 6.0p 4
Slide 5: Agriculture - Result
Agriculture - Result • Revenue up 45.1% at £118.82m • Operating profit up 56.9% at £4.02m • Post-tax profit in associate and JVs up 46.5% at £0.98m 5
Slide 6: Agriculture – Market Backdrop
Agriculture – Market Backdrop • UK – 50% increase in farm gate milk price from late 2007 – Animal feed over-capacity – Increasingly high feed wheat and other raw material prices – High energy and distribution costs • Overseas - Higher cost of molasses, a main ingredient 6
Slide 7: Agriculture – Farm Gate Milk Price
Agriculture – Farm Gate Milk Price Average Annual Milk Price PPL 27 25 24.87 24.47 23 Pence Per Litre 21.95 21 20.66 19.26 19.13 19 18.3 18.45 18.46 18.01 17.94 17 16.91 17.05 15 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year Monthly Farmgate Milk Price 2005 2006 2007 2008 29
Slide 8: Agriculture – Feed Wheat Price
Agriculture – Feed Wheat Price Feed Wheat Prices August 2006 - February 2008 Feed Wh ea t Pr ice £ /T 200.0 180.0 160.0 140.0 120.0 100.0 £ 80.0 60.0 40.0 20.0 - Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- 06 06 06 06 06 07 07 07 07 07 07 07 07 07 0
Slide 9: Agriculture – Animal Feed
Agriculture – Animal Feed • UK compound and blended feed gained market share and benefited from early buying of raw materials • UK feed block sales were up 18% • US feed block sales were up 14%, but margins were slightly lower • Germany low moisture feed block sales increased by the introduction of
Slide 10: Agriculture - Other
Agriculture - Other • Fertiliser – Revenue was up 114%, as farmers bought early and the New Choice environmentally-friendly brand continued to expand • Retail – Revenue was up more than 10%, with a Q2 acceleration • Fuels – Revenue was up 70%, reflecting the Johnstone acquisition and market share ga
Slide 11: Food – Result
Food – Result • Revenue up 57.9% at £39.68m • Operating profit up 21.0% at £1.1m 11
Slide 12: Food - Commentary
Food - Commentary • The revenue increase reflected September and November price increases • The profit increase reflected margin erosion in the previous H2 and the increasing benefits of the cost reduction programme 12
Slide 13: Food – Milling wheat price
Food – Milling wheat price Milling Wheat Prices August 2006 - February 2008 Mil l in g Wh ea t Pr ice £ /T 250.0 200.0 150.0 £ 100.0 50.0 - Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- 06 06 06 06 06 07 07 07 07 07 07 07 07 07 07 07 07 08 08 Aug- Sep
Slide 14: Engineering - Result
Engineering - Result • Revenue down 14.7% at £3.30m • Operating profit down 16.0% at £0.49m 14
Slide 15: Engineering - Commentary
Engineering - Commentary • The decrease in revenue and profit reflected constant design changes to one large contract for pressure vessels • Nuclear decommissioning contract completed ahead of schedule • Master Slave Manipulator business for both nuclear and research establishments is buoyant 15
Slide 16: Summarised Income Statement
Summarised Income Statement 2008 2007 Increase Revenue (£m) 161.87 110.97 45.9 % PBT - adjusted (£m) 5.56 4.01 38.7 % - reported (£m) 5.17 3.57 45.0 % EPS - adjusted (p) 44.1 32.5 35.7 % - reported (p) 44.6 30.6 45.8 % DPS (p) 6.0 5.5 9.1 % 16
Slide 17: Segmental Analysis
Segmental Analysis Revenue Operating profit† 2008 2007 2008 2007 £m £m £m £m Agriculture 118.8 81.9 4.0 2.6 Food 39.7 25.1 1.1 0.9 Engineering 3.3 3.9 0.5 0.6 Central 0.1 0.1 (0.2) (0.1) 161.9 111.0 5.4 4.0 17 † before retirement benefit charge, share of post-tax result of associate and JVs and fina
Slide 18: Summarised Balance Sheet
Summarised Balance Sheet 01.03.08 03.03.07 01.09.07 £m £m £m Non-current assets 38.4 39.5 37.8 Current assets 82.0 58.0 51.8 Current liabilities (68.0) (46.7) (39.8) Non-current liabilities (21.5) (26.9) (20.9) Net assets 30.9 23.9 28.9 Minority interests – equity (2.3) (2.1) (2.1) Equity shareholde
Slide 19: Summarised Cash Flow Statement
Summarised Cash Flow Statement 2008 2007 £m £m Cash (used)/generated by operations (7.9) 0.6 Net interest (0.6) (0.4) Tax paid (0.5) (0.7) Net cash used by operating activities (9.0) (0.5) Net cash used by investing activities (1.1) (2.2) Net cash generated/(used) by financing activities 1.7 (2.1) E
Slide 20: Outlook - Agriculture
Outlook - Agriculture • UK is benefiting from improved farm incomes • Compound and blended feed margin to be maintained following May price increase • UK feed blocks – strong demands and improving margins • Fertiliser – margins improving but volumes lower in second half • US feed blocks - margins im
Slide 21: Outlook – Food
Outlook – Food • A more stable wheat price is expected • The cost reduction programme should have an increasing effect 21
Slide 22: Outlook – Engineering
Outlook – Engineering • A satisfactory FY outcome is expected • Order book at record high • Good spread of business – nuclear, oil, gas and petro-chemical 22
Slide 23: Outlook – Overall
Outlook – Overall “The trends are positive for H2 and beyond” 23
Slide 24: APPENDIX
APPENDIX
Slide 25: Effective Management Action 1997 -
Effective Management Action 1997 - 1997 Diversification into the USA, with the acquisition of Animal Feed Supplement feed block business Closure of animal feed mill at Silloth (following BSE in 1996) 1999 Formation of Carrs Billington Agriculture animal feed JV Expansion in the USA with commissionin