Tristel Plc · LSE:TSTL
Tristel — FY2016 Earnings Presentation
19 slides from Tristel's earnings presentation, Oct 17, 2016
Slide 1: 30 June 2016 Preliminary Results Investor Presentation
plc 30 June 2016 Preliminary Results Investor Presentation Paul Swinney CEO Liz Dixon FD Page 1 of 19
Slide 2: Financial Highlights
plc Financial Highlights • Turnover up 12% to £17.1m (2015: £15.3m) • Overseas sales up 22% to £6.7m (2015: £5.5m), representing 39% of total sales (2015: 36%) • EBITDA before share based payments up 26% to £4.3m (2015: £3.4m) • Pre-tax profit before share based payments up 27% to £3.3m (2015: £2.6m
Slide 3: Operational Highlights
plc Operational Highlights • All overseas operations profitable Direct overseas sales up 30% to £4.1m vs overseas distributor sales up 13% to £2.6m • Acquisition of business and assets of Australian distributor 15 August 2016 Total consideration £1.1m Distributor sales 2015-16 £1.5m • Business
Slide 4: Turnover
plc Turnover £,000 2011-12 2012-13 2013-14 2014-15 2015-16 2015-16 UK y-o-y Human healthcare Out-patient instrument disinfection 2,795 2,965 4,253 5,090 5,720 12% Critical surface disinfection 859 656 996 1,169 1,253 7% Other 3,422 2,225 2,190 1,973 1,574 -20% Contamination control 219 752 950 987 1
Slide 5: Maintaining Top-Line Growth (1)
plc Maintaining Top-Line Growth (1) • Historic sales record 2005 to 2016 18 16 14 £ million Revenue 12 10 8 6 Revenue 4 2 0 £m £m £m £m £m £m £m £m £m £m £m £m 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Year • CAGR 17% Old strategic revenue target
Slide 6: Maintaining Top-Line Growth (2)
plc Maintaining Top-Line Growth (2) • International expansion £,000 2015-16 2014-15 Year on year change % change Germany 1,965 1,383 582 42% Australia 750 736 14 2% China 576 252 324 129% New Zealand 438 385 53 14% Hong Kong 334 389 -55 -14% Russia 52 26 26 100% Direct overseas 4,112 3,172 940 30% D
Slide 7: Maintaining Top-Line Growth (3)
plc Maintaining Top-Line Growth (3) • UK stable platform £,000 2015-16 2014-15 Year on year change % change UK sales 10,377 9,833 544 6% • UK growth opportunities Universal coverage High market share in certain clinical areas Multiple new account opportunities: Substitute alternative product
Slide 8: Maintaining Profitability
plc Maintaining Profitability • Overheads and margins £,000 2015-16 2014-15 Year on year change % change Gross margin 73% 70% 3% Admin expenses* 8,242 7,241 1,001 14% Pre-tax profit excluding SBP 3,267 2,587 680 26% Pre-tax profit margin 19% 17% 2% * Excluding share based payments, amortisation and
Slide 9: Currency risk
plc Currency risk • Foreign exchange gains & losses £,000 2015-16 2014-15 Year on year change % change Foreign exchange gain 150 -81 231 285% Derived from: Translation of overseas subsidiary profits 23 23 - - Translation of foreign currency assets 117 -60 117 295% Open trade balances 11 -44 54 123%
Slide 10: North American Business Plan
plc North American Business Plan • 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 Surfaces EPA
Slide 11: Defensive Strengths
plc Defensive Strengths • Product features • 25 published peer reviewed scientific papers No capital purchase • 19 case studies published worldwide No support building services No maintenance • 12 inclusions in professional body guidelines worldwide • 156 granted patents to 30 June 2016 ENT
Slide 12: Strategic Risks
plc Strategic Risks • 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; and manufacturers of medical instruments preventing use of Tristel. P
Slide 13: Investment Case
plc Investment Case DIVIDEND 2012 - 2016 AVERAGE MARKET CAPITALISATION 2012 - 2016 7 6 £60,000,000 5 Pence per share £50,000,000 4 Special dividend per share £40,000,000 3 Standard dividend per £30,000,000 share 2 £20,000,000 1 £10,000,000 0 £- 2012-13 2013-14 2014-15 2015-16 2012-13 2013-14 2014-15
Slide 14: Summary and Outlook
plc Summary and Outlook • A year of further growth - robust margins • International expansion driving future growth All overseas operations are profitable with overseas sales up 27% Acquisition of the business and assets of Australian distributor Business plan to enter North American infection
Slide 15: Thank you
plc 30 June 2016 Preliminary Results Investor Presentation Thank you Page 15 13 of 19 17
Slide 16: Appendix - Income statement
plc Appendix - Income statement Year ended Year ended 30.6.16 30.6.15 £’000 £’000 Turnover 17,104 15,334 Cost of sales (4,549) (4,673) Gross profit 12,555 10,661 Gross margin % 73.4% 69.5% Administrative expenses (8,242) (7,241) Net interest 12 3 Results from associate 13 8 Operating profit before a
Slide 17: Appendix - Balance sheet
plc Appendix - Balance sheet 30.6.16 30.6.15 Non-current assets £’000 £’000 Goodwill 667 667 Intangible assets 5,380 5,631 Property, plant and equipment 1,416 1,347 7,463 7,645 Current assets Inventories 1,875 2,061 Trade and other receivables 3,735 3,194 Cash and cash equivalents 5,715 4,045 11,325
Slide 18: Appendix - Balance sheet continued
plc Appendix - Balance sheet continued 30.6.16 30.6.15 Capital and reserves £’000 £’000 Share capital 421 414 Share premium account 10,411 9,920 Merger reserve 478 478 Foreign exchange reserve (1) (147) Retained earnings 3,648 3,493 Non-controlling interests 7 7 Total equity 14,964 14,165 Current li
Slide 19: Appendix – Cash flow reconciliation
plc Appendix – Cash flow reconciliation Year ended Year ended 30.6.16 30.6.15 £’000 £’000 Profit before tax 2,593 2,552 Add back non cash items 1,748 990 Working capital movements 467 (606) Purchase of tangible fixed assets (499) (496) Purchase of intangible assets (406) (567) Proceeds from sale of