Inspiration Healthcare Group Plc · LSE:IHC
Inspiration Healthcare — FY2019 Earnings Presentation
22 slides from Inspiration Healthcare's earnings presentation, January 2019
Slide 1: Providing Advanced Medical Technology
Providing Advanced Medical Technology Inspiration Healthcare Group plc Full Year Results Presentation – year ended 31 January 2019
Slide 2: Disclaimer
Disclaimer While the information contained herein has been prepared by Inspiration Healthcare Group plc (“Inspiration”) in good faith, neither it nor any of its directors, officers, agents, advisers, affiliates or employees makes any representation or warranty, express or implied, nor shall any of
Slide 3: About Us
About Us A Medical Technology Company, founded in 2003, 4 founders are still with the business Grown profitability for 15 years, cash generative 2018 Revenue - £15.5m and EBITDA1 of £1.65m Transitioned from UK distributor to global provider of neonatal and patient warming products Products
Slide 4: Our Products – the first 6 hours of life
Our Products – the first 6 hours of life Tecotherm Neo Used in NICU. Small but powerful features, it has been AlphaCore5 Controller LifeStart used to show benefits of cooling to reduce Used in the Delivery Room. brain injury Used in Operating Theatre / Delivery Novel device allows assessment of the
Slide 5: Highlights – year ended 31 January 2019
Highlights – year ended 31 January 2019 £ Launched the new Patient Largest ever order for Patient Sales of new products generated Warming System Warming Systems revenues of £1.4m MDSAP ----- Inspiration Healthcare ------------- ------------- Signed licence agreement for Received MDSAP certification
Slide 6: Growth & Increased Regulation
Growth & Increased Regulation Medical Device Unannounced Medical Device Single Audit Medical Device PIP Breast Regulatory ISO13485: 2016 ISO13485:2016 Regulation (EU) Programme Regulation (EU) Implant Founder Audits published (Feb compulsory from published (May compulsory for compulsory from Arreste
Slide 7: Financial Highlights and KPI’s – YE January 2019
Financial Highlights and KPI’s – YE January 2019 Highlights Revenue stable at £15.5m – impact of regulatory environment Record international revenue at £5.4m, strong growth in US 9% of total revenue came from new products EBITDA1 growth of 13% to £1.65m Operating profit in line with expect
Slide 8: Consolidated Income Statement
Consolidated Income Statement FY2018 FY2019 Comments £’000 £’000 Revenue 15,495 15,487 Solid result given continued regulatory headwinds Gross Profit 6,786 7,042 Increased 4% despite level gross profit margin 43.8% 45.5% sales EBITDA 1,454 1,648 Growth of 13% EBITDA margin 9.4% 10.6% Operating
Slide 9: Consolidated Cash Flow
Consolidated Cash Flow FY2018 FY2019 Comments £’000 £’000 Cash generated from operations 919 995 Interest paid -2 - Taxation paid -126 -147 Higher charge due to lower R&D tax credits Taxation received 161 - Prior year recovery Net cash generated from operating activities 952 848 Cash flows from
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet 31 January 31 January Comments 2018 2019 £’000 £’000 Intangible assets 1,209 1,293 £1.2m capitalised development NBV PPE 461 408 Investments 111 111 Neuroprotexeon Ltd Total non-current assets 1,781 1,812 Spend largely offset by depreciation Cash 2,086 2,539 Strong
Slide 11: Revenue Generation – Core Business
Revenue Generation – Core Business Critical Care Operating Theatre Home Healthcare Capital Capital Capital Consumables Consumables Consumables Tech Support Tech Support Tech Support Own Brand Own Brand Distributed Distributed Distributed Domestic Domestic Domestic International International 11
Slide 12: Revenue Breakdown – Sector and Ownership
Revenue Breakdown – Sector and Ownership Critical Care Operating Theatre Home Healthcare Market Sector 69% 11% 20% £10.7m £1.7m £3.1m Branded Products Distributed Products Technical Support Product Ownership 46% 41% 11% £7.2m £6.3m £1.7m Excludes freight revenue 2%, £0.3m 12
Slide 13: Revenue Breakdown - Geography
Revenue Breakdown - Geography Domestic Asia Pacific 65% 2% Distribution Partners Direct sales in UK and Ireland (“Domestic”) NHS Trusts Private healthcare providers Distribution network covering over 50 countries Strong growth in US in FY2019 14 distributors > £100k accounting for 61% of
Slide 14: Our Market Opportunity - Neonatal
Our Market Opportunity - Neonatal Key Stats Global Fetal & Neonatal Care Equipment Market2 Every year, an estimated 15 million babies are born $13.0bn preterm¹ and this number is rising³ $12.0bn Preterm birth complications are responsible for $11.86bn approximately 1m deaths in 2015 – the larges
Slide 15: Industry Market Drivers
Industry Market Drivers 1 Regulatory compliance becoming more burdensome and a barrier to entrants 2 Economies of scale becoming important to reduce increased regulatory costs 3 Demand for lower cost of ownership 4 Demand for outcome improvements 5 Environmental targets will affect healthcare 6 Proc
Slide 16: Neonatal– competitive landscape
Neonatal– competitive landscape Thermoregul atory / Phototherapy Feeding tubes / bottles Respiratory Support Capital General Disposables Resuscitation / Resp Disposables Monitoring & Diagnostics = currently sell all / part = currently not in range = aspire to acquire / develop 16
Slide 17: Our Business Model – for sustainable growth
Our Business Model – for sustainable growth 17
Slide 18: Disruptive Technologies – Project Wave
Disruptive Technologies – Project Wave Drugs Long term (Caffeine) damage >1.5 million babies p.a. >$60 million Apnoea of Aggressive Non-invasive prematurity / respiratory respiratory Pneumothorax respiratory strategy device, non- support (Pressure) pharmaceutical Status Prototype / early stage clini
Slide 19: Disruptive Technologies – Pipeline
Disruptive Technologies – Pipeline Market Size: >$40 million Status: Sold in EU, clinical trial on-going Next Steps: FDA510k Problem: Inaccurate diagnosis of newborn brain injury Market Size: >$25 million Pipeline Problem: Delayed heart monitoring at birth Market Size: >$25 million Problem: Difficul
Slide 20: Acquisition Profiles
Acquisition Profiles Ideal Target – Number identified Considered & Opportunistic Transformational Incremental – cash / debt Greater than £10m revenue Typically less than £5m Established Technology / Brand Novel Technology / Distribution Neonatal Neonatal / Operating Theatre Synergistic P
Slide 21: Our Ambition
Our Ambition Become a global leader in neonatal intensive care equipment Continued organic Further investment in Acquisition of small to growth from existing and development of medium sized assets products in Core Disruptive Technologies and or technologies Business Strong knowledge of market within
Slide 22: Outlook - Transformational Growth
Outlook - Transformational Growth Activity Comment Product Development 6 Own-Brand product lines – range extension ongoing Disruptive Technology Pipeline: Project Wave plus 3 identified Market Development 50+ distributors, USA priority for product registration Compliance Ensures barriers to entry ar
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