Fortis Frontier (LSE:FORF) — Final results for the year ended 31 December 2023

0:01 Good afternoon, and welcome to the My Health Check PLC final results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the q and a tab situated in the right corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives in the meeting itself. However, the company can review all the questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you up to Penny McCormick, CEO. Good afternoon to you.

0:32 Thank you, Alessandro, and good afternoon, everybody, and welcome. And thank you for making the time this afternoon to come as we report on our preliminary results. Just to introduce myself, first of all, and the team here. For those of you that are new to My Health Check, and for those of you that have supported us for a long time, just to recap, I've been the CEO of My Health Check now for four and a half years. Prior to that, having started my life in consumer products, I moved into the diagnostic industry where I spent a number of years. And from that, I began specializing then in consumer health care products directly going into retail. So it's coming up for twenty years now. I've been working in the space. So lots to discuss today, lots of progress for us. And before we go into that, I'm delighted to introduce Leslie Innis, who's our CFO.

1:25 Yeah. Good afternoon. I'm a qualified chartered accountant and joined My Health Check just over two years ago as a non executive director.

1:35 And then about a year or so ago, took on responsibility for finance. Prior to that, I've got had spent, you know, experience with a number of private and public companies as well as spending some time with KPNG in private practice.

1:50 Thanks, Leslie. And, over to you. Thank you. Adam Reynolds chairman, one executive chairman. I sit on the board of a number of medical device companies and two private companies and have been with my health check really from really from inception back in 2017. So thank you very much, Deepin. Lovely. Thanks, Adam. Pleasure. So we are really pleased to be announcing what we see as a real solid set of results

2:22 today. We've had a couple of fantastic years where COVID has dominated for us, and we've achieved a significant amount. But 2023 for us has been all about this new range of products that we're looking at now. So major, major launch for us in 2023 was our range of new tests that we launched with the biggest use UK pharmacy retailer, which is Boots. So a really unique range for us. You can see here about 30% of the portfolio which we launched went straight into retail and onto shelves. And we've got a really exciting portfolio really unique because we have rapid tests at entry level for for users. We've also got blood tests that come via a laboratory and are overseen by a doctor. And then we've also got DNA tests as well that give you a real insight into your blueprint.

3:15 And these come with real actionable advice for customers who are interested in finding out more about their health and really what they need to be doing next. So big year for us in '23. The launch of the product has been extremely successful, and we've reported within our results some really good growth since q four, achieving already post period a growth of 45%. And it's really important to note as well that we've got still full distribution within boot stores of COVID testing products. Moving forward. So I think just just to recap on the strategy for us. The testing category for wellness really is in its infancy.

4:00 It's a brand new category, which is something that we don't see often at retail. And a primary focus for us has been really driving awareness. Since COVID testing, it it could be understood that that that people are very used to at home testing, but actually, it's extremely new. And as we see the shift from people just relying on the NHS, they're increasingly empowering themselves and and going to to boots as a as a primary target. We've got within our portfolio the lateral flow test, which offer a real low barrier to entry. So they're a perfect point for people who are looking to just trial testing and use tests that they can really simply understand.

4:48 Marketing's been significantly important for us. You know, this with a new category, it's really, really important that we build out our reputation. And we're delighted to share that in the last couple of weeks, we've achieved a fantastic 4.5 score in trust pilot. Health testing and the health sector in general really, really relies on credibility. So it's been very, very important to us that we've really driven our reputation at retail. And with boots as well, with our primary year of launch, we've we are ranking at 4.2 across the the board. So we're really looking to drive reviews. We're delighted that in our first year of launch, we've managed to achieve such fantastic results.

5:36 Getting coverage, and as we've said, really helping people to understand that tests are available to them and the benefits that they bring as they're increasingly looking for alternatives has been extremely important. And for us, we really look to drive awareness through public relations. And we've achieved some fantastic coverage since launch. Some of the examples that we're sharing with you just now include the telegraph. We're currently this week in in women's women's own. We've been in the independent. We've been in cosmopolitan, And really making sure that we position ourselves in really credible titles that really appeal to our target audience, which is primarily female over the age of 35 who who's making the the purchasing decisions for the family.

6:29 And it's at that age in their life where they're often thinking about their own health and well well-being. There's been a huge amount of information out in the market around perimenopause. So we've got a real captive audience there of people really, really looking to proactively look after their their health. So we've achieved a huge amount. We appointed a new PR agency, who really spent some time with us in the first months of our relationship, really understanding testing, and really working with us to really define those those target audiences, and the target publications that we're looking to reach. We've managed to reach over 18,000,000,000, and this is based on the circulation figures of every piece of coverage that we've achieved, and it's a really accurate estimate, of the impact that we've had. And post period, we've actually increased this by a further 23%, as we've looked at the numbers of for the end of last month. So we want to continue operating within this space. We want to gain credible column ensures that really allow us. They provide the platform for us to really tell the story of testing and really help people understand what's available to them and how they they can really help on their testing journey.

