Tristel PLC

Good morning and welcome to the Tristell PLC interim results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to the management team of Tristell. Matt, Matt, good morning to you.

Hi, good morning. Thank you for joining us today for Tricell's interim results, H1 financial year 2026. I'm joined today by Anna Russell, Tricell's CFO, and Yulia Shapanova, who's Tricell's executive director. I appreciate that Yulia may be a new name to some of the investors joining us today. So let me just give a brief background into her. She's been executive director at Tricell and president of our U.S. subsidiary. This year actually marks her 20th year with Tricell. So she's a very long serving member of the team. Julia has really been an instrumental part of the leadership team. She executed the scientific program with the FDA, securing our U.S. market entry, and really has been leading our commercial efforts with working on the launch of our two key products there, ultrasound and OPH. As we go through the presentation, Julia will be updating you all on the progress we're making in the U.S.A. So that being said, let me just also take a moment to acknowledge the announcement that was made earlier this year that I will be stepping down as chief executive at the end of the financial year. This was a deeply considered personal decision. Tricell is a business with exceptional people, a strong depth in its leadership and a very clear strategic outlook and trajectory. A little bit of background as to my reason why. Essentially, I was offered a once in a lifetime opportunity that was impossible to turn down. But I do leave Tristell with the thought that the future is very bright. I remain fully committed. to the business until the end of the financial year and support him with a smooth transition as the business looks to identify its next chief executive. Very confident that the business is well positioned to deliver long-term shareholder value. And as you will see from the set of results that we present today, the company continues to go from strength to strength. And as I said, the future is very bright for TriStar. That being said, let's start with the presentation. I appreciate that there may be some new investors joining us today. So let me just take a brief moment to explain Tristell, who we are and what we do. Tristell is an infection prevention company. We use our highly differentiated chlorine dioxide chemistry in order to prevent the transmission of microbes from patient to patient or patient to caregiver. What we do is pretty unique and we address an unmet need in the market by providing high level disinfection at the point of care. I can answer some further questions if people have questions about the products we offer and what we do. But what I suggest is I now hand over to Anna who will take you through the financial performance in the first half of the year.

