Fevara (FVA) H2 2024 earnings summary

Executive summary

• Transformative changes in FY2024 included a strategic focus on Global Agriculture, ongoing Engineering Division disposal, and new leadership in both the Group and Agriculture.

• Revenue increased 2.7% year-over-year to £148.0m on a like-for-like basis, with adjusted operating profit up 11.5% to £8.9m, driven by strong Engineering performance and cost actions in Agriculture.

• Statutory results reflect significant adjusting items (£14.6m), leading to a statutory operating loss of £5.8m and loss before tax of £6.1m.

• Group simplification and cost reduction initiatives underway, including property sales, pension scheme de-risking, and central cost reductions.

• Final dividend of 2.85p per share proposed, maintaining the full year dividend at 5.2p per share.

Financial highlights

• Like-for-like revenue up to £148.0m from £143.2m year-over-year; Engineering revenue at £60.1m, Agriculture at £88.0m.

• Adjusted EBIT/operating profit rose to £8.9m from £8.0m year-over-year; Engineering EBIT up to £7.2m, Agriculture EBIT down to £4.7m.

• Statutory operating loss of £5.8m due to £14.6m in adjusting items, including £7.4m non-cash charges.

• Adjusted EPS for continuing operations at 2.6p; basic EPS declined to (6.1)p from (0.3)p year-over-year.

• Net cash (excluding leases) at year-end was £8.0m (continuing), £4.5m (total Group), with £3.5m net debt in discontinued operations.

Outlook and guidance

• FY25 expected to be a transitional year with further cost reductions and a focus on enhancing EBIT in core Agriculture.

• Sale of Engineering Division expected to optimise shareholder value; strong trading anticipated until completion.

• Dividend policy to be reset post-Engineering disposal, targeting a 4% average annual yield.

• Ongoing actions to improve operating margin, expand into new markets, and deliver profitable growth in Agriculture.

• Focus on core Agriculture, product development, and expansion into new geographies; long-term outlook remains attractive.