Fortis Frontier (LSE:FORF) — Half-year Results

0:01 Good afternoon, ladies and gentlemen, and welcome to the My Health Check PLC Half Year Results Investor Presentation. Simply type in your question and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. These will be available via your Investor Meet company dashboard, and we will notify you by email when they're ready

0:32 for your review. I'd also like to remind you that this presentation is being recorded. Before we begin, we would like to submit the following poll, and we would be very grateful if you would give that your kind attention. And I'd now like to hand over to Gareth Davis, CFO and Penny McCormick, CEO from My Health Check PLC. Good afternoon to you both. Good afternoon, Mark. Thank you for the introduction, and good afternoon, everybody. Pleasure to be here with you today. For those of you meeting us for the first time, as Mark said, I'm Penny McCormick. I'm the CEO of My Health Check. I joined the business at the end of twenty nineteen, and I'm pleased for the opportunity to be able to give you an update at this point. And Gareth, our COO, CFO, who joined us just over three months ago. Good afternoon, everybody, and look forward to sharing some update on the company with you. Okay. So just moving straight in, well, I just want to share some headlines from what has been an extremely eventful, a very positive year for us. So the real headlines as we see them, we've undertaken a couple of strategic acquisitions in the last year, and we quickly monetized those new assets.

1:41 We're extremely well placed vertically. We've got a lab in license technology, and we've got science behind us, and we'll tell you a little bit more about that in this session. We've efficiently deployed our capital. Those two acquisitions have been paper based transactions, enabling us to invest cash from the business that we've generated through our operations into our talent acquisition and operations. We've got proven skilled execution. Just in the last few months alone, we've really proven delivery and exceeded market expectations in our in our mind and whilst building a slick operation and commercial where we have secured cornerstone retail relationships, and we're very well placed to continue capturing revenue within the COVID space, but also that large addressable market beyond COVID, that's very, very key to our future business.

2:39 Just to to tell you a little bit more flavor about the the wider team for those of you that are that are new to us, as well as a really strong lean but experienced management team back at our bases in Cardiff and Manchester. We also have behind us strength of board, industry stalwarts in the diagnostic space. But I'd like to call out today Laura Moore, who's recently joined our board from the October 1. Laura has a background in in consumer wellness and health care, including some time at Unilever and was actually the CEO and founder of Now Health, who we acquired earlier this year. And also Neil Mesher, who is the CEO of Philips. Actually, it's was UK and Ireland.

3:26 It's now The UK and Europe. So a real strength with Neil on our board. You know, we've got a team of people behind us who are extremely committed to the future of the organization. Again, just to give a visual representation of a a bit of our journey for those of you that are new to my health check, I'm really starting the transition and the evolution into a a new phase of the organization. That began eighteen months ago where we relocated our business to South Wales from the Southeast Of England, Really marking the start of a new chapter for us, taking us out of that very crowded tech space and into South Wales where there's a really strong life life science presence. Strong university links are there for us in future with Cardiff University, for which Gareth and myself have have both got got big links.

4:22 We then through our journey, we then acquired the Genome Store at the end of twenty twenty, launched our COVID testing business with a PCR test at the very end of last year, securing some strong retail contracts, which we'll touch on again. Key people into their biz into our organization, most notably Gareth, just over three months ago, and then a second acquisition of Now Health, further retail contract with Noids, and also then our stage three accreditation. So a really good clear movement through the last eighteen months. And while we've got this slide up, I just want to clarify around the two acquisitions that we've made and actually what what they involve and and why we made those acquisitions, why they were so key to us. So, again, for the benefit of of those news to to the to my health check, the Genome store in November 2020 was a small pre revenue organization but packed with talent and experience around scientific DNA testing and the operations and regulations around that. So this was an entrepreneurial team who worked in the industry in a big DNA pedigree behind them from operational right through to clinical director level have come on board with an ambition to create a range of DNA tests moving forward that can really impact people's well-being.

5:46 But what that gave us immediately when we acquired them was the ability to enter the COVID PCR testing space. And within six weeks of acquiring the Genome store, we were able to start monetizing that acquisition by selling PCR tests. So within just six weeks, we were on the government list, and we were providing product out into the marketplace.

6:09 Moving forward to earlier this year in July, we acquired MelHealth. So a similar template of a small team of very knowledgeable professionals, but their primary skill set was around software technical development, and they already have a digital platform in place. And then also the nutritional guidance so that they could give people instruction on what they needed to do once they tested their DNA. So whilst they were also responsible for defining the exact SNPs and tests that they wanted, they were actually getting those produced by a third party. So with the NAR acquisition, we got software experience, the nutritional experience, and also the medical experience. So doctor Gavin Ralston joins our brains trust as part of that acquisition.

