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TRISTEL PLC
Interim / Quarterly Report • Feb 20, 2023
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Interim / Quarterly Report
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National Storage Mechanism | Additional information 
RNS Number : 3601Q
Tristel PLC
20 February 2023
20 February 2023
TRISTEL plc
("Tristel", the "Company" or the "Group")
Half-year Report
Unaudited Interim Results for the six months ended 31 December 2022
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 2022, a period achieving 16% revenue growth and a 16-fold increase in EBITDA.
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 16% to £17.5m (2021: £15.1m restated to include products discontinued in 2021)
o Underlying revenue up 21% (excluding previous year distortions)
· Overseas sales up 12% to £11.2m (2021: £10m); UK sales up 24% to £6.3m (2021: £5.1m)
· Gross margin up to 81% (2021: 80%)
· Reported EBITDA up 16-fold to £3.9m (2021: £0.2m)
o Adjusted* EBITDA up 28% to £4.6m (2021: £3.6m)
· Reported profit before tax of £2.4m (2021: loss £1.2m)
o Adjusted* profit before tax up 41% to £3.1m (2021: £2.2m)
· Reported EPS 3.19p (2021: -2.08p)
o Adjusted* EPS 4.65p (2021: 4.97p)
· Tax charge £0.9m (2021: tax credit £0.2m)
· Interim dividend maintained at 2.62p per share (2021: 2.62p)
· No debt and cash of £8.4m (2021: £8.8m) after paying dividends of £3.3m (2021: £1.9m) including a special dividend of £1.4m in August 2022
*Adjusted for impairment of intangibles of £nil (2021: £2.4m) and share-based payments £0.7m (2021: £0.9m)
Operational highlights
· Launch of Tristel Duo into the North American ultrasound and ophthalmology markets
· FDA De Novo submission - additional data generated and will be delivered to FDA by March 2023 deadline
Commenting on the interim results, Paul Swinney, Chief Executive of Tristel, said: "We are delighted to have increased sales by 16% on the first half of last year, above our long-term target for revenue growth.
"In all regions the level of diagnostic examinations utilising our products is significantly higher than before the commencement of the pandemic.
"We have now entered the North American market, having launched Duo Ophthalmology in Canada, and Duo Ultrasound in the USA under our EPA approval, and expect the FDA's decision on our De Novo submission in June.
"The growth prospects for the Group are stronger than ever and we look to the future with confidence."
CFO video overview
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.
[Video content removed for conversion]
A live hybrid presentation of the financial results and outlook will be delivered by Paul Swinney, CEO, and Liz Dixon, CFO today at 4:30pm at 85 Gresham Street, London, EC2V 7NQ. Those not attending in-person can participate via a live webcast. Please register to attend, or to be sent the live webcast link, by contacting Walbrook PR on 020 7933 8780 or email [email protected].
| Tristel plc | www.tristel.com |
| Paul Swinney, Chief Executive | Tel: 01638 721 500 |
| Liz Dixon, Chief Financial Officer | |
| finnCap | |
| Geoff Nash/Charles Beeson, Corporate Finance | Tel: 020 7220 0500 |
| Alice Lane, Corporate Broking | |
| Walbrook PR Ltd | Tel: 020 7933 8780 or [email protected] |
| Paul McManus | Mob: 07980 541 893 |
| Lianne Applegarth | Mob: 07584 391 303 |
Chairman's statement
Revenue
During the half sales increased by 16%, reaching a record level of £17.5m, with all parts of the Group performing well. During the comparable period (H1 2021-22) there were two events that distorted our reported growth:
· in the UK a release of £0.9m of Brexit inventory into hospitals, a sale that we had recorded a year earlier which had been held in a dedicated warehouse by the NHS; and
· our discontinuation of several low growth product lines, from which sales totaling £1.5m were recorded last year, which were not repeated this year.
