Tristel Plc · LSE:TSTL
Tristel — FY2023 Earnings Presentation
21 slides from Tristel's earnings presentation, Oct 16, 2023
Slide 1: Tristel PLC Preliminary Results Investor Presentation
30 JUNE 2023 TRISTEL PLC PRELIMINARY RESULTS INVESTOR PRESENTATION Paul Swinney, CEO Liz Dixon, CFO Heidi Allard, CFC 16-19 October 2023 1
Slide 2: Our Company
Our Company • Global infection prevention • Focus on healthcare • Unique proposition: chlorine dioxide Achieving decontamination of medical Eliminating plastic wipes by separating the instruments by hand disinfectant from the wipe Simple, focussed, global opportunity 2
Slide 3: Multiple Applications
Multiple Applications Department Medical Device Revenue Surface Revenue Obs & gynae Trans-vaginal u/sound probes Mattresses Radiology Trans-rectal u/sound probes £11.7m IV Poles Hospital wide Skin-surface u/sound probes Trolleys Cardiology Echo cardio probes £7.4m Commodes £3.3m ENT Nasendoscopes £6
Slide 4: Financial Highlights
Financial Highlights • 16% growth in turnover to £36.0m (2022: £31.1m) • 22% growth from continuing products to £36m (2022: £29.6m) • Overseas sales up 17% to £23.5m (2022: £20.1m) = 65% of total sales (2022: 65%) • Gross margin 81% (2022: 80%) • Adjusted EBITDA* margin of 25% (2022: 24%) • Adjusted
Slide 5: Operational Highlights
Operational Highlights • US FDA Class II device approval for Tristel ULT as a high-level disinfectant for ultrasound probes, with nationwide launch underway • Regulatory approval in Canada for Tristel OPH as a high-level disinfectant for ophthalmic devices with first sales recorded in Q1 FY 2024 • M
Slide 6: 10 Year Growth - CAGR 13%
10 Year Growth - CAGR 13% £40,000 £35,000 £30,000 Sources of £4.9m growth: £25,000 • £2.8m volume £20,000 • £1.4m pricing (4.5%) £15,000 • £0.7m currency £10,000 £5,000 £0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Y-O-Y Growth - 28% 14% 12% 19% 10% 18% 21% -2% 0% 16% 6
Slide 7: Sales Growth by Geography
Sales Growth by Geography £m 2021-22 2022-23 Year on year change % change Australasia 4.0 4.6 0.6 15% China & Hong Kong 1.7 2.0 0.3 18% Malaysia & Singapore 0.6 0.8 0.2 33% Western Europe 4.8 5.8 1.0 21% Central Europe 5.4 6.1 0.7 13% Southern Europe 1.0 1.4 0.4 40% Overseas distributors 2.6 2.8 0.2
Slide 8: Sales Growth by Portfolio and Channel
Sales Growth by Portfolio and Channel Y-O-Y £m 2021-22 2022-23 % change change UK direct 7.6 9.5 1.9 25% Tristel EMEA direct 10.5 12.5 2.0 19% Hospital Medical Device APAC direct 5.3 6.4 1.1 21% Decontamination Worldwide distributors 2.0 2.4 0.4 20% 25.4 30.8 5.4 21% UK direct 2.1 2.2 0.1 5% Cache E
Slide 9: FY24 Tailwinds & Headwinds
FY24 Tailwinds & Headwinds Positive: • Diagnostic procedures are increasing organically in all countries • Hospital selection of appropriate surface disinfectants is better informed • Unprecedented concern around single-use pre-wetted wipes • Some insulation from inflation and energy cost pressures
Slide 10: Product Development
Product Development 3T platform: AI: Colour change technology: App-based Train, Trace and Test tool to Capabilities incorporated into the app Visual indicators to ensure key steps in record all steps of the decontamination for objective verification that the key the decontamination process are proce
Slide 11: North America - Product Strategy
North America - Product Strategy USA Tristel ULT Tristel DUO Next: USA: Tristel OPH • High level disinfectant • Low/mid level disinfectant • High level disinfection • Ultrasound probes • Ultrasound equipment • Ophthalmic devices • FDA De Novo • EPA • FDA 510k • On sale • On sale • Testing started US
Slide 12: North America - Operational Update
North America - Operational Update Manufacturing: • Process validation complete • Production underway & inventory available Sales and marketing: • First orders shipped & invoiced • Parker distributors include: Medline Industries / Henry Schein / Owens & Minor / McKesson Corp • Listing in hospital an
Slide 13: FY23 - FY25 Financial Targets
FY23 - FY25 Financial Targets Returning to growth • Sales growth in the range of 10% to 15% per annum as an annual average over the three years (Over 14 year period to FY19 CAGR was 17%) • EBITDA margin (excluding share-based payment charge) of at least 25% (FY19 EBITDA margin was 27%) Targets to be
Slide 14: Dividend
Dividend • Change of policy - progressive year-on-year dividend increase by a minimum of 5% • Full year dividend 2023 10.5p. • Final dividend 2023 7.88p payable 22 December 2023 12 Full year dividend: 9.55p 10.50p 10 8 6 4 2 0 FY12 FY13 FY14 FY15 FY16 Fy17 FY18 FY19 FY20 FY21 FY22 FY23 Standard divi
Slide 15: ESG Highlights
ESG Highlights • ESG strategy published • Carbon Zero target of 2030 and route to success defined • Carbon profiling of key products underway with packaging adjustments and reductions planned • Partnership with ESG consultants to ensure best practice adhered to • Recruitment into specialist sustaina
Slide 16: Summary & Outlook
Summary & Outlook • Strong set of results on all levels • Global expansion to accelerate with North America launch • Significant growth opportunity in both portfolios • Profitable, cash generative, debt free, progressive dividend • Exciting future ahead Simple, focussed, global opportunity 16
Slide 17: Any questions?
TSTL Any questions? Tristel
Slide 18: Appendix – Income Statement
APPENDIX – INCOME STATEMENT Year ended Year ended 30.06.23 30.06.22 £’000 £’000 Turnover 36,009 31,123 Cost of sales (6,834) (6,182) Gross profit 29,175 24,941 Gross margin % 81% 80% Administrative and distribution expenses less other operating income (20,215) (17,385) Net interest (169) (194) Opera
Slide 19: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET 30.06.23 30.06.22 Non-current assets £’000 £’000 Goodwill 5,156 5,242 Intangible assets 4,757 4,138 Property, plant and equipment 7,827 8,359 Deferred tax 1,286 1,826 18,693 19,565 Current assets Inventories 4,569 4,420 Trade and other receivables 7,081 5,851 Income tax rece
Slide 20: Appendix – Balance Sheet Continued
APPENDIX – BALANCE SHEET …Continued 30.06.23 30.06.22 Capital and reserves £’000 £’000 Share capital 474 473 Share premium account 14,188 13,996 Merger reserve 2,205 2,205 Foreign exchange reserve (279) (65) Retained earnings 14,089 13,078 Non-controlling interests 7 7 Total equity 30,684 29,694 Cur
Slide 21: Appendix – Cash Flow Statement
APPENDIX – CASH FLOW STATEMENT Year ended Year ended 30.06.23 30.06.22 £’000 £’000 Profit before tax 5,112 1,555 Add back non-cash items 3,917 6,021 Working capital movements (49) (636) Interest received (167) (192) Purchase of tangible fixed assets (853) (305) Purchase of intangible assets (1,570)