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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Tristel Plc | LSE:TSTL | London | Ordinary Share | GB00B07RVT99 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 7.50 | 1.65% | 462.50 | 455.00 | 470.00 | 462.50 | 455.00 | 455.00 | 41,048 | 14:06:06 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Med, Dental, Hosp Eq-whsl | 36.01M | 4.46M | 0.0941 | 49.15 | 219.23M |
From Apr 2019 to Apr 2024
TIDMTSTL
RNS Number : 9301Q
Tristel PLC
25 February 2019
TRISTEL plc
("Tristel", the "Company" or the "Group")
Half-year Report
Unaudited Interim Results for the six months ended 31 December 2018
Tristel plc (AIM: TSTL), the manufacturer of infection prevention and contamination control products utilising proprietary chlorine dioxide chemistry, announces its interim results for the six months ended 31 December 2018, ahead of guidance at the December AGM.
Financial highlights
-- Revenue up 12% to GBP12m (2017: GBP10.7m)
-- Overseas sales up 19% to GBP6.4m (2017: GBP5.4m), representing 53% of total sales (2017: 50%)
-- Gross margin increased to 78% from 75% in 2017 -- EBITDA before share-based payments up 19% to GBP3.2m (2017: GBP2.7m)
-- PBT before share-based payments up 20% to GBP2.4m (2017: GBP2m). Unadjusted PBT of GBP2.2m (GBP1.8m)
-- EPS before share-based payments up 13% to 4.5p (2017: 4p). Unadjusted EPS of 4.05p (2017: 3.62p)
-- Interim dividend of 2.04p per share (2017: 1.6p), up 28%
-- Cash of GBP4.5m (2017: GBP4.9m), after GBP2.96m paid in November for the Ecomed companies ("Ecomed Group")
Operational highlights
-- Successful integration of the Ecomed Group acquired on 15 November 2018
-- Received second expanded USA Environmental Protection Agency (EPA) approval for Duo surface disinfectant and first EPA approval for Jet surface disinfectant
-- Successfully transferred the responsibility for CE marking Tristel's medical device products from BSI UK to BSI Amsterdam to mitigate Brexit-related risks
-- Established a warehouse hub in Antwerp and leased a new 23,000 sq ft warehouse in Newmarket
Commenting on current trading, Paul Swinney, Chief Executive of Tristel, said: "We are very pleased with our progress in the first half. Sales growth has been in the middle of our target range.
Sales benefitted from just over one month's contribution of GBP0.4m from the Ecomed Group, whose audited and adjusted EBITDA for the calendar year 2018 of EUR1.17m compares to a threshold target of EUR0.84m, meaning that the conditions of the acquisition earn-out have already been met. We expect a solid contribution from Ecomed Group in the second half and for the acquisition to be materially earnings enhancing in the years ahead.
Sales growth in the UK human health division, which accounts for 84% of all UK sales, was up by 8% half-on-half. This is encouraging given that UK sales growth has been relatively flat for the past few years. Moreover, overseas sales continued to grow at a very healthy rate of 19%.
We continue to advance our USA regulatory project although the exact timing of further approvals remains hard to predict. This project commenced in 2015 and the cumulative investment made to end December 2018 has been GBP1.3m, with costs of GBP0.1m incurred in the first half.
The re-shaping of our Board has progressed with the appointment of Bart Leemans as an Executive Director and Dr Bruno Holthof as a Non-Executive Director.
We have put in place the best plans that we think possible to mitigate the potential effects of a no-deal Brexit and look forward with a high degree of confidence".
Tristel plc www.tristel.com Paul Swinney, Chief Executive Tel: 01638 721 500 Liz Dixon, Finance Director finnCap Geoff Nash / Giles Rolls, Corporate Tel: 020 7220 0500 Finance Alice Lane, ECM Walbrook PR Ltd Tel: 020 7933 8780 or tristel@walbrookpr.com Paul McManus Mob: 07980 541 893 Lianne Cawthorne Mob: 07584 391 303
Chairman's Statement
The Company has had a good first half, growing revenues by 12%. In mid-November we concluded the acquisition of the Ecomed Group which has given us a direct presence in Belgium, the Netherlands and France. The significance of this acquisition is that we are now directly represented throughout most of continental Europe and have a combined sales force in the UK and Europe of 31 people, up from 19 at 31 December 2017.
