RNS Number : 3383E
Tristel PLC
26 February 2024
 

TRISTEL plc

("Tristel", the "Company" or the "Group")

 

Half-year Report

 

Unaudited Interim Results for the six months ended 31 December 2023

 

Tristel plc (AIM: TSTL), the manufacturer of infection prevention products utilising proprietary chlorine dioxide technology, announces its interim results for the six months to 31 December 2023, exceeding internal growth targets by delivering 20% revenue growth and 44% growth in pre-tax profits. The Company also announces a doubling of its interim dividend payment.

 

The Company's core business is the sale to hospitals of its proprietary chlorine dioxide chemistry used for the decontamination of medical devices under the Tristel brand, and for the sporicidal disinfection of environmental surfaces under the Cache brand. 

 

Financial highlights

·      Revenue up 20% to a record £20.9m (2022: £17.5m)

·      Overseas sales up 13% to £12.7m (2022: £11.2m)

·      Reported EBITDA up 21% to £4.7m (2022: £3.9m)

·      Adjusted* EBITDA up 18% to £5.4m (2022: £4.6m)

·      Reported profit before tax up 44% to £3.4m (2022: £2.4m)

·      Adjusted* profit before tax up 34% to £4.1m (2022: £3.1m)

·      Reported EPS up 104% to 6.50p (2022: 3.19p)

·      Adjusted* EPS of 8.68p up 87% (2022: 4.65p)

·      Doubling of interim dividend to 5.24p per share (2022: 2.62p)

·      No debt and cash of £10.8m (2022: £8.4m)

 

*Adjusted for share-based payments of £0.7m (2022: £0.7m)

 

Operational highlights

·      First manufacture and launch of Tristel ULT into the United States ultrasound market

·      Approval of Tristel ULT by Health Canada post-period end

·      UK & EU Medical Device Regulation reviews of Cache Tank and Capsule successfully concluded and positive recommendation for UKCA and MDR certification made post-period end

 

Commenting on the interim results, Paul Swinney, Chief Executive of Tristel, said: "We are delighted to report a record performance on all levels, alongside first sales into the North American market. Total revenue increased by 20% on last year, exceeding our internal revenue growth target.

 

"Adjusted profit before tax increased by 34% to £4.1m, and we have doubled our interim dividend, putting the Company on track for a record earnings year.

 

"Looking forward, we expect to make our second FDA submission, a 510(k) for Tristel OPH, our ophthalmic device high level disinfectant, in time for an approval by the end of 2024. Post period end, all reviews under both UK and EU Medical Device Regulations for Tank and Capsule, the newest additions to the Cache range, have been successfully concluded and a positive recommendation for UKCA and MDR certification has been made. This enables us to expand into the largely untapped sporicidal surface disinfection market.

 

"This six-month period represents the highest sales and profit performance that the Company has experienced in its thirty-year history, including during the early COVID era when demand for our products was unprecedented.

 

"I am thrilled that the Company continues to thrive and grow, with a pipeline of new product launches planned for the near term."

 

CFO video overview & investor presentations

Please find a link to a video overview relating to the Company's interim results from the Group's Chief Financial Officer, Liz Dixon here: https://stream.brrmedia.co.uk/broadcast/65d7330135af67d51a41bd95.

 

Paul Swinney, CEO, and Liz Dixon, CFO, will present the Company's results via the Investor Meet Company platform today at 11:30am GMT. The presentation will also be available for playback after the event. Investors can sign up to Investor Meet Company for free and add to meet Tristel plc via: https://www.investormeetcompany.com/tristel-plc/register-investor

 

An in-person presentation will take place today at 4:15pm for a 4:30pm start at 85 Gresham Street, London, EC2V 7NQ followed by refreshments. Please register to attend by contacting Walbrook PR on 020 7933 8780 or email tristel@walbrookpr.com.