7:03 So what we have there, two businesses, both lean, both pre revenue, but with really, really strong capability and knowledge within the the team. So bringing in the genome store, science and operation, mental health, software, and nutrition. And and actually, we found through both of those acquisitions, you know, when we were talking to either party, we could have been talking to the other. There was such a synergy on the ambition and the potential that they felt that there was that was there for us. And I think as we've proven this year, we've already already made a great start on bringing those together and moving forward with the same mindset.

7:44 So just in terms of financial highlights, obviously, it's been a a very strong year for us and a very dynamic space within COVID. So I'm just gonna hand over to Gareth just to touch on these financials. Thank you, Penny. And I'm delighted to share with you today a strong set of numbers for the first half of the year. From a revenue point of view, we delivered substantial revenue growth in the first half, delivering over 3,200,000 revenue compared to just 12,000 for the same period last year. And that represents something like 25,000% growth year on year over the same period in the prior year. So fantastic result from a revenue standpoint. And that obviously helped us reduce the losses in the period significantly reducing them from 1,100,000 losses in in in 2020 to just under 200,000 for the same period this year. So fantastic to be able to close those losses for the same period.

8:42 In terms of our cash position, as you know, we did a share facing of back in February 2021 this year, raising 3,400,000 before expenses. And if we allow for the small loss in that period and then obviously investment in inventory during that period as we ramped up for the for the busy settlements for COVID testing kits that that we were placing, We ended the period with 2,200,000 of cash, giving us a very strong balance sheet going into the second half of the year. In terms of q three, and as you can see from the graph on the on the right hand side of the slide, you can see that we have, we had a very, very ambitious outlook for q three. I'm pleased to say that we've achieved, achieved that figure, which is 8,550,000 revenue, for the quarter, giving us, again, a substantial revenue figure for the for the quarter and a very strong cash position going into q four.

9:42 K. Thanks, Gareth. So looking now at some of the commercial operational highlights for this year, and, of course, I'm going to focus on those two significant contracts, actually three significant contracts that we secured with Boots and Lloyds. So a different kind of contractual arrangement with both parties and just to give a little bit of flavor around those. So the Boots agreement, we entered a very, very lengthy due diligence due due diligence process with Boots some months ago, actually very early to when we had early on from when we'd entered the space here, and that took until April. So it was extremely rigorous. We were dealing with the pharmacy and clinical directors within Boots.

10:29 Obviously, this was a big strategic decision for Boots to move into this space. And when we look back, you know, it's it's easy to think, oh, well, COVID, you know, we're all so familiar with it now. But actually, it was a big gamble for Boots at that time because COVID is is always unknown. There's a huge degree of uncertainty there. It has quite a complex supply chain. You've got a testing kit, and then you've got that follow-up. So laboratory service for which you need to really be be able to control what's in the marketplace and also have a very good oversight of what's in the marketplace so that you know once the customer bought the kit that they will then be able to send their sample back and have the delivery. And Boots were were really leading the way in committing to that and investing significantly.

11:17 So we entered a extremely detailed process with them, and we delivered for them, you know, which for a business that was very new to this space, you know, this would it's an enviable position that we secured with them and one that's given us this fantastic foundation, not just around the reputation and the ability to deliver with them moving forward, but actually, if we look at the stats there just in terms of 10,000,000 advantage card holders for for example, you know, Boots shared that 75% of their female customers over the age of 15 hold sorry. Seventy five percent of all women in The UK over the age of 15 hold the Boots Advantage card. So really, really impressive stats there and ability for us to take the new brand that we created at the end of last year, you know, and really get that out into the hands of of UK customers.

12:14 And then to secure the Lloyd's business, you know, after securing two contracts with Boots, number one for their fit to fly. So we are still the only provider of a fit to fly test within Boots to then have the same position within Lloyd's just really is that that cornerstone in terms of credibility. And what that will bring us moving forward, it's given us that excellent brand great reach and actually a relationship with these customers that certainly in my experience having dealt with Boots and Lloyd's for many years is unprecedented. You know, with with Boots, we speak to them several times a week. COVID is evolving. It will continue to evolve, and it's and it's making sure that we are there with them, you know, as they navigate the landscape and continue to do that and be well placed then to have discussions with them around our future business, which is which is what we do. You know, we we they they are very clear on our strategic intention and what we're about as an organization, and we they view us as an extremely trusted provider.

13:21 So there's operational highlights here. We've talked about the the lab and building that that operation swiftly and efficiently. An initial 120 k investment there, and we've had a small scale up in our lab as well. I want to just draw attention to, you know, Eugene and Ikea, real trusted partners there where we've sourced product and brought it into the business and also offered it as a service. You know, the what we've delivered here, you know, securing a business like Boots, us as a trusted partner also relies on the service that we received from our own suppliers and the relationship that we built there. And relationships within supply chain is critical to COVID, and again, that will stand us in great stead moving forward. And together with these partners, you know, we've delivered extremely well.

