REG - Tristel PLC - Half-year Report
26/02/2024 07:15
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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
(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 (mailto:tristel@walbrookpr.com) .
For further information please contact:
Tristel plc Tel: 01638 721 500
Paul Swinney, Chief Executive Officer www.investors.tristel.com (http://www.investors.tristel.com/)
Liz Dixon, Chief Financial Officer
Walbrook PR Ltd Tel: 020 7933 8780 or tristel@walbrookpr.com (mailto: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 (ClO(2)) chemistry. The Company is a market leader in manual
decontamination of medical devices, supplying hospitals under the Tristel
(https://tristel.com/) brand, and under the Cache
(https://thecachecollection.com/) 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 (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 ClO₂
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 Year ended
6 months 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 3,734 1,856 1,856
share **
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 - - 1,238
share
3,734 3,273 4,511
Proposed interim dividend for the year ended 30 June 2024 of 5.24p (2023: 2,485 1,237 -
2.62p) per share
** 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 3,082 1,506 4,461
parent
Shares Shares Shares
'000 '000 '000
Number Number Number
Weighted average number of ordinary shares for the purpose of basic earnings 47,420 47,227 47,247
per share
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 3,082 1,506 4,461
parent
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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