 

For further information please contact:

 

Tristel plc

Tel: 01638 721 500

Paul Swinney, Chief Executive Officer

www.investors.tristel.com

Liz Dixon, Chief Financial Officer




Walbrook PR Ltd

Tel: 020 7933 8780 or tristel@walbrookpr.com

Paul McManus

Mob: 07980 541 893

Charlotte Edgar

Mob: 07884 664 686



Cavendish Capital Markets Ltd

Tel: 020 7220 0500

Geoff Nash / Charlie Beeson (Corporate Finance)


Sunila de Silva (ECM)





 

About Tristel plc

 

Tristel plc is a global infection prevention company focussed on the manufacture and supply of products using its unique proprietary chlorine dioxide (ClO2) chemistry. The Company is a market leader in manual decontamination of medical devices, supplying hospitals under the Tristel brand, and under the Cache brand provides products for sporicidal surface disinfection, in a format which is a sustainable alternative to commonly used pre-wetted plastic wipes.

 

Tristel's head office and manufacturing facility is located in Snailwell, near Cambridge, and operates globally employing approximately 250 people across 14 subsidiaries selling into 40 countries.

 

The Company has been listed on the London Stock Exchange's AIM market since 2005 (AIM: TSTL).

 

For more information about Tristel's product range please visit: https://tristel.com

 



 

Chairman's statement

 

Revenue

During the half revenue increased by 20%, reaching a record level of £20.9m.

 

Higher sales volume accounted for £1.5m of the £3.4m revenue growth and price increases accounted for the remaining £1.9m. This represents an average price increase of 12%, reflecting the global inflationary environment. In the UK the increase has been higher because of supply agreements which require fixed pricing extending into the future.

 

Tristel medical device sales grew by 25%, reaching £18.3m. In all counties in which we sell we continue to build our market leadership position.  We are also benefiting from an increase in diagnostic procedure numbers as hospitals worldwide continue to tackle backlogs caused by the pandemic.

 

Post period end, we received confirmation that all reviews under the Medical Devices Regulation 2002 ("UK MDR") and the European Union Medical Device Regulation 2017/745 ("EU MDR") for approval of the Company's TANK ClO? Sporicidal Disinfectant system have successfully concluded and a positive recommendation for UKCA and MDR certification has been made. This now allows us to accelerate our sales activity throughout Europe. Cache sales were impacted by this delayed approval, decreasing slightly from £1.8m to £1.7m.

 

The Other revenue segment includes carriage and third-party products which are complementary to the Company's key strategic focus on infection prevention. Sales within this category declined marginally in the period.   

 

Profits and margins

Our gross margin increased to 84% in the half (2022: 81%), due to a combination of product mix and price increases.

 

Sales, general and administrative expenses were £11.9m (2022: £9.5m), a 27% increase. This cost growth is due to a combination of inflationary increases and the recruitment of an additional 27 staff into our sales, marketing and distribution areas. We implemented pay increases during 2023 to ensure our pay rates remain competitive and to secure staff retention. 

 

Reported Group profit before tax increased by 44% to £3.4m (2022: £2.4m), and Group profit before tax and share-based payments increased by 34% to £4.1m (2022: £3.1m).

 

Earnings and Dividend

Reported earnings per share (EPS) were 6.50p, an increase of 104% from 3.19p last year.

 

EPS adjusted for share-based payments of £0.7m (2022: £0.7m) was 8.68p (2022: 4.65p). The increase in adjusted EPS relates in part to a lower tax rate of 10% (2022: 37%). The effective tax rate on operational results is 20%, however, the tax impact of the Group's share option plans decreased the overall effective tax rate for the period to 10%.

 

The share-based payment charge of £0.7m is derived from the Group's All-Staff share option scheme which is based upon periodic share option grants to staff members (£0.5m), and the Executive Management LTIP scheme (£0.2m). The All-Staff scheme is valued via the Black-Scholes model; the Executive Management scheme, which is linked to share price and profit targets, is valued via the Monte Carlo method. The Board believes that these share schemes help to retain staff and link their interests to shareholders. The value of share-based payments is significantly influenced by the volatility of the Company's share price, a factor that is out of the Board's control. As consequence, profit and earnings are reported on both an adjusted basis, adding back share-based payments, alongside unadjusted, so that the underlying profitability of the Company can be understood.

