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Tristel plc

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

 

Audited Preliminary Results

for the year ended 30 June 2022

 

Tristel plc (AIM: TSTL), the manufacturer of infection prevention products for hospitals, announces its audited preliminary results for the year ended 30 June 2022.

 

The Company has entered the new financial year with the impact of Brexit on NHS stocking levels behind us, the effects of the pandemic on patient procedures receding, a more sharply focused business, and a clear line of sight to the resumption of consistent revenue and profits growth.

 

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

·      Turnover steady at £31.1m (2021: £31.0m) with 3% growth in continuing products to £29.6m (2021: £28.6m)

·      Overseas sales continue to grow, up 2% to £20.1m (2021: £19.6m), representing 65% of total sales (2021: 63%)

·      Gross margin remained steady at 79% (2021: 80%)

·      Adjusted EBITDA* margin of 24% (2021: 27%)

·      Adjusted pre-tax profit* of £4.5m (2021: £5.4m)

·      Reported pre-tax profit of £1.5m (2021: £3.8m)

·      Adjusted EPS* of 8.40p (2021: 11.36p restated**), Reported EPS of 1.96p (2021: 7.86p restated**)

·      Dividend per share for the full year up 46% to 9.55p (2021: 6.55p), including special dividend of 3p paid in August 2022

·      Net cash of £8.9m (2021: £8.1m), with continued strong operating cashflow of £5.6m (2021: £6.7m)

 

* before share-based payments and impairment of intangibles

**See note 8 for restatement

 

Operational Highlights

·      Discontinuation of non-core, low growth products completed during the year  

·      De Novo FDA submission for Tristel Duo ULT progressing - additional information requested (as is commonplace) with expected timescale for decision and likelihood of success unchanged

·      State-by-state registration of EPA approved DUO substantially complete, and product launched into United States market in September 2022 at three clinical conferences

·      Signed distribution agreement with Medical Ophthalmics Inc., Toronto for Duo OPH (approved by Canada Health for high-level disinfection of ophthalmic devices)

 

 

Paul Swinney, Chief Executive of Tristel plc, said: "The disruptions of the past three years are largely behind us, and we are in a strong position to resume consistent revenue and profits growth. Our continued cash generation and strong balance sheet will support this return to growth, and we have set out clear objectives for the business over the next three years.

 

"We look forward to meeting these objectives and continuing the progress of the Group. We look to the future with confidence as Tristel continues to grow and expand its geographical reach."

 

 

 

Overview of results by Liz Dixon, CFO

 

 

 

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 No.1 Cornhill, London, EC3V 3ND. Those not attending in-person can participate via the Investor Meet Company platform and there will be an opportunity for investors to submit questions. Investors can sign up to Investor Meet Company for free and register for the presentation via: https://www.investormeetcompany.com/tristel-plc/register-investor

 

 

 

 

For further information please contact:     

 

Tristel plc	www.tristelgroup.com
Paul Swinney, Chief Executive Officer	via Walbrook PR
Liz Dixon, Chief Financial Officer
Walbrook PR Ltd	Tel: +44 (0)20 7933 8780 or tristel@walbrookpr.com
Paul McManus / Lianne Applegarth	Mob: +44 (0)7980 541 893 / +44 (0)7584 391 303
finnCap	Tel: +44 (0)20 7220 0500
Geoff Nash/ Charlie Beeson (Corporate Finance)
Alice Lane/ Sunila de Silva (ECM)

 

 

 

 

 

 

Chairman's Statement

 

Strategy and growth

The past three years have been impacted by Brexit and COVID-19 and the year ended 30 June 2022 was further affected by our response to these external forces, which was to rationalise our product range to focus solely on the hospital market. With Brexit behind us, the effects of COVID-19 receding, and the rationalisation decisively concluded during the year, we have entered the current financial year with a clear line of sight to resumption of consistent revenue and profits growth which we have achieved in the past.

 

I will speak to each of these events and how we now assess them:

 

Brexit impacted us by disrupting the normal steady buying patterns of hospitals in the United Kingdom, which is our largest geographical market, representing 35% of global sales in 2022.  The UK healthcare system is dominated by the National Health Service which itself concentrates most of its procurement through one agency, the NHS Supply Chain.

 

On several occasions between 2019 and 2021 the NHS Supply Chain, at the Government's direction, stockpiled hospital consumables to safeguard against potential disruption to supply. The last occasion was in the first half of FY21 when approximately £0.9m of our products were purchased and held in strategic storage locations. This inventory was released to hospitals during the first half of FY22 which meant that our UK sales in FY22 were reduced by the same value. All these reserve inventories were released into the NHS system and used by UK hospitals by 30 June 2022, and we have entered the current financial year with a stable, predictable order pattern from our largest UK customer.

 

COVID-19 impacted global healthcare in a series of waves each of which reduced, to differing degrees in different countries, the provision of diagnostic examinations to patients. These examinations include ultrasound scans and endoscopies, the procedures where our products are primarily used. The reasons for the reduction in service levels were numerous: diversion of staff and beds to COVID patients; reduced access to hospitals; lower productivity because of the use of PPE and increased cleaning standards; the introduction of strict waiting room management protocols, and staff shortages in large part attributable to COVID sick absence. Staff shortages in hospitals worldwide is a continuing legacy of the pandemic.

 

During the second half of the year, a marked increase in service levels became apparent in all 14 countries in which we operate directly. Our Group's revenue performance in the second half showed a marked improvement over the first half, and also the second half of the previous year (H1 2022 £15.1m H2 2022 £16m vs H1 2021 £16.7m H2 2021 £14.3m.)  We are confident that there is still a significant improvement in demand ahead of us as the global recovery in the provision of diagnostic services is far from complete.

 

The combination of Brexit and COVID-19 and their impact upon the business caused us to take a hard look at our product range during the final months of FY21. We had two portfolio brands - Crystel and Anistel - which were used in two different markets: clean room and personal care product manufacture (Crystel) and veterinary (Anistel). Both product ranges were UK focused, were largely based upon chemistries other than our proprietary chlorine dioxide, and sales were in decline. We concluded that the beginning of the year was the right time to focus on the hospital market with our product portfolio brands - Tristel and Cache - and ensure we had the rationalisation project completed during FY22.

 

The rationalisation was committed to at the end of FY21, largely completed by 31 December 2021, and wrapped up in the second half of FY22. The discontinued products generated revenue in FY22 of £1.5m and after all associated overheads, write-off of redundant inventory and internal reorganisation costs, they made a neutral profit contribution to the year. An impairment charge of £2.4m was recorded as all license rights, IP, and intangibles associated with the products were written down in their entirety.

Group Revenue Breakdown                                                         

£m	2020-2021	2021-2022	Percentage change
Continuing products	28.6	29.6	+3%
Discontinued products	2.4	1.5	-38%
Group Revenue from all products	31.0	31.1	+0%

 

In conclusion, we have entered the current financial year with the impact of Brexit behind us, with the impact of the pandemic receding, and a more sharply focused business.

 

Regulatory, business systems and investing in growth

As we noted last year, the regulatory environment in which