REG - Fevara PLC - Interim Results
Today 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260422:nRSV3902Ba&default-theme=true
RNS Number : 3902B Fevara PLC 22 April 2026
22 April 2026
Fevara plc
("Fevara", the "Group" or the "Company")
Interim results for the six months ended 28 February 2026
Continued strategic progress in H1; successful entry into Brazil establishes
platform for significant long-term growth
Fevara plc (LSE: FVA), an international specialist in livestock supplements,
announces its unaudited interim results for the six months ended 28 February
2026 ("H1 FY26" or the "Period").
Continuing Operations H1 FY26 H1 FY25 Change (%)
Revenue £50.6m £50.6m -
Adjusted operating profit £7.2m £5.9m 22.0
Adjusted profit before tax £7.0m £5.9m 18.8
Net cash £1.4m £15.7m (91.0)
Adjusted earnings per share 11.0p 5.1p 115.6
Group
Adjusting Items (cost)/income £(1.0)m £1.4m (171.8)
Profit/(loss) from discontinued operations £(0.0)m £0.9m (101.7)
Profit/(loss) for the period £4.6m £7.1m (34.8)
Basic earnings per share 8.9p 7.5p 18.7
Interim dividend per share 1.2p 1.2p -
Financial Highlights (continuing operations only)
· Total revenue was £50.6m (H1 FY25: £50.6m), +2% at constant
foreign exchange rate, reflecting continued progress across core markets, with
Low Moisture Block ("LMB") volume growth of 6% year-on-year, offset by planned
reductions in lower margin products in the UK and Ireland.
· Adjusted operating profit increased by 22% to £7.2m (H1
FY25: £5.9m) for the first half with adjusted profit before tax increasing by
19% to £7.0m (H1 FY25: £5.9m).
· Well positioned for seasonally weaker second half with LTM
adjusted operating profit of £5.0m, increased by 35% from full
year FY25: £3.7m.
· Adjusted earnings per share growth of 116% driven by a
combination of increased earnings and reduction in the number of shares in
issue following last year's tender offer.
· UK/Europe fully owned adjusted operating profit increased by
26% to £3.7m (H1 FY25: £3.0m), driven by robust demand for LMB, with core
LMB volumes up 9% year-on-year.
· In the US fully owned, adjusted operating profit increased
by 5% to £2.7m (H1 FY25: £2.6m). While volumes increased by 4%, as strong
demand in southern states offset a weaker performance in northern states which
were impacted by highly unusual absence of snowfall through peak season.
· Following increased management focus over the past 18
months, performance across the Group's Joint Ventures (''JV'' or ''JV's'') in
the US and Germany has materially improved versus FY25, with an 12% increase
in profit contribution to the Group's performance.
· Following the strategic entry in the significant Brazil market in
December 2025, early trading has been in line with management's expectations,
and there continues to be the opportunity for material growth opportunities
ahead.
· Closing net (unrestricted) cash position of £1.4m as at 28
February 2026 (28 February 2025: £15.7m) in line with expectations following
the FY25 tender offer to achieve our targeted capital structure and funding
levels.
· Central costs (adjusted) of £0.8m (H1 FY25:£1.1m) are a 27%
reduction on the prior year as part of the Group's disciplined and ongoing
approach to cost savings.
· Interim dividend of 1.2p per share (H1 FY25: 1.2p) returning
£0.6m to shareholders in respect of H1 FY26, to be paid on 19 June 2026 to
shareholders on the register at close of business on 15 May 2026.
Operational and Strategic Highlights
· Entered the strategically important Brazilian market, establishing
a presence in the Southern Hemisphere, in line with Group's growth strategy:
- Acquisition of Domino Industria E Comercio LTDA, trading as
Macal ("Macal"), announced on 3 December 2025, for an initial consideration of
£5.0m in cash.
- Post-period end acquisition of a high-specification production
facility in São Paulo State, announced on 18 March 2026, for an initial
consideration of £4.3m in cash.
- The Group remains committed to progressing its low-risk
strategy of building its presence in the Brazil market and is exploring a
number of opportunities to both expand operations and launch new products in
this strategically important market.
· Continued focus on leveraging operations to create
value:
- Post period end launch of five-year distribution agreement
with Oceana Minerias Marinhos Ltda (''Oceana Minerals'') to distribute
LithoNutri products across the UK and Ireland.
· Underpinned by a clear strategy and disciplined capital
allocation, the Board today sets out its medium-term financial ambitions,
targeting at least: full-year revenue of £120m, a full-year EBITDA of £15m,
a full-year EBIT margin of 10% and full-year ROCE of 20% with increasing
confidence.
· The Company also today announces the appointment of Gavin
Manson, the Group's Chief Financial Officer, as an Executive Director to the
Board, with immediate effect. Gavin will stand for re-election along with the
Company's other Directors at the Company's next Annual General Meeting.
Further information in accordance with UKLR 6.4 relating to Gavin Manson is
set out at the end of this announcement.
Current Trading and Outlook
· The Board does not anticipate any near-term material impact
on the business from current geopolitical developments. Where possible, Fevara
procures and sells using local manufacturing and distribution with contractual
cover in place on key raw materials through the end of FY26 which provides
resilience against global supply chain disruption. As a livestock-focused
business, Fevara's core customer base of beef and sheep farmers have less
exposure to fertiliser cost inflation than mainstream agriculture activity
such as arable farming and continue to enjoy robust retail meat pricing
supporting their profitability.
· Trading since the half year has been encouraging, with
continued strong performance in the UK and further margin improvement. The
Board is confident in delivering a full year outcome in line with market
expectations*.
*Company compiled consensus for Adjusted Operating Profit prior to the release
of this announcement for FY26 is £5.5m
Joshua Hoopes, Chief Executive of Fevara commented:
"I am delighted to report a strong performance in the first half, driven by
the UK, and I am pleased with the continued momentum across our core markets.
Alongside this, we marked our first successful steps into the highly
significant Brazilian market, demonstrating the strength and resilience of our
core business during a period of strategic investment. Post period end, the
acquisition of a high-specification production facility in São Paulo
establishes a platform which offers compelling long-term growth potential in
the world's largest beef producing country.
Whilst we are mindful of the current geopolitical environment, our regional
based model provides resilience against supply chain disruption. We remain
well positioned to continue delivering against our long-term growth strategy
and realise significant global market growth opportunities."
Tim Jones, Chair of Fevara commented:
"We entered the new financial year with a refocused strategy, a bold new
identity and an ambition to be the global expert in extensive livestock
supplements. Under this new identify, we have made strong progress in
delivering our growth strategy supported by attractive acquisitions which have
established our Southern Hemisphere presence. Global market fundamentals in
the sector remain very strong, driven by high demand for animal protein.
Supported by our position as a leader in research-proven livestock
supplements, and our refocused strategy, I believe that Fevara is strongly
positioned to benefit and drive sustainable value for all shareholders."
For further information, please contact:
Enquiries
Fevara plc +44 (0) 1228 554 600
Joshua Hoopes, Chief Executive Officer
Gavin Manson, Chief Financial Officer
+44 (0) 20 7796 4133
Hudson Sandler
Hattie Dreyfus/Nick Moore/Francesca Rosser
About Fevara plc:
Fevara is an international specialist in livestock supplements.
Fevara's purpose is to empower farmers in extensive grazing systems with
research-proven products that boost profitability, improve resource efficiency
and support sustainable agriculture. The Group develops, manufactures and
markets research-proven supplements, including feed licks, blocks, bagged
minerals, and boluses for cattle, sheep and horses, sold under recognised and
trusted brands, including Crystalyx®, Horslic®, Horslyx®, Scotmin
Nutrition®, SmartLic®, Tracesure® Advanced and Macal®.
Headquartered in Carlisle, Cumbria, in the UK, Fevara has manufacturing sites
in the UK, US and Brazil with operational joint ventures in Germany and the
US. It serves customers in more than 20 countries through its expansive
international distribution and support network.
Fevara has been listed on the London Stock Exchange since 1972.
For more information, visit: www.fevara.com (http://www.fevara.com)
Gavin Manson - Regulatory Disclosures:
Pursuant to UKLR 6.4.10 the Company confirms that save for the information set
out below there is no additional information to be disclosed in accordance
with UKLR 6.4.8 in relation to Gavin Manson's appointment.
Shares
Gavin holds 44,011 ordinary shares of 2.5p each in the Company. Gavin was
granted an award of options ("Options") over 130,708 ordinary shares of 2.5p
each in the Company on 11 December 2025 ("Award Date") pursuant to the
Company's Long Term Incentive Plan 2023 ("LTIP"). The Options were awarded for
nil-cost subject to the rules of the LTIP and will be exercisable from the
third anniversary of the Award Date to the tenth anniversary of the Award
Date.