Thank you, Matt. Good morning, everyone. I will walk you through our financial highlights. I'm very proud to present a strong set of numbers for the first half of the financial year. These are unaudited figures, or interim figures. We've been very happy to see 14% growth in revenues, reaching a record level of £25.6 million. The growth came up both from our home market, our UK market, as well as overseas markets, and we're very happy to see this growth in the US that we will tell you more about. That growth flowed through the P&L with expanding margins. So our adjusted profit before tax went up by 11% to 5.5 million. Adjusted EBITDA was up by 17%. And our adjusted EPS is at 9.36 pence. The adjusted measures are adjusted basically for share-based payments and and exceptional items which are related to CO and CFO succession costs. Our cash and deposits reached 13.3 million, we remain debt free, and we are planning for the interim dividend of 5.68 pence to be paid in April. I will move on to show our key indicators. I believe they are a strong reflection of our very good track record historically of financial performance. The first graph shows revenue track record, which as you can see has been consistently growing with a very short flat period during COVID times. What I'm very happy to see is that both this year as well as last year, we see a big portion of the growth coming from volume rather than price gains. meaning that we are delivering more procedures and then gaming market. In terms of expanding cash generation, another KPI we are very proud of. We have generated 6.7 million in cash in the first half of the year. And we continuously improve the cash flow generation, kind of quarter by quarter. And that, of course, allows us also for progressive dividends. When it comes to profitability, the bottom graph, we are currently at 29% of adjusted PDA margin, which is well above our commitment of 25%. And we believe that the outlook for the year remains similar. I have a summarized income statement here. There is also a complete income statement in the appendix to the presentation and, of course, in our interims. These are unaudited figures. I have already mentioned the top line growth. Maybe another thing that's worth attention here is impact on our growth margins. So we had 81% growth margin compared to 82% in the first half of last year. The reason for that is that we have in-source production of wives. And we already see the whole cost impact of that in the first half of the year. So we've increased appreciation as well as production staff. However, the savings have just started to be realized in the first half of the year. And we believe that the full rate of savings will be visible in the second half of the year, which is £300,000 per hour estimate. And that's basically because we have to sell off the inventory of the wipes that were purchased from the supplier prior to the insourcing. Another development you can see here is increased administration and distribution expenses. That's really reflecting our strategy to continue investment in sales and marketing. You will also notice probably an increase in depreciation and amortization, and that's partially driven by the insourcing of the wax machine, but partially also by a £300,000 right of intangibles. Our adjusted PPC margin, it's at 21%. The adjusted profit before tax went up by 11%. And as I mentioned before, our margins remain above the commitment. Looking at some balance sheet KPIs. that I would like to draw your attention to. So firstly, networking capital that we have continuously seen improving. Currently, if you look at networking capital over revenue ratio, over annualized 12-month period revenue, it's at 15%. That speaks to operational efficiencies and positions as well for growth. When it comes to return on capital employed, we also see very strong ratio. We are currently at 25%. ROCE, and that speaks very well to the long-term value creation. And finally, progressive dividends. So, as many of you know, we have been every year increasing the dividends paid. And we also, this year, we aim at honoring the commitment for progressive dividends in the year. And the announced dividend is at 568. That's flat. compared to the first half of last year. However, in the full year, we still plan to increase the dividend per share. Complete balance sheet, I would say summarized balance sheet here with a complete one in the appendix. I will not go through the details here because there are no major movements and the balance sheet remains strong, cash positive, which gives us really plenty of financial capacity to support our investments and growth initiatives. The following slide I will spend a little bit more time on. That's our geographic performance. So on constant currency basis, the group has grown by 12.4%. And in our home market, UK, we've seen continuously strong growth, only nearly 13% growth, which benefited from both procedure increase as well as very strong performance of our surface disinfection product line. What's important here to acknowledge as well is that we had a bit of a positive seasonality impact with some large NHS orders at the end of last calendar year. When it comes to the other European countries, we are very encouraged by the recovery of French market, which grew at 13%. We have strong leadership there. We have seen growth there coming from our core products in the Trisdell medical device disinfection range, as well as some increased utilization in our large accounts. Italian market has also grown 13%, also coming from our core products in medical device contamination range. What we have also seen in Italy is an increased number in tenders for high-level disinfection. which for us means a mixture of contracting existing sales as well as new demand as we want in standards. In other European countries, we also see double-digit growth and we continue to invest there with the expectation to see further growth in the future. The APAC region is a little bit of a mixed performance. As you can see here, we have grown 0.3%. There are pockets of business there where we had very strong growth, double-digit growth in Singapore and Malaysia, for example. However, in other markets, we had a bit of a challenge, and I think specifically China. Similarly to what other medical device companies have seen, we also saw a market slowdown in China in the first half of this year. We are traditionally targeting mostly private hospitals and we have seen some bankruptcies of the customers there. It seems to be related to the change in local policy and how the healthcare system is being financed. So we will monitor the situation going forward and of course we are looking at also diversifying more into other hospital types. I believe this is everything about the geographical performance. I will spend a little bit more time on explaining the American revenue streams, which I'm sure you're interested to hear much more about. And following this section, Julia will present in depth the performance on the US market. So here, if you would like to look at global currency, our direct product sale has performed very well. As you know, we have launched in the first half of this year Tristell OPH product and that growth related to that launch is in the first line of direct product sales. We are very happy with that performance. It has been really taken up by customers faster than we expected. Our royalties, which are related to Tristell ULT sales, We've reached 116,000 pounds. That's more than a complete annual royalties from last year. So we're also very happy to see that. And finally, our distributor sales in Canada and Chile have also shown double-digit growth. And with that, I'm going to pass to Julia.