Removing these distortions, the underlying growth was 21%:
| As reported | |||
| £m | H1 2020-21 |
H1 2021-22 |
H1 2022-23 |
| Total revenue: | |||
| Tristel | 13.1 | 12.2 | 14.7 |
| Cache | 2.0 | 1.6 | 1.8 |
| Other | 1.6 | 1.3 | 1.0 |
| Total reported revenue | 16.7 | 15.1 | 17.5 |
| Year on year growth/(decline) | (10%) | 16% | |
| Normalised revenues | |||
| £m | H1 2020-21 |
H1 2021-22 |
H1 2022-23 |
| Total reported revenue | 16.7 | 15.1 | 17.5 |
| Less: discontinued product revenue | (2.0) | (1.5) | 0 |
| Adjusted for: Brexit inventory | (0.9) | 0.9 | 0 |
| Total underlying revenue | 13.8 | 14.5 | 17.5 |
| Underlying year on year growth | 5% | 21% |
Tristel and Cache
Notwithstanding the distortions, both key segments of the business have returned to a positive growth trajectory, with an increase of 20% in Tristel Medical Device products and 13% in Cache Surface products.
We have increased our prices to hospitals in response to global inflation. Of the increase in revenue of £2.4m, £1.8m relates to additional volume and £0.6m to pricing, which reflects a 4% global price rise.
The product rationalisation which took place in the corresponding period last year has achieved the key objective of sharpening our focus on our core hospital market. The benefits have been the elimination of products that were in sales decline and releasing operational and corporate resources to activities with high growth potential.
Other
This revenue derives from carriage, and products which are complementary to the Company's key strategic focus on infection prevention, some involving third party collaborations.
Profits and margins
Gross margins have remained steady at 81% (2021: 80%), in line with expectations.
Sales, general and administrative expenses of £9.5m (2021: £8.7m) have increased by 9%, reflecting the general inflationary environment and the recruitment of an additional 18 staff to accelerate our product development, sales, and marketing activities. Consequently, personnel costs have increased by 13%. Other cost increases include packaging (50%), plastics (24%) and chemicals (128%). Whilst utility costs have increased by 60%, our manufacturing process is largely manual, which provides us with some protection from cost pressures caused by the energy crisis.
Reported Group profit before tax increased by 300% to £2.4m (2021: loss before tax of £1.2m), and Group profit before tax and share-based payments increased by 41% to £3.1m (2021: profit before tax, share-based payments and impairment of intangibles of £2.2m).
Earnings and Dividend
Earnings per share (EPS) were 3.19p, a significant improvement from the loss per share of 2.08p last year.
EPS adjusted for share-based payments of £0.7m (2021: £0.9m) and impairment of intangibles of £nil (2021: £2.4m) was 4.65p (2021: 4.97p). The fall in adjusted EPS relates to a higher effective tax charge in 2022 of 37% (2021: 16% credit). The effective tax rate on operational results alone for the period is 21%. Both the current and deferred tax impact of the Group's share option plans increase the overall effective tax rate for the period to 37%.
The share-based payment charge of £0.7m is derived from the Group's All-Staff share option scheme (£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 a 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 2.62 pence (2021: 2.62 pence) to be paid on 11 April 2023. The associated ex-dividend date will be 16 March 2023 with a record date of 17 March 2023. The dividend pay-out will be held at its current level of 2.62 pence interim and 3.93 pence final, until the Group's stated dividend policy of two times EPS cover can be reinstated without a reduction in dividend per share.
North America
We have made our first sales in North America and have continued preparation of the additional data requested by the FDA for our De Novo submission. This will be lodged in March on time and within deadline and we are hopeful of a positive response in June.
Outlook
We are pleased to see the level of sales and profit growth that characterised Tristel in the decade up to 2020 returning and look forward to continuing growth in the second half, in line with expectations.
We remain optimistic for the Company's future, and if our FDA submission is approved this will add a new dimension to the Company's future ambitions - a challenge that we are ready to meet.
