Slide 1: 31 December 2016 Interim Results Investor Presentation
Paul Swinney CEO plc 31 December 2016 Interim Results Investor Presentation Liz Dixon FD Page 1
Slide 2: Financial Highlights
plc Financial Highlights Page 2 • Revenue up 22% to £9.75m (2015: £8.01m) • Overseas sales up 45% to £4.2m (2015: £2.9m), representing 43% of total sales (2015: 36%) • EBITDA and share based payments up 21% to £2.3m (2015: £1.9m) • Pre-tax profit before share based payments up 15% to £1.7m (2015: £1
Slide 3: Operational Highlights
plc Operational Highlights Page 3 • Positive profit contribution from Australian acquisition • Results benefitting from Sterling weakness since EU Referendum result • First meeting with Environmental Protection Agency (EPA) in October 2016 • Second meeting with Food and Drug Administration (FDA) in
Slide 4: Turnover
plc Turnover Page 4 £,000 2014-15 2014-15 2015-16 2015-16 2016-17 H1 on H1 H1 H2 H1 H2 H1 UK Human healthcare Out-patient instrument disinfection 2,621 2,469 2,695 3,025 3,478 29% Critical surface disinfection 586 583 620 633 683 10% Other 1,023 950 840 734 578 -31% Contamination control 518 469 589
Slide 5: Turnover growth
plc Turnover growth Page 5 • First half sales growth of £1,737,000 - an increase of 22% Organic overseas Sales growth £,000 Favourable FX sales at constant rates currency Total sales growth 1,737 22% Consisting of: Favourable FX impact 473 6% Organic overseas sales growth - at constant currency 501
Slide 6: Maintaining Top-Line Growth (1)
plc Maintaining Top-Line Growth (1) Page 6 First strategic target 10% - 15% average year-on- £22.8m - £26m sales in On track 2017-19 year growth 2019 • Half-on-half sales record 2014 to 2016 6 5 4 £millions 3 UK Sales Overseas Sales 2 1 0 2013-14 H1 2013-14 H2 2014-15 H1 2014-15 H2 2015-16 H1 2015-1
Slide 7: Maintaining Top-Line Growth (2)
plc Maintaining Top-Line Growth (2) Page 7 • International expansion £,000 2016-17 2015-16 Period on period % change % change in constant H1 H1 change currency Australia 776 289 487 169% 113% China & Hong Kong 649 486 163 34% 31% Germany 1,526 794 732 92% 62% New Zealand 299 202 97 48% 18% Other - D
Slide 8: Maintaining Top-Line Growth (3)
plc Maintaining Top-Line Growth (3) Page 8 • UK stable platform £,000 2016-17 2015-16 Period on period % change H1 H1 change UK 5,555 5,117 438 9% • UK growth opportunities Universal coverage High market share in certain clinical areas Multiple new account opportunities: Substitute alternati
Slide 9: Maintaining Profitability (1)
plc Maintaining Profitability (1) Page 9 Second strategic target Pre-tax profit margin Currently On track 2017-19 17.5% 17.5% • Overheads and margins £,000 2016-17 2015-16 Year on year change % change H1 H1 Gross margin 74% 71% 3% n/a Admin expenses ex-SBP 5,554 4,251 1,303 31% Pre-tax profit exclud
Slide 10: Maintaining Profitability (2)
plc Maintaining Profitability (2) Page 10 • Admin expenses £,000 2016-17 2015-16 Year on year change % change H1 H1 UK 3,977 3,584 393 11% Regulatory costs 254 40 214 535% Australia 328 0 328 - Overseas like-for-like 818 627 191 30% Overseas FX impact 177 0 177 - Total admin expenses 5,554 4,251 1,3
Slide 11: North American Business Plan
plc North American Business Plan Page 11 • Regulatory Matrix Application Product USA regulator Canadian regulator Instruments Tristel Duo for Ophthalmology FDA HPB Tristel Duo for Ultrasound FDA HPB Surfaces Tristel Fuse for Surfaces EPA HPB Tristel Duo for Surfaces EPA HPB Tristel Jet Gel for Surfa
Slide 12: Defensive Strengths
plc Defensive Strengths Page 12 • Product features • 14 inclusions in professional body guidelines worldwide No capital purchase No support building services ENT Surface disinfection No maintenance Cardiology Hygiene Completely mobile Ultrasound To come: Ophthalmology • 204 grant
Slide 13: Strategic Risks
plc Strategic Risks Page 13 • The risks to continuing growth are principally: Future legal guidelines to force users into automation Competitor products with similar microbial efficacy, use times and safety profile at a lower price Manufacturers of medical instruments preventing use of Tristel
Slide 14: Summary and Outlook
plc Summary and Outlook Page 14 • Continued worldwide sales and profit growth • International expansion the driver of future progression: Business plan to enter North American infection prevention market progressing well Additional major healthcare markets being researched • Business has strong
Slide 15: Thank you
plc 31 December 2016 Interim Results Investor Presentation Page 15 Thank you Page 13 of 17
Slide 16: Appendix - Income statement
plc Appendix - Income statement Page 16 Period ended Period ended 31.12.16 31.12.15 £’000 £’000 Turnover 9,748 8,010 Cost of sales (2,496) (2,289) Gross profit 7,252 5,721 Gross margin % 74% 71% Administrative expenses (4,959) (3,850) Net interest 3 4 Results from associate 6 6 Operating profit befo
Slide 17: Appendix - Balance sheet
plc Appendix - Balance sheet Page 17 31.12.16 31.12.15 Non-current assets £’000 £’000 Goodwill 1,627 667 Intangible assets 5,255 5,586 Property, plant and equipment 1,381 1,330 68 37 8,331 7,620 Current assets Inventories 1,753 1,589 Trade and other receivables 3,776 3,319 Cash and cash equivalents
Slide 18: Appendix - Balance sheet continued
plc Appendix - Balance sheet continued Page 18 31.12.16 30.12.15 £’000 £’000 Capital and reserves Share capital 424 421 Share premium account 10,443 10,455 Merger reserve 478 478 Foreign exchange reserve 80 (134) Retained earnings 2,849 2,559 Non-controlling interests 5 7 Total equity 14,279 13,786
Slide 19: Appendix – Cash flow reconciliation
plc Appendix – Cash flow reconciliation Page 19 Period ended Period ended 31.12.16 31.12.15 £’000 £’000 Profit before tax 1,701 465 Add back non cash items 592 1,409 Working capital movements (592) 357 Purchase of tangible fixed assets (244) (203) Purchase of intangible assets (1,163) (147) Proceeds