14:08 Today, there's over a quarter of a million tests that we know have been used by end end users. And again, thinking about us just in our first year under this new brand and under this new model, you know, is a fantastic achievement to say that that's the level of reach that we've achieved. So, you know, these are some some strong facts here that we can't argue with that will only stand us in good stead moving forward. In terms of post period highlights, again, you know, a a real demonstration of strong delivery here for us and the team behind us back at the office. So I talked about that complexity of the supply chain, you know, going from a a a build and that forecasting around that right through to delivery into retail that's been you know, we've had peaks and high demand through a very busy summer period and delivering that whilst we maintain service levels from really quite a newly established team and model. So we've delivered that.

15:11 In terms of diversification, of course, we're gonna focus on Boots and and Lloyd's. Of course, we are. But we also have a customer base within occupational health, academia, travel, and media industries. And all of these customers that we're reaching are all potential customers for us moving forward as we roll out a wider portfolio under our brand. Commercial discussions will continue within the COVID nineteen testing sector. You know, we still we're picking up new customers on a regular basis, and we are, as I've mentioned, continuing to talk to our key customer base about their further requirements. It's about testing. It's also about services, and it's also about the digital interface and making sure that we're getting better and better all the time and responding to the need of our customers.

16:00 So then just talking three and four here, just talking for a moment about mental health and that strategic implementation. You know, we we've implemented we've integrated both of our acquisitions very, very well and demonstrated that that they were the right decisions and a strong integration. So we you know, with with now, that brought us that platform that I talked about. And earlier this year, just in August, we actually migrated across the platform that we already had onto this strength of platform from Now. So very quickly, we moved that across to further enhance our foundations. So the platform that we built that we got into Boots, you know, this is a a platform that's so good that Boots are really happy to direct their customers through it. Every single user of one of our tests goes to our platform.

16:54 So we've now made it even better. We've put it onto this structured platform that we acquired as part of the NAR acquisition. And I'm just gonna talk about COVID briefly. You know, we're very you know, the the future beyond COVID is extremely exciting, and we'll we'll talk about that in a moment. But for now, before we do that, I just want to to just take a moment to group on COVID and actually look at what we're dealing with today. We're dealing with government rules that throughout this year have have fluxed, you know, they've tightened and they've loosened. And along the way, you know, we've been there to provide service. There there's been uncertainty from day one on COVID, and I think uncertainty will continue. You know, we've got a a big change coming up that was announced by the government last month, and we're gonna see those changes. We don't have a date yet, but we'll see those changes come into force now.

17:52 Expect in in the next couple of weeks. So, you know, what what do we expect throughout that? You know, we cannot predict this space, but we know that uncertainty is two way, and our job is to be well positioned to respond to that. And we also know that PCR remains the gold standard. And whilst there will be a heavy increase in lateral flow testing, of course, there's still very much a place for PCR testing. And depending on what the outcomes of, you know, this mass lateral testing program is, you know, The Times this morning just talking about, you know, false negatives with school children, you know, we we don't know how this is gonna play out in the coming months, and that could lead to a change in testing protocols. We know that cases are increasing.

18:39 Just in this quarter, there's been a forty two percent increase in daily cases. And when we look to market reporting, there seems to be a consistent message that testing has longevity. So there's a potential to grow there to 2023 seems to be the the market consensus there. So we do anticipate that there will be an ongoing revenue stream. When we look at where we sit within the testing environment, we are well positioned to respond. So the the Heartland report that was just released in the in the last couple of weeks talks about 30 COVID testing labs in The UK, which we're listed as one of those. So there's a select number of specialists there, but we occupy a unique space there where we're a testing laboratory.

19:27 We've also built our own laboratory information management system. So a lot of labs out there are actually using a third party LIMS is what we call it. The LIMS system, which takes all the data from the lab and results, and then it interacts with the end user to give them their testing certificate. So we use our own lens. We've designed it ourselves, and it's excellent. So that's a proprietary platform that we've built. And then we also have that direct to consumer sales channel and that retail presence under our own brand. So we're uniquely placed within the number of providers out there as the market evolves moving forward and as we roll out our our portfolio, you know, to to really be lean in our operation, but really learn from the customer. You know, we're front and center with what our customers actually want and how they're interacting with our tech, and that will inform what we do, how we do it, and what comes out of our laboratory.

20:25 Along the way, our turnaround times or TAP, and our Trustpilot scores have been consistently strong. So we're typically, you know, at the very least, a very, very high 99% of tasks. So more or less a 100% of test results received within thirty six hours. And the Trustpilot now over 2,000 reviews with a scoring of 4.2, which is absolutely excellent. This is a real trust driven market. There's pricing and there's trust, and we're really happy with how we've we've capped off both of those within the this year. And as I mentioned, our relate the relationships that we've worked hard to establish this year will keep us engaged in further customer discussions.