Current and Former Directorships
· Director of Electra Private Equity PLC (now called Unbound
Group plc) (March 2017 to date). Company delisted from trading on AIM on 18
January 2024.
· Non-Executive Director of Hostmore plc from November 2021
until June 2023.
· Non-Executive Director of Windar Photonics plc (February
2024 to date).
· Non-Executive Director of Beaconsfield Footwear Ltd (former
portfolio company of Electra Private Equity PLC) at the time of its
administration in July 2023. Notice to move from administration to dissolution
was filed on 16 January 2026.
INTERIM MANAGEMENT REPORT
Overview: further transformational strategic progress
The strong strategic delivery and trading turnaround evident in FY25 has
continued into FY26 despite uncertain political environments and challenging
trading conditions in certain markets.
As a result, Group Adjusted Operating Profit increased by 22% in the first
half, representing a 35% improvement on a "last 12 months" ("LTM") basis. This
reflects continued focus against the first two pillars of the Group's renewed
strategy announced in December 2024, 1) margin improvement and 2) profitable
commercial growth, across the Group's established Northern Hemisphere markets.
This increased profitability was achieved through overall volume growth in our
core Low Moisture Block ("LMB") products of 6% with a 14% planned reduction in
our minerals volume as we focus on higher margin products. This growth in LMB
reflects the blended impact of normal market conditions in the UK/Europe and
Southern US with highly abnormal and challenging conditions in the Northern US
states in the first half (detailed below).
Our focus on cost control contributed to overall performance and is reflected
by a 27% reduction in central costs in the first half.
Capital Allocation and Medium-Term Strategic Ambition
The focus of the Group is on optimising performance, growth and shareholder
returns through disciplined capital allocation and a conservative approach to
gearing.
Our key metrics (set out below) of operating margin and return on capital
employed reflect our strategic priorities. Whilst the business remains highly
seasonal, we continue to make sequential progress on both a H1 year-on-year
basis and on an LTM basis.
H1 FY26 H1 FY25 LTM FY25 FY24
Adjusted EBITDA Growth % 22.0% 62.6% 35.1% 62.6% (23.8)%
EBIT Margin % 14.2% 11.7% 6.3% 4.7% 3.5%
ROCE % 13.1% 11.5% 9.1% 8.6% 7.8%
With a clear strategy and defined plans for delivery, Fevara is well
positioned to drive continued transformation of the Group's performance,
within its established risk appetite and without the requirement for
additional capital.
Underpinned by this strategy, the Group is pleased to set out its medium term
(three to five years) financial ambition, to deliver at least:
· Full-year revenue of £120m
· Full-year EBITDA of £15m
· Full-year EBIT Margin of 10%
· Full-year ROCE of 20%
The delivery of this ambition is based on targeted gearing below 1x and with
dividend cover of 2x.
Financial Summary
H1 FY26 H1 FY25 LTM FY25
£'m £'m % £'m £'m %
Revenue
UK/Europe 26.8 27.6 (2.9) 40.6 41.4 (1.9)
US 22.9 23.0 (0.7) 37.3 37.4 (0.4)
Brazil 0.9 0.0 0.9 0.0
Total 50.6 50.6 (0.0) 78.8 78.8 (0.0)
Adjusted Operating Profit
UK/Europe Fully Owned 3.7 3.0 25.6 3.0 2.2 34.6
JVs 0.5 0.4 17.3 0.8 0.7 9.7
Total 4.2 3.4 24.6 3.8 2.9 28.6
US Fully Owned 2.7 2.6 5.0 2.9 2.8 4.6
JVs 1.1 1.0 9.9 0.8 0.7 14.6
Total 3.8 3.6 6.4 3.7 3.5 6.6
Brazil Fully Owned (0.1) 0.0 (0.1) 0.0
Central (0.8) (1.1) (26.7) (2.4) (2.7) (11.1)
Total 7.2 5.9 22.0 5.0 3.7 35.1
Performance Summary by Region
UK and Europe - Owned Operations
First half adjusted operating profit grew by 26% in the fully owned UK and
Europe operations, driven by LMB volume growth of 9%, with increased profit
contribution from our minerals business despite a 14% planned volume reduction
away from low margin products.
Whilst our minerals business is regionally focussed in Scotland and the North
of England our LMB business sells throughout the UK and Ireland. The LMB
business has opportunity for further growth throughout the UK and Ireland with
significant opportunity for market share gains through improved distribution
in underserved regions.
The UK/Europe business also benefited from newly profitable exports to New
Zealand and a first positive profit contribution from third party produced
boluses.
UK and Europe - Joint Ventures
During the first half the UK/Europe JV delivered 17% profit growth from 8%
volume growth, in line with the Group's focus on optimising joint venture
relationships and performance.
Fevara benefited from increased co-operation with our Crystalyx LMB JV in
Lower Saxony, Germany. Benefits from this co-operation will continue to
develop and be reflected in the results of our owned businesses and those of
the JV. The improved performance of the JV is indicative of the potential for
market share gains within the Group's largely mature markets of continental
Europe.
United States - Owned Operations
First half adjusted operating profit grew by 5% in the fully owned US business
as overall volumes grew by 4%, reflecting the significantly contrasting
trading conditions across the Northern and Southern states. On a constant
currency basis, revenue grew by 4%.
Management took decisive action in the second half of FY25 following
underperformance at the Oklahoma facility, serving Southern states, in the
early part of that year. This drove an improved performance from Q4 FY25. This
improvement has continued to build strong momentum in FY26 with year-on-year
volume growth of 28% in the first half.
In the Northern United States, served from the Group's South Dakota plant,
weather conditions over the key winter months were the second warmest in the
132 years since records began. The absence of the usual persistent snow
coverage on pasture, which typically drive supplementation demand, created
highly challenging trading conditions. Volume in these Northern states fell
11% against a strong comparative performance in H1 FY25. Whilst weather
conditions have shown signs of returning to more normal levels in early
spring, this is not expected to offset volume shortfall incurred over the
winter months.
Whilst the US is a mature market our focus is on realising growth through a
combination of optimised pricing, margin improvement and market share gains.
The benefits arising from these actions are expected to optimise performance
across varying market conditions and will support future growth. Early signs
suggest the bottom of the seven-to-ten-year cattle herd cycle has been
reached, which the Group views as a meaningful opportunity for the coming
years. Whilst material herd increases are expected to become apparent over a
two-to-three-year timeframe, this marks a significant shift from the sustained
declines of recent years.
United States - Joint Ventures
The Group's JV in Tennessee is performing strongly and is now seeing the
benefit of the second production line installed by Fevara engineers in FY24,
following investment by both JV partners. The JV relationship works well in
the supply of largely customer own label LMB and has significant opportunity
for further growth building on 17% volume growth in the first half.
On 21 April 2026, due to strategic and operational differences, Fevara exited
its JV operating in Iowa, USA. This exit will have no material negative
impact on future results.
Brazil
Brazil is the world's largest beef cattle market, with more cattle than all of
Fevara's Northern Hemisphere markets combined. The market exhibits many of the
characteristics of the US market 20 to 30 years ago and presents significant
growth potential, with clear demand for more effective supplementation to
improve yields, beef quality and labour efficiency. The Group's LMB products
are well suited to meet these requirements.
In late December 2025, Fevara completed its first acquisition in Brazil. In
2025 Macal, based in Mato Grosso do Sul generated EBITDA of approximately
£0.7m. Initial consideration on completion was £5.0m with further deferred
consideration of £0.8m-£1.9m due in March 2028, subject to business
performance.
In March 2026 Fevara completed the acquisition of Cia do Sal, based in São
Paulo State. Initial consideration on completion was £4.3m, £4.0m of which
related to freehold business premises. Excess capacity within these premises
will be utilised by Fevara for the installation of a LMB production line at a
cost of £4.0m which will be funded from existing resources. It is expected
this will start to generate revenue in early 2027. The Cia do Sal business
operates at a breakeven EBITDA level (after notional rental) and provides the
platform for expansion within the cattle rich northern São Paulo state.
Together, these acquisitions establish a strong entry within the world's
largest cattle market and provide an initial platform for the production and
distribution of LMB in Brazil.
Trading at Macal in the final two months of the first half was in line with
expectations. The Group is taking a low risk, limited integration impact to
its development in Brazil, and early progress at both Macal and more recently
at Cia do Sal is encouraging.
Our near-term priorities within Brazil are to:
1. Optimise the performance of Macal and Cia do Sal,
individually and in combination.
2. Commence production of LMB, customised for the Brazilian
market, in early 2027.
3. Establish LMB distribution across additional regions, initially
in Goiás and Minas Gerais, to complement the distribution within Mato Grosso
do Sul and São Paulo state available through Macal and Cia do Sal.