Encouragingly, the UK hospital business grew sales by 8% half-on-half after a period of flat performance. Our recently introduced new surface disinfectants have helped drive this uptick in sales growth. Further afield, Hong Kong delivered an excellent performance following our decision this time last year to establish a direct presence in that market. Only China, where we have a small four-person team, took a backward step. This was planned as we moved away from selling a capital equipment product through national distributors to concentrate our efforts on selling our consumable medical device disinfectants directly to hospitals, and to limit our focus to only Shanghai and Beijing hospitals for the next 12 months.
We were able to increase gross margin by 3% through a combination of better buying, product sales mix and efficiency gains. Operating expenses excluding the share-based payment charge increased by 16% half-on-half but were inflated by overhead of the Ecomed Group of GBP0.2m, and one-off acquisition costs of GBP0.2m. Excluding these Ecomed Group related costs, underlying operating expenses increased by 9%. The pre-tax margin before share-based payments increased by 1% to 20%.
The combination of organic growth and selective acquisition prepares us well to meet our revenue growth target of 10% to 15% this year. The table below shows the progress that we are making around the globe.
Hot Features
Premium
Global sales First half First half Period-on-period Period-on-period growth
2018-19 2017-18 growth at constant currency
GBPm GBPm % %
----------- ----------- ----------------- ------------------------
Australia (subsidiary) 1.25 1.16 8% 15%
----------- ----------- ----------------- ------------------------
New Zealand (subsidiary) 0.41 0.37 11% 15%
----------- ----------- ----------------- ------------------------
Hong Kong (subsidiary) 0.46 0.22 109% 115%
----------- ----------- ----------------- ------------------------
China (subsidiary) 0.10 0.30 (67%) (69%)
----------- ----------- ----------------- ------------------------
Germany & Central
Europe (subsidiaries) 2.23 1.95 14% 13%
----------- ----------- ----------------- ------------------------
Northern Europe
(subsidiaries) 0.40 100% 100%
----------- ----------- ----------------- ------------------------
All other overseas
markets (distributors) 1.56 1.37 14% 14%
----------- ----------- ----------------- ------------------------
Total overseas
sales 6.41 5.37 19% 21%
----------- ----------- ----------------- ------------------------
Total UK sales 5.60 5.35 5% 5%
----------- ----------- ----------------- ------------------------
Of which:
----------- ----------- ----------------- ------------------------
Human health 4.73 4.40 8%
----------- ----------- ----------------- ------------------------
Animal health 0.29 0.33 (12%)
----------- ----------- ----------------- ------------------------
Contamination control 0.58 0.62 (6%)
----------- ----------- ----------------- ------------------------
Global sales 12.01 10.72 12% 13%
----------- ----------- ----------------- ------------------------
USA regulatory project and our global outlook
In 2015 we announced our intention to seek regulatory approvals in the USA to enable us to enter the hospital market. With no prior experience of working with the USA government agencies, at the project's outset we were only able to estimate the cost and time the project might take with the advice of advisors. Consequently, from the start of the project we imposed a control measure on ourselves which has been to maintain a pre-tax margin before share-based payments of at least 17.5% whilst expensing all project costs. The table below summarises our progress to date.
Financial Agency: EPA Agency: FDA Commercial achievements
Year Product purpose: Product purpose:
30(th) Surface disinfectant High-Level Medical
June Device disinfectant
2015
* Portfolio screening, engagement of consultants,
selection of regulatory pathway
* Selection of Duo for both EPA & FDA
----------------------------------------------------------------------------------------------------------------- -------------------------------------------------------
2016
* Standard EPA pathway to be pursued * 01/16, 1(st) FDA pre-submission meeting request
* 04/16, 1(st) FDA consultation
* FDA 510(K) Predicate (1) pathway accepted
-------------------------------------------------------- ------------------------------------------------------- -------------------------------------------------------
2017
* 09/16, EPA pre-submission meeting request * 11/16, 2(nd) FDA pre-submission meeting request
* 10/16, EPA consultation * 02/17, 2(nd) FDA consultation
* 06/17, 1(st) EPA submission
-------------------------------------------------------- ------------------------------------------------------- -------------------------------------------------------
2018
* 11/17, additional data requirements submitted * 11/17, Incorporated Tristel Inc.