21:11 So as customer needs change and evolve, we're very well placed to deliver on that. So the COVID space, before we move on, you know, let's just take a moment on what that has meant for us. It's made us or it's enabled us the opportunity to accelerate our journey, to make us cash positive and highly profitable in less than a year. We delivered rapid growth, so it's given us the opportunity to prove ourselves that we can do it, and we have. We've delivered it extremely well. It's given us that brand reach I mentioned whereby we're now we are we're over 250,000 tests being used out in the market, all of them, using the My Health Check product.

21:56 And those tier one cornerstone retail relationships, which will send us in good stead moving forward, and a technical platform that we own that's already operational and delivering to a strong customer base. So looking to use that then to leverage our position moving forward as we move on from COVID. So the industry has been extremely focused on COVID, and and that goes for our customer base as well. So, you know, customers I think we're we're now at a point where that attention is starting to turn away from COVID. It's it's critical. So the government announcements last month are, you know, that that's a huge change for Boots and a huge focus for them at the moment. But retail are starting to look ahead at what comes next. And, you know, there there's been an evolution here. So Deloitte just this year, they're in their report. They state that this shift with with dealing with a much more health literate person and who's the ultimate decision maker and is at the center of their own health. And we're gonna see that increasingly come into play when we look at the pressure on the NHS, for instance, and how people, you know, they expect disruption to services. We're getting used to it taking longer to get an appointment.

23:12 We're understanding that we need to look at plan b and try do things differently. And, also, we widely hear that the NHS recovery from COVID is gonna take a long time and some question whether the NHS will fully recover. Pharmacy services are gonna be more critical. They really change. You know, going into your pharmacist and having having a nasal swab or a test, It didn't used to happen to the level it does now, but also pharmacists and the services that they offer, organizations are looking to change that and see how they can most effectively utilize their resource. Awareness of personal wellness factors. Many of us have been touched by COVID in our family and in our friendship groups, and we've lost loved ones through it. So that thinking about, you know, how can we look after ourselves and what role we can play is gonna continue.

24:04 Deloitte talked about genomics as a forerunner and really thinking about, you know, whether you're you're looking at a more personal personalized approach just in terms of how you care for yourself or whether you're looking at further ahead to personalized medicine, genomics is considered to be a a branch of science that's only gonna come further and further to the front as the health service evolves and that mindset change around me being responsible for me. And the corporate social responsibility, so we've seen a huge shift in workplace behaviors and attendance, and CSR is now a strategic priority. So just to touch on that now, you know, at different levels, organizations are if they're they're interacting with people in the office some of the time, but those that are calling people in need to make absolutely sure that they're looking after them or they're gonna be answerable to to to those decisions.

25:04 And for those that are allowing people the flexibility to work from home or developing a hybrid model, well, they're not going to be seeing and feeling their workforce up close and personal to the level that they did. So they will be vested in making sure that people are well. So this is a really exciting time for consumer health care. There's gonna be a greater emphasis on work life balance and wellness, considering all dimensions of health, and and also those those digital approaches that employers can really point you towards that that they're going to have the confidence to help you in, will become more and more of interest. And then looking at how consumer behavior has changed, and I've got an extract here from The Sun. Just last week, they wrote an article. It was actually an interview with Seb James, the CEO of Boots, talking about how they are going to be offering pharmacy appointments to deal with a certain selection of ailments that that people can directly get help with instead of going to their GP.

26:08 And there was a short call at the end of that that asked readers, would you pay £15 bypass GPQ and just shy of 65% of some readers? You know, so this isn't people who are used to paying a little bit extra for health care or going that extra mile themselves. You know, this is this is the the general population that previously was only used to going to their health care provider and receiving treatments on the NHS and care. Whereas now, you know, we're using we used to use a test for going on holiday, for instance. So there's been that real shift in behavior. And how that's manifested and demonstrated is, you know, we talk about PCR. We talk about lateral flow test. We used to sticking something up our nose and sending it off in the post and logging on and getting the result. It's it's just become the norm now.

27:01 We're used to it. So that acceptance change is very much there within the market. There's a desire to know about my personal risk. I think we can say with confidence that anybody in the last twelve months who's bought an antibody lateral flow test from a retailer or online is simply finding out out of interest, have I got antibodies? So they may use that in a very small way to think about the the vaccine. But I think in general, we can take from that, I just want to know out of interest what my antibody level is, you know, and and how fascinating, you know, two years ago, we never would have thought that people would be talking about antibodies, let alone doing a test out of interest to find out what their levels were. So a huge shift.

27:51 And that greater awareness of personal well-being impact, you know, the role I will play on keeping myself well so that I am not part of the burden on the NHS moving forward. So a huge shift in consumer behavior. Thinking ahead to your market trends, and and Hardman and Co recently issued a report, and they they identified some trends that they believe will continue to drive growth in this area. And and this really resonated with with our strategy moving forward. So when we talk about we look at point one here demographics. We have prioritized those that the the opportunities that come with exploring what hard and cool soft diseases, allergies and food tolerance, and really thinking about their impact on the longer term.