The Group continues to take a measured approach to its entry into and
development within Brazil. Early indications support the Group's ability to
deliver its targeted growth objectives and management remain highly optimistic
about the future transformational prospects of this market.
Strategic Partnerships and Product Development
In 2025, the Group established its first strategic partnerships of the new
strategy, with Vétalis for the supply of bolus product in the UK and Ireland,
and with Seales Winslow for distribution of LMB in New Zealand. Both
partnerships are performing in line with expectations and have successfully
converted previously loss-making areas of the business into sources of profit.
As we develop our market share in the Northern Hemisphere and distribution in
the Southern Hemisphere, we will continue to add high margin, complementary
products to our portfolio. In April 2026 the Group signed a distribution
agreement for LithoNutri, a calcified marine algae product by Brazilian
manufacturer Oceana Minerals, covering the UK and Ireland. This product has
the potential to contribute to increased milk yield in dairy and enhanced
growth rates in beef.
The Group will shortly be launching an insect control product in the US
market, drawing on established product experience from our UK/Europe
operations. This product is also considered to be highly applicable to the
Brazilian market in due course.
Whilst we are actively looking for opportunities to develop our range of high
margin products we continue to take a science-backed approach to all product
development. This is supported by our catalogue of over 40 documented trials
with universities across the world. We have recently filed for additions to
our range of manufacturing process patents and are continuing to develop the
next generation of flexible and proprietary low moisture block production
processes.
Corporate Simplification
Continuing Operations
Following the completion of the Engineering sale in FY25 we have continued
with the simplification and right sizing of our central operations and of the
focus of our capital on strategic priorities.
In early 2026 we completed the outsourcing of our IT infrastructure and
support and anticipate concluding the disposal of our final investment/unused
properties by or around the end of FY26.
The process to complete the buy-out of our defined benefit pension scheme is
ongoing. Whilst aspects of the timing of this are outside of our direct
control, we expect the process to be complete in early 2027.
Discontinued Operations
Following the sale of the nuclear focussed businesses within our Engineering
Division in FY25 the single remaining business, Chirton Engineering, remains
under Fevara ownership.
Through a combination of challenges within its core oil and gas segment and
the loss of its business development resource, previously integrated with the
other Engineering Division businesses, Chirton's order pipeline took a
downturn immediately following the Engineering sale. This was addressed by
establishing internal resource focussed on market share within oil and gas and
development within the defence, automotive and aerospace sectors. Following
the anticipated lead time Chirton's order pipeline is now showing sequential
growth. We have continued discussions with several parties who are interested
in the business and anticipate a transaction in the second half of calendar
year 2026.
Central Costs
The Group remains focused on disciplined cost management, directing capital,
resources and time towards areas that support strategic growth.
Central costs were reduced by 27% year-on-year in the first half, reflecting
meaningful reductions that progressed throughout FY25 and have continued into
FY26. Specific actions such as the outsourcing of IT infrastructure and
support and a reduction in professional services, were completed late in the
first half and will deliver further run-rate savings in the second half.
Balance Sheet
The net unrestricted cash position of £1.4m at the half year leaves the Group
well positioned to continue to implement its strategy. The movement from
£15.7m net cash at H1 FY25 is driven by 1) the £4.1m net outflow from the
Engineering sale/tender offer 2) the establishment of the £4.5m restricted
pension escrow and 3) the £5m acquisition of Macal and 4) £3.8m of dividends
paid.
Working capital increased by £0.9m from H1 FY25, entirely due to the
acquisition of Macal. Delivering working capital improvements to offset the
impact of growth remains a focus for management.
Post Balance Sheet Events
A number of items referred to above occurred subsequent to the interim balance
sheet date of 28 February 2026. These are:
· The acquisition of Cia do Sal in Brazil on 17 March
2026
· The signing of the distribution contract for LithoNutri
in UK and Ireland on 16 April 2026
· The exit from our Iowa US based JV on 21 April 2026
Financing
On 17 November 2025, Fevara announced the completion of a new £20m Revolving
Credit Facility with HSBC. The facility extends to November 2028 with two
further, one year extension periods available. In addition to the £20m
committed facility the agreement covers the availability of a further £10m
uncommitted facility over the same period.
The facility was negotiated in order to provide Fevara with the flexibility to
fund its targeted growth over the coming years.
It remains the Group's intent to target Net Debt/EBITDA of no more than 1
times throughout this period.
Interim Dividend
Following the FY25 tender offer and revised strategy, the Board established a
progressive dividend policy targeting dividend cover of at least 2x. The Board
considers it appropriate to maintain the interim dividend at the same level as
both the interim and final dividends paid in FY25. An interim dividend of 1.2
pence per ordinary share will be paid on 19 June 2026 to shareholders on the
register at close of business on 15 May 2026. The ex-dividend date will be 14
May 2026.
Should the year conclude as anticipated with prospects unchanged, a modest
increase in final dividend would be expected.
Principal Risks and Uncertainties
The Board maintains a conservative but balanced approach to risk, which is
reviewed regularly in the context of the Group's strategy and operating
environment.
The Principal Risks facing the Group in the delivery of its strategy remain
unchanged from those disclosed in the FY25 Annual Report and Accounts
(available on the Company's website at www.fevara.com (http://www.fevara.com)
).
Outlook
The Board does not anticipate any near-term material impact on the business
from current geopolitical developments in the Middle East. Where possible,
Fevara procures and sells using local manufacturing and distribution with
contracts in place on key raw materials through the end of FY26 which provides
resilience against global supply chain disruption. As a livestock-focused
business, Fevara's core customer base of beef and sheep farmers have less
exposure to fertiliser cost inflation than mainstream agriculture activity
such as arable farming and continue to enjoy robust retail meat pricing
supporting their profitability.
Trading since the period end has been encouraging, with a strong performance
in UK/Europe and continued margin improvement. In the US, performance has
varied across the Northern and Southern states, though overall trading is
ahead of the prior year. Whilst the Group's performance remains seasonal, the
Board is confident in delivering a full year outcome in line with
expectations.
The Group's strategic transformation continues to progress at pace,
strengthening the focus and resilience of the business. The Board's ambition
to deliver a step-change in performance and shareholder value remains central
to its strategic priorities, and it views delivery of its medium-term
ambitions (at least: full-year revenue of £120m, a full-year EBITDA of £15m,
a full-year EBIT margin of 10% and full-year ROCE of 20%) with increasing
confidence.