Bruno Holthof
Chairman
20 February 2023
Condensed Consolidated Income Statement for the six months ended 31 December 2022
| Restated* | ||||
| 6 months ended | 6 months ended | Year ended | ||
| 31-Dec-22 | 31-Dec-21 | 30-Jun-22 | ||
| (unaudited) | (unaudited) | (audited) | ||
| Note | £'000 | £'000 | £'000 | |
| Revenue | 2 | 17,463 | 15,125 | 31,123 |
| Cost of sales | (3,359) | (3,030) | (6,464) | |
| Gross profit | 14,104 | 12,095 | 24,659 | |
| Admin expenses - share-based payments | (688) | (884) | (596) | |
| Admin expenses - depreciation and amortisation | (1,431) | (1,300) | (2,777) | |
| Admin expenses - other (sales, general and administration) | (9,514) | (8,697) | (17,325) | |
| Admin expenses - impairment of intangibles | - | (2,439) | (2,439) | |
| Total Admin expenses | (11,633) | (13,320) | (23,137) | |
| Other operating income | 13 | 162 | 167 | |
| Operating profit | 2,484 | (1,063) | 1,689 | |
| Finance income | - | - | 1 | |
| Finance costs | (96) | (102) | (195) | |
| Profit before taxation | 2,388 | (1,165) | 1,495 | |
| Taxation | (882) | 183 | (568) | |
| Profit/(loss) for the period from continuing operations | 1,506 | (982) | 927 | |
| Profit/(loss) for the period attributable to the Group's equity shareholders | 1,506 | (982) | 927 | |
| Earnings per share from continuing operations | ||||
| attributable to equity holders of the parent | ||||
| Basic (pence) | 5 | 3.19 | *(2.08) | 1.96 |
| Diluted (pence) | 3.14 | *(2.05) | 1.94 |
* Restated for all products including those in product rationalisation project
Earnings from continuing operations before interest, tax depreciation, amortisation and impairment for the period ended 31 December 2022 were £4,603,000. (Period ended 31 December 2021 £3,560,000. Year ended 30 June 22 £7,501,000).
Condensed Consolidated Statement of Comprehensive Income for the six months ended 31 December 2022
| 6 months ended | 6 months ended | Year ended | ||
| 31-Dec-22 | 31-Dec-21 | 30-Jun-22 | ||
| (unaudited) | (unaudited) | (audited) | ||
| £'000 | £'000 | £'000 | ||
| Profit for the period | 1,506 | (982) | 927 | |
| Items that will be reclassified subsequently to Profit and loss | ||||
| Exchange differences on translation of foreign operations | 188 | 75 | 138 | |
| Other comprehensive income for the period | 188 | 75 | 1,065 | |
| Total comprehensive income for the period | 1,694 | (907) | 1,065 | |
| Attributable to: | ||||
| Equity holders of the parent | 1,694 | (907) | 1,065 | |
| 1,694 | (907) | 1,065 |
Condensed Consolidated Statement of Financial Position as at 31 December 2022
| 6 months ended | 6 months ended | Year ended | ||
| 31-Dec-22 | 31-Dec-21 | 30-Jun-22 | ||
| (unaudited) | (unaudited) | (audited) | ||
| £'000 | £'000 | £'000 | ||
| Non-current assets | ||||
| Goodwill | 5,325 | 5,127 | 5,242 | |
| Intangible assets | 3,828 | 4,063 | 4,138 | |
| Right of use assets | 4,927 | 5,310 | 5,209 | |
| Property, plant and equipment | 2,682 | 2,953 | 2,791 | |
| Deferred tax asset | 725 | 1,990 | 1,493 | |
| 17,487 | 19,443 | 18,873 | ||
| Current assets | ||||
| Inventories | 4,668 | 3,751 | 4,420 | |
| Trade and other receivables | 6,394 | 4,842 | 5,851 | |
| Income tax receivable | 1,160 | 474 | 713 | |
| Cash and cash equivalents | 8,421 | 8,779 | 8,883 | |
| 20,643 | 17,846 | 19,867 | ||
| Total assets | 38,130 | 37,289 | 38,740 | |
| Capital and reserves | ||||
| Called up share capital | 473 | 472 | 473 | |
| Share premium account | 14,010 | 13,929 | 13,996 | |
| Merger reserve | 2,205 | 2,205 | 2,205 | |
| Foreign exchange reserves | 123 | (128) | (65) | |
| Retained earnings | 11,388 | 11,255 | 12,371 | |
| Equity attributable to equity holders of parent | 28,199 | 27,733 | 28,980 | |
| Minority interest | 7 | 7 | 7 | |
| Total equity | 28,206 | 27,740 | 28,987 | |
| Current liabilities | ||||
| Trade and other liabilities | 3,697 | 2,897 | 3,222 | |
| Current leased asset liabilities | 700 | 629 | 814 | |
| Total current liabilities | 4,397 | 3,526 | 4,036 | |
| Non-current liabilities | ||||
| Deferred tax | 654 | 874 | 720 | |
| Non-current leased asset liabilities | 4,873 | 5,149 | 4,997 | |
| Total liabilities | 9,924 | 9,549 | 9,753 | |
| Total equity and liabilities | 38,130 | 37,289 | 38,740 |
Condensed Consolidated Statement of Changes in Equity for the six months ended 31 December 2022