28:45 So our aim is to really educate consumers and tell them more about how their their own personal well-being and how their own body interacts with external factors is going to have an impact on them in the longer term. And also point three there, lifestyle, that focus on preventative health care. You know, I I started my consumer health care career in 2005 when I joined BBI. We talked a lot about preventative health care, but it it just wasn't something that that was really out there. I think we've arrived at that point now. You know, sixteen odd years later, we are becoming much more attuned into this and and and it's been accelerated. And Hardman also points out that this would include the trend towards direct to consumer activities, which is where we sit. So I think within those four areas that you've identified, we strategically prioritized two of those. When we look towards precision medicine moving forward and think about personalization of drugs and that the ongoing testing of those, again, you know, we've got the the ability to to look at how that market evolves in a well place and to be responsive to the customer. You know, we we have our strategy and vision moving forward, but actually, this market is really gonna be evolving in the next few years. And and keeping a close eye on that and being agile enough to respond is something that we've already proven and that we're that we're extremely

30:16 focused on doing and well set up for.

30:20 So just looking at the market again, you know, we we've shared market information before, and, you know, we can point you to the the carbon piece and also seal how to put a piece of research out into the market this morning. So there's strong growth information there and COVID's only accelerated that. But, again, just drawing your attention to the comment of Deloitte that that DNA testing increasingly uses an indicator of biology and one of the forerunners of this new future era. So it's really exciting, to be in this space. So thinking now about our future portfolio. So we're really, really excited, to be launching new products in the first quarter of next year. We've absolutely focused on in 2021 on COVID testing.

31:09 You know, we didn't come here to be a flash in the pan. We weren't here to be one of the many hundreds of companies that jumped on simply jumped on a bandwagon and set up a front facing trading entity leaning on a third party lab provider having no clue about how you provide tests to the end user. We were not interested in that space. We wanted to come here with a strategy to really establish ourselves and gain a fantastic reputation in this place and make sure that we provide time and time again for our customers because we would need that to build upon our future plans. So that's what we've done. So in the first quarter of next year, we'll launch initial five testing panels that are focused on some of the most common areas that people can really, really understand around weight, heart health, glucose management, intolerance, and nutritional deficiencies.

32:06 So some of the areas that are gonna most impact them, but also looking at that glucose management and cardiac health where we as a nation have got you know, we're we're heading towards a problem. So we're starting to take those steps with working with our customers to really improve their health and well-being. The service and portfolio we offer isn't just about test, though. It's about platform. So as we said, every single person who uses one of our COVID tests also uses our platform, and this was why the Nail acquisition was so important to us. So we already have this fabulous platform within the organization that we can build upon that allows us to take the results of tests and analyze them for our wellness test and give a result to the end user.

32:57 It then gives them insights that are actionable so they can immediately start making improvements. They will be able in future to add in partner data to that, and also customers can input. So they can really understand a lot about themselves and the improvements that they're making along the way. But, of course, as I've mentioned earlier, that information then informs us moving forward and helps us, you know, we these are our customers, and it will tell us exactly what they're doing and how we can further help them. So that platform is live. It's scalable and adaptable and gives us a very, very strong and robust foundation, that's got a really good user experience and will only continue to improve. So that will then switch over to a mobile application coming in the second half of next year. So it will be initially a web app, and then it will move into a mobile app that, you know, we want to give affordable guidance, allow people to track behaviors, great information for them, and just constantly building new features that add value to the customer.

34:05 In terms of expected milestones, we've just laid those out clearly for everybody to refer to. And I will reiterate again, you know, what what's happened with COVID this year, and certainly, the the level of contract that we've secured did change things for us this year.

34:23 And we're very comfortable with the decisions we've made around where our priorities have lay in 2021. But moving forward now, as we look beyond COVID, you know, we we will we are live at this point, you know, discussing with our customer base around any further ongoing requirements as the market evolves, but moving very quickly into that course one stage testing. Personalized wellness then in the second half of next year where we we'll be bringing a proposition to the market that's really unique around how customers are selecting their products. And as I said, that real personalized experience that's gonna be unique to them, and we look forward to sharing more detail with that when it becomes non sensitive.

35:08 You know, as a consumer business, that's just starting out. There's limited information that we can share with our investors because it's highly sensitive. You know, we want to come into this space and really make an impact. And once we're more established in the longer term and and we've got those those plans already, you know, embedded in and our strategy is out there and proven, we're going to be able to share more information much more quickly. But right now, we really wanna make an impact on what we share with the market. There's gonna be limitations around that. Our customer experience is is key to everything we do, and that ongoing improvement around that platform really making sure that we have a robust app out in the marketplace in q three next year, and then building on to additional diagnostic tests that we believe will add value to our customer base. So we already you know, we we buy in our test kits at the moment. We will continue to to buy in kits and and then integrate them with our wider business and our app.