CONDENSED CONSOLIDATED INCOME STATEMENT
For the 6 months ended 28 February 2026
6 months ended 28 February 2026 6 months ended
(unaudited) 28 February Year
2025 ended
(unaudited) 31 August
2025
(audited)
Notes £'000 £'000 £'000
Continuing operations
Revenue 6,7 50,566 50,581 78,834
Cost of sales (36,270) (39,127) (61,746)
Gross profit 14,296 11,454 17,088
Net operating expenses (9,978) (5,226) (16,052)
Share of post-tax results of joint ventures 6 1,605 1,434 1,350
Adjusted¹ operating profit 6 7,205 5,904 3,668
Adjusting items 8 (1,282) 1,758 (1,282)
Operating profit/(loss) 6 5,923 7,662 2,386
Finance income 123 319 1,013
Finance costs (312) (316) (505)
Adjusted¹ profit before taxation 6 7,016 5,907 4,176
Adjusting items 8 (1,282) 1,758 (1,282)
Profit/(loss) before taxation 6 5,734 7,665 2,894
Taxation (1,121) (1,554) 133
Adjusted¹ profit for the period from continuing operations 5,690 4,824 3,821
Adjusting items 8 (1,077) 1,287 (794)
Profit/(loss) for the period from continuing operations 4,613 6,111 3,027
Discontinued operations
Profit/(loss) for the period from discontinued operations 9 (16) 944 16,906
Profit/(loss) for the period 4,597 7,055 19,933
Earnings/(loss) per ordinary share (pence)
Basic
Profit/(loss) from continuing operations 10 8.9 6.5 3.5
Profit/(loss) from discontinued operations 10 0.0 1.0 19.6
10 8.9 7.5 23.1
Diluted
Profit/(loss) from continuing operations 10 8.7 6.4 3.5
Profit/(loss) from discontinued operations 10 0.0 1.0 19.4
10 8.7 7.4 22.9
1 Adjusted results are consistent with how business performance is measured
internally and is presented to aid comparability of performance. Adjusting
items are disclosed in note 8. An alternative
performance measures glossary can be found in note 21.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 6 months ended 28 February 2026
6 months ended 6 months ended Year
28 February 28 February ended
2026 2025 31 August
(unaudited) (unaudited) 2025
(audited)
Notes £'000 £'000 £'000
Profit/(loss) for the period 4,597 7,055 19,933
Other comprehensive income/(expense)
Items that may be reclassified subsequently to profit or loss:
Foreign exchange translation gains/(losses) arising on
translation of overseas subsidiaries 116 757 (120)
Taxation credit on foreign exchange translation losses arising on translation
of overseas subsidiaries
- - 54
Items that will not be reclassified subsequently to profit or loss:
Actuarial (losses)/gains on retirement benefit asset 15 66 (805) (4,205)
Taxation credit/(charge) on actuarial (losses)/gains on retirement benefit (17) 201 1,051
asset
Other comprehensive income/(expense) for the period, net of tax 165 153 (3,220)
Total comprehensive income/(expense) for the period 4,762 7,208 16,713
Total comprehensive income/(expense) attributable to:
Continuing operations 4,778 6,099 (359)
Discontinued operations (16) 1,109 17,072
4,762 7,208 16,713
CONDENSED CONSOLIDATED BALANCE SHEET
As at 28 February 2026
As at
As at
As at
28 February
28 February
31 August
2025
2026
2025
(unaudited)
(unaudited) (audited)
Notes £'000 £'000 £'000
Non-current assets
Goodwill 12 6,658 2,068 2,068
Other intangible assets 12 32 34 31
Property, plant and equipment 12 9,334 9,836 8,941
Right-of-use assets 12 914 556 853
Investment property 12 - 40 -
Interest in joint ventures 8,718 7,907 7,101
Other investments 43 27 21
Financial assets
- Non-current receivables 8 - -
Retirement benefit asset 15 - 799 -
Deferred tax asset 2,429 428 2,428
28,136 21,695 21,443
Current assets
Inventories 8,718 8,027 12,298
Contract assets - - -
Trade and other receivables 17,371 15,964 10,644
Current tax assets 25 38 6
Financial assets
- Restricted cash 3,398 - 4,573
- Cash and cash equivalents 13 12,285 20,242 7,855
Assets included in disposal groups and other assets classified as held for 3,535 85,468 2,939
sale
9
45,332 129,739 38,315
Total assets 73,468 151,434 59,758
Current liabilities
Financial liabilities
- Borrowings 13 - (1,606) (1,803)
- Leases (156) (244) (183)
Contract liabilities - - -
Trade and other payables (12,201) (11,380) (11,741)
Current tax liabilities (984) (1,354) (10)
Liabilities included in disposal groups classified as held for sale 9 (2,073) (31,174) (1,477)
(15,414) (45,758) (15,214)
Non-current liabilities
Financial liabilities
- Borrowings 13 (10,865) (2,931) (3,492)
- Leases (823) (366) (759)
Retirement benefit obligation 15 (2,055) - (2,896)
Deferred tax liabilities - (24) -
Other non-current liabilities (2,013) - -
(15,756) (3,321) (7,147)
Total liabilities (31,170) (49,079) (22,361)
Net assets 42,298 102,355 37,397
Shareholders' equity
Share capital 16 1,295 2,361 1,293
Share premium 16 11,211 10,950 11,189
Other reserves 3,225 2,879 2,999
Retained earnings 26,567 86,165 21,916
Total shareholders' equity 42,298 102,355 37,397
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 6 months ended 28 February 2026
Share Capital Redemption Reserve £'000 Treasury Share Reserve Equity Compensation Reserve Foreign Retained Total
Capital
Share £'000 £'000 Exchange Other Earnings Shareholders'
£'000
Premium Reserve Reserve £'000 Equity
£'000 £'000 £'000 £'000
At 1 September 2025 (audited) 1,293 11,189 1,074 - 356 1,569 - 21,916 37,397
Profit for the period - - - - - - - 4,597 4,597
Other comprehensive income/(expense) - - - - - 116 - 49 165
Total comprehensive income - - - - - 116 - 4,646 4,762
Equity-settled share-based payment transactions - - - - 115 - - - 115
Allotment of shares 2 22 - - - - - - 24
Transfer - - - - (5) - - 5 -
At 28 February 2026 (unaudited)
1,295 11,211 1,074 - 466 1,685 - 26,567 42,298
At 1 September 2024 (audited) 2,361 10,945 - - 324 1,635 156 79,513 94,934
Profit for the period - - - - - - - 7,055 7,055
Other comprehensive income/(expense) - - - - - 757 - (604) 153
Total comprehensive income - - - - - 757 - 6,451 7,208
Equity-settled share-based payment transactions - - - - 208 - - - 208
Allotment of shares - 5 - - - - - - 5
Transfer - - - - (45) - (156) 201 -
At 28 February 2025 (unaudited) -
2,361 10,950 - 487 2,392 - 86,165 102,355
At 1 September 2024 (audited) 2,361 10,945 - - 324 1,635 156 79,513 94,934
Profit for the year - - - - - - - 19,933 19,933
Other comprehensive expense - - - - - (66) - (3,154) (3,220)
Total comprehensive income - - - - - (66) - 16,779 16,713
Dividends paid - - - - - - - (3,826) (3,826)
Equity-settled share-based payment transactions - - - - 188 - - 188
-
Excess deferred taxation on share-based payments - - - - - - - 43 43
Allotment of shares 6 244 - - - - - - 250
Own shares purchased for cancellation (1,074) - 1,074 - - - - (70,000) (70,000)
Costs of own shares purchased for cancellation - - - - - - - (897) (897)
Purchase of own shares held in trust - - - (8) - - - - (8)
Transfer - - - 8 (156) - (156) 304 -
At 31 August 2025 (audited) 1,293 11,189 1,074 - 356 1,569 - 21,916 37,397
( )
(
)
( )
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the 6 months ended 28 February 2026
6 months ended 6 months ended
28 February 2026 28 February 2025 Year ended 31 August 2025 (audited)
(unaudited) (unaudited) £'000
£'000
£'000
Notes
Cash flows from operating activities
Cash generated from continuing operations 17 3,982 4,290 3,404
Interest received 44 279 866
Interest paid (103) (316) (504)
Tax received/(paid) (197) 366 158
Net cash generated from operating activities in continuing operations 3,726 4,619 3,924
Net cash generated from operating activities in discontinued operations (503) 3,084 3,796
Net cash generated from operating activities 3,223 7,703 7,720
Cash flows from investing activities
Sale of Engineering disposal group (net of cash disposal) - 66,774
-
Dividends received from joint ventures - 482
-
Purchase of intangible assets (2) (3) (6)
Proceeds from sale of property, plant and equipment 2 637 72
Purchase of property, plant and equipment (591) (193) (1,257)
Proceeds from sale of non-current assets classified as held for sale - 3,876 5,961
Acquisition of subsidiaries (net of cash acquired) (4,272) -
-
Cash invested in escrow account - (4,500)
-
Net cash generated from investing activities in continuing operations (4,863) 4,317 67,526
Net cash used in investing activities in discontinued operations (-) (507) (713)
Net cash generated from investing activities (4,863) 3,810 66,813
Cash flows from financing activities
Proceeds from issue of ordinary share capital 23 4 250
Purchase of own shares held in trust - - (8)
Purchase of own shares for cancellation - - (70,897)
New financing and drawdowns on RCF 12,352 - 7,990
Repayment of RCF drawdowns (5,000) - (7,500)
Lease principal repayments (111) (143) (284)
Repayment of borrowings - - (98)
Dividends paid to shareholders - - (3,826)
Net cash used in financing activities in continuing operations 7,264 (139) (74,373)
Net cash used in financing activities in discontinued operations (125) (867) (1,234)
Net cash used in financing activities 7,139 (1,006) (75,607)
Net increase/(decrease) in cash and cash equivalents 5,499 10,507 (1,074)
Cash and cash equivalents at beginning of the period 6,860 7,930 7,930
Exchange differences on cash and cash equivalents 64 146 4
Cash and cash equivalents at end of the period 12,423 18,583 6,860
Cash and cash equivalents consist of:
Cash and cash equivalents per the balance sheet 12,285 20,242 7,855
Cash and cash equivalents of disposal groups classified as assets held for 138 7,187 808
sale (note 9)
Bank overdrafts included in borrowings - (1,606) (1,803)
Bank overdrafts of disposal groups classified as liabilities held for sale - (7,240) -
(note 9)
12,423 18,583 6,860
Statement of Directors' responsibilities
The Directors confirm that these condensed consolidated interim financial
statements have been prepared in accordance with UK-adopted International
Accounting Standard 34, "Interim Financial Reporting" and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority and that the interim management report includes a fair
review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred
during the first six months of the year and their impact on the condensed set
of interim financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
· material related party transactions in the first six
months of the year and any material changes in the related party transactions
described in the last Annual Report.