7:49 We've also focused on digital marketing. It's important to note at this point, we haven't focusing on social media hasn't been our primary target. There's a lot of noise out with social media. We're operating in an extremely competitive space, and and really capturing attention with social media hasn't been an area that we've identified as allowing us to tell our story in the right way. So we have focused, on digital marketing. We've achieved a really positive click through rate. So we've got some really high stats that are above the industry average. So we're getting a click through rate of about 8.4 across Google versus an industry standard of about 6.9.

8:35 And across meta, which is Facebook and Instagram, we've been achieving around a five over 5%, click through rate over an industry average of about 1.2%. So our digital marketing has been really captivating, and it's really helped us to drive awareness and really helped drive that purchase. And then, obviously, those reviews that we've been looking to secure that are so important to us. We've also focused on direct marketing. Again, it's a fantastic channel that allows us to really communicate effectively around the tests, how they're used, and what the benefits are, and really have that conversation and relationship with customers that have opted into our database.

9:20 The testing journey is a really important one. You know, it's it's not a one off interaction or a one off purchase. Part of the reason we bought a portfolio of tests was so that customers can come and try tests, and then they can look at a different one and then revisit and recheck themselves over a period of time. But that's just the start of the relationship with testing and we'll tell you a little bit more about the the advantages and why retail is so important with that. Retail has been significant for us. You know, we we talk about Boots a lot. Of course, we do. Their strategy is is is leading in this space. They are The UK's biggest health care retailer.

10:09 And as far as testing concerns, they are ambitious in their plans on how they will take testing forward. So we're in an extremely enviable position working with Boots. We've worked with them now for three years. And following on from the success of COVID, we were obviously delighted to be able to to secure this really great position with them at retail. So when the the test launched in May 2023, we were just shy of 800 stores that we launched into. So Boots now, following some closure, has around, 1,800, 1,900 stores. We are currently in 779 of those, but with a plan to increase. So you'll just see on the right hand side there that distribution is confirmed for q three of this year to increase to around 900,950 stores. But our portfolio, sits across the boots.com website as well. So we've been working with Boots on some promotional activity for the first part of this year.

11:11 There have been a number of initiatives that have really allowed us to reach new customers and encourage trial. One of those activities has been three for two within boots, and that's been across vitamins and minerals as well as the testing space to really look at how customers interact with a, different price points, b, bringing tests in with other consumer products, and c, where the product is located in store because this promotional activity actually allowed us to, have secondary sighting within stores and not just on a health check fixture. So I've mentioned new category. I will keep repeating it because what we're doing alongside retail is really learning about how the customer interacts because it's brand new. So everything that we do, whether it's a piece of marketing ourselves, a piece of marketing with the retailer, or something in store, we're learning something new about the customer, and then we're taking that forward revising what we do to make sure that we can keep on building awareness and increasing that penetration.

12:20 That high impact communication across digital channels is launching for us this month. So we've created a whole lot of digital assets that will be going live that will really, again, help customers understand why they need to test and what those advantages are and what they need to do as a result of of the test. And we can link that then directly with Boots activity, which is extremely powerful. Number one retailer, getting a significant market share, and working with Boots for certain promotional activity. For instance, the health hub campaigns, which really have a significant reach as does everything that that Boots does with its deep customer base. And I I mentioned the increased distribution on the right hand side. You may have heard me talk before about health care reinvention, which is a big project that that Boots are doing. For those of you that shop regularly at Boots, you will see in some stores, health care reinvention has meant a total re re representation of the healthcare space. So moving away from the traditional pharmacy counter, actually having an open space with a number of products that can be looked at with a health care adviser present within the store to actually talk to the customer about what's there.

13:37 And that's perfect for wellness testing, which is completely brand new. It's allowing customers to really understand and see what's available and have the right conversation there with staff. And for boots moving forward, testing is going to be a key part health care reinvention. So in terms of marketing highlights, I've mentioned a brand new PR agency partner who we're working extremely close with, and we've had a lot of success, with with everything that we've done since we we started working with them around ten months ago. We've got a new digital partner as well who's really, really focused on performance so that where we are investing in digital marketing, we're really getting that messaging right, tracking what's effective, and doing more of the same.