36:12 So we can be flexible around that and really as that market evolves, be extremely responsive. So just to summarize now, in our short to medium term horizon, we've touched on our at home wellness tests that are a key priority for us moving forward. You know, we're really excited about this new phase of our of our business, developing the app technology with those actionable outcomes and guidance to end users, executing business development strategy across DTC and retail and also b to b moving forward. We've started those foundations. We're still within year one. We're looking forward to moving into year two. Continuing to build that reputation in the testing space with a high quality product and service, bringing additional top talent into our business to deliver on our ambitious plans. You know, it's how this market has evolved. It's there's great employment opportunities for people. Know, we need to make sure that we bring in top talent, look after them, nurture them, and give them opportunities within our organization, and we've already started to demonstrate that this year.

37:19 Continue to explore third party technology and really keep a close eye on what's out there and what's gonna be complementary to us. So and especially where we see those partnerships as being earnings enhancing. So we think the two acquisitions we've made, we've proven that they've been earnings enhancing. They've really allowed us to become a cash generative business. So we will continue to be discerning in our approach and strategic as we move forward and look at partnership in licensing and M and A opportunities. And just nearing the end of the presentation now, just to touch on current trading and outlook, you know, we it has been a strong year for us, and we're confident that trading for the full year is gonna, of course, deliver us a strong performance as we've delivered through these high demand months.

38:10 We're not putting forward looking statements out into the market now for the rest of this year because we know that the COVID space is is that at.

38:20 We're the at.

38:29 Data this morning that illustrates a a very positive outlook. And just to reiterate, you know, we're extremely well placed with this customer base now to continue supply to supply the current COVID space, but also the non COVID space. So key takeaways ahead, for us just to finish on before we open up to questions. As a business, we have proven that we're lean, we're ambitious, we're extremely skilled, and we delivered. We did everything that we said we would this year, so we're extreme yeah. That was extremely important to us, and we have delivered. We've got a proven capability in DNA testing with the infrastructure to develop a further portfolio of products, which our team is currently working on.

39:18 We've got an experienced leadership team with expertise in commercializing medical technology, and we've built a lean but strong team within the key areas of our business, commercial, operational, tech, and scientific. We've built a strong reputation with retailers and end users alike, and we have delivered significant growth and become cash generative in 2021. So we said we're very well placed to build on a global drive for wellness, and it's been what we see as an impressive start to our journey. And as as Brits, you'd understand that that's not something that is easy to say, but we do believe we've made an impressive start to our journey. And and now our focus is very much on sustaining that and continuing to be a a strong player within this marketplace.

40:09 So that concludes the slides from our presentation. We hope that's given everybody a sufficient update on the business and also shared our future plans, which is so critical moving forward. I'd like to just hand back now to Mark. I think you've got some questions have come in that we can answer on behalf of our shareholders and interested parties. That's great. Penny, Gareth, thank you so much for updating investors this afternoon. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of your screen. But just while the company take a few moments to review those investor questions submitted during today's meeting, I'd like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A, can be accessed via your Investor Meet company dashboard, and you will be notified when they're ready for your review.

40:59 I'd also like to remind you that your feedback is important to the company. And immediately after this presentation has ended, we'll redirect you for the opportunity to provide feedback in order the company can better understand your views and expectations. Never a long while between presenting and taking on a lot of questions because you've received a number during today's meeting. But we did receive a few ahead of today's event. And I wondered, Penny, if I perhaps and Gareth, if I could start with these. The first one reads as follows. What is the situation with MyLotus at present? And is this still expected to be a major part of the company in the future? So the the focus, as we've shared, has very much been on the COVID business and really strengthening our position there at retail. Should we bring Mylotus on board, it's gonna stand us in extremely good stead moving forward, you know, and when when the fertility space switches back on. You know, we always said if we did bring Mynotus to the market or Myno as we we branded, it would be on a digital platform and we we stand by that. So I think, you know, we've we've we've got a a good asset here.

42:01 We want to build the the user interface and the app and really focus on that, and then potentially add on the fertility product in future should the that be a market opportunity for it, you know, as we evolve to this post COVID space. But also there, you know, there is a there's a development investment required there that's not insignificant. So we would welcome the opportunity to partner with a third party on that, you know, and and really look at that moving forward. So it's still in our portfolio. It's not something that we're focused on at this point, but it is something that that could come on board in the future if the market dictates that that's a good opportunity to do that and with a third party investment behind it.

42:52 Thank you, Penny. Is My Health Check looking at any international markets or customers for at home PCR tests? Yes. So the the we're we're very much focused on the The UK. So it's it's a UK first approach, absolutely. And then we'll establish and prove our model, which has been the focus this year to start that journey. We will continue it's still early days for us, so we will continue to prove and make that model robust. When it's established, we'll look to to roll it out into other territory. But for now, it's absolutely UK first. Thank you. Are there any particular type of conditions or health problems that My Health Checks are targeting their tests for? Yes. I think we we've answered that in the in in the deck.

