Fevara Plc · LSE:FVA
Fevara — Carr's Group — H1 FY2020 Earnings Presentation
27 slides from Fevara's earnings presentation, April 2020
Slide 1: Interim Results Presentation
Interim Results Presentation April 2020 1
Slide 2: Agenda
Agenda 1. Introduction | Tim Davies, CEO 2. COVID-19 | Tim Davies, CEO 3. Financial Results | Neil Austin, Group FD 4. Divisional Review | Tim Davies, CEO 5. Summary 6. Outlook 7. Q&A 2
Slide 3: COVID-19 Overview
COVID-19 Overview • We remain operational across both Agriculture and Engineering in the UK and overseas • Health & Safety is our overriding objective • Decisive action being taken and developments are being closely monitored • To date, no material adverse impact on the Group • Robust financial posi
Slide 4: COVID-19 Measures implemented
COVID-19 Measures implemented • Following all government guidelines • Rigorous social distancing controls, hygiene measures and shift-working practices implemented across all locations • Working from home wherever possible • Supporting high risk and vulnerable people 4 4
Slide 5: COVID-19 Agriculture
COVID-19 Agriculture • UK and overseas manufacturing facilities remain operational • UK retail outlets continue to service customers with feed, animal health product, fuel, machinery and a wide range of other products • Agriculture industry designated key workers supporting global food supply chains
Slide 6: COVID-19 Engineering
COVID-19 Engineering • Manufacturing facilities largely operational • Continue to work on projects, many of which are of national importance and of a critical nature • Close liaison with customers and supply chain partners to minimise any potential negative impact on the division 6 6
Slide 7: COVID-19 Strong financial position
COVID-19 Strong financial position • Net debt 1.2 x adjusted EBITDA at end of H1 • Undrawn facilities £22.4m at end of H1 • Substantial committed facilities maturing 2021 to 2023 • Weekly and longer-term monthly cash forecasting in place • Cash flow stress tested against various scenarios - demonstr
Slide 8: COVID-19 Strong financial position (continued)
COVID-19 Strong financial position (continued) • Cash preservation measures ➢ Restrict non-essential capital expenditure ➢ Deferral of all non-critical expenses ➢ Close monitoring of receivables ➢ Deferral of interim dividend • Review opportunities to appropriately utilise government assistance sche
Slide 9: Results Overview
Results Overview ▪ Revenue decreased 3.0% to £200.0m (H1 2019: £206.2m) Continuing Operations ▪ ▪ Adjusted* EBITDA decreased 3.5% to £11.7m (H1 2019: £12.2m) Adjusted* operating profit decreased 13.4% to £10.3m (H1 2019: £11.9m) ▪ Adjusted* profit before tax decreased 16.0% to £9.6m (H1 2019: £11.4m
Slide 10: Financial Review: Segmental Analysis
Financial Review Segmental Analysis H1 2020 (£m) H1 2019 (£m) Change Segmental revenue: Agriculture 175.0 185.2 -5.5% Engineering 24.9 21.0 +18.4% Total revenue 200.0 206.2 -3.0% Adjusted EBITDA 11.7 12.2 -3.5% Segmental adjusted operating profit: Agriculture 9.0 10.7 -15.5% Engineering 1.2 2.0 -39.
Slide 11: Financial Review: Balance Sheet
Financial Review Balance Sheet At 29 February 2020 At 31 August 2019 Change £m £m Fixed assets 118.5 107.4 +10.3% Net working capital 50.5 45.2 +11.7% Assets employed 169.0 152.6 +10.7% Pension surplus 6.6 7.8 -14.5% Net debt (excluding leases) (25.4) (20.9) +21.9% Lease liabilities (15.2) (2.9) +42
Slide 12: Financial Review: Cash Flow
Financial Review Cash Flow H1 2020 H1 2019 Expiry Facility Utilised H1 £m £m £m 2020 £m EBITDA 11.7 12.2 Working capital facilities (UK) 12 month rolling/2021 35.5 14.7 Working capital changes (2.5) (7.3) Working capital facilities (US) 12 month rolling 2.0 0.3 Net interest (0.8) (0.5) Taxation (2.1
Slide 13: Agriculture
Agriculture 13
Slide 14: Supplements
Supplements Performance Investment/Research International Growth • Revenues of £36.6m (H1 2019: £37.4m) • Shelbyville, Tennessee new low moisture • Feed block growth plans focused on block plant performing in line with Europe, New Zealand and North America • Lower farm incomes, uncertainty, benign e
Slide 15: UK Agriculture
UK Agriculture Performance Strategy Outlook • Revenues of £138.4m (H1 2019: £147.8m) • Lead in dairy nutrition with focus • COVID-19 uncertainty and impact on • Resilient performance despite reduced sales on technical services the industry due to lower farm incomes, uncertainty, large • Strengthen c
Slide 16: Engineering
Engineering 16
Slide 17: Engineering Performance
Engineering Performance 24.5% • As expected, slow start to the year due to contract phasing • Revenue up 18.4% to £24.9m (H1 2019: £21.0m) (37.8%) • Overall adjusted divisional operating profit down 39.6% to £1.2m (H1 2019: £2.0m) Revenue 62.3% 13.2% (44.4%) • New divisional structure aligned to cus
Slide 18: Engineering: UK Service and Manufacturing, Global Robotics
Engineering UK Service and Global Robotics Manufacturing • Revenues of £15.5m versus £9.3m in H1 2019 • Revenues of £6.1m versus £7.9m in H1 2019 • Strong order books • Delays in contract awards in Japan • New management has overseen much improved and China impacted H1 and will business development
Slide 19: Engineering: Global Technical Services and Outlook
Engineering Global Technical Services Outlook • Revenues of £3.3m versus £3.8m in H1 2019 • Order books across the Division remain strong in particular UK Service and Manufacturing and Global • As expected, lower levels of activity due to phasing of Technical Services multi-year MSIP® projects • Glo
Slide 20: Summary
Summary • Resilient performance in the period despite market challenges across both Agriculture and Engineering • Performance in Agriculture impacted by: ➢ Pressure on farm incomes due to rising costs and pressure on prices in UK and USA ➢ Uncertainty in UK Agriculture surrounding future relationshi
Slide 21: Outlook
Outlook • Full year forecast remains in line with revised expectations • We continue to monitor impact of COVID-19 closely ➢ High level of uncertainty ➢ Important steps have been taken to protect our people ➢ We have taken action to protect our operations ➢ Contingency planning in place to limit any
Slide 22: Questions and Answers
GROWTH THROUGH OV ATEN & Questions and Answers
Slide 23: Appendices
Appendices 1. The Group | An Overview 2. Group Strategic Vision 3. Geographic Footprint 23
Slide 24: The Group: An Overview
The Group An Overview International business focused on two sectors: agriculture and engineering Agriculture Engineering • An international Supplements business: • A Global Robotics business designing and manufacturing bespoke manipulators and ➢ Manufacturing molasses-based branded feed robotics, ba
Slide 25: 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 26: Geographic Footprint
Geographic Footprint International Locations UK Locations • Agriculture • Head Office • Engineering Europe • Oldenburg, Germany • Agriculture • Markdorf, Germany • Engineering USA • South Dakota • Oklahoma • Nevada • Tennessee • Iowa • New York • North Carolina • Pennsylvania 26 26
Slide 27: Carr's Group plc
Carr’s Group plc Old Croft, Stanwix, Carlisle, Cumbria, CA3 9BA, UK Telephone: +44 (0) 1228 554600 Email: reception@carrsgroup.com carrsgroup.com