14:25 That investment in retail point of sale is going to continue. So for that increased distribution that I mentioned, for later on this year within boots, we will obviously be looking at the, investments around that and making sure all of our products sit neatly on trays so that customers can locate them, excuse me, and and and see really, really clearly what's available. Excuse me. Sorry. Just joking. Bear with me. Apologies.

15:14 Hopefully, my voice is going to continue. Internally, one second. Talk amongst yourselves. One sec. Try again. So internally, we've really strengthened our our marketing team. We continue to be a small and streamlined team. And when Leslie goes through some of the financials, obviously, that cost control that we've always prided ourself on, and have continued to demonstrate.

15:49 We do run a streamlined team, but we've got some really good talent within the organization. So we've brought on a new marketing manager at the end of last year, and we also work with a marketing director as well significantly with an awful lot of of retail experience. And then we draw on our wider team. You will know that we have Amber on our board who is an expert marketer, particularly on the digital side and and actually grew a business herself, before exiting that. So we've got fantastic marketing specialisms in the team, and also working with specialist partners who we brought on board in the last year. And I think we're really seeing the results of that, and we're really demonstrating that we've been able to achieve growth.

16:37 And we've also brought on our brand identity. So we've you'll you'll see the the branding's looking a little bit different now. We launched we launched to market. We're extremely happy with our packaging and with everything that that we brought with that. But as we've learned more from our customers and really found our space, it was time within a year of launch just to really bring that on to the next level. And what you can see in front of you, is a really smart ID. We've created assets that allow us to really tell our story and communicate really effectively with end users to really target that female first buyer whilst remaining absolutely accessible and appealing to our male customers who are extremely important.

17:24 Our brand's relatable. It allows us to bring very much that lifestyle piece, whilst really talking about the product benefits. And you'll see this more and more now coming through. So very much a clean and health oriented brand. And we've been able to actually deliver this primarily internally. We haven't gone and invested thousands of pounds on a on a brand relaunch. We've actually taken what we've learned in the last year and really honed this ourselves with the expertise that we've got within the team. So in terms of some of those highlights and operational achievements, sustained unit sales growth of a really exciting new portfolio. We are the only provider who's taken out into the market a range of lateral flow, blood tests, and DNA tests. This has been our strategy from day one is fully understanding that just lateral flow or just the lab test or just the DNA isn't actually going to be a sustainable portfolio.

18:27 This is about bringing people into a family of tests into an a digital ecosystem that's going to allow us to really have a relationship with them over time. And that's where retail relationships are so important, and Boots is the great example there where you've actually got access to a whole load of products and services from supporting products such as vitamins and sort of physical aids, for instance, if there's an issue through to the pharmacy services, what you can get on prescription, whether you want skin test monitoring or other services that retail provide. It enables the customer to come in and have an ongoing strong relationship, with our customers.

19:14 So we continue a very, very strong relationship with Boots. We're in a really, really unique position there with them, and they've been very pleased with with the launch, And we continue to discuss wider distribution and initiatives with them. COVID is important. Yes. As we've taken a new product category out into the market, being underpinned by COVID has has obviously been significantly important to us. COVID sales continue. We will see a a drop off year on year. We don't know what that will look like in 2024, but what we do know is that COVID continues to be extremely relevant. There are still significant volumes of COVID tests being bought now in in June 2024.

20:02 So we've seen a sustained volume of sales through this year, which we see just gently rising. They will then drop off. They'll then come back up again. But we know it's a it's a seasonal product. The lion's share of our business in 2023 was in the second half, and that's absolutely what we'll be expecting to see this year. But there is very much an ingrained behavior for a huge amount of the population. It's going to be a repeat purchase, and we fully expect this to be an ongoing revenue stream for us year on year.

20:35 The success of COVID has allowed us to be self funded, so those digital enhancements on our proprietary platform are key. You know, the testing is extremely important, but the digital platform behind it that we've built that really allows customers to interact and be informed is is key. And how we will reinvest our funds into that is what we've done through 2023, and it's very much our our ongoing strategy, just to keep building out our platform, making sure that it allows us to provide great tests and a great service to to customers, but importantly, will allow us to plug in to other requirements, on the digital front, and offer complementary products and products and services over time. We've invested operationally in compliance through 2023.

21:24 It's an extremely regulated marketplace as you will always hear me say. We've achieved health care inspector at Wales, which some people on the call today will be more familiar with the Care Quality Commission, the CQC, whereas the health care inspector at Wales is the Welsh version. There isn't a difference. It just means where the company is headquartered specifies the requirements. So we cannot have CQC because we're based in Wales. So we've achieved that. It's been a significant milestone for us, and it's what allowed us to take our GP oversight and comments out into the market. Information security is also critical for us. We're dealing with special categories of data.