43:39 You know, we will continue to be extremely customer focused. You know, we we need to understand what our customers want and what they're looking for. And when I say customers, of course, I'm talking about end users and I'm talking about retailers. So focus groups with our retailers and really understanding their requirements over the coming months and beyond is gonna be critical for us. So it's gonna be an ongoing dialogue. It's going to be market led, which is gonna be the the it is the key, of course, to the success of any consumer facing business. And as we secure that information, as this this dynamic space evolves post COVID and we continue to learn more, we'll keep the market abreast of those developments. Thank you. What regulatory constraints does My Health Check face in order to provide significant health testing products to the market in The UK?

44:31 Is there potential for tests to be marketed as diagnostic tools or are they simply advisory? Yeah. I think that, you know, we we have a diagnostic product in the market and then we're bringing advisory products in as our phase two launch. Beyond that, you know, regulatory limitations, you know, the the regulations are essential. And and as I shared in some of my my my interviews in recent months, you know, we welcome regulation. It's it's critical. I think moving forward, you know, it's it's gonna be essential to work with strong partners in this space, you know, organizations who are really set up, you know, day in, day out, those regulations around diagnostics are key. So for instance, you know, we talked about EKF and Neogene, you know, they're operating in these spaces in terms of products they put into market, and they therefore take responsibility for that burden.

45:22 So and they that's their business model. You know, they're they're they're they're sitting in a different part of the supply chain that requires that. So, you know, our our role at the moment is to be complementary and to be compliant around that. We've got ourselves to our fifteen one eight nine independently. So we will stay close to the market and the products we bring in. We will, of course, be compliant with the requirements, But we shouldn't limit ourselves in terms of diagnostics because we can work with partners that operate within this space in terms of our future portfolio. So it's not just an incident view. It's working with experts in the space to together, you know, commercialize products that are gonna have most value to the end user.

46:12 Thank you very much, Penny. And I think finally, just on the pre submitted questions before we turn to the live questions. Does My Health Check expect to see its test in physical stores at some point in the first half of twenty two? I'd hope so. I mean, again, we've got product in the in the market now. You know, we are we're the only PCR test on the shelves and boots right now, which is fantastic, and I get excited every time I go in and see it. And just to be clear, that wasn't always the intention. Boots had a a plan to bring two different branded products out, but they never did. They just launched our own product. So we're already there. Moving forward, yeah, absolutely. That I I you know, I'd love to have those products within the space next year. We'll continue our ongoing discussions, but but that would be something that I would really love to see moving forward. But let's not forget, you know, that we've seen a huge shift in shopper behavior.

47:06 You know, the high street is going through a big transition. So really, you know, online sales and our ability to control that channel, you know, we're we're interacting directly with thousands and thousands of customers on a weekly basis with our own direct tests. So it's not all about retail sales, but, yes, it so it's lovely to see, but actually the the opportunities out there don't don't just stop there. And that's not where our focus stops. Penny, great. And thank you very much to all those investors that took time to pre submit questions. If I may, could I ask you guys to open the q and a tab? You'll see that investors have submitted a number of questions throughout the live event. If I could ask you to read out the question, even who it's from, and give a response where it's appropriate to do so, and I'll catch up with you at the end. Sure. So just having a look at some of these now.

47:58 We're saying there's a question here saying would my health check consider developing a lateral flow test if it became a serious opportunity as the PCR test was. So the lateral flow requirements could last for many years. Yes. They they could. Thank you for your question. As as the requirements for PCR test could continue for many years, you know, we we don't have plans to develop a lateral flow test. You know, there are many, many providers globally providing a lateral flow test in in the COVID space. So it's not something that we would look. We don't have an intention to develop a lateral flow test at the moment. We're seeing the experts out there who are they are making improvements. It's still only ever going to be so accurate, but there are specialists out there that are investing lot of time in in improving those. It's not something that's on our radar.

48:56 Is the q three twenty twenty one revenue a very quick, I mean, predicted or received already today? Think Garrett's already Yeah. So, obviously, quarter three quarter three takes us up to the end of September, and, yeah, we say that that's been achieved. We've got a question here specifically in relation to our retail contracts with Boots and Lloyds asking the duration of those contracts and if they're subject to periodic review. So those contracts are for initial twelve months and then they're rolling. So that, you know, we we talked about the service that we provide and making sure that we are that our customers have a high level of satisfaction. And we're pleased to say, I think we can with confidence say that they are satisfied there. So it's it's a rolling contract, but, you know, these guys are you know, they have to provide a good service here. So it it's not something that I we would expect that they they'd be looking to to swap out as long as the market is available and as long as we continue to provide a great service.

