Tristel Plc · LSE:TSTL
Tristel — H1 2020 Earnings Presentation
20 slides from Tristel's earnings presentation, February 2020
Slide 1: Interim Results Investor Presentation, 6 Months to 31 December 2019
Tristel plc Interim Results Investor Presentation 6 Months to 31 December 2019 Paul Swinney, CEO Liz Dixon, FD 24-26 February 2020 1
Slide 2: The World of Infection Prevention
THE WORLD OF INFECTION PREVENTION 2
Slide 3: Medical Device Disinfection
MEDICAL DEVICE DISINFECTION UNIQUE SELLING POINTS MULTIPLE USE SITES The only manually applied high level disinfectant (HLD) 1 Ophthalmology: Tonometers for medical devices 2 ENT: Nasendoscopes Trio Wipes System 3 A&E: Intubation Laryngoscopes 4 GI Endoscopy: Manometry Catheters The only Chlorine Di
Slide 4: Surface Disinfection
SURFACE DISINFECTION Around the patient and in critical areas within the hospital UNIQUE SELLING POINTS MULTIPLE USE METHODOLOGIES • Sporicidal disinfectant • Effective against all pathogens of concern Mopping (including coronaviruses) • Effective in the shortest known contact times Wiping • Excelle
Slide 5: First Half Financial Highlights
FIRST HALF FINANCIAL HIGHLIGHTS • Revenue up 22% to £14.6m (2018: £12m) • Overseas sales up 30% to £8.3m (2018: £6.4m), representing 56% of total sales (2018: 53%) • Gross margin increased to 79% from 78% in 2018 • PBT before share-based payments up 25% to £3.0m (2018: £2.4m). Unadjusted PBT of £2.8
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS • Successful integration of Tristel Italia srl • Received further positive feedback from the FDA and data generation for our regulatory submission continues • Completed the construction and fit-out of second 23,000 sq ft warehouse and office in Newmarket 6
Slide 7: Half-on-Half Sales Performance
£16,000,000 HALF-ON-HALF SALES PERFORMANCE £14,000,000 £12,000,000 £10,000,000 £8,000,000 £6,000,000 £4,000,000 £2,000,000 £0 Total Revenue 2014-15 H1 2014-15 H2 2015-16 H1 2015-16 H2 2016-17 H1 2016-17 H2 2017-18 H1 2017-18 H2 2018-19 H1 2018-19 H2 2019-20 H1 Consistent revenue growth: 10% to 15% p
Slide 8: Sales Growth £2.6m – Sources
SALES GROWTH £2.6m – SOURCES By Application By Geography £1,600 £1,600 £1,400 £1,400 Note: Decline in Overseas £1,200 £1,200 Distributor sales derives from the £1,000 £1,000 reclassification of Western Europe £,000 sales and Italy to Tristel £,000 sales £800 £800 subsidiaries, £600 £600 following th
Slide 9: Sales Growth – By Application
SALES GROWTH – BY APPLICATION £m 2017-18 2018-19 2019-20 Half on half H1 H1 H1 growth Medical device disinfection 3.31 3.61 4.40 22% UK human healthcare Critical surface disinfection 0.60 0.69 0.75 9% Other 0.48 0.43 0.33 -24% Medical device disinfection 4.62 5.70 7.29 28% Overseas human healthcare
Slide 10: Sales Growth – By Geography
SALES GROWTH – BY GEOGRAPHY Period-on-period growth at First half 2018-19 First half 2019-20 Period-on-period growth constant currency £m £m % % Overseas subsidiaries: Germany & Central Europe 2.23 2.49 12% 13% Western Europe * 0.40 1.75 337% 343% Italy ** 0.05 0.30 500% 529% Australasia 1.66 1.70 2
Slide 11: Growth Drivers - Geographical Expansion
GROWTH DRIVERS - GEOGRAPHICAL EXPANSION 11
Slide 12: Growth Drivers – Establishing a Direct Presence
GROWTH DRIVERS – ESTABLISHING A DIRECT PRESENCE First half sales Establishment year Establishment type Acquisition cost 2019-20 £m £m Overseas subsidiaries: Germany & Central Europe 2010 Start up 2.49 Western Europe 2018 Acquistion £6.4m 1.75 Italy 2019 Acquistion £0.7m 0.30 Australia 2016 Acquistio
Slide 13: Building Momentum Across a Broad Front
BUILDING MOMENTUM ACROSS A BROAD FRONT • Existing Geographical Markets: France H1 2020 revenue £0.65m Vs H1 2019 £0.01m New French guidelines for HLD in ultrasound • New Geographical Markets: Malaysia, India, Canada, USA • New Products: Rinse Assure – ClO2 dosed rinse water for endoscopic instrument
Slide 14: Long Term Growth Potential - USA
LONG TERM GROWTH POTENTIAL - USA • FDA written feedback to pre-submission request #3 received December 2019. Guidance sought on 7 discussion topics and 13 specific questions. Clarification on all but 4 points for which further details have been requested. • De Novo approval process. FDA has never be
Slide 15: Summary
SUMMARY • Strong first half growth in sales, profit and dividends • Profitable, cash generative, debt-free • Successful integration of distributor acquisitions • New 3 year plan targets 10-15% revenue growth p.a., minimum EBITDA margin 25%, combined with yearly PBT growth • Broad based momentum has
Slide 16: Appendix – Income Statement
6 months to 6 months to APPENDIX – INCOME STATEMENT 31.12.19 31.12.18 £’000 £’000 Turnover 14,634 12,018 Cost of sales (3,030) (2,600) Gross profit 11,604 9,418 Gross margin % 79% 78% Administrative expenses (7,298) (6,252) Net interest (72) 1 Results from associate - 16 Operating profit before amor
Slide 17: Appendix – Balance Sheet
APPENDIX – BALANCE SHEET 31.12.19 31.12.18 Non-current assets £’000 £’000 Goodwill and other intangible assets 13,997 13,447 Property, plant and equipment 2,224 1,339 Right of use assets 3,710 - Deferred tax 997 195 20,928 14,981 Current assets Inventories 2,664 2,768 Trade and other receivables 4,8
Slide 18: Appendix – Balance Sheet …Continued
APPENDIX – BALANCE SHEET …Continued 31.12.19 31.12.18 Capital and reserves £’000 £’000 Share capital 447 443 Share premium account 11,735 11,227 Merger reserve 2,205 1,865 Foreign exchange reserve (221) (41) Retained earnings 10,066 7,184 Non-controlling interests 7 7 Total equity 24,239 20,685 Curr
Slide 19: Appendix – Cash Flow Reconciliation
APPENDIX – CASH FLOW RECONCILIATION 6 months to 6 months to 31.12.19 31.12.18 £’000 £’000 Revenue 14,634 12,018 Less expenses (10,656) (8,851) Changes in circulating capital (inventory, receivables, (75) (484) payables) Purchase of tangible fixed assets (1,111) (316) Purchase of investments, goodwil
Slide 20: Thank You
THANK YOU Tristel 20