Tristel PLC · LSE:TSTL
Tristel — FY2018 Earnings Presentation
21 slides from Tristel's earnings presentation, Jun 30, 2018
Slide 1: 30 June 18 Preliminary Results Investor Presentation
30 JUNE 18 PRELIMINARY RESULTS INVESTOR PRESENTATION PAUL SWINNEY, CEO LIZ DIXON, FD
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS • Turnover up 10% to £22.2m (2017: £20.3m) • Overseas sales up 19% to £11.4m (2017: £9.6m), representing 51% of total sales (2017: 47%) • EBITDA before share-based payments up 16% to £6.2m (2017: £5.3m). Unadjusted £5.5m (2017: £5.2m) • Pre-tax profit before share-based payments
Slide 3: Operational Highlights
OPERATIONAL HIGHLIGHTS • Approval from USA Environmental Protection Agency (EPA) for foam-based product Duo • Commercial collaboration concluded with Parker Laboratories Inc, USA, establishing manufacturing capability and national distribution network in USA • Board transition plan progressing 2 of
Slide 4: Sales History
SALES HISTORY 25000000 15% CAGR 20000000 15000000 10000000 5000000 0 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Sales growth of between 10% and 15%, on average, over three years FINANCIAL PLAN Target sales of between £22.8m and £26m in
Slide 5: Sales Growth
SALES GROWTH 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - 2004-5 2005-6 2006-7 2007-8 2008-9 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 UK sales Overseas sales 4 of 18
Slide 6: Sales Growth - Sources
SALES GROWTH - SOURCES £,000 2017-2018 2016-2017 1,800,000 1,600,000 Overseas organic growth 1,737 665 1,400,000 1,200,000 Growth via acquisition 55 1,241 1,000,000 800,000 Currency impact on sales (3) 954 600,000 Total overseas sales growth 1,786 2,860 400,000 200,000 UK organic growth 161 291 - -2
Slide 7: Sales Growth - Geographies
SALES GROWTH - GEOGRAPHIES £,000 2017-18 2016-17 Year on year change % change Central & Eastern Europe 4,186 3,321 865 26% Australasia 3,066 2,595 471 18% Hong Kong 394 588 -194 -33% China 677 524 153 29% Worldwide distributors 3,061 2,570 491 19% Total overseas 11,384 9,598 1,786 19% United Kingdom
Slide 8: Sales Growth - Products
SALES GROWTH - PRODUCTS £,000 2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18 2017 – 18 Growth Medical device disinfection 4,253 5,090 5,720 6,659 6,717 1% UK human healthcare Critical surface disinfection 996 1,169 1,253 1,182 1,245 5% Other 2,190 1,973 1,574 1,069 950 -11% Medical device disinfe
Slide 9: New Opportunities – USA
NEW OPPORTUNITIES – USA • Collaboration with Parker Laboratories Inc underway. • Awaiting state approvals - first received. • FDA pre-submission response received. No show stoppers, additional work required, FDA redirection to a De Novo application. • FDA full submission expected by June 2019. Joint
Slide 10: New Opportunities – Critical Surface Disinfection
NEW OPPORTUNITIES – CRITICAL SURFACE DISINFECTION HOT SHOT CHLORINE DIOXIDE A SURFACE DISINFECTANT WIPE DOSING HEAD BOTTLE BURST MIX DOSE WIPE CONCENTRATE CUPSULE 9 of 18
Slide 11: New Opportunities – Critical Surface Disinfection
NEW OPPORTUNITIES – CRITICAL SURFACE DISINFECTION 10 of 18
Slide 12: New Opportunities – Critical Surface Disinfection
NEW OPPORTUNITIES – CRITICAL SURFACE DISINFECTION 11 of 18
Slide 13: Strategic Focus
STRATEGIC FOCUS Maximise Company’s value to shareholders PRIMARY OBJECTIVES Create the conditions for sustainable high growth Replicate market penetration achieved in targeted clinical areas in UK in all overseas markets To be a high margin company SECONDARY OBJECTIVES To be debt free and highly cas
Slide 14: Brexit Risks
BREXIT RISKS BSI has offered reassurance that in the case of a Hard Brexit or No Deal, they will Regulatory: the risk that our accreditation will not be recognised by the EU. guarantee that the markets in the EU and UK will not be impaired. BSI Netherlands will be our new notified body for EU. Logis
Slide 15: Summary
SUMMARY • Overseas expansion continues to drive sales growth • Profitable, cash generative, debt-free • Clear dividend policy to return surplus cash to shareholders • Business has strong IP and many defensive strengths • Exciting new market opportunities ahead • Expected further sustainable growth i
Slide 16: Thank You
THANK YOU
Slide 17: Appendix – Income Statement
APPENDIX – INCOME STATEMENT Year ended 30.06.18 Year ended 30.06.17 £’000 £’000 Turnover 22,220 20,273 Cost of sales (5,040) (4,598) Gross profit 17,180 15,675 Gross margin % 77% 77% Administrative expenses (10,971) (10,301) Net interest 2 4 Results from associate 24 19 Operating profit before amort
Slide 18: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET 30.06.18 30.06.17 Non-current assets £’000 £’000 Goodwill 998 1,065 Investments 589 589 Intangible assets 5,954 5,924 Property, plant and equipment 1,328 1,409 Deferred tax asset 399 - 9,268 8,987 Current assets Inventories 2,279 2,292 Trade and other receivables 4,332 3,745
Slide 19: Appendix – Balance Sheet Continued
APPENDIX – BALANCE SHEET CONTINUED 30.06.18 30.06.17 £’000 £’000 Capital and reserves Share capital 432 427 Share premium account 11,058 10,705 Merger reserve 478 478 Foreign exchange reserve (66) 46 Retained earnings 6,518 4,399 Non-controlling interests 7 7 Total equity 18,427 16,062 Current liabi
Slide 20: Appendix – Cash Flow Reconciliation
APPENDIX – CASH FLOW RECONCILIATION Year ended Year ended 30.06.18 30.06.17 £’000 £’000 Profit before tax 4,006 3,966 Add back non-cash items 2,133 1,370 Working capital movements (520) (530) Purchase of tangible fixed assets (516) (585) Purchase of intangible assets (997) (2,002) Proceeds from sale
Slide 21: Tristel
Tristel WE HAVE CHEMISTRY.