* 4/18, 1(st) EPA approval granted * 03/18 Manufacturing and marketing agreement with
Parker Laboratories Inc.
-------------------------------------------------------- ------------------------------------------------------- -------------------------------------------------------
2019
* 07/18, 2(nd) EPA submission - 21 additional micro * 07/18, pre-submission review lodged with FDA for
claims for Duo & 1(st) application for Jet written feedback
* 01/19, 2(nd) EPA approval granted - 14 claims * 9/18, FDA feedback received - advised by FDA to
admitted for Duo, and Jet approved pursue De Novo(2) pathway
-------------------------------------------------------- ------------------------------------------------------- -------------------------------------------------------
1 Predicate is following a previously granted pathway precedent
2 De Novo pathway is one where the Company has to prepare and submit
data and finding without reference to a previously approved pathway
precedent
Just as we had no prior experience of obtaining regulatory approval in the USA, the EPA and FDA had no prior experience of chlorine dioxide, our proprietary chemistry, when used for medical device disinfection. Whilst these have been significant hurdles to overcome, we have succeeded in making considerable progress during the past four years. Conferring with consultants, peer companies and industry experts, we are led to believe that we should not be dismayed by the time it has taken to reach the point we are at today; nor by the cumulative cost, which amounted at 31 December 2018 to GBP1.3m. To date, we have met our goal of protecting the Group's pre-tax margin (before share-based payments), exceeding our minimum threshold in each of the past four years.
We have not included any contribution to revenue and profit from the USA in our internal budget for the current financial year (which is the final year of a three-year plan that we shared with our shareholders in 2016-17). There is also no material contribution from the USA in our market forecasts for this financial year and next. In July 2019, at our shareholder open day, we intend to set out our targets for the next three years to 2021-22. Again, we will not incorporate into that plan any revenue or profit contribution from the United States; and we will only do so once an FDA approval has been granted.
Furthermore, we have decided that our most prudent approach is to postpone commercialising the EPA approvals already obtained for our Duo and Jet products until we have greater visibility of the way ahead for the FDA project. We received the FDA's feedback on 25 September 2018 to the pre-submission written review which we lodged in July 2018. Their feedback was to follow a De Novo pathway rather than the Predicate pathway. We have digested the implications of this advice and have commenced the human factors and usability engineering evaluation and additional microbiological efficacy testing that are now required. We have started with a pilot human factors study and will submit the data generated to the FDA for further guidance before proceeding further. Given the opacity of the American regulatory system we conclude that at this moment it would be folly to try and predict when we may finally achieve FDA approval, but we will continue to invest in the FDA project and pursue that future approval.
To exploit the same market opportunity in the USA hospital market that we enjoy everywhere else in the world we ideally require approvals from both agencies. We will pursue a different commercial strategy with both than we would with one only, and it would be premature to push further and faster with Duo and Jet as surface disinfectants until the way forward with the FDA is clear.
In the first half our business generated a pre-tax margin before share-based payments of 20% which would have been 21% if USA costs were excluded. The Group's achievements to date have been founded upon our presence in a global marketplace that excludes the USA. Our geographical footprint covers 40 countries in which we already have the regulatory approvals required to sell our products. Many significant regulatory submissions which will open markets such as India and South Korea are close to grant: all achieved at a fraction of the cost of the USA.
Ecomed Group earn-out and share issue
In accordance with the terms of the acquisition agreement, the earn-out conditions have been met and the deferred consideration of EUR1.8m is payable in full. The vendors have elected to receive EUR384,300 of the consideration by the issue of ordinary shares at 242.7 pence and a cash payment of EUR1,415,700. The issue price of 242.7 pence was the price agreed for the consideration shares in the acquisition agreement. The exact number of shares to be issued will be determined on the consideration settlement date of 28 February with reference to the closing EUR/GBP exchange rate on 27 February.
Earnings and Dividends
Adjusted earnings per share (EPS), before share-based payments, were 4.5 pence, up 13% from 4 pence last year. Basic EPS were 4.05 pence, a 12% increase from last year.
The Company has continued to be highly cash generative and on 31 December 2018 the cash balance was GBP4.5m (2017: GBP4.9m). Our cash balance followed the payment in November of the initial cash consideration payment for the Ecomed Group of GBP2.96m.
