We visited Fevara's Caltech low-moisture block (LMB) facility at Silloth in Cumbria and met executive and senior management. The visit reinforced the two pillars of our BUY: genuine, absorbable spare manufacturing capacity that should let northern-hemisphere volume growth drop efficiently to profit, and a patented, hard-to-replicate process that underpins the group's premium, performance-led positioning. The evidence base supports three points: pricing power, customer retention and a transferable proof set for Brazil. It underpins our confidence in the 25% to 30% LMB gross margin. We reiterate our BUY and 181p target price.