| 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 2021 | 471 | 13,600 | 2,205 | (203) | 14,003 | 30,076 | 7 | 30,083 |
| Transactions with owners | ||||||||
| Dividends paid | (1,854) | (1,854) | (1,854) | |||||
| Shares issued | 1 | 329 | 330 | 330 | ||||
| Share-based payments | 884 | 884 | 884 | |||||
| Deferred tax through equity | (796) | (796) | (796) | |||||
| Total transactions with owners | 1 | 329 | (1,766) | (1,436) | (1,436) | |||
| Profit for the period ended 31 December 2021 | (982) | (982) | (982) | |||||
| Other comprehensive income :- | ||||||||
| Exchange differences on translation of foreign operations | 75 | 75 | 75 | |||||
| Total comprehensive income | 75 | (982) | (907) | (907) | ||||
| 31 December 2021 | 472 | 13,929 | 2,205 | (128) | 11,255 | 27,733 | 7 | 27,740 |
| Transactions with owners | ||||||||
| Dividends paid | (1,237) | (1,237) | (1,237) | |||||
| Shares issued | 1 | 67 | 68 | 68 | ||||
| Share-based payments | (288) | (288) | (288) | |||||
| Current tax through equity | 47 | 47 | 47 | |||||
| Deferred tax through equity | 685 | 685 | 685 | |||||
| Total transactions with owners | 1 | 67 | (793) | (725) | (725) | |||
| Profit for the period ended 30 June 2022 | 1,909 | 1,909 | 1,909 | |||||
| Other comprehensive income :- | ||||||||
| Exchange differences on translation of foreign operations | 63 | 63 | 63 | |||||
| Total comprehensive income | 63 | 1,909 | 1,972 | 1,972 | ||||
| 30 June 2022 | 473 | 13,996 | 2,205 | (65) | 12,371 | 28,980 | 7 | 28,987 |
| 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) |
| Condensed Consolidated Statement of Changes in Equity for the six months ended 31 December 2022 (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 | - | 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 | 11,388 | 28,199 | 7 | 28,206 |
Condensed Consolidated Statement of Cash Flows for the six months ended 31 December 2022
| 6 months ended | 6 months ended | Year ended | |||
| 31-Dec-2022 | 31-Dec-2021 | 30-Jun-2022 | |||
| (unaudited) | (unaudited) | (audited) | |||
| Cash flows from operating activities | Note | £'000 | £'000 | £'000 | |
| Group profit/(loss) before tax for the period | 2,388 | (1,165) | 1,495 | ||
| Adjustments to cash flows from non-cash items | |||||
| Depreciation of leased assets | 500 | 369 | 973 | ||
| Depreciation of plant, property & equipment | 323 | 335 | 632 | ||
| Amortisation of intangible asset | 577 | 595 | 1,105 | ||
| Impairment of intangible asset | 33 | 2,472 | 2,506 | ||
| Share-based payments - IFRS 2 | 688 | 884 | 596 | ||
| Loss on disposal of PPE and intangible assets | - | - | 20 | ||
| Lease interest | 92 | 100 | 193 | ||
| Other interest | - | - | 2 | ||
| Finance income | - | - | (1) | ||
| 4,601 | 3,590 | 7,521 | |||
| Working capital adjustments | |||||
| (Increase)/decrease in inventories | (248) | 515 | (154) | ||
| (Increase)/decrease in trade and other receivables | (543) | 413 | (596) | ||
| Increase/(decrease) in trade and other payables | 475 | (579) | (253) | ||
| Lease interest paid | (92) | (100) | (193) | ||
| Corporation tax paid | (533) | (488) | (772) | ||
| Net cash flow from operating activities | 3,660 | 3,351 | 5,553 | ||
| Cash flows from investing activities | |||||
| Interest received | - | - | 1 | ||
| Purchase of intangible assets | (295) | (428) | (898) | ||
| Purchase of property plant and equipment | (128) | (164) | (305) | ||
| Net cash used in investing activities | (423) | (592) | (1,202) | ||
| Cash flows from financing activities | |||||
| Payment of lease liabilities | (450) | (400) | (930) | ||
| Share issues | 14 | 330 | 398 | ||
| Dividends paid | 4 | (3,273) | (1,854) | (3,091) | |
| Net cash used in financing activities | (3,709) | (1,924) | (3,623) | ||
| Net (decrease)/increase in cash and cash equivalents | (472) | 835 | 728 | ||
| Cash and cash equivalents at the beginning of the period | 8,883 | 8,094 | 8,094 | ||
| Exchange differences on cash and cash equivalents | 10 | (148) | 61 | ||
| Cash and cash equivalents at the end of the period | 8,421 | 8,781 | 8,883 | ||
Notes to the Financial Statements for the six months ended 31 December 2022
| 1 | Accounting policies |
Basis of Preparation
For the year ended 30 June 2022, 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 2022.