In line with the Company's ordinary dividend policy, the Board is recommending that the interim dividend is 2.04 pence (2017: 1.6 pence), an increase of 28%. The interim dividend will be paid on 30 April 2019 to shareholders on the register on 29 March 2019, with an ex-dividend date of 28 March 2019.
Outlook
The prospects for the Company remain very encouraging and we look forward to further progress in the second half of the year and beyond.
Paul Barnes
Chairman
25 February 2019
Condensed Consolidated Income Statement for the six months ended 31 December 2018
6 months ended 6 months ended Year ended
31-Dec-18 31-Dec-17 30-Jun-18
(unaudited) (unaudited) (audited)
Note GBP'000 GBP'000 GBP'000
Revenue 2 12,018 10,727 22,220
Cost of sales (2,600) (2,643) (5,040)
-------------- -------------- ----------
Gross profit 9,418 8,084 17,180
Admin expenses - share based payments (196) (164) (665)
Admin expenses - depreciation and
amortisation (781) (713) (1,564)
Admin expenses - other (6,252) (5,367) (10,971)
-------------- -------------- ----------
Total administrative expenses (7,229) (6,244) (13,200)
Operating profit 2,189 1,840 3,980
Finance income 2 1 2
Other income (1) - -
Results from equity accounted associate 16 8 24
-------------- -------------- ----------
Profit before taxation 2,206 1,849 4,006
Taxation (433) (296) (734)
Profit for the period 1,773 1,553 3,272
============== ============== ==========
Attributable to:
Equity holders of the parent 1,773 1,553 3,272
-------------- -------------- ----------
1,773 1,553 3,272
============== ============== ==========
Earnings per share from continuing
operations
attributable to equity holders
of the parent
Basic (pence) 4 4.05 3.62 7.62
============== ============== ==========
Diluted (pence) 3.92 3.46 7.33
============== ============== ==========
The above results were derived from continuing operations.
Condensed Consolidated Statement of Comprehensive Income for the six months ended 31 December 2018
6 months ended 6 months ended Year ended
31-Dec-18 31-Dec-17 30-Jun-18
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Profit for the period 1,773 1,553 3,272
Items that will be reclassified
subsequently to Profit and loss
Exchange differences on translation
of foreign operations 25 6 (112)
-------------- -------------- ----------
Other comprehensive income for the
period 25 6 (112)
Total comprehensive income for the
period 1,798 1,559 3,160
============== ============== ==========
Attributable to:
Equity holders of the parent 1,798 1,559 3,160
-------------- -------------- ----------
1,798 1,559 3,160
============== ============== ==========
Condensed Consolidated Statement of Financial Position as at 31 December 2018
6 months ended 6 months ended Year ended
31-Dec-18 31-Dec-17 30-Jun-18
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Non-current assets
Investment 709 589 589
Goodwill and other Intangible assets 12,738 6,815 6,952
Property, plant and equipment 1,339 1,518 1,328
Deferred tax asset 195 - 399
-------------- -------------- ----------
14,981 8,922 9,268
-------------- -------------- ----------
Current assets
Inventories 2,768 2,226 2,279
Trade and other receivables 4,650 3,871 4,332
Cash and cash equivalents 4,486 4,945 6,661
-------------- -------------- ----------
11,904 11,042 13,272
-------------- -------------- ----------
Total assets 26,885 19,964 22,540
============== ============== ==========
Capital and reserves
Called up share capital 443 429 432
Share premium account 11,227 10,892 11,058
Merger reserve 1,865 478 478
Foreign exchange reserves (41) 52 (66)
Retained earnings 7,184 4,986 6,518
-------------- -------------- ----------
Equity attributable to equity holders
of parent 20,678 16,837 18,420
Non-controlling interests 7 7 7
Total equity 20,685 16,844 18,427
============== ============== ==========
Current liabilities
Trade and other liabilities 3,491 2,296 3,201
Contingent liability 1,567 - -
Current tax liabilities 973 639 707
-------------- -------------- ----------
Total current liabilities 6,031 2,935 3,908
============== ============== ==========
Non-current liabilities
Deferred tax liability 169 185 205
-------------- -------------- ----------
Total liabilities 6,200 3,120 4,113
-------------- -------------- ----------
Total equity and liabilities 26,885 19,964 22,540
============== ============== ==========
Condensed Share Share Merger Foreign Retained Total Non-controlling Total
Consolidated Capital Premium reserve exchange earnings attributable interests Equity
Statement reserve to owners
of Changes in of the
Equity for the parent
six
months ended
31 December
2018
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
30 June 2017 427 10,705 478 46 4,399 16,055 7 16,062
Transactions
with owners
Dividends paid - - - - (1,130) (1,130) - (1,130)
Shares issued 2 187 - - - 189 - 189
Share-based
payments - - - - 164 164 - 164