22:09 So we made sure that we focused on achieving 27,001, which we have. And we're also working towards ISO thirty four eighty five, which is the standard around diagnostic products that really makes sure we follow extremely rigorous processes. It gives our customers, retail and end users, the assurances that we are really, really following robust processes. And the revenue of 11,000,000, of course, when we compare it to prior year, it it's it's it's not 22,300,000, but it is an absolutely solid performance. And it's really as we're going into a new category, we are on a journey where we see significant potential.

22:55 But a strong number there, that's really supported our our cash position. And on that note, Lesley's gonna go through some of the financials. Thanks, Penny. As Penny has said, 2023 was a year of change and consolidation for My Health Check, and our focus is very much on the launch of the new wellness test and an investment in the development of the recommendation platform. Revenue for the year was 11,000,000, which was down from 22,300,000 last year, which was due to the fall in demand for COVID lateral flow tests. However, although there's no longer a legal requirement to test, given the potential severity of the disease for vulnerable parts of the population, there still appears to be an ongoing level of demand for COVID testing, which seems to be following a seasonal pattern, like you see in other upper respiratory diseases like flu, etcetera, and we expect to see that continuing.

23:55 During 2023, almost seventy five percent of our COVID sales fell in the last four months of the year, with the sales in December being particularly strong. And I think we expect to see a similar sort of pattern in the current year. It's I mean, it's just difficult to predict with any degree of certainty, but, know, as I said, I think we expect to see a similar in 2024. Also included in the 11,000,000 revenue were sales of wellness tests amounting to 344,000. As Penny mentioned, this product had a soft launch with Boots in May, and it's still very early days for a completely new product category. But the product offering is gaining traction and unit sales are increasing. Demand in q one two thousand twenty four was up by over 45% compared to quarter four of last year.

24:47 Looking at gross margin, the reported margin reduced from 21.4% to 18.7%. There are a couple of major factors that affected our margin last year. There was a release of an accrual of 1,160,000, which had been brought forward from prior years. This related to a provision for the processing cost of fit to fly PCR tests that had been purchased when it was a legal requirement to do that. But significant number of these tests were never returned for processing. The tests have all no time expired, so the provision was released. On the other side, as our recommendation platform is now live, the related sort of amortization, development and 19 maintenance costs, which amounted to 669,000, compared with 459,000 last year, are now expensed to cost of sales as opposed to administration expenses.

25:44 If those items are excluded, our gross margin was 14.1 compared to 23.5 in 2022. The main reason for this drop in gross profit percentage is product mix, as there's significantly more margin in tests that involve processing compared to the distribution of lateral flow tests. So the old fit to fly PCR tests were more profitable than lateral flow tests that we now sell. But this is one of the reasons that we're continuing to invest a significant amount of money in the recommendation engine, as the margin on our blood and DNA test is more attractive than just the straight distribution of of wellness tests. Total spend in the development maintenance of the IT infrastructure amounted to almost a million investment for the future.

26:33 And of that million, approximately 50% was capitalized. Penny's explained why we believe that's the way forward for the business. We've also been very focused on our cost base. Sales and marketing spend reduced from 936,000 to 621, But this was primarily due to reduced commission costs on the lower volume of consignments well, of sales of the COVID fit to fly test, which we paid commission on. But our marketing costs are likely to increase again this year as we invest in raising the profile of the new product range. We also carried out a detailed review of our admin overheads during the year. And as a result, a number of roles in the business were made redundant in August at a one off cost of about 114,000.

27:26 As we closed our Manchester lab in 2022, and we've also reallocated the platform maintenance to cost of sales, admin expenses have fallen for around 2,300,000 to 1,800,000 in 2023. The net result of this was an operating loss of about 361,000, which after interest receivable of 166,000, resulted in a loss before tax of 195,000. We also received an r and d tax credit in cash from an earlier year claim of 36,000. So looking at adjusted EBITDA, which is probably a better measure, the result for the year was just above a breakeven of 15,000, and there's a reconciliation of how we've arrived at that number in the on the slide.