Forthcoming requirements: This table lists the recent changes to the Standards that are required to be applied for annual periods beginning after 1 January 2022 and that are available for early adoption in annual periods beginning on 1 January 2022
| Effective date | |
| 1 January 2023 | IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts |
| 1 January 2023 | Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) |
| 1 January 2023 | Definition of Accounting Estimates (Amendments to IAS 8) |
| 1 January 2023 | Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) |
| 1 January 2023 | Classification of Liabilities as Current or Non-current (Amendments to IAS 1) |
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 2022 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 2022.
The financial information for the six months ended 31 December 2022 and 31 December 2021 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 2022 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 |
Management considers the Company's revenue lines to be split into two 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 Company's operating segments are identified initially from the information which is reported to the chief operating decision maker.
The first segment concerns the manufacture and sale of medical device decontamination products which are used primarily for infection control in hospitals. This segment generates approximately 84% of the Company's continuing revenues (2021: 81%).
The second segment which constitutes 10% (2021: 10%) of the business activity, relates to the manufacture and sale of hospital environmental surface disinfection products.
A third segment comprises carriage and third party collaborations which are complimentary to the Company's core strategic focus on infection prevention.
The operation is monitored and measured on the basis of the key performance indicators of each segment, these being revenue and gross profit, and strategic decisions are made on this basis.
The Company's centrally incurred administrative expenses and operating income, and assets and liabilities, cannot be allocated to individual segments.
| 6 Months ended | 6 Months ended | |||||||||||||||||||||||
| 31 December 2022 | 31 December 2021 ** | |||||||||||||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||||||||||
| Hospital medical device decontamination | Hospital environmental surface disinfection | Other revenue | Total | Hospital medical device decontamination | Hospital environmental surface disinfection | Other revenue | Total | |||||||||||||||||
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |||||||||||||||||
| Revenue | 14,699 | 1,782 | 982 | 17,463 | 12,238 | 1,568 | 1,319 | 15,125 | ||||||||||||||||
| Cost of material | (2,253) | (719) | (387) | (3,359) | (1,929) | (575) | (526) | (3,030) | ||||||||||||||||
| Gross profit | 12,446 | 1,063 | 595 | 14,104 | 10,309 | 993 | 793 | 12,095 | ||||||||||||||||
| Centrally incurred income and expenses not attributable to individual segments: | ||||||||||||||||||||||||
| Depreciation and amortisation of non-financial assets | (1,431) | (1,300) | ||||||||||||||||||||||
| Administrative expenses - other (sales, general and administration) | (9,514) | (8,697) | ||||||||||||||||||||||
| Share-based payments | (688) | (884) | ||||||||||||||||||||||
| Other income | 13 | 162 | ||||||||||||||||||||||
| Segment operating profit | 2,484 | 1,376 | ||||||||||||||||||||||
| Segment operating profit can be reconciled to Group profit before tax as follows: | ||||||||||||||||||||||||
| Segment operating profit | 2,484 | 1,376 | ||||||||||||||||||||||
| Finance income | - | - | ||||||||||||||||||||||
| Finance costs | (96) | (102) | ||||||||||||||||||||||
| Disposal of intangible asset | - | (2,439) | ||||||||||||||||||||||
| Group (loss)/profit | 2,388 | (1,165) | ||||||||||||||||||||||
| ** 31 December 2021 restated for all products | ||||||||||||||||||||||||
| Year ended | ||||||||||
| 30 June 2022 | ||||||||||
| (audited) | ||||||||||
| Hospital medical device decontamination | Hospital environmental surface disinfection | Other revenue | Total | |||||||
| £000 | £000 | £000 | £000 | |||||||
| Revenue | 25,422 | 3,178 | 2,523 | 31,123 | ||||||
| Cost of material | (4,060) | (1,292) | (1,112) | (6,464) | ||||||
| Gross profit | 21,362 | 1,886 | 1,411 | 24,659 | ||||||
| Centrally incurred income and expenses not attributable to individual segments: | ||||||||||
| Depreciation and amortisation of non-financial assets | (2,777) | |||||||||
| Administrative expenses - other (sales, general and administration) | (17,325) | |||||||||
| Share-based payments | (596) | |||||||||
| Other income | 167 | |||||||||
| Impairment of intangible assets | (2,439) | |||||||||
| Segment operating profit | 1,689 | |||||||||
| Segment operating profit can be reconciled to Group profit before tax as follows: | ||||||||||
| Segment operating profit | 1,689 | |||||||||
| Finance income | 1 | |||||||||
| Finance costs | (195) | |||||||||
| Group profit | 1,495 | |||||||||
| 3 | Income tax |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2021 - lower than the standard rate of corporation tax in the UK) of 20.50% (2021 - 19%).
