Tristel PLC · LSE:TSTL
Tristel — H1 2018 Earnings Presentation
20 slides from Tristel's earnings presentation, March 2018
Slide 1: Interim Results Investor Presentation 31 December 2017
plc 31 DECEMBER 2017 INTERIM RESULTS INVESTOR PRESENTATION Paul Swinney CEO Liz Dixon FD
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE UP 10% PRE-TAX PROFIT* UP 18% (2016: £9.75m) TO £10.7m (2016: £1.7m) TO £2m UP 28% UP 21% OVERSEAS SALES EPS* (2016: £4.2m) TO £5.4m (2016: 3.3p) TO 4p OVERSEAS SALES 50% OF INTERIM DIVIDEND UP 14% (2016: 43%) TOTAL SALES (2016: 1.4p) TO 1.6p PER SHARE EBITDA* UP 18% CAS
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS HONG KONG DIRECT REPRESENTATION ESTABLISHED MOBILE ODT APP BASED FOR TRAINING AND DISINFECTION COMPLIANCE COLLABORATION EPA ADDITIONAL DATA PROVIDED ENVIRONMENTAL PROTECTION AGENCY (EPA) APPROVAL AWAITED 3
Slide 4: Sales Strategic Overview
MDD = Medical Device Disinfection SALES STRATEGIC OVERVIEW SD = Surface Disinfection Human Contamination Animal Healthcare Control Healthcare Tristel’s chlorine dioxide MDD £7,721k disinfectants SD £636k SD £103k SD £31k MDD £950k Other chemical SD £228k MDD £114k SD £601k disinfectants we SD £343k
Slide 5: Sales – Half on Half
SALES – HALF ON HALF 2015-16 2016-17 2017-18 H1 on £,000 H1 H1 H1 H1 % Medical devices 2,695 3,478 3,604 4% UK Human healthcare Surfaces 620 683 601 (12%) Legacy 840 578 192 (67%) Medical devices 2,307 3,801 4,867 28% O/seas Human healthcare Surfaces 65 96 139 45% Legacy 213 94 132 40% Contamination
Slide 6: Sales – By Channel
SALES – BY CHANNEL Growth % at a constant Channel Country 2017-18 H1 2016-17 H1 H1 on H1 growth H1 on H1 growth % currency Australia 1,155 776 379 49% 48% China 297 295 2 0% 2% Direct Hong Kong 222 354 (132) (37%) (35%) Germany & Central 1,953 1,526 427 28% 23% Europe New Zealand 374 299 75 25% 28%
Slide 7: Gross Margin – Half on Half
GROSS MARGIN – HALF ON HALF 2015-16 2016-17 2017-18 H1 H1 H1 Human healthcare 74% 75% 77% Animal healthcare 69% 75% 63% Contamination control 52% 62% 64% Group gross margin 71% 74% 75% • Gross margin pressure → Supplier price rises → FOC goods and rebates in veterinary arrangements • Customer price
Slide 8: Sales Growth – The Sources
SALES GROWTH – THE SOURCES £800,000 £700,000 £600,000 £500,000 £400,000 £300,000 Focus → a return to growth in the UK £200,000 → continue to consider distributor acquisition opportunities £100,000 £0 UK Overseas Overseas New acquisition Currency impact -£100,000 distributors subsidiaries impact -£20
Slide 9: Sales Growth Enablers – Regulatory Approvals
SALES GROWTH THE ENABLERS – REGULATORY APPROVALS Regulatory activity H1 → new regulatory dossiers started x 55 → regulatory dossiers submitted to authorities x 82 → approvals granted x 15 → India & Japan company incorporations and preliminary regulatory investigations underway USA EPA status → dossi
Slide 10: Sales Growth Enablers – New Products
SALES GROWTH THE ENABLERS – NEW PRODUCTS Medical device disinfection – within the hospital → The driver of demand is the number of diagnostic patient procedures using a medical device that require high level disinfection. → The two principal diagnostic technologies are visualisation (endoscopy) and
Slide 11: Sales Growth Enablers – New Products
SALES GROWTH THE ENABLERS – NEW PRODUCTS Expanding our opportunity in critical surface disinfection Fuse for Surfaces SHOT VS VS Chlorine Tablets Impregnated Wipes 11
Slide 12: Investments
INVESTMENTS REGULATORY PROGRAMME £0.5m MANUFACTURING EQUIPMENT £0.2m FOR SURFACES PRODUCT DEVELOPMENT £0.2m FOR SURFACES & APP PATENTS AND PROTECTIONS £0.1m 12
Slide 13: Strategic Financial Plan to June 2019
STRATEGIC FINANCIAL PLAN TO JUNE 2019 GROW SALES ON AVERAGE BY 10% – 15% MAINTAIN A PRE-TAX PROFIT MARGIN OF AT LEAST 17.5%, WHILST INVESTING IN NORTH AMERICA RETURN SURPLUS FUNDS TO SHAREHOLDERS 13
Slide 14: Thank You
Tri wel WE HAVE CHEMISTRY. THANK YOU 13
Slide 15: Appendix – Income Statement
APPENDIX – INCOME STATEMENT Period ended Period ended 31.12.17 31.12.16 £’000 £’000 Turnover 10,727 9,748 Cost of sales (2,643) (2,496) Gross profit 8,084 7,252 Gross margin % 75% 74% Administrative expenses (5,367) (4,959) Net interest 1 3 Results from associate 8 6 Operating profit before amortisa
Slide 16: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET 31.12.17 31.12.16 Non-current assets £’000 £’000 Goodwill and other intangible assets 7,404 6,882 Property, plant and equipment 1,518 1,381 8,922 8,263 Current assets Inventories 2,226 1,753 Trade and other receivables 3,871 3,776 Cash and cash equivalents 4,945 3,854 11,042
Slide 17: Appendix – Balance Sheet Continued
APPENDIX – BALANCE SHEET CONTINUED 31.12.17 31.12.16 £’000 £’000 Capital and reserves Share capital 429 424 Share premium account 10,892 10,443 Merger reserve 478 478 Foreign exchange reserve 52 80 Retained earnings 4,986 2,849 Non-controlling interests 7 5 Total equity 16,844 14,279 Current liabili
Slide 18: Appendix – Cash Flow Reconciliation
APPENDIX – CASH FLOW RECONCILIATION Period ended Period ended 31.12.17 31.12.16 £’000 £’000 Revenue 10,727 9,748 Less expenses (8,002) (7,455) Changes in circulating capital (inventory, receivables, payables) (911) (592) Purchase of tangible fixed assets (402) (244) Purchase of goodwill & intangible
Slide 19: Tristel
“; 1 > Tristel WE HAVE CHEMISTRY.
Slide 20: Tristel
Tri cel WE HAVE CHEMISTRY.