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
Total
transactions
with owners 2 187 - - (966) (777) - (777)
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
Profit for the
period ended
31
December 2017 - - - - 1,553 1,553 - 1,553
Other
comprehensive
income :-
Exchange
differences
on
translation
of foreign
operations - - - 6 - 6 - 6
Total
comprehensive
income - - - 6 1,553 1,559 - 1,559
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
31 December
2017 429 10,892 478 52 4,986 16,837 7 16,844
=========== =========== ========== ========= ========= ============ =============== ===========
Transactions
with owners
Dividends paid - - - - (688) (688) - (688)
Shares issued 3 166 - - - 169 - 169
Share-based
payments - - - - 501 501 - 501
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
Total
transactions
with owners 3 166 - - (187) (18) - (18)
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
Profit for the
period ended
30
June 2018 - - - - 1,719 1,719 - 1,719
Other
comprehensive
income :-
Exchange
differences
on
translation
of foreign
operations - - - (118) - (118) - (118)
Total
comprehensive
income - - - (118) 1,719 1,601 - 1,601
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
30 June 2018 432 11,058 478 (66) 6,518 18,420 7 18,427
=========== =========== ========== ========= ========= ============ =============== ===========
Transactions
with owners
Dividends paid - - - - (1,303) (1,303) - (1,303)
Shares issued 11 169 1,387 - - 1,567 - 1,567
Share-based
payments - - - - 196 196 - 196
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
Total
transactions
with owners 11 169 1,387 - (1,107) 460 - 460
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
Profit for the
period ended
31
December 2018 - - - - 1,773 1,773 - 1,773
Other
comprehensive
income :-
Exchange
differences
on
translation
of foreign
operations - - - 25 - 25 - 25
Total
comprehensive
income - - - 25 1,773 1,798 - 1,798
----------- ----------- ---------- --------- --------- ------------ --------------- -----------
31 December
2018 443 11,227 1,865 (41) 7,184 20,678 7 20,685
=========== =========== ========== ========= ========= ============ =============== ===========
Condensed Consolidated Statement of Cash Flows for the six months ended 31 December 2018
6 months ended 6 months ended Year ended
31-Dec-2018 31-Dec-2017 30-Jun-2018
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Cash flows from operating activities
Profit before tax 2,206 1,849 4,006
Adjustments to cash flows from non-cash
items
Depreciation of plant, property &
equipment 337 276 548
Amortisation of intangible asset 444 437 950
Impairment of intangible asset - - 67
Share based payments - IFRS 2 196 164 665
(Profit)/loss on disposal of property,
plant and equipment (14) - (17)
Unrealised loss in foreign exchange - - (78)
Finance income (2) (1) (2)
-------------- -------------- -----------
3,167 2,725 6,139
Working capital adjustments
(Increase)/decrease in inventories (489) 66 13
(Increase) in trade and other receivables (285) (126) (587)
Increase/(decrease) in trade and other
payables 290 (851) 54
Corporation tax paid (3) (375) (1,124)
-------------- -------------- -----------
Net cash flow from operating activities 2,680 1,439 4,495
-------------- -------------- -----------
Cash flows from investing activities
Interest received 2 1 2
Purchase of intangible assets (382) (263) (997)
Purchase of investments (3,080) - -
Purchase of property plant and equipment (316) (402) (516)
Proceeds from sale of property plant
and equipment 19 17 63
-------------- -------------- -----------
Net cash used in investing activities (3,757) (647) (1,448)
-------------- -------------- -----------
Cash flows from financing activities
Share issues 180 189 358
Dividends paid (1,303) (1,130) (1,818)
-------------- -------------- -----------
Net cash used in financing activities (1,123) (941) (1,460)
-------------- -------------- -----------
Net (Decrease)/increase in cash and
cash equivalents (2,200) (149) 1,587
Cash and cash equivalents at the beginning
of the period 6,661 5,088 5,088
Exchange differences on cash and cash
equivalents 25 6 (14)
-------------- -------------- -----------
Cash and cash equivalents at the end
of the period 4,486 4,945 6,661
============== ============== ===========
Notes to the Financial Statements for the six months ended 31 December 2018
1 Accounting policies
Basis of Preparation
For the year ended 30 June 2018, the Group prepared consolidated financial statements under International Financial Reporting Standards ('IFRS') as adopted by the European Commission. These condensed consolidated interim financial statements (the interim financial statements) have been prepared under the historical cost convention. They are based on the recognition and measurement principles of IFRS in issue as adopted by the European Union (EU) which are effective from 1 July 2018.