28:19 On the balance sheet, the main point of note is the increase of cash from 7,600,000 at the end of 2022 to 7,750,000 at the end of 2023. And that's been achieved by tight control of our working capital and particular by reducing the level of stock held and man and managing how we actually, you know, how we actually acquire that. We are now buying stock to order rather than holding significant stock quantities in house ourselves. So I think that's all I wanted to say. So I think I'll hand you back to Penny. Thanks, Leslie. And of course, if anyone's got any questions related specifically to the numbers, we'll be able to answer those at the end of the session. So to to recap all, you know, our our vision has always been to be an extremely well trusted compliant digital platform and bring in a company made of tests to do that, which allows us to really tailor to individuals' health. We are in the early days of doing that as is everybody else within the space, but the opportunity ahead is significant. I think for those of you that have seen the Feet today, they're talking there about the 7% increase to 2023 on people spending on private health care. It's a real growth area, whether that's seeing a private consultant or whether it's actually foraying into self test, which is exactly the space in

29:49 which we occupy. We're really, really comfortable with how our strategy is progressing because we've been extremely focused from the get go, on actually what we're bringing to the market and why. Our digital interface is platform agnostic. So the tests that we provide and the tests that we can provide, out into the market will all be able to use the same platform. And actually, our platform can be used for, looking at tests as well that can be complementary to pharmaceutical services. For instance, if there's a contraindication, for a patient and they need tests to actually check that the prescription is suitable for them, our, platform will be able to do that.

30:37 There are other opportunities. For example, clinical trials is gonna be a big growth area, testing for insurance providers. We've built this out uniquely, ourselves, and made it so that it it can really tap into other growth areas for us. So we can be fully flexible to the needs of our b two b partners. And, of course, we sit in a great position with the most important partner at retail. So in terms of how this market is looking to evolve, we're extremely well placed and to actually be able to be having collaborative discussions around those. And and I appreciate that the market is really keen to know exactly what that looks like and when, but we do occupy a really unique position in a very, very competitive market space with our primary customer being in a very sensitive space themselves and and potentially going through an acquisition or an IPO.

31:33 So I would love to be able to share exact detail of what's happening and when, but it's important to note that as we have conversations with them, and look to explore some new tests and new opportunities with them,

31:46 we we have to be extremely sensitive. And we're not in a position actually to to share what those plans are, but we hope over time that we can. Because what we've built can be used by multiple commercial partners for different types of products and services, and and we really want to be bringing that news to you over time, and that's very much our intention. We've got a really, really good reputation in the market. As we said, we've worked closely with Boots now for three years, and we also have our customer testimonials who that are really, really strong. If you read some of the reviews about our products, you will see that our service is exemplary. And on the odd occasion where something may go wrong, perhaps somebody's using a test for the first time, and and there's been an error with that, we work extremely hard to really help our customers through that. So we're very, very well placed to really build out, relationships over a long standing period, and we're getting a reputation for doing that in the market.

32:47 Our platform as it stands today offers a very, very simple journey, but again, we can add to this. We operate with a continuous cycle of customer feedback, and post market surveillance, which when we have our ISO thirteen four eight five, post market surveillance is a critical part of of that process. So we're already doing it, and we use that to really optimize our customer experience. We offer a very, very clear journey from purchase right through to that what next, which is an ongoing dialogue, with our customer. And we endeavor at every point to help the customer at each stage. So helping them, for instance, activate a test for something that they've never done before, providing them with a health assessment, and doctor review that is really, really clear, and guides them as to what they need to do. And then over time, we can really build out that what next for them that can that can absolutely tap in to a wider portfolio of products and services for the customers of ours that are able to offer that.

33:55 Just to give an example of of Healthy Heart, because this is quite a nice little case study. So some of you may have experienced earlier this year, if you went into Boots, you may have had a health MOT. It's a service that Boots have been running for a little while. It allows customers to go in and have blood pressure check, a BMI check, and a couple of other simple tests just to start getting them through that engagement journey and giving some giving them some initial pointers that they can go away and work with. But actually, within the literature that was provided, our heart health tests were featured within that, so that customers would go and start their journey within Boots and then would actually realize, I can go now and take some some further steps. So this is an example of a condition that's understood to a degree.

34:48 There's an eleven point three percent UK prevalence of heart disease, and that's expected to be rising. We've got sixty percent of UK adults with high cholesterol that they they understand it. So the the cholesterol test is one of our best sellers because it's it's largely understood and and recognized. And and that's something we've learned with our portfolio. The tests that are actually there's a good level of understanding out there are, of course, the the the the products that sell the best because there's that element of recognition with them. So through Boots and with the our own work, we're actually being able to target a big population, within The UK, and retailers then can offer a range of supporting products around those. So very much targeting the Health Engage, and then we have an ability there to connect with with linked conditions such as weight management, which is also one of our best selling tests, the vitamins and minerals, which are extremely well understood, and they also sell very well, but also then offer customers the the journey through. So as we continue to build out our digital platform, we will be able to take customers, on that journey through My Health Check and also through other products and services that are available.