 

The Board is recommending an interim dividend of 5.24 pence (2022: 2.62 pence) to be paid on 12 April 2024. The associated ex-dividend date will be 21 March 2024 with a record date of 22 March 2024.

 

North America

We now have clearance from both the FDA and Health Canada to sell Tristel ULT, our high-level disinfectant foam for use on endo-cavity ultrasound probes and skin surface transducers. We also have approval from Health Canada for Tristel OPH, our high-level disinfectant foam for use on ophthalmic and optometry medical devices. We will make a 510(K) submission to the FDA for this product during the summer of 2024 and expect clearance by the end of 2024. 

 

We have established a manufacturing base for both products with our partner Parker Laboratories Inc., New Jersey, and will utilise Parker's national distribution network for the US and Canadian ultrasound markets. We are selling Tristel OPH through Innova Medical Inc., a specialist supplier of ophthalmic instruments into the Canadian market. We will put in place a distribution arrangement for the United States ophthalmic market in the second half of the year.

 

Parker's manufacturing processes have been validated by our quality team and production is now underway. The product has been through beta testing at a number of healthcare institutions in the United States, with very positive feedback. Parker Laboratories plans an extensive marketing and trade show programme throughout 2024 and is in the process of expanding its salesforce in order to capitalise on the potential that Tristel ULT represents. During the first ten weeks of activity our revenue and royalty income from North America totalled £46k. We are very encouraged by this positive start. 

 

In the second half of the year, we will procure office premises and recruit a small number of United States based staff to support Parker's marketing and sales efforts and establish a local regulatory capability.

 

CEO succession

At the time of our AGM in December, Paul Swinney, the Company's founder and CEO of 30 years, announced his plans to retire in 2024 following a successful transition of leadership. A competitive selection programme is currently underway. 

 

Outlook

With North America now an active territory for us and further product approvals in the pipeline, the business is in good shape. We continue to look forward to the future positively. 

   

Bruno Holthof

Chairman

26 February 2024

 

 

Condensed Consolidated Income Statement for the six months ended 31 December 2023

 



Restated*




6 months ended

6 months ended

Year ended



31-Dec-23

31-Dec-22

30-Jun-23



(unaudited)

(unaudited)

(audited)


Note

£'000

£'000

£'000

Revenue

2

20,943

17,463

36,009

Cost of sales


(3,401)

(3,322)

(6,834)

Gross profit


17,542

14,141

29,175

Distribution expenses


(274)

(198)

(323)

Admin expenses - share-based payments


(691)

(688)

(1,061)

Admin expenses - depreciation and amortisation


(1,365)

(1,431)

(2,618)

Admin expenses - other (sales, general and administration)


(11,833)

(9,353)

(19,896)

Total Admin expenses


(13,889)

(11,472)

(23,575)

Other operating income


-

13

4

Operating profit


3,379

2,484

5,281

Finance income


125

-

10

Finance costs


(67)

(96)

(179)

Profit before taxation


3,437

2,388

5,112

Taxation


(355)

(882)

(651)






Profit/(loss) for the period from continuing operations


3,082

1,506

4,461

 





Profit/(loss) for the period attributable to the Group's equity shareholders


3,082

1,506

4,461

 

Earnings per share from continuing operations





attributable to equity holders of the parent





Basic (pence)

5

6.50

3.19

9.44

Diluted (pence)


6.31

3.14

9.34

 

Earnings from continuing operations before interest, tax depreciation, amortisation and impairment for the period ended 31 December 2023 were £4,744,000. (Period ended 31 December 2022 restated £3,915,000). Year ended 30 June 23 £7,899,000. Restatement of 31 December 2022 was in relation to a restatement of figures relating to IFRS 16.