Standards effective from 1 January 2018
The following standards and interpretations apply for the first time to financial reporting periods commencing on or after 1 January 2018:
-- IFRS 9 Financial instruments (effective 1 January 2018)
-- IFRS 15 Revenue from contracts with customers (effective 1 January 2018)
IFRS 15 - 'Revenue from contracts with customers' was adopted for the financial year commencing 1 July 2018. Under IFRS 15 the company must evaluate contracts with customers to determine the distinct performance obligations and consider the appropriate timing of revenue recognition based on when control of the product sales has passed to the buyer. Whilst the new financial reporting standard represents significant new guidance, the implementation of this guidance has not had a significant impact on the timing or amount of revenue recognised by the Group in any year.
Accounting Policies
The interim report is unaudited and has been prepared on the basis of IFRS accounting policies.
The accounting policies adopted in the preparation of this unaudited interim financial report are consistent with the most recent annual financial statements being those for the year ended 30 June 2018.
The financial information for the six months ended 31 December 2018 and 31 December 2017 has not been audited and does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.
The financial information relating to the year ended 30 June 2018 does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006. This information is based on the Group's statutory accounts for that period. The statutory accounts were prepared in accordance with International Financial Reporting Standards ("IFRS") and received an unqualified audit report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These financial statements have been filed with the Registrar of Companies.
Notes to the Financial Statements for the six months ended 31 December 2018
2 Segmental Analysis
The Board considers the Group's revenue lines to be split into three operating segments, which span the different Group entities. The operating segments consider the nature of the product sold, the nature of production, the class of customer and the method of distribution. The Group's operating segments are identified from the information which is reported to the chief operating decision maker.
The first segment concerns the manufacture, development and sale of infection control and hygiene products which incorporate the Company's chlorine dioxide chemistry, and are used primarily for infection control in hospitals ("Human Health"). This segment generates approximately 91% of Group revenues.
The second segment, which constitutes 3% of the business activity, relates to manufacture and sale of disinfection and cleaning products, principally into veterinary and animal welfare sectors ("Animal Health").
The third segment addresses the pharmaceutical and personal care manufacturing industries ("Contamination Control"). This activity has generated 6% of the Group's revenue for the period.
The operation is monitored and measured on the basis of the key performance indicators of each segment, these being revenue and gross profit; strategic decisions are made on the basis of revenue and gross profit generating from each segment.
The Group's centrally incurred administrative expenses and operating income are not attributable to individual segments.