36:07 And just to recap, we've I've touched on it. We've got these three different test types, which is really unique to us. And over time, we can look to offer other tests, that that that that complement the portfolio. So initial entry level, the lateral flow test starts at eight pounds. Everybody now knows because of COVID what a lateral test is and how it works, and it's a very, very quick screener just as a starting point. The idea then is that customers can then go on and dig deeper, find out more through a laboratory test that gives them far greater analysis and is on a par with the testing that they would receive from the NHS. So all of our laboratory tests for blood, are carried out at a laboratory that that carries out NHS testing.

36:56 So using the same analyzers, it's absolutely, equivalent for those that do want to opt out, of the NHS at this point. And then we've also got the DNA test, which one DNA test per customer. Your DNA will never change, but it will give you fantastic insights and guidance that you can then go and work with and again follow on with those care pathways. Here are the the six health care areas that we slot into. And as the customer base grows, as wellness testing grows, we can really see what's resonating most with the customer. So we're in a really good position to understand actually which are the key health care areas that we can really build upon over time.

37:43 Who is our customer, and how are they navigating through that journey? So that initial portfolio really allows us to get a good broad understanding of where the understanding and appeal is. And as we develop the portfolio, we're we're not looking to bring you know, we're not looking to double the portfolio in size. Any additional tests that we put in will be based very much on what we're seeing from our customer base so far, but also working with retail and to identify those biggest opportunities. But as I said, could be complementary perhaps to wider pharmacy services as well. So we know this is a dynamic market. It continues to bring a wealth of opportunities for us post COVID. We've got really high levels of recognition, of engagement in disease prevention, and that's changed significantly in the last few years. You know, COVID has brought a lot of things. It's bringing a lot of debate around vaccines, around recurrence, around what we we could and should have done, and what people might do differently if they were to to to happen upon the same set of circumstances in the future.

38:54 There's a real acceptance and willingness to self test, and customers will do that with a variety of samples. So whereas something may have been unheard of previously, so stool samples, for instance, was always historically a blocker. Actually, now people are understanding the importance of testing, we will continue to to see customers become much more open to that. And we've got significant value here. So one such snapshot is that our consumer genetic testing market is now a $2,000,000,000 space. So we know we are very much in a in a growing area that's got huge opportunity ahead and potential. We believe that we've evolved to become a front runner in the home testing space. We've got a really credible portfolio, and we've got a very credible customer base.

39:44 We've got the regulatory requirements that are very, very secure around our business, and we've got a digital platform that really, really allows us to adapt and to plug in new testing technologies and information and complementary products around it. So it's extremely customer friendly. We've always set out to be very, very simple in the information that we provide, and we do not intend to change that. So we've got the most comprehensive variation of assay formats to meet customer needs. Very simple, very effective. We are already platform agnostic, so we've demonstrated that we can put qPCR. We've got DNA, and we've got analytes on our tests, and and we may be adding to that over time as the market evolves.

40:31 So very much an ability to plug and play into bigger platforms, and proven in our space. So in a within year one, you know, we're just almost a year to the day since we launched. We've demonstrated the ability to grow wellness at retail. We've demonstrated that our marketing we're putting out into the space is effective, and we're demonstrating to our customers that the service we can provide is really, really strong. We're in a great place now to work with partners to grow that. So as we end the year, as I said, we we believe we're sharing a really solid performance in the last twelve months and what of what has been really an unprecedented scale of portfolio launch. That was a lot of products to put out in the market in one go. It took a huge amount for the team to deliver that, and they've done a super job in doing so.

41:22 Everything is effective. Everything works. It looks good. It's compliant, and it's in with the right retailer, and we've demonstrated growth, for that. We're in a strong cash position at the end of the year so that we can continue to self fund, and we are extremely well placed to leverage new opportunities through service delivery. We we are sort of the the only provider that's been out in the space launching different platforms, so different testing platforms on our digital interface from retail now for three years. We do believe we'll have a continuation of COVID revenue. It will be seasonal and cyclical, but it will be solid revenue coming into the the business. And we have that strong partner who will continue to stock our products.

42:13 The portfolio I've touched on, and we will add five selected next phase product launches. But just to be really clear, isn't about having forty and fifty tests. It's about having really good products that customers understand, and get a significant amount of value from. The platform is flexible. We can serve major b to b partners, and we can do that within The UK and overseas, as our strategy grows. But we are consistently focused on The UK market, and we're unwavering on that. We really, really want to become the leader within The UK space, and we're well on the way, we believe, to be able to do that. And we've got a really strong team and infrastructure in place to execute our growth plans.

43:01 So overall, we we're pleased with a robust year. We've we've proven ourselves within the market whilst continuing to deliver the COVID product really well and allow ourselves to fund, into our digital platform. We believe that for the next twelve months, we will have a lot of a lot of information that we're gonna be able to share with the market. We're not able to do that right now, but there are plans, foot, and we look forward to sharing those with investors, in the coming months. So thank you very much for listening. Apologies for the short interlude while I got my voice back, and we'll be able to hand over to some questions in a moment. Perfect.