 

Condensed Consolidated Statement of Comprehensive Income for the six months ended 31 December 2023



6 months ended

6 months ended

Year ended



31-Dec-23

31-Dec-22

30-Jun-23



(unaudited)

(unaudited)

(audited)



£'000

£'000

£'000

Profit for the period


3,082

1,506

4,461

Items that will be reclassified subsequently to Profit and loss





Exchange differences on translation of foreign operations


64

188

(214)

Other comprehensive income for the period


3,146

188

4,247






Total comprehensive income for the period


3,146

1,694

4,247

Attributable to:





Equity holders of the parent


3,146

1,694

4,247



3,146

1,694

4,247


Condensed Consolidated Statement of Financial Position as at 31 December 2023



6 months ended

Restated

6 months ended

Year ended



31-Dec-23

31-Dec-22

30-Jun-23



(unaudited)

(unaudited)

(audited)



£'000

£'000

£'000

Non-current assets





Goodwill


5,152

5,325

5,156

Intangible assets


4,579

3,828

4,757

Right of use assets


5,599

5,286

4,905

Property, plant and equipment


2,770

2,682

2,922

Deferred tax asset


626

1,058

1,286



18,726

18,179

19,026

Current assets





Inventories


4,450

4,668

4,569

Trade and other receivables


6,226

6,394

7,081

Income tax receivable


625

1,160

1,146

Short-term investments


6,000

-

2,432

Cash and cash equivalents


4,767

8,421

7,113



22,068

20,643

22,431

Total assets


40,794

38,822

41,367

Capital and reserves





Called up share capital


475

473

474

Share premium account


14,530

14,010

14,188

Merger reserve


2,205

2,205

2,205

Foreign exchange reserves


(215)

123

(279)

Retained earnings


14,127

12,095

14,089

Equity attributable to equity holders of parent


31,122

28,906

30,677

Minority interest


7

7

7

Total equity


31,129

28,913

30,684

Current liabilities





Trade and other liabilities


3,671

3,697

4,801

Income tax payable


-

-

103

Current leased asset liabilities


814

828

859

Total current liabilities


4,485

4,525

5,763

Non-current liabilities





Deferred tax


41

654

599

Non-current leased asset liabilities


5,139

4,730

4,321

Total liabilities


9,665

9,909

10,683

Total equity and liabilities


40,794

38,822

41,367


Condensed Consolidated Statement of Changes in Equity for the six months ended 31 December 2023


Share Capital

Share Premium

Merger reserve

Foreign exchange reserve

Retained earnings

Total attributable to owners of the parent

Non-controlling interests

Total Equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

30 June 2022 (restated)

473

13,996

2,205

(65)

13,078

29,687

7

29,694

Transactions with owners









Dividends paid





(3,273)

(3,273)


(3,273)

Shares issued

-

14




14


14

Share-based payments





688

688


688

Deferred tax through equity





96

96


96

Total transactions with owners

-

14



(2,489)

(2,475)


(2,475)

Profit for the period ended 31 December 2022





1,506

1,506


1,506

Other comprehensive income: -









Exchange differences on translation of foreign operations




188


188


188

Total comprehensive income




188

1,506

1,694


1,694

31 December 2022

473

14,010

2,205

123

12,095

28,906

7

28,913

Transactions with owners









Dividends paid





(1,238)

(1,238)


(1,238)

Shares issued

1

178




179


179

Share-based payments





373

373


373

Deferred tax through equity





(96)

(96)


(96)

Total transactions with owners

1

178



(961)

(782)


(782)

Profit for the period ended 30 June 2023





2,955

2,955


2,955

Other comprehensive income: -









Exchange differences on translation of foreign operations




(402)


(402)


(402)

Total comprehensive income




(402)

2,955

2,553


2,553

30 June 2023

474

14,188

2,205

(279)

14,089

30,677

7

30,684

Transactions with owners









Dividends paid





(3,735)

(3,735)


(3,735)

Shares issued

1

342




343


343

Share-based payments





691

691


691

Total transactions with owners

1

342

-

-

(3,044)

(2,701)

-

(2,701)

 

Condensed Consolidated Statement of Changes in Equity for the six months ended 31 December 2023 (continued)

 






Share Capital

Share Premium

Merger reserve

Foreign exchange reserve

Retained earnings

Total attributable to owners of the parent

Non-controlling interests

Total Equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Total transactions with owners brought forward