Notes to the Financial Statements for the six months ended 31 December 2018
2 Segmental Analysis (continued)
6 Months ended 6 Months ended Year ended
31 December 2018 31 December 2017 30 June 2018
(unaudited) (unaudited) (audited)
Human Animal Cont'n Human Animal Cont'n Human Animal Cont'n
Healthcare Healthcare Control Total Healthcare Healthcare Control Total Healthcare Healthcare Control Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 10,919 413 686 12,018 9,535 488 704 10,727 19,869 919 1,432 22,220
Cost of
material (2,216) (145) (239) (2,600) (2,213) (179) (251) (2,643) (4,161) (369) (510) (5,040)
Gross
profit 8,703 268 447 9,418 7,322 309 453 8,084 15,708 550 922 17,180
Centrally incurred income and expenses
not attributable to individual segments:
Depreciation and amortisation of
non-financial
assets (781) (713) (1,564)
Other administrative expenses (6,252) (5,367) (10,971)
Share-based payments (196) (164) (665)
------- ------- --------
Segment operating profit 2,189 1,840 3,980
Segment operating profit can be reconciled
to Group profit before tax as follows:
Segment operating profit 1,840 3,980
Finance income 2 1 2
Finance costs (1) - -
Results from equity accounted associate 16 8 24
------- ------- --------
Group profit 2,206 1,849 4,006
======= ======= ========
Notes to the Financial Statements for the six months ended 31 December 2018
2 Segmental Analysis (continued)
6 Months ended 6 Months ended Year ended
31 December 2018 31 December 2017 30 June 2018
(unaudited) (unaudited) (audited)
Human Animal Cont'n Human Animal Cont'n Human Animal Cont'n
Healthcare Healthcare Control Total Healthcare Healthcare Control Total Healthcare Healthcare Control Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
United
Kingdom 4,731 295 584 5,610 4,397 337 620 5,354 8,912 665 1,258 10,835
Germany 1,995 - 16 2,011 1,881 - 27 1,908 3,989 - 34 4,023
Rest of
the
World 4,193 118 86 4,397 3,257 151 57 3,465 6,973 254 135 7,362
---------- ---------- ------- ------- ---------- ---------- ------- ------- ---------- ---------- ------- -------
10,919 413 686 12,018 9,535 488 704 10,727 19,874 919 1,427 22,220
========== ========== ======= ======= ========== ========== ======= ======= ========== ========== ======= =======
Notes to the Financial Statements for the six months ended 31 December 2018
3 Dividends
Amounts recognised as distributions to equity holders in the year:
6 months ended 6 months ended Year ended
31 December 31 December 30 June 2018
2018 2017
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Ordinary shares of 1p each
Final dividend for the year ended 30
June 2018 of 2.98p (2017:2.63p) per share
** 1,303 1,130 1,130
Interim dividend for the year ended 30
June 2018 of 1.60p (2017: 1.40p) per
share - - 688
-------------- -------------- ------------
1,303 1,130 1,818
============== ============== ============
Proposed interim dividend for the year
ended 30 June 2019 of 2.04p (2018: 1.60p)
per share 893 688 -
============== ============== ============
** Based on shares in issue at 14 December 2018 of 43,730,048
The proposed interim dividend has not been included as a liability in the financial statements.
Notes to the Financial Statements for the six months ended 31 December 2018
4 Earnings per share
The calculations of earnings per share are based on the following profits and number of shares:
6 months ended 6 months ended Year ended
31 December 31 December 30 June 2018
2018 2017
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
Retained profit for the financial year
attributable to equity holders of the
parent 1,773 1,553 3,272
-------------- -------------- ------------
Shares Shares Shares
'000 '000 '000
Number Number Number
Weighted average number of ordinary shares
for the purpose of basic earnings per
share 43,744 42,884 42,956
Share options 1,511 1,942 1,688
-------------- -------------- ------------
45,255 44,826 44,644
-------------- -------------- ------------
Earnings per ordinary share
Basic (pence) 4.05 3.62 7.62
Diluted (pence) 3.92 3.46 7.33
GBP'000 GBP'000 GBP'000
Retained profit for the financial year
attributable to equity holders of the
parent 1,773 1,553 3,272
-------------- -------------- ------------
Adjustments:
Share based payments 196 164 665
-------------- -------------- ------------
Net adjustments 196 164 665
Adjusted earnings 1,969 1,717 3,937
-------------- -------------- ------------
Adjusted basic earnings per ordinary
share (pence) 4.50 4.00 9.16
-------------- -------------- ------------
5 Acquisition
Ecomed
In November 2018, the Group acquired the operations of Ecomed in Belgium, Netherlands and France for initial consideration of EUR3.4 million in cash and EUR1.6 million from the issue of 573,860 shares at 242.7 pence each and a further earn out of EUR1.8m which was contingent on adjusted EBITDA targets for the 2018 calendar year. The targets were exceeded, and the maximum earn out is to be settled on 28 February 2019 by a cash payment of EUR1,415,700 and EUR384,300 by the issue of ordinary shares. The shares will be issued at a price of 242.7 pence and the exact number to be issued will be determined on the settlement date by reference to the closing EUR/GBP exchange rate on 27 February 2019.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR GMGZZLZFGLZM
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February 25, 2019 02:00 ET (07:00 GMT)
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