43:47 Thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab which is situated on the top right hand corner of your screen. Just while the company take a few moments to review the questions that have been submitted today, I'd like to remind you that the recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. As you can see, we have received a number of questions throughout today's presentation. And Penny, at this point, if I could just ask you to read out the questions and share the q and a, I'll pick up from you at the end. Sure. So the first question we had was around sharing news. And I I've touched on it through the the presentation. I think that there's a a question that's that's sort of suggesting that, you know, our inability to share information could be impacting the share price.

44:34 So I I I hope I've answered sufficiently. We are in an extremely competitive space, and we've got a customer that's in an extremely sensitive time period. We would never be able to share deep detail through of sales figures, but when we're talking about sort of certain activity and rollouts, we have to be mindful of our customer, and we would be requiring approval from them on on everything that we share. As a marketer, there's nothing that I like to do more than be able to share good news. But I really think as we progress now from this initial launch year, that we will be able to share information with the market as as as plans develop with our customer base.

45:25 I think also, Penny, you wanna put out relevant information as well. I think there's lots of small companies out there that seem to put out announcements for the sake of announcements. I think you want to have something that's relevant and robust when you do it. We have a question here about blood draws and phlebotomy, and it's an excellent one. And, yes, we we we agree. You know, with the the question is saying that we currently offer blood tests that require a finger prick. And if this was a a phlebotomy test, then actually it would be easier for the, customer to be able to send a sample in. And, yes, phlebotomy testing is it's really it's convenient, much more convenient in many ways for the end user. It does require an appointment with a health care professional, but it means in effect that the customer doesn't actually have to read instructions and do it themselves. Somebody can actually take care of that, which is what they're used to within the NHS.

46:23 So phlebotomy is an area that we've been very much looking at closely. It is one of those pieces of of information that I alluded to that I really expect that we will be able to share firmer information on quite soon. Not something that we can share right now, but very much featuring as part of our of our plans moving forward. There's a question here around Abingdon and around the health test through Boots. So our Abington is a direct competitor. So the test that is so so this for for anybody who's not aware, this is the, the lateral it's just the lateral flow test.

47:08 It's two lateral flow tests that have gone into Boots under Boots private label. It's the exact same test that we have. So lateral flow tests typically come from from China. It's an identical test. It's gone into Boots while they trial private label, and that typically comes into a tender process. So Abingdon did secure that business. We you know, the the lateral flow tests, and obviously, they're the the lower price point, their entry level. So they're quite a low margin product. But, yes, Abingdon did secure those products into to boots in a tender. It it's always disappointing if if if another product comes through rather than our own.

47:56 But as I said, it's going through initially as a trial, and depending on what Boots decide to do at that point, then, yes, we would expect that, we we would have every chance of of getting that piece of business. But what I hope has come across today, and I hope what I've been able to communicate effectively is that our strategy isn't about a lateral flow test or, you know, it's actually about a much wider journey. It's about a digital ecosystem, and it's about actually what happens next once you followed our guidance, then to pharmacy services, then to additional products. So in the grand scheme of things, the lateral flow element is actually a it's a very early and small part of the strategy. But, yes, Abington have secured that product within Boots, but our our ambition here is actually really significantly moving away from from that.

48:55 Expanding the relationship with Boots. We we're not exclusive with Boots. And should we expect to see further relationships evolve? Absolutely. We we work selectively, out in the marketplace because I think for strategy to be executed really well at retail in line with what we actually want to deliver, this isn't a broad brush approach. It's not something actually that we're going out and just it's not about selling tests to as many people as possible. It's actually about building out long term relationships and really bringing customers into a system and really planning those approaches through. So it's not about widgets on a shelf. That's never been our strategy.

49:43 But in answer to the question, yes, I I would expect that we will be able to announce some carefully selected partnerships. So question about the media impact around thyroid testing. So, yes, plans for the same. Yeah. The the I think we've we've covered the PR today. PR, we see as a real opportunity because it allows you to really sort of tell the story and explain things through to the end user and it's extremely effective. So I think somebody there, Jonathan, you've been probably looking at the Boots website and actually seeing where those numbers come up when there's a a piece of media coverage. So it's extremely valuable. You can't underestimate the value of good PR. And, yes, we would really very much our plan is to to continue working with those guys to carry on with the likes of The Telegraph, The Independent, and The Sun and The Mirror as well.