The Directors are listed in the Annual Report and Accounts 2025 except for
Gavin Manson who was appointed to the board on 21 April 2026. A list of
current Directors is maintained on the website: www.fevara (http://www.fevara)
.com
On behalf of the Board
Tim Jones
Joshua K Hoopes
Chair
Chief Executive Officer
21 April
2026
21 April 2026
Unaudited notes to condensed interim financial information
1. General information
The Group operates primarily as a global manufacturer and supplier of
agricultural minerals and supplements for ruminant animals. Prior to April
2025 the Group also had an Engineering division. The previously operated
Engineering division except Chirton Engineering was sold in April 2025 and was
classified as a disposal group at year end 2025 and is disclosed as a
discontinued operation throughout the condensed consolidated interim financial
statements. Chirton Engineering Ltd continues to be classified as a business
held for sale / discontinued. The Company is a public limited company, which
is listed on the London Stock Exchange and is incorporated and domiciled in
the UK. The address of the registered office is Warwick Mill Business
Centre, Warwick Bridge, Carlisle, Cumbria CA4 8RR.
These condensed interim financial statements were approved for issue on 21
April 2026.
The comparative figures for the financial year ended 31 August 2025 are not
the Company's statutory accounts for that financial year. Those accounts
have been reported on by the Company's auditor and delivered to the Registrar
of Companies. The report of the auditor was (i) unqualified, (ii) did not
include a reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report, and (iii) did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
2. Basis of preparation
These condensed interim financial statements for the six months ended 28
February 2026 have been prepared in accordance with UK-adopted International
Accounting Standard 34, "Interim Financial Reporting" and the Disclosure
Guidance and Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
The annual financial statements of the Group for the year ending 31 August
2026 will be prepared in accordance with UK-adopted International Accounting
Standards and the requirements of the Companies Act 2006. As required by the
Disclosure Guidance and Transparency Rules of the Financial Conduct Authority,
this condensed set of financial statements has been prepared applying the
accounting policies and presentation that were applied in the preparation of
the Company's published consolidated financial statements for the year ended
31 August 2025 which were prepared in accordance with UK-adopted International
Accounting Standards and the requirements of the Companies Act 2006 applicable
to companies reporting under those standards.
The Group is expected to have a sufficient level of financial resources to
operate for a period of at least 12 months from the signing date of these
condensed consolidated interim financial statements. These financial resources
are available through a combination of operating cash flows and bank
facilities. The Group's banking facilities remain in place until November
2028.
Detailed cash forecasts continue to be updated regularly for a period of at
least 12 months from the reporting period end. These forecasts are sensitised
for various worst case scenarios including reduction in customer demand and
reliance on key customers; and supply chain constraints and delays impacting
operations. The results of this stress testing showed that, due to the
stability of the core Agriculture business, the Group would be able to
withstand the impact of these severe but plausible downside scenarios
occurring over the period of the forecasts.
In addition, several other mitigating measures remain available and within the
control of the Directors that were not included in the scenarios. These
include withholding discretionary capital expenditure and reducing or
cancelling future dividend payments.
Consequently, the Directors are confident that the Group will have sufficient
funds to continue to meet its liabilities as they fall due for at least 12
months from the signing date of these condensed consolidated interim financial
statements. The Group therefore continues to adopt the going-concern basis in
preparing its condensed consolidated interim financial statements.
3. Accounting policies and prior period restatements
The accounting policies adopted are consistent with those of the previous
financial year except for:
Taxation
Income taxes are accrued based on management's estimate of the weighted
average annual income tax rate expected for the full financial year based on
enacted or substantively enacted tax rates as at 28 February 2026. Our
effective tax rate in respect of continuing operations as a percentage of
adjusted tax to adjusted profit before tax excluding results from joint
ventures was 24.5% (H1 2025: restated 24.2%). Joint ventures are excluded as
they are reported net of tax.
4. Significant judgements and estimates
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these condensed interim financial statements, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the consolidated financial statements for the year ended 31 August 2025,
with the exception of changes in estimates that are required in determining
the provision for income taxes as explained in note 3.
5. Financial risk management
The Group's activities expose it to a variety of financial risks: market risk
(including currency risk and price risk), credit risk and liquidity risk.
The condensed interim financial statements do not include all financial risk
management information and disclosures required in the annual financial
statements; they should be read in conjunction with the Group's annual
financial statements as at 31 August 2025.
6. Operating segment information
The Group's chief operating decision-maker ("CODM") has been identified as the
Executive Directors. Management has determined the operating segments based
on internal financial information reviewed by the CODM for the purposes of
allocating resources and assessing performance.
The CODM considers the business from a product/services perspective.
Reportable operating segments of continuing operations have been identified as
UK/Europe Agriculture, US Agriculture and Brazil Agriculture. Engineering is
disclosed as a discontinued operation in the segmental reporting. Central
comprises the central business activities of the Group's head office, which
earns no external revenues.
Performance is assessed using adjusted operating profit. For internal
purposes the CODM assesses operating profit before material adjusting items
(note 8) consistent with the presentation in the financial statements. The
CODM believes this measure provides a better reflection of the Group's
underlying performance. Sales between segments are carried out at arm's
length.
The following tables present revenue, profit, asset and liability information
regarding the Group's operating segments for the six months ended 28 February
2026 and the comparative periods.
6. Operating segment information (continued)
6 months ended 28 February 2026
UK/Europe Agriculture Brazil Agriculture £'000 Continuing Discontinued operations Total
£'000 US Agriculture £'000 Central Group £'000 Group
£'000 £'000 £'000
Revenue from external customers(3) 26,755 22,864 947 - 50,566 3,246
53,812
Adjusted(1) EBITDA(2) 3,997 3,030 (59) (802) 6,166 (347) 5,819
Depreciation, amortisation and profit/(loss) on disposal of non-current assets (254) (282) (4) (26) (566) - (566)
Share of post-tax results of joint ventures 460 1,145 - - 1,605 - 1,605
Adjusted(1) operating profit/(loss) 4,203 3,893 (63) (828) 7,205 (347) 6,858
Adjusting items (39) (47) (33) (1,163) (1,282) 250 (1,032)
(note 8)
Operating profit/(loss) 4,164 3,846 (96) (1,991) 5,923 (97) 5,826
Finance income 123 - 123
Finance costs (312) (26) (338)
Adjusted(1) profit before taxation 7,016 (373) 6,643
Adjusting items (1,282) 250 (1,032)
(note 8)
Profit before taxation 5,734 (123) 5,611
Taxation (1,121) 107 (1,014)
Profit for the period 4,613 (16) 4,597
Segment gross assets 28,948 23,459 7,718 11,270 71,395 2,073 73,468
Segment gross liabilities (4,910) (15,503) (29,097) (2,073) (31,170)
(6,084) (2,600)
1 Adjusted results are consistent with how business performance is
measured internally and is presented to aid comparability of performance.
Adjusting items are disclosed in note 8.
(2 ) Earnings before interest, tax, depreciation, amortisation,
profit/(loss) on the disposal of non-current assets and before share of
post-tax results of joint ventures.
(3 ) There were no inter segment revenues in the period ended 28 February
2026.
6. Operating segment information (continued)
The segmental information for the six months ended 28 February 2025 has been
restated to separate out the continuing operations. This is to aid
comparability with the segmental information presented for the current period
and for the year ended 31 August 2025.
6 months ended 28 February 2025
UK/Europe Agriculture US Agriculture £'000 Brazil Agriculture £'000 Continuing Discontinued operations Total
£'000 Central Group £'000 Group
£'000 £'000 £'000
Revenue from external customers(3) 27,558 23,023 - - 50,581 29,681 80,262
Adjusted(1) EBITDA(2) 3,310 2,860 (1,091) 5,079 2,678 7,757
Depreciation, amortisation and profit/(loss) on disposal of non-current assets (329) (242) (38) (609) 1 (608)
Share of post-tax results of joint ventures 392 1,042 1,434 - 1,434
Adjusted(1) operating profit/(loss) 3,373 3,660 - (1,129) 5,904 2,679 8,583
Adjusting items (note 8) (253) (72) - 2,083 1,758 (738) 1,020
Operating profit/(loss) 3,120 3,588 - 954 7,662 1,941 9,603
Finance income 319 63 382
Finance costs (316) (459) (775)
Adjusted(1) profit before taxation 5,907 1,865 7,772
Adjusting items (note 8) 1,758 (320) 1,438
Profit before taxation 7,665 1,545 9,210
Taxation (1,554) (601) (2,155)
Profit for the period 6,111 944 7,055
Segment gross assets 32,505 24,438 - 11,005 67,948 83,486 151,434
Segment gross liabilities (7,646) (4,808) - (5,451) (17,905) (31,174) (49,079)
1 Adjusted results are consistent with how business performance is
measured internally and is presented to aid comparability of performance.
Adjusting items are disclosed in note 8.
(2 ) Earnings before interest, tax, depreciation, amortisation,
profit/(loss) on the disposal of non-current assets and before share of
post-tax results of joint ventures.
(3 ) There were no inter segment revenues in the period ended 28 February
2025.