50:01 So do we see opportunities for further acquisitions? Yep. Always. You know, we are doing doing two acquisitions within the space of nine months. You know, that's something that I'm not committing that we'll be doing in the next nine months. I'm really glad we did though. But, yeah, absolutely, in terms of of future further acquisitions moving forward, you know, this is we've talked about how dynamic this space is, and we haven't really talked about the technology within that as well. We talked about testing. We talked about consumer behaviors, but actually, there's great tech coming on board, you know, and we've got the capabilities to integrate our tech with other products too. So I think there's I said again, this is a really exciting time, and our job is to be really well placed and agile to the changing changes in the market. It's certainly the most exciting time since I've worked in the industry. So absolutely, you know, we are looking at always looking out, you know, where where we would would like to be carrying out m and a activity.

51:08 We've got an important meeting with our board and our management next month around strategy, which we will be doing on a regular basis so that we can make sure that when we put those plans in place, like we did last year, that we actually that we we make the right decisions and we deliver the results for the business. There's a question here around does the Genome Store have its own tests? So I think I've answered that one. You know, the the genome store came with a a portfolio of tests that we've then integrated, and we've merged those in with what Nell brought to the table, and that's where we have our initial panel of five moving forward. There's a question on margins. Again, thinking about us as a consumer business and where we're at on our cycle, We're not gonna discuss margins at this point, but but as we further establish ourselves in the market, those margin considerations will be clear.

52:09 There's a question here about the share price. So the company results today project revenue being excellent. The share price has steadily dropped. Do you think we could do more to provide information to promote investment? I think, honestly, we're extremely focused on our business and delivering as as part of our our organization. We've been laser focused this year to deliver the results that we've had, and that's our absolute priority as a management team under the board. You know, I I I don't want to be distracted by the share price. We have given updates when we could and where we deem them to be relevant to the market. And I think we we just want to continue focusing on the business. We're committed to providing updates moving forward. And I think as we move through the COVID uncertainty, you know, because because ultimately, that's the issue here around the the COVID space and and how that impacts the share price, you know, we we will continue to evolve and come out of that moving forward. But for now, I categorically say our focus is on delivering our business, delivering on our commitments, and making sure that in the future, we can build a secure and growing burgeoning business, and we look forward to reporting the success on that.

53:24 And that's our number one priority. Penny Penny, also, think with regards to the share price, I think that the stock market, and I think probably investors think that at the end of October, TCR stops. That's the reason why I think the share price has been weak. Yeah. I mean, we we can't you know, people's view on the COVID space, you know, we no one can predict, and we we can't change that. It's say, we our focus very much is is on the business and and always coming at this from a position of strength. Just wanted to clarify this question here about the revenue. Is it per quarter or is it year to date? Please just say it's actually per quarter. So if you recall back in q one, we we had recently launched the product, so the revenues were just to shy of more than 1,000,000.

54:18 And then we we went live with live sorry, with Boots in in April. So therefore, the revenue for q two three point one seven was for almost just for two months when we have that product live on eight five five. So 8.55 for q three. So if you combine that, that just takes us shy of 12,000,000 for for the year to date to the end of September? Just clarify that question. Okay. And then the there's a question around personalized medicine. We touched on that in terms of, you know, some of those market trends. So asking the question is whether personalized medicine will be adopted in The UK. I think it already is adopted in The UK. You know, will I will it be a growing sector? Yeah. I think there's a high likelihood that it that it will be as we have a far more tailored approach.

55:09 And it's you know, we we welcome that. You know, we we operate at this point that any sort of portfolio we're bringing is at is at the the softer end of that, but really getting people to think about themselves, you know, and how they can optimize it. We should all feel well. We should all be well. We should all be planning to live to a very ripe old age and be, you know, well and active, comfortable, and happy in doing that. So, yeah, I think, you know, questions about DNA profiling, someone saying it makes sense that we're all DNA profiling. That's a that's a debatable point, but I think certainly, you know, we we absolutely will see a leaning towards personalized medicine. And and with that, I think we'll we'll come and improve mindset.

55:59 And someone's thanked us for an excellent presentation. So and thank you. I think that's a a good opportunity to conclude today. And just, yeah, want to say thanks again for everybody, you know, and your ongoing interest and support in the organization. You know, this is this is a it's a it's been a great story to tell. We are, Garrett, myself, and the team, very focused on moving forward, which as I said is our priority. So, yeah, look forward to keeping you abreast of developments. Penny, Gareth, perfect timing with two minutes left to go to the hour. So thank you once again for updating investors this afternoon and also to all the investors for the questions they've submitted. Can I please ask investors not to close this session as we'll now reautomatically redirect you for the opportunity to provide your feedback in order that the management team can really better understand your views and expectations?

56:50 It will only take a few moments to complete, but I'm sure will 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. That now concludes today's session. So good afternoon to you all. Thank you. Thanks, Mark.