The differences are reconciled below:
| 6 months ended | 6 months ended | Year ended | |
| 31 December 2022 | 31 December 2021 | 30 June 2022 | |
| (unaudited) | (unaudited) | (audited) | |
| £000 | £000 | £000 | |
| Profit/(loss) before tax | 2,388 | (1,165) | 1,495 |
| Corporation tax at standard rate | 490 | (221) | 284 |
| Adjustment in respect of prior years | - | 227 | 314 |
| Expenses not deductible for tax purposes | 17 | 29 | 66 |
| (Decrease) from effect of patent box | - | (48) | - |
| Increase from effect of foreign tax rates | 18 | 68 | 25 |
| Tax losses not utilised and other differences | 341 | 68 | 118 |
| Remeasurement of deferred tax due to changes in tax rate | 114 | (244) | (144) |
| Enhanced relief on qualifying scientific research expenditure | (98) | (62) | (95) |
| Total tax charge | 882 | (183) | 568 |
| 4 | Dividends |
Amounts recognised as distributions to equity holders in the year:
| 6 months ended | 6 months ended | Year ended | |
| 31 December 2022 | 31 December 2021 | 30 June 2022 | |
| (unaudited) | (unaudited) | (audited) | |
| £000 | £000 | £000 | |
| Ordinary shares of 1p each | |||
| Final dividend for the year ended 30 June 2022 of 3.93p (2021: 3.93p) per share ** | 1,856 | 1,854 | 1,854 |
| Special dividend for the year ended 30 June 2022 0f 3.00p (2021: nil) | 1,417 | - | - |
| Interim dividend for the year ended 30 June 2022 of 2.62p (2021: 2.62p) per share | - | - | 1,237 |
| 3,237 | 1,854 | 3,091 | |
| Proposed interim dividend for the year ended 30 June 2023 of 2.62p (2022: 2.62p) per share | 1,237 | 1,236 |
** Based on shares in issue at 14 December 2022 of 47,227,993 (14 December 2021 of 47,185,043).
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 2022 | 31 December 2021 | 30 June 2022 | |
| (unaudited) | (unaudited) | (audited) | |
| £000 | £000 | £000 | |
| Retained (loss)/profit for the period attributable to equity holders of the parent | 1,506 | (982) | 927 |
| Shares | Shares | Shares | |
| '000 | '000 | '000 | |
| Number | Number | Number | |
| Weighted average number of ordinary shares for the purpose of basic earnings per share | 47,227 | 47,147 | 47,187 |
| Share options | 723 | 708 | 582 |
| 47,950 | 47,855 | 47,769 | |
| Earnings per ordinary share | |||
| Basic (pence) | 3.19p | (2.08)p | 1.96p |
| Diluted (pence) | 3.14p | (2.05)p | 1.94p |
| £'000 | £'000 | £'000 | |
| Retained profit for the financial year attributable to equity holders of the parent | 1,506 | (982) | 927 |
| Adjustments: | |||
| Impairment of intangible assets | - | 2,439 | 2,439 |
| Share-based payments | 688 | 884 | 596 |
| Net adjustments | 688 | 3,323 | 3,035 |
| Adjusted earnings | 2,194 | 2,341 | 3,962 |
| Adjusted basic earnings per ordinary share (pence) | 4.65p | 4.97p | 8.40p |
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