6. Operating segment information (continued)
Year ended 31 August 2025
UK/Europe Agriculture US Agriculture £'000 Brazil Agriculture £'000 Continuing Discontinued operations Total
£'000 Central Group £'000 Group
£'000 £'000 £'000
Revenue from external customers(3) 41,391 37,443 - - 78,834 43,553 122,387
Adjusted(1) EBITDA(2) 2,760 3,323 - (2,586) 3,497 5,400 8,897
Depreciation, amortisation and profit/(loss) on disposal of non-current assets (588) (509) - (82) (1,179) - (1,179)
Share of post-tax results of joint ventures 662 688 - - 1,350 - 1,350
Adjusted(1) operating profit/(loss) 2,834 3,502 - (2,668) 3,668 5,400 9,068
Adjusting items (note 8) (1,430) (270) - 418 (1,282) 12,607 11,325
Operating profit/(loss) 1,404 3,232 - (2,250) 2,386 18,007 20,393
Finance income 1,013 86 1,099
Finance costs (505) (626) (1,131)
Adjusted(1) profit before taxation 4,176 4,860 9,036
Adjusting items (note 8) (1,282) 12,607 11,325
2,894 17,467 20,361
Profit before taxation
Taxation 133 (561) (428)
Profit for the period 3,027 16,906 19,933
Segment gross assets 24,756 19,066 - 14,459 58,281 1,477 59,758
Segment gross liabilities (6,836) (4,194) - (9,854) (20,884) (1,477) (22,361)
1 Adjusted results are consistent with how business performance is
measured internally and is presented to aid comparability of performance.
Adjusting items are disclosed in note 8.
(2 ) Earnings before interest, tax, depreciation, amortisation,
profit/(loss) on the disposal of non-current assets and before share of
post-tax results of joint ventures.
7. Disaggregation of revenue
The following table presents the Group's reported revenue disaggregated based
on the timing of revenue recognition.
6 months 6 months Year
ended ended ended
28 February 28 February 31 August
2026 2025 2025
£'000 £'000 £'000
Timing of revenue recognition - continuing operations
At a point in time 50,566 50,581 78,834
50,566 50,581 78,834
Timing of revenue recognition - discontinued operations
Over time - 13,063 22,659
At a point in time 3,246 16,618 20,894
3,246 29,681 43,553
8. Adjusting items
6 months
Year
6 months ended
ended
28 February
ended
31 August
2025
28 February
2025
£'000
£'000
2026
£'000
Continuing operations
M&A activity costs (i) 339 - 370
Restructuring/closure costs (ii) 215 903 2,407
Cloud configuration and customisation costs (iii) - 72 73
Costs related to pension scheme buy-in (iv) 397 181 414
Profit on disposal of investment property and property, plant and equipment - (2,914) (2,834)
(v)
Non-recurring costs incurred centrally that related to the Engineering - - 587
Division and transaction (v)
Costs related to new bank facility (vi) 284 - -
Property, plant and equipment and right-of-use assets impairment (vii) - - 32
Legal dispute and rent arrears (viii) 47 233
Included in profit before taxation 1,282 (1,758) 1,282
Taxation effect of the above adjusting items (205) 471 (488)
Included in profit/(loss) for the period from continuing 1,077 (1,287) 794
operations
Discontinued operations
Restructuring/closure costs (ii) - 418 554
Loss/(Profit) on fair value measurement less costs to sell and impairment of (250) 351 3,085
disposal group assets (v)
Profit on disposal of disposal group and non-current assets previously - (31) (16,246)
classified as held for sale (v)
Included in profit before taxation (250) 738 (12,607)
Taxation effect of the above adjusting items (33) (46) (433)
Included in profit/(loss) for the period from discontinued operations (283) 692 (13,040)
(i) M&A activity includes costs for the global expansion
into Brazil, and costs incurred in the process of seeking potential
acquisition opportunities.
(ii) Restructuring/closure costs in respect of continuing
operations include costs incurred in relation to the restructure and renaming
of the Agriculture businesses and Group functions. In respect of discontinued
operations this includes costs associated with the closure of Afgritech LLC.
(iii) At the year ended 31 August 2025, costs relating to material
spend in relation to the implementation of the Group's ERP system have now
been expensed following the adoption of the IFRIC agenda decision.
(iv) Costs incurred related to the process of the Trustees of the
Carr's Group pension scheme seeking an insurer from whom to purchase an
insured bulk annuity ('buy-in'). Costs incurred related to this process have
been included as an adjusting item.
(v) In the prior year in respect of continuing operations, the
profit of £2.8m relates to assets previously classified as held for sale
which were sold in the year. Also, there are costs of £0.6m within central
costs that relate to the Engineering Division which are non-recurring and have
therefore been treated as an adjusting item.
In respect of discontinued operations, the current year includes costs
incurred relating to the sale of Chirton Engineering business and partial
reversal of Chirton Engineering impairment. For the prior year the profit on
disposal of the Engineering businesses, excluding the Chirton business, of
£16.2m together with costs of disposal of £0.3m related to the remaining
Chirton Engineering business and a further impairment of £2.8m against the
assets of the Chirton Engineering business.
(vi) Costs incurred in securing £20m HSBC banking facility.
(vii) Impairment of property, plant and equipment and right-of-use
assets in the year ended 31 August 2025 was in respect of the Animax Ltd
cash-generating unit.
(viii) Includes £47,000 in respect of a legal dispute. At the year
ended 31 August 2025, incurred £75,000 in respect of a legal dispute together
with £158,000 in respect of rent arrears notified in the year in respect of a
UK Agriculture site. Neither were considered to be related to the underlying
profitability of the Group.
9. Discontinued operations and non-current assets held for
sale
The Annual Report and Account 2025 classified the Engineering division of the
Group, Chirton Engineering Limited and Afgritech LLC as discontinued
operations that were held for sale as at 31 August 2025.
On 1 November 2024 the Group sold the trade and certain assets classified as
held for sale of Afgritech LLC.
On 16 January 2025 the Group announced that it had agreed to dispose of its
interests in the Engineering division, excluding Chirton Engineering business,
to Cadre Holdings, Inc. for cash consideration on a cash free, debt free
basis, representing an enterprise value of £75m. At 28 February 2025 the sale
had not reached completion and therefore the assets and liabilities of the
division remained classified as held for sale. On 22 April 2025, the Group
completed on the sale of the Engineering businesses, excluding the Chirton
Engineering business, to Cadre Holdings, Inc. for cash consideration on
completion of £68.6m with a further £1.5m due on settlement of related RDEC
claims.
The assets and liabilities of Chirton Engineering business continue to be
classified as held for sale at 28 February 2026. Although the Chirton
engineering business has been classified as held for sale for a period in
excess for one year, this is due to circumstances beyond the control of the
Group. Group remain committed to the disposal and is actively marketing the
Chirton Engineering business for sale and has received interest from a number
of parties.
At 31 August 2025, the Group recognised an impairment loss in respect of
Chirton Engineering business of £5.9m. During the current period, an
impairment of £1.0m has been recognised within Chirton Engineering Business
in respect of its Property plant and equipment and right-of-use assets. The
Group reassessed the fair value less costs to sell of the disposal group in
accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued
Operations. Based on this reassessment, a partial reversal of previously
recognised impairment has been recorded in accordance with IAS 36 Impairment
of Assets, to the extent required to ensure that the carrying amount of the
disposal group does not fall below its recoverable amount. This reversal has
been recognised within adjusting items (note 8).
At 31 August 2025 the Group still had a couple of properties classified as
held for sale. Those properties are yet to be sold and have been classified as
held for sale at 28 February 2026.
The table below shows the results of the discontinued operations.
6 months 6 months Year
ended ended ended
28 February 28 February 31 August
2026 2025 2025
£'000 £'000 £'000
Revenue 3,246 29,681 43,553
Expenses (3,748) (27,785) (40,180)
Profit before taxation of discontinued operations (502) 1,896 3,373
Taxation 107 (647) (751)
Profit after taxation of discontinued operations (395) 1,249 2,622
Pre-taxation gain in disposal - - 17,047
Pre-taxation loss recognised on the measurement to fair value less costs to 379 (351) (2,953)
sell
Taxation - 46 190
After taxation gain/(loss) recognised on the measurement to fair value less
costs to sell
379 (305) 14,284
Profit/(loss) for the period from discontinued operations (16) 944 16,906
9. Discontinued operations and non-current assets held for
sale (continued)
The net assets relating to the disposal group that were classified as held for
sale at 28 February 2026 and at 31 August 2025 in the Group balance sheet are
shown below.
