Fevara Plc · LSE:FVA
Fevara — Carr's Group — FY2015 Earnings Presentation
21 slides from Fevara's earnings presentation, November 2015
Slide 1: Preliminary Results Presentation
Preliminary Results Presentation November 2015
Slide 2: Agenda
Agenda 1 Results Overview Neil Austin, Group FD 2 Financial Review 3 Group Strategic Vision Tim Davies, CEO 4 Divisional Review 5 Strategic Delivery For Future Growth 6 Q&A 2 2
Slide 3: Results Overview
Results Overview • Revenue decreased 4.1% to £411.6m (2014: £429.0m) • EBITDA increased 6.0% to £21.6m (2014: £20.4m) • Pre-tax profit increased 5.5% to £17.5m (2014: £16.6m) • Adjusted EPS** increased 3.8% to 13.6p (2014: 13.1p*) • Final proposed DPS increased 8.8% to 1.85p (2014: 1.7p*) • Total di
Slide 4: Financial Review: Segmental Analysis
Financial Review: Segmental Analysis 2015 (£m) 2014 (£m) % Change Segmental Revenue Agriculture 297.7 314.9 -5.5 Food 80.3 87.1 -7.8 Engineering 33.5 26.9 +24.8 Other 0.1 0.1 - Total Revenue 411.6 429.0 - 4.1 Segmental Operating Profit Agriculture 11.2 10.4 +8.2 Food 3.1 3.1 +1.8 Engineering 3.3 3.8
Slide 5: Financial Review: Balance Sheet
Financial Review: Balance Sheet 2015 2014 % £m £m change Fixed assets 83.9 79.9 +5.0% Net working capital 41.5 36.6 +13.4% Assets employed 125.4 116.5 +7.6% Pension surplus 1.8 2.1 Net debt (24.4) (24.6) -0.8% Tax provisions (3.8) (4.2) Net assets 99.0 89.8 +10.2% Net debt:EBITDA 1.1 x 1.2 x 5
Slide 6: Financial Review: Cash Flow
Financial Review: Cash Flow 2015 2014 % Utilised £m £m change Facility 2015 Expiry £m £m EBITDA 21.6 20.4 +6.0% 12 month Working capital facilities (UK) 40.5 10.0 Working capital rolling/2019 (3.8) (1.6) changes Working capital facilities (US) 12 month rolling 1.0 0.2 Net interest (1.2) (1.4) Workin
Slide 7: Group Strategic Vision
Group Strategic Vision Vision To be recognised as a truly international business at the forefront of technology and innovation 7
Slide 8: Carr's Geographic Footprint
Carr’s Geographic Footprint ~~ pic INTERNATIONAL DISTRIBUTION Our Engineering and Agriculture divisions distribute to customers all over the world. AGRICULTURE ENGINEERING se EUROPEAN DISTRIBUTION EUROPEAN DISTRIBUTION tocarios
Slide 9: UK Agriculture
UK Agriculture Performance • Feed volumes: 4.1% increase in tonnes sold • Fuel volumes: 4.4% increase in litres sold despite the mild winter • Retail: 8.6% increase in sales (5.3% increase in like for like sales) Investment • Retail store development £3.2m investment over last 2½ years This year
Slide 10: Feed Blocks
Feed Blocks Performance • Sales growth: 10.7% increase in tonnes sold (excluding JVs) • Strength of brands, eg Crystalyx®, SmartLic®, Feed in a Drum® and Horslyx® • Development of new brands Megastart®, Piglyx® and Flaxlic® • Record US sales driven by restocking and favourable weather conditions: vo
Slide 11: USA Feed Block Operations
USA Feed Block Operations Strategic location of feed block plants near beef populations New feed block plants, Nevada 3, Iowa 5 and Tennessee 4 all located near significant cattle populations Cattle and Calves Inventory 2012 1 South Dakota Nevada 3 5 Iowa 1 AFS, Belle Fourche, South Dakota Tenne
Slide 12: AminoMax
AminoMax® Performance • Sales flat globally as affected by global dairy prices • Continued market recognition Future • Research and development into complementary products • Potential second line at Watertown and licencing options 12
Slide 13: Food
Food Performance • Further improvement in financial performance: 6.3% increase in PBT • Operational efficiencies continue to be delivered by new mill at Kirkcaldy • Investment at other mills Market • Low wheat prices • Variable quality 2014 • Record, excellent quality harvest 2015 Outlook • Market i
Slide 14: Engineering – UK Manufacturing
Engineering – UK Manufacturing Bendalls – specialist design and engineering • BP Shah Deniz contract delivered successfully • Nuclear order book building • New design business securing orders • Positive outlook for UK nuclear contracts Chirton – precision engineering • Performance currently affected
Slide 15: Engineering – Remote Handling
Engineering – Remote Handling Wälischmiller, Germany – powered and robotic manipulators • Performance in line with our expectations • Successful site acceptance test for Demo 2000 – another milestone achieved • Russian and Japanese markets still difficult • Continued focus on USA market • Contract w
Slide 16: Strategic Delivery For Future Growth
Strategic Delivery For Future Growth Group Strategic Divisional Plans Delivery Objectives Agriculture Agriculture • Lead in dairy nutrition • AminoMax® – new products • Investment in targeted research • Research – 14 trials ongoing • New markets • New plants – Silver Springs • Innovation • New produ
Slide 17: Summary
Summary • Record PBT performance against a challenging market backdrop • Outstanding performance in the US feedblock business • Strong performance in UK retail driven by investment • Further growth in the Food division delivered • Continuing evidence of recovery in the UK nuclear industry 17
Slide 18: Group Strategic Vision
Group Strategic Vision Vision To be recognised as a truly international business at the forefront of technology and innovation 18
Slide 19: Questions & Answers
Questions & Answers 19
Slide 20: Appendix
Appendix A The Group: An overview 20 20
Slide 21: The Group: An Overview
The Group: An Overview International business focused on three sectors: agriculture, food and engineering Agriculture • Manufacture of molasses-based branded feedblocks for farm animals in the UK, Germany and USA e.g. Crystalyx®, Megalix® and SmartLic® • Own and operate 30 rural retail outlets acros