1

342

-

-

(3,044)

(2,701)

-

(2,701)










Profit for the period ended 31 December 2023





3,082

3,082


3,082

Other comprehensive income: -









Exchange differences on translation of foreign operations




64


64


64

Total comprehensive income

-

-

-

64

3,082

3,146


3,146

31 December 2023

475

14,530

2,205

(215)

14,127

31,122

7

31,129


Condensed Consolidated Statement of Cash Flows for the six months ended 31 December 2023



6 months ended

6 months ended

Year ended



31-Dec-2023

31-Dec-2022

30-Jun-2023



(unaudited)

(unaudited)

(audited)

Cash flows from operating activities

Note

£'000

£'000

£'000

Group profit/(loss) before tax for the period


3,437

2,388

5,112

Adjustments to cash flows from non-cash items





Depreciation of leased assets


505

500

1,000

Depreciation of plant, property & equipment


350

323

734

Amortisation of intangible asset


477

577

816

Impairment of intangible asset


33

33

68

Share-based payments - IFRS 2


691

688

1,061

Loss on disposal of PPE and intangible assets


-

-

69

Lease interest


66

92

177

Other interest


-

-

2

Finance income


(125)

-

(10)



5,434

4,601

9,029

Working capital adjustments





(Increase)/decrease in inventories


119

(248)

(149)

(Increase)/decrease in trade and other receivables


855

(543)

(1,230)

Increase/(decrease) in trade and other payables


(1,130)

475

1,330

Lease interest paid


(66)

(92)

(177)

Corporation tax paid


181

(533)

(313)

Net cash flow from operating activities


5,393

3,660

8,490

Cash flows from investing activities





Interest received


125

-

10

Purchase of intangible assets


(300)

(295)

(1,570)

Purchase of property plant and equipment


(218)

(128)

(853)

Cash deposit to short-term investments


(3,568)

-

(2,432)

Net cash used in investing activities


(3,961)

(423)

(4,845)

Cash flows from financing activities





Payment of lease liabilities


(426)

(450)

(1,126)

Share issues


342

14

193

Dividends paid

4

(3,735)

(3,273)

(4,511)

Net cash used in financing activities


(3,819)

(3,709)

(5,444)

Net (decrease)/increase in cash and cash equivalents


(2,387)

(472)

(1,799)

Cash and cash equivalents at the beginning of the period


7,113

8,883

8,883

Exchange differences on cash and cash equivalents


41

10

29

Cash and cash equivalents at the end of the period


4,767

8,421

7,113




 








Notes to the Financial Statements for the six months ended 31 December 2023

1

Accounting policies

Basis of Preparation

For the year ended 30 June 2023, the Group prepared consolidated financial statements under UK adopted international accounting standards. 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 UK adopted international accounting standards which are effective from 1 July 2023.

 

Forthcoming requirements: This table lists the recent changes to the Standards that are required to be applied for annual periods beginning after 1 January 2023 and that are available for early adoption in annual periods beginning on 1 January 2023.

Effective date


1 January 2024

Amendment to IAS 1 - Non-current liabilities with covenants

1 January 2024

Amendment to IAS 7 and IFRS 7 - Supplier finance

1 January 2024

Amendments to IAS 21 - Lack of exchangeability

 

There are no other standards that are not yet effective and that would be expected to have a material impact on the Group in the current or future reporting periods and on foreseeable future transactions.

 

None of the standards, interpretations and amendments effective for the first time from 1 July 2023 have had a material effect on the financial statements.

 

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 2023.

 

The financial information for the six months ended 31 December 2023 and 31 December 2022 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 2023 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 UK adopted international accounting standards 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.