At 28 February At 31 August
2026 2025
£'000 £'000
Assets
Property, plant and equipment 3,282 4,194
Right-of-use assets 1,644 234
Investment property 314 314
Inventories 948 988
Trade and other receivables 1,621 2,316
Current tax assets 136 -
Cash and cash equivalents 138 808
Loss on fair value measurement less costs to sell (4,548) (5,915)
Total assets 3,535 2,939
Liabilities
Borrowings - -
Current Leases (239) (45)
Contract liabilities (67) (19)
Trade and other payables (595) (1,400)
Current tax liabilities - -
Non-current leases (1,168) -
Deferred tax liabilities (4) (13)
Total liabilities (2,073) (1,477)
Net assets 1,462 1,462
10. Earnings per share
Adjusting items disclosed in note 8 that are charged or credited to profit do
not relate to the underlying profitability of the Group. The Board believes
adjusted profit before these items provides a useful measure of business
performance. Therefore, an adjusted earnings per share is presented as
follows:
6 months 6 months ended Year
ended 28 February 2025 Ended
28 February 2026 £'000 31 August 2025
£'000 £'000
Continuing operations
Earnings/(loss) 4,613 6,111 3,027
Adjusting items:
M&A activity costs (i) 339 - 370
Restructuring/closure costs (ii) 215 903 2,407
Cloud configuration and customisation costs (iii) - 72 73
Costs related to pension scheme buy-in (iv) 397 181 414
Profit on disposal of investment property and property, plant and equipment - (2,914) (2,834)
(v)
Non-recurring costs incurred centrally that related to the Engineering - - 587
Division and transaction (v)
Costs related to new bank facility (vi) 284 - -
Property, plant and equipment and right-of-use assets impairment (vii) - - 32
Legal dispute and rent arrears (viii) 47 233
Taxation effect of the above (205) (471)
(488)
Earnings - adjusted 5,690 4,824 3,821
10. Earnings per share (continued)
6 months 6 months Year
ended ended Ended
28 February 2026 28 February 2025 31 August 2025
£'000
£'000 £'000
Discontinued operations
Earnings/(loss) 944
(16) 16,906
Adjusting items:
Restructuring/closure costs (ii) - 418 554
Loss/(Profit) on fair value measurement less costs to sell and impairment of 351 3,085
disposal group assets (v) (250)
Profit on disposal of disposal group and non-current assets previously (31) (16,246)
classified as held for sale (v) -
Taxation effect of the above (33) (46)
(433)
Earnings - adjusted (299) 1,636
3,866
Continuing operations 6,111
4,613 3,027
Discontinued operations 944
(16) 16,906
Total earnings/(loss) (basic) 4,597 7,055
19,933
Continuing operations 4,824
5,690 3,821
Discontinued operations 1,636
(299) 3,866
Total earnings (adjusted) 5,391 6,460
7,687
Number Number
Number
Weighted average number of ordinary shares in issue 51,758,191 94,436,826 86,256,854
Potentially dilutive share options 1,217,866 865,710 992,743
52,976,057 95,302,536 87,249,597
Earnings/(loss) per share (pence)
Continuing operations
Basic 6.5p
8.9p 3.5p
Diluted 6.4p
8.7p 3.5p
Adjusted 11.0p 5.1p
4.4p
Diluted adjusted 10.7p 5.1p
4.4p
Discontinued operations
Basic 1.0p
0.0p 19.6p
Diluted 1.0p
0.0p 19.4p
Adjusted 1.7p
(0.6)p 4.5p
Diluted adjusted 1.7p
(0.6)p 4.4p
Total Group
Basic 7.5p
8.9p 23.1p
Diluted 7.4p
8.7p 22.9p
Adjusted 10.4p 6.8p
8.9p
Diluted adjusted 10.2p 6.8p
8.8p
11. Dividends
There have been no interim dividends (H1 2025: £0) paid in the period. A
final dividend of £621,254 (H1 2025: £2,691,482) in respect of the period to
31 August 2025 was paid on 13 March 2026.
12. Intangible assets, property, plant and equipment, right-of-use
assets and investment property
Other Property,
intangible assets plant and equipment Right-of-use Investment
Goodwill £'000 £'000 assets Property
£'000 £'000 £'000
6 months ended 28 February 2026
Opening net book amount at 1 September 2025 2,068 31 8,941 853 -
Exchange differences 165 - (1) - -
Additions and lease modifications - 2 591 112 -
Additions through business combination 4,384 2 249 - -
Disposals - - (18) - -
Depreciation and amortisation - (3) (428) (118) -
Impairment during year - - - 67 -
Transferred to assets held for sale - - - - -
Closing net book amount at 28 February 2026 6,658 32 9,334 914 -
6 months ended 28 February 2025
Opening net book amount at 1 September 2024 2,068 32 9,900 656 316
Exchange differences - 2 258 - -
Additions and lease modifications - 3 196 69 -
Disposals - - (64) (40) -
Depreciation and amortisation - (3) (454) (129) (1)
Transferred to assets held for sale - - - - (275)
Closing net book amount at 28 February 2025 2,068 34 9,836 556 40
Capital commitments contracted, but not provided for, by the continuing Group
at the period end amount to £nil (H1 2025: £nil).
13. Borrowings
As at As at As at
28 February 28 February 31 August
2026 2025 2025
£'000 £'000 £'000
Current - 1,606 1,803
Non-current 10,865 2,931 3,492
Total borrowings 10,865 4,537 5,295
Cash and cash equivalents as per the balance sheet (12,285) (20,242) (7,855)
Net cash (1,420) (15,705) (2,560)
Undrawn facilities 9,028 25,690 1,500
In November 2025 the Group entered into a new main banking facility with HSBC
UK Bank PLC. The new facility is a £20m committed revolving credit facility
and a £10m uncommitted facility and is in place until November 2028 with the
potential to extend beyond that date by two further one-year periods. HSBC UK
Bank PLC hold a registered fixed and floating charge over the assets of the
parent Company and subsidiaries that are party to the facility. The Group's
previous main banking facility up to November 2025 was with Clydesdale Bank
plc (Trading as Virgin Money).
Group borrowings are shown in the balance sheet net of arrangement fees of
£107,000 (H1 2025: £48,000 and YE 2025 £8,000). Current borrowings include
bank overdrafts of £1.6m at 28 February 2025 and £1.8m at 31 August 25.
Movements in borrowings are analysed as follows: 6 months 6 months
ended ended
28 February 2026 28 February 2025
£'000 £'000
Balance at start of period 5,295 5,677
Exchange differences - 2
New bank loans and drawdowns on RCF 12,352 -
Repayments of borrowings (5,000) (98)
Release of deferred borrowing costs 21 19
Net decrease to bank overdraft (1,803) (1,063)
Balance at end of period 10,865 4,537
14. Financial instruments
IFRS 13 requires financial instruments that are measured at fair value to be
classified according to the valuation technique used:
Level 1 - quoted prices (unadjusted) in active markets for
identical assets or liabilities
Level 2 - inputs, other than Level 1 inputs, that are observable
for the asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices)
Level 3 - unobservable inputs
Transfers between levels are deemed to have occurred at the end of the
reporting period. There were no transfers between levels in the above
hierarchy in the period.
Contingent consideration is measured at fair value using Level 3 inputs such
as entity projections of future profitability. Financial instruments
recognised at fair value are as follows:
6 months 6 months Year
ended
Ended ended
28 February
28 February 31 August
2026
2025 2025
£'000 £'000 £'000
Current contingent consideration payable - - -
Non-current contingent consideration payable (1,765) - -
15. Retirement benefits
The amounts recognised in the Income Statement are as follows:
6 months 6 months Year
ended
Ended ended
28 February
28 February 31 August
2026
2025 2025
£'000 £'000 £'000
Administrative expenses 487 243 572
Net interest on the net defined benefit asset (12) (40) (74)
Total expense 475 203 498
Net interest on the defined benefit retirement asset is recognised within
interest income.
The amounts recognised in the Balance Sheet are as follows:
As at As at As at
28 February 28 February 31 August
2026 2025 2025
£'000 £'000 £'000
Present value of funded defined benefit obligations (41,673) (42,298) (40,188)
Fair value of scheme assets 39,618 43,097 37,292
Surplus/(deficit) in funded scheme (2,055) 799 (2,896)
Actuarial gains of £66,000 (H1 2025: losses of £805,000) have been reported
in the Statement of Comprehensive Income.
The escrow bank account £3.4m is to be used to fund any deficit in the
scheme.
16. Share capital
Number of shares Share capital Share premium £'000 Total
£'000
£'000
Allotted and fully paid ordinary shares of 2.5p each
Opening balance as at 1 September 2025 51,744,914 1,293 11,189 12,482
Proceeds from shares issued:
- Share save scheme 22,548 1 22 23
- Deferred bonus share plan 21,622 1 - 1
At 28 February 2026 51,789,084 1,295 11,211 12,506
Opening balance at 1 September 2024 94,433,080 2,361 10,945 13,306
Proceeds from shares issued:
- Share save scheme 4,890 - 5 5
At 28 February 2025 94,437,970 2,361 10,950 13,311
22,548 shares were issued in the period to satisfy the share awards under the
share save scheme with exercise proceeds of £22,466. The related weighted
average price of the shares exercised in the period was £1.00 per share.
