Tristel PLC · LSE:TSTL
Tristel — H1 2018-19 Earnings Presentation
21 slides from Tristel's earnings presentation, Feb 25, 2019
Slide 1: Interim Results Investor Presentation, 25 February 2019
25 FEBRUARY 2019 INTERIM RESULTS INVESTOR PRESENTATION PAUL SWINNEY, CEO LIZ DIXON, FD
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS • Revenue up 12% to £12m (2017: £10.7m) • Overseas sales up 19% to £6.4m (2017: £5.4m), representing 53% of total sales (2017: 50%) • Gross margin increased to 78% from 75% in 2017 • EBITDA before share-based payments up 19% to £3.2m (2017: £2.7m) • PBT before share-based paymen
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS • Successful integration of the Ecomed Group acquired on 15 November 2018 • Received second expanded USA EPA approval for Duo surface disinfectant and first EPA approval for Jet surface disinfectant • Successfully transferred the responsibility for CE marking Tristel’s medical
Slide 4: Half-on-Half – Sales Performance
HALF-ON-HALF – SALES PERFORMANCE £12,000,000 £10,000,000 £8,000,000 £6,000,000 £4,000,000 £2,000,000 £0 2014-15 2014-15 2015-16 2015-16 2016-17 2016-17 2017-18 2017-18 2018-19 H1 H2 H1 H2 H1 H2 H1 H2 H1 FINANCIAL PLAN Sales growth of between 10% and 15%, on average, over three years FOR 3 FINANCIAL
Slide 5: Sales Growth £1.3m – Sources
SALES GROWTH £1.3m – SOURCES £800,000 £700,000 £600,000 £500,000 £400,000 £300,000 £200,000 £100,000 £0 -£100,000 UK Overseas Overseas New acquisition Currency impact -£200,000 subsidiaries distributors impact H1 2018-19 H1 2017-18 5 of 21
Slide 6: Sales Growth – Geographies
SALES GROWTH – GEOGRAPHIES £,000 2016-17 2017-18 2018-19 Year on year % change % change at H1 H1 H1 change constant currency Central & Eastern Europe 1,530 1,950 2,230 280 14% 13% Northern Europe - - 400 400 100% 100% Australasia 300 1,530 1,660 130 8% 15% Hong Kong 350 220 460 240 109% 115% China 3
Slide 7: Sales Growth – Products
SALES GROWTH – PRODUCTS £,000 2016-17 2017-18 2018-19 H1 on H1 H1 on H1 H1 H1 H1 % % Medical device disinfection 3,478 3,313 3,608 9% UK human healthcare Critical surface disinfection 683 601 690 15% 8% Other 578 483 434 (10%) Medical device disinfection 3,801 4,619 5,699 23% Overseas human Critical
Slide 8: Growth Drivers – Direct Presence
GROWTH DRIVERS – DIRECT PRESENCE Northern Europe 3 company acquisition November 2018 Hong Kong “go–direct” February 2018 • Distributor for Benelux and France since 2007, based in • Distributor for Hong Kong since 2011. Antwerp. • 6 months to 31 December 17 revenue of £220k • 6 months to 30 June 18 r
Slide 9: Growth Drivers – Market Development
GROWTH DRIVERS – MARKET DEVELOPMENT H1 18-19 France Germany Sales to end users € 351,000 2,269,000 Sales headcount 4* 6 Years in market 7 8 * 2 in 2017-18 Key approvals awaited: Tristel global salesforce: South Korea – Drugs licence – dossier submitted February 2018 44 of 139 India – dossier in prep
Slide 10: Growth Drivers – New Products: Hospital Surfaces
GROWTH DRIVERS – NEW PRODUCTS: HOSPITAL SURFACES In the UK, Tristel is the only company that can achieve high level surface disinfection with the 3 most common disinfection and cleaning methods SPRAY WIPE MOP NON-ROUTINE DAILY DAILY DISINFECTION ROUTINE ROUTINE 10 of 21
Slide 11: Surface Disinfection – Illustration of the Potential
SURFACE DISINFECTION– ILLUSTRATION OF THE POTENTIAL UK NHS acute hospital – two sites, 840 beds + out-patients – expenditure 1.4.18 to 1.2.19: £ Quantity of Wipes Wiping: Dry 50k 3.5 million Detergent 58k 3.4 million Low-level disinfectant 56k 2.7 million High-level disinfectant 44k 0.4 million High
Slide 12: USA – EPA Surfaces
USA – EPA SURFACES • Both products require additional submission DUO to achieve mycobactericidal claims • HPV claim desired for Duo Ultrasound but JET 2 Approvals not permitted by EPA, only by FDA 1 Approval ULTRASOUND CONSOLE: EPA ULTRASOUND PROBE: FDA Niche marketplace – one product, 2 application
Slide 13: USA – FDA Medical Devices
USA – FDA MEDICAL DEVICES September 2018: FDA written feedback on pre-submission request (presented July 2018 following two years data generation). Identified that a De Novo submission rather than one based on Predicate Devices may be more appropriate. Reasons: • Manual application • Novel active in
Slide 14: Brexit Risks – Update
BREXIT RISKS – UPDATE Migration completed to new notified body in EU - BSI Netherlands. New CE Regulatory: the risk that our accreditation will not be recognised by the EU. product labelling is required, which in the event of a no-deal must be completed by 29.3.19. – currently underway £1m of forwar
Slide 15: Summary
SUMMARY • Overseas expansion continues to drive sales growth • Successful acquisition and integration of Northern European distributor • Exciting new market opportunities ahead • Expected further sustainable growth in 2019 and beyond • Profitable, cash generative, debt-free • Clear dividend policy t
Slide 16: Questions / Thank You
QUESTIONS THANK YOU 16 of 21
Slide 17: Appendix – Income Statement
APPENDIX – INCOME STATEMENT 6 months 6 months ended ended 31.12.18 31.12.17 £’000 £’000 Turnover 12,018 10,727 Cost of sales (2,600) (2,643) Gross profit 9,418 8,084 Gross margin % 78% 75% Administrative expenses (6,252) (5,367) Net interest 1 1 Results from associate 16 8 Operating profit before am
Slide 18: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET 31.12.18 31.12.17 Non-current assets £’000 £’000 Goodwill and other intangible assets 13,447 7,404 Property, plant and equipment 1,339 1,518 Deferred tax - 195 14,981 8,922 Current assets Inventories 2,768 2,226 Trade and other receivables 4,650 3,871 Cash and cash equivalen
Slide 19: Appendix – Balance Sheet …Continued
APPENDIX – BALANCE SHEET …Continued 31.12.18 31.12.17 Capital and reserves £’000 £’000 Share capital 443 429 Share premium account 11,227 10,892 Merger reserve 1,865 478 Foreign exchange reserve (41) 52 Retained earnings 7,184 4,986 Non-controlling interests 7 7 Total equity 20,685 16,844 Current li
Slide 20: Appendix – Cash Flow Reconciliation
APPENDIX – CASH FLOW RECONCILIATION 6 months 6 months ended ended 31.12.18 31.12.17 £’000 £’000 Revenue 12,018 10,727 Less expenses (8,851) (8,002) Changes in circulating capital (inventory, receivables, payables) (484) (911) Purchase of tangible fixed assets (316) (402) Purchase of goodwill & intan
Slide 21: Thank You
THANK YOU Tristel