50:43 We've had coverage within those, and they're extremely effective. The we've got a question here on syphilis, the case of syphilis of SOARD. Sexually transmitted diseases are on the increase, and it's just showing a growth there. And it's how much the self test diagnosis could we capture, particularly online and anonymous. I think the the the potential is is high. You know, self, STI tests, they're more commonly used by men. Sexually transmitted disease, certainly within the gay community, is significant. And we see from our test purchased, we've got a a sort of a, I think, a three to one ratio, of male users.

51:31 And that ability to just go and self test and give yourself peace of mind, I think, is really well understood, within this this market. So how much of the self testing market could we capture? I I I can't answer in terms of a specific quantity at this point, but I think it's going to be one of the areas that's got a significant growth potential, and it's really, really well understood. And I think what what we're also seeing, particularly within the the HIV space, is just a lot more monthly monitoring. You know, we'll see we see, actually testing is used partially just just as a self management. It's not necessarily that we would expect somebody to be suddenly very concerned and take a test. Actually, I think we will increasingly see customers using it to actually just manage through their their lifestyle and actually therefore be be buying tests more frequently.

52:31 Oops. Sorry. My cursor's just shooting up here. Let's go back a little bit. So monthly cash burn. Please share that. Yeah. Yeah. That's not something we're gonna put into the public domain. In terms of releasing sales forecast and thank you. There's some compliment on the great present presentation. No problem at all. But releasing sales forecast, we we can't. You know, it can't It's very, very difficult to to give any anything with any degree of certainty at this stage because it's such an early stage for the new product category, and COVID is very unpredictable. So it's very second half weighted anyway. Yeah.

53:21 But it could also comes back to that that sensitivity, you know, where where we are and where we have really invested in really collaborating with Boots primarily, we're not in a position to to share that information. It wouldn't be in in Boots' best interests, to do that. And I think that's so we've got oh, you've sufficiently funded or would further cash help accelerate growth? That's a good question. Thank you, John. I think you've heard say we we believe we're really sufficiently funded. We are extremely pleased with the cash position that we've secured. In terms of accelerating growth, I think this is all about strategic partnerships, and we are really happy with with the progress that's been made there.

54:15 And I do appreciate, you know, your your entrusting us with the conversations that we're having and and and, you know, respect the stage that that discussions are at. And as soon as we're able to share further with you, we we will with showing further updates. But it's I think cash investment, you know, in in marketing, again, we're really comfortable with the approach. We're being quite forensic around where we invest our money. We can all see those that are out in the market that are hemorrhaging cash, I think is a is an appropriate term in terms of really building out social media. And that's great. It's working extremely well in terms of profile, but making sure that that translates through to to the bottom line and actually, you know, with a new category.

55:05 New categories don't come to market. Yeah. I can't give another example. It's certainly in the time in twenty almost twenty years that I've been working consumer space where you've actually had a brand new category where you something is coming through that's completely in effect from a standing start. You know, we have to remember we had pregnancy test and we had diabetes test, but this is new. Aside from COVID, this is completely new. So we could pump hundreds of thousands into marketing. It's not going to give us a return at this stage. It's something that we need to move through gradually and really concentrate on the distribution and building awareness through credible sources. You know, that is what the customer is going to really understand, and that's why we've been really, really focused on key retail partners.

55:57 So short answer to that, John, yes, we're sufficiently funded. Further cash at this stage isn't isn't what's going to to to really drive drive growth for us. And I think that's so that gives me everything. Let me just just running through this. If there's anything that we've missed, please rest assured that we will always come back and provide answers post call. And I think, Alessandro, there's an ability for for callers to to keep sending any questions through. Yep. Perfect. Penny, Leslie, Adam, thank you very much for answering those questions for investors. As mentioned, of course, the company will review all the questions submitted today and publish responses on the investor meet company platform.

56:51 But just before redirecting investors to provide you their feedback, which you know is particularly important to the company, Penny, could I just ask you for a few closing comments? Yes. Thank you. And thanks again everybody for joining us this afternoon and and checking in on our performance. We're really delighted to share, a really strong position, for us just in terms of our cash and our ability to keep going on and investing. We are delighted to be reflecting back on a really, really successful launch, and have been able to prove growth within that space. Our focus now looking ahead, is to really grow that, grow the the number of customers coming into this space, to grow our distribution, and to really build out on our digital platform a range of complementary services with our partners, that we really, really believe can add value and really add options to end users, who are really looking to take control of their own health and wellness.

57:51 And we look forward to providing further update through the course of the year. Thank you. Perfect. And thank you once again for updating investors today. Could I please ask investors not to close this session as you now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few moments to complete, so I'm sure it'll be greatly valued by the company. On behalf of the management team of My Health Check PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all. Thank you. Thank you. Thank you.