 

 

2

Segmental Analysis

 

At financial year end (June 2023), the Group reassessed its operating segments and considered that they should be based on geography rather than by product category as previously was the case. Group revenue lines are split into fourteen geographic regions, which span the different Group entities. In accordance with IFRS 8, aggregation criteria have been applied to six operating segments where similar economic characteristics are shared. The directors consider the operating segments to have similar economic characteristics as they have similar operating margins, and the nature of products sold, and customers are similar. Management considers these operating regions under six reportable segments. The geographic segments consider the location of the sale and product type sold, which is split into three subdivisions. The Company's operating segments are identified initially from the information which is reported to the chief operating decision maker which for Tristel is the CEO.

 

The first product division concerns the manufacture and sale of medical device decontamination products which are used primarily for infection control in hospitals. These products generate approximately 87% of Company revenues (2022: 84%).

 

The second division which constitutes 8% (2022: 10%) of the business activity, relates to the manufacture and sale of hospital environmental surface disinfection products.

 

The third division addresses the pharmaceutical and personal care product manufacturing industries, veterinary and animal welfare sectors and has generated 5% (2022: 6%) of the Company's revenues this year. A number of the products contained within this division were discontinued during the prior year.

 

The operation is monitored and measured on the basis of the key performance indicators of each segment, these being revenue and profit before tax, and strategic decisions are made on the basis of revenue and profit before tax generating from each segment.

 

6 months ending 31 December 2023 (unaudited)

 

 

 



Hospital medical device decontamination


Hospital environmental surface disinfection


Other revenues

 

Total 2023


Profit Before Tax



£000


£000


£000

 

£000


£000

UK to UK and Overseas distributors


8,483


1,251


528


10,262


2,957

Australia


1,762


7


130


1,899


85

Germany


2,673


27


43


2,743


123

Western Europe


2,707


114


148


2,969


133

Italy


721


1


1


723


33

Other ROW


1,956


242


149


2,347


106












Total


18,302


1,642


999


20,943


3,437

 

 

 

 

6 months ending 31 December 2022 (unaudited)

 



Hospital medical device decontamination


Hospital environmental surface disinfection


Other revenues

 

Total


Profit Before Tax



£000


£000


£000

 

£000


£000

UK to UK and Overseas distributors


5,673


1,287


527


7,487


1,940

Australia


1,671


12


70


1,753


79

Germany


2,375


22


46


2,443


109

Western Europe


2,501


130


179


2,810


126

Italy


681


3


-


684


31

Other ROW


1,798


328


160


2,286


103












Total


14,699


1,782


982


17,463


2,388

 

Year ending 30 June 2023 (audited)

 



Hospital medical device decontamination


Hospital environmental surface disinfection


Other revenues

 

Total


Profit Before Tax



£000


£000


£000

 

£000


£000

UK to UK and Overseas distributors


11,895


2,381


1,017


15,293


4,179

Australia


3,504


22


134


3,660


165

Germany


4,979


40


89


5,108


230

Western Europe


5,244


240


347


5,831


262

Italy


1,429


5


-


1,434


65

Other ROW


3,766


608


309


4,683


211












Total


30,817


3,296


1,896


36,009


5,112








 

 



 

 

 

 

6 months ending 31 December 2023 (unaudited)

 



Hospital medical device decontamination


Hospital environmental surface disinfection


Other revenues


Total



£000


£000


£000


£000

Revenue









From external customers


18,302


1,642


999


20,943

Cost of material


(2,358)


(641)


(402)


(3,401)










Gross profit


15,944


1,001


596


17,542










Gross margin


87%


61%


60%


84%




Centrally incurred income and expenses not attributable to individual segments:



Distribution costs


                     (274)

Depreciation and amortisation of non-financial assets


(1,365)

Other administrative expenses


(11,833)

Share-based payments


(691)

Other income


-

Operating profit


3,379

Operating profit can be reconciled to Group profit before tax as follows:



Finance income


58




Total profit before tax


3,437











 



 

6 months ending 31 December 2022 (unaudited)

 



Hospital medical device decontamination


Hospital environmental surface disinfection


Other revenues


Total



£000


£000


£000


£000

Revenue









From external customers


14,699


1,782


982


17,463

Cost of material


(2,226)


(719)


(387)


(3,332)










Gross profit


12,473


1,063


595


14,131










Gross margin


85%


60%


61%


81%

Centrally incurred income and expenses not attributable to individual segments:



Distribution costs


                     (188)

Depreciation and amortisation of non-financial assets


(1,431)

Other administrative expenses


(9,353)

Share-based payments


(688)

Other income


13

Operating profit


2,484

Operating profit can be reconciled to Group profit before tax as follows:



Finance costs (expense)


(96)




Total profit before tax


2,388











 



 

Year ending 30 June 2023 (audited)

 



Hospital medical device decontamination


Hospital environmental surface disinfection


Other revenues


Total 2023



£000


£000


£000


£000

Revenue









From external customers


30,817


3,296


1,896


36,009

Cost of material


(4,494)


(1,437)


(903)


(6,834)










Gross profit


26,323


1,859


993


29,175










Gross margin


85%


56%


52%


81%

Centrally incurred income and expenses not attributable to individual segments:



Distribution costs


                     (323)

Depreciation and amortisation of non-financial assets


(2,618)

Other administrative expenses


(19,896)

Share-based payments


(1,061)

Other income


4

Operating profit


5,281

Operating profit can be reconciled to Group profit before tax as follows:



Finance (expense)


(169)




Total profit before tax


5,112











 


3

Income tax

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 20.50%).

 

The differences are reconciled below:


6 months ended

6 months ended

Year ended


31 December 2023

31 December 2022

30 June 2023


(unaudited)

(unaudited)

(audited)


£000

£000

£000

Profit/(loss) before tax

3,437

2,388

5,112

Corporation tax at standard rate

859

490

1,048

Adjustment in respect of prior years

-

-

(529)

Expenses not deductible for tax purposes

266

17

285

(Decrease) from effect of patent box

(392)

-

(643)

Increase from effect of foreign tax rates

(5)

18

46

Tax losses not utilised and other differences

(341)

341

464

Remeasurement of deferred tax due to changes in tax rate

-

114

78

Enhanced relief on qualifying scientific research expenditure

(32)

(98)

(98)

Total tax charge

355

882

651

 


 

 

4

Dividends

Amounts recognised as distributions to equity holders in the year:


6 months ended

6 months ended

Year ended


31 December 2023

31 December 2022

30 June 2023


(unaudited)

(unaudited)

(audited)


£000

£000

£000

Ordinary shares of 1p each




Final dividend for the year ended 30 June 2023 of 7.88p (2022: 3.93p) per share **

3,734

1,856

1,856

Special dividend for the year ended 30 June 2023 0f 3.00p (2022: 3.00p)

-

1,417

1,417

Interim dividend for the year ended 30 June 2023 of 2.62p (2022: 2.62p) per share

-

-

1,238


3,734

3,273

4,511

Proposed interim dividend for the year ended 30 June 2024 of 5.24p (2023: 2.62p) per share

2,485

1,237

-

 

 

** Based on shares in issue at 22 December 2023 of 47,390,993 (14 December 2022 of 47,227,993).

 

The proposed interim dividend has not been included as a liability in the financial statements.


5

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 2023

31 December 2022

30 June 2023


(unaudited)

(unaudited)

(audited)


£000

£000

£000

Retained (loss)/profit for the period attributable to equity holders of the parent

3,082

1,506

4,461


Shares

Shares

Shares


'000

'000

'000


Number

Number

Number

Weighted average number of ordinary shares for the purpose of basic earnings per share

47,420

47,227

47,247

Share options

1,404

723

111


48,824

47,950

47,358

Earnings per ordinary share




Basic (pence)

6.50p

3.19p

9.44p

Diluted (pence)

6.31p

3.14p

9.34p


£'000

£'000

£'000

Retained profit for the financial year attributable to equity holders of the parent

3,082

1,506

4,461

Adjustments:




Impairment of intangible assets

-

-

-

Share-based payments

691

688

1,061

Tax on share-based payments

341

-

(483)

Net adjustments

1,032

688

578

Adjusted earnings

4,114

2,194

5,039

Adjusted basic earnings per ordinary share (pence)

8.68p

4.65p

10.67p

 

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