On the 24 December 2025 21,622 shares were also issued under the Deferred
bonus share plan.
17. Cash generated from continuing operations
6 months 6 months Year
ended ended ended
28 February 28 February 31 August
2026 2025 2025
£'000 £'000 £'000
Profit/(loss) for the period from continuing operations 4,613 6,111 3,027
Adjustments for:
Tax 1,121 1,554 (133)
Tax credit in respect of R&D - (54) 93
Dividends received from external investments (76) - (73)
Depreciation of property, plant and equipment 428 454 885
Depreciation of right-of-use assets 118 129 268
Depreciation of investment property - 1 2
Intangible asset amortisation 3 3 6
Other intangible assets impairment and amounts written off - - -
Property, plant and equipment impairment - - 11
Right-of-use assets impairment (67) - 21
Loss on fair value measurement less costs to sell - - -
(Profit)/loss on disposal of property, plant and equipment 16 (390) 29
Loss/(profit) on disposal of right-of-use assets 11 9 (11)
Profit on disposal of assets previously classified as held for sale - (2,511) (2,834)
Net fair value charge on share-based payments 110 43 291
Other non-cash adjustments 11 (55) 5
Interest income (47) (319) (940)
Interest expense and borrowing costs 313 335 593
Share of post-tax results of joint ventures (1,605) (1,434) (1,350)
IAS 19 income statement charge (excluding interest):
Past service cost - - -
Administrative expenses 487 243 572
Changes in working capital:
Decrease in inventories 3,754 4,186 (246)
(Increase)/decrease in receivables (7,305) (5,218) 1,459
Increase in payables 2,097 1,203 1,729
Cash generated from continuing operations 3,982 4,290 3,404
18. Related party transactions
The Group's significant related parties are its joint ventures, as disclosed
in the Annual Report and Accounts 2025.
Sales to Purchases Net management charges to Amounts
from owed from Amounts
owed to
£'000 £'000 £'000 £'000 £'000
6 months to 28 February 2026
Joint ventures 251 (390) 843 823 (49)
6 months to 28 February 2025
Joint ventures 387 (266) 41 103 (42)
19. Business Combinations
On 24 December 2025, the Group acquired 100% of the issued share capital and
voting rights of Domino Industria E Comercio LTDA, trading as Macal Nutrição
Animal ("Macal") in Brazil. Macal is a leading regional provider of minerals
and supplements in Brazil, with products manufactured at its facility in Campo
Grande, Mato Grosso do Sul, and sold through an established distribution
network. The acquisition of Macal aligns with the Group's stated strategy of
investing in growing agriculture markets.
The business was acquired for an initial cash consideration of £4.6m, with an
additional cash consideration of up to a maximum of £1.9m payable in March
2028, based on the achievement of agreed financial targets. We have discounted
the potential consideration in the below table.
Total acquisition related costs amounted to £306,000 which have been
recognised within non-recurring items in the consolidated income statement.
Given this is a recent acquisition the fair value accounting exercise has not
been fully completed. The fair value disclosures in the table below represent
provisional fair values.
The aggregate assets and liabilities provisionally recognised in the
acquisition accounting are set out below:
Provisional Fair Value
£'000
Intangible assets 2
Property, Plant and Equipment 247
Investments 10
Non-current financial assets 8
Total non-current assets 267
Inventories 179
Trade and other receivables 1,566
Cash and cash equivalents 330
Total current assets 2,075
Trade and other payables (257)
Total current liabilities (257)
Other non-current liabilities (102)
Total non-current liabilities (102)
Identifiable net assets 1,983
Goodwill on acquisition 4,384
Consideration transferred settled in cash 4,602
Contingent consideration 1,765
Total consideration 6,367
20. Post balance sheet events
On 18 March 2026 the Group completed on the acquisition of the Marcelo de
Carvalho Dias & Cia Ltda in Barretos, São Paulo State a nutrition
products production facility and operating business for an initial
consideration of £4.3m.
On 21 April 2026 Fevara exited its JV operating in Iowa, USA.
21. Alternative performance measures
The Interim Results include alternative performance measures ("APMs"), which
are not defined or specified under the requirements of IFRS. These APMs are
consistent with how business performance is measured internally and are also
used in assessing performance under the Group's incentive plans. Therefore,
the Directors believe that these APMs provide stakeholders with additional
useful information on the Group's performance.
Alternative performance measure Definition and comments
EBITDA Earnings before interest, tax, depreciation, amortisation, profit/(loss) on
the disposal of non-current assets and before share of post-tax results of the
joint ventures. EBITDA allows the user to assess the profitability of the
Group's core operations before the impact of capital structure, debt financing
and non-cash items such as depreciation and amortisation.
Adjusted EBITDA Earnings before interest, tax, depreciation, amortisation, profit/(loss) on
the disposal of non-current assets, before share of post-tax results of the
joint ventures and excluding items regarded by the Directors as adjusting
items. This measure is reconciled to statutory operating profit and statutory
profit before taxation in note 6. EBITDA allows the user to assess the
profitability of the Group's core operations before the impact of capital
structure, debt financing and non-cash items such as depreciation and
amortisation.
Adjusted operating profit Operating profit after adding back items regarded by the Directors as
adjusting items. This measure is reconciled to statutory operating profit in
the income statement and note 6. Adjusted results are presented because if
included, these adjusting items could distort the understanding of the Group's
performance for the period and the comparability between the periods
presented.
Adjusted profit before taxation Profit before taxation after adding back items regarded by the Directors as
adjusting items. This measure is reconciled to statutory profit before
taxation in the income statement and note 6. Adjusted results are presented
because if included, these adjusting items could distort the understanding of
the Group's performance for the period and the comparability between the
periods presented.
Adjusted profit for the period Profit after taxation after adding back items regarded by the Directors as
adjusting items. This measure is reconciled to statutory profit after taxation
in the income statement. Adjusted results are presented because if included,
these adjusting items could distort the understanding of the Group's
performance for the period and the comparability between the periods
presented.
Adjusted earnings per share Profit attributable to the equity holders of the Company after adding back
items regarded by the Directors as adjusting items after tax divided by the
weighted average number of ordinary shares in issue during the period. This is
reconciled to basic earnings per share in note 10.
Adjusted diluted earnings per share Profit attributable to the equity holders of the Company after adding back
items regarded by the Directors as adjusting items after tax divided by the
weighted average number of ordinary shares in issue during the period adjusted
for the effects of any potentially dilutive options. Diluted earnings per
share is shown in note 10.
Net (cash)/debt The net position of the Group's cash at bank and borrowings excluding leases.
Details of the movement in borrowings is shown in note 13.
Operating cash flow Cash generated from operating activities. This measure is shown on the face of
the consolidated statement of cash flows and is shown opposite. Operating cash
flow demonstrates how much cash is available for the Group to utilise for
capital investment, paying dividends, or financing/repaying borrowings.
Gross margin Reported gross profit as a percentage of reported revenue. Gross margin is a
reflection of how successfully the Group manages raw material price volatility
and production costs as well as its selling prices in competitive markets. A
calculation of gross margin is shown opposite.
Adjusted Group operating margin Operating profit after adding back items regarded by the Directors as
adjusting items as a percentage of revenue. Adjusted Group operating margin
excluding adjusting items is presented because if included, these items could
distort the understanding of the Group's performance for the year and the
comparability between the years presented. The calculation of adjusted Group
operating margin to the statutory equivalent is shown opposite.
Return on capital employed Adjusted operating profit as a percentage of capital employed. Capital
employed is calculated as total assets less current liabilities, excluding the
retirement benefit asset and restricted cash which do not contribute to the
Group's operations. This financial ratio allows users to understand how
effectively and efficiently the Group is using its assets (capital) to
generate earnings. The calculation of return on capital employed is shown
opposite.
Ratio of net (cash)/debt to adjusted EBITDA The ratio of net (cash)/debt to adjusted EBITDA is a measurement of leverage
and reflects the Group's ability to service its debt. The calculation of net
(cash)/ debt to adjusted EBITDA is shown opposite.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR FFLLLQZLBBBF
Copyright 2019 Regulatory News Service, all rights reservedRecent news on Fevara
See all newsREG - Fevara PLC - Interim Results
AnnouncementREG - Fevara PLC - Holding(s) in Company
AnnouncementRCS - Fevara PLC - Distribution Agreement with Oceana Minerals
AnnouncementRCS - Fevara PLC - Notice of Investor Presentation
AnnouncementREG - Fevara PLC - Notice of Interim Results
Announcement