Tristel PLC

Good afternoon, ladies and gentlemen, and welcome to the Tristell PLC preliminary results investor presentation. Throughout this recorded presentation, investors online will be in listen-only mode. Questions are encouraged and can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Just please simply type in your questions at any time and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company review all questions submitted today, and we'll publish those responses on the InvestorMeet company platform, and we'll notify you when they're ready for your review. Before we begin, for those online, we'd like to submit the following poll, and if you'd give that your kind attention, I'm sure the company would be most appreciative. I'd now like to hand over to CEO Paul Swinney. Good afternoon.

Good afternoon, everybody. Welcome. I recognise everybody in the room, which is lovely to see you all again. I think we've got something like 100 people calling in remotely. So I'll just start with a few. Let me introduce my co-presenter, Liz Dixon, our CFO, all of who you all know very, very well over many years. But let me start with a few opening remarks about the company to describe what we do for those who maybe have dived in that aren't familiar with us. We're a specialist infection prevention company. Everything we do, our technology, all of our efforts and energies are directed at controlling the transmission of microbes and pathogenic, dangerous microbes within hospitals keep patients and staff safe from hospital-acquired infections. That is what we do exclusively. As I say in that opening remark, our exclusive focus is the hospital, and we have a proprietary chlorine dioxide chemistry, which is our technology. It's unique to ourselves in the way that we make the chlorine dioxide work, and it's a very powerful and very effective biocide. Byicide, I mean something that cures microbes. We have a global footprint, and much of today's discussion, I'm sure, will center around our efforts to enter the North American market, which we have now done. So we have two brands, two product portfolios. One is branded Tristel, and those products are used to disinfect medical devices that are used for diagnostic purposes in and around the body. We're not involved in surgical instrumentation and sterilization thereof. We're involved in diagnostic instrumentation, by which I would include ultrasound scanners, transducers, probes, and endoscopic equipment, and devices using ophthalmology coming into contact with the eye. And our second brand, named CASH, is intended, again, using cloned upside, intended for the disinfection of surfaces in the hospitals, which would include bed mattresses, table tops, floors indeed. And those are our target areas. We have a simple, focused business, and ours is a global opportunity. So these are our preliminary results for year ended 30th of June. And as always, the way we like to do this, I'll turn over to Liz,

Thank you Paul, and good evening everybody. Okay, so our financial highlights for the year ending 30 June 2022. We're reporting a flat year in terms of revenue. We have made some discontinuations of products during this financial year, and that's something we'll cover as we go through the presentation. But if we look at the continuing business, then we're reporting 3% growth year on year. Our business is global, as Paul says, and our overseas business continued to grow up very slightly by 2% in the year. And our overseas business represents 65% of total sales now. And that's important to us because we were a UK-originated business, and we wanted to de-risk our reliance upon the NHS, upon the UK for some number of years. So one of our key strategic objectives is to grow the business internationally and now our overseas business represents 65 percent of the total our gross margin remains steady at 79 down very slightly principally just rounding amount to 79 from 80 last year and adjusted EBITDA margin of 24 percent and when we talk about adjusted we have adjusted back share-based payments, as we always do, and also as a result of the discontinuation programmes, we had an impairment of intangibles in the year of 2.4 million, which related to those products which we have now ceased to make itself. Adjusted pre-tax profit of 4.5 million, in line with brokers' expectations, and with the reported pre-tax profit of 1.5 million. Adjusted EPS, 8.4 pence per share, and our dividend per share for the year will be 9.55 pence in total. That includes a 3P special dividend that was paid in August. And our dividend policy, which historically was two times cover, we have deviated from to maintain the value of the dividend that we're paying out. So 6.55 pence was paid last year. paid again this year and we will stay at that level until we can reestablish growth in our dividend by returning to the two times cover policy and we're hoping very much that that will happen in the 22-23 financial year. Our final dividend will be 3.93 pence and that will be payable on the 16th of December. We are reporting a net cash balance of 8.9 million at 30th of June. Since that date, we've paid out our special dividend, which amounted to 1.4 million. And today, cash in the bank is 9.2 million. So we've jumped back up after paying out that dividend, which is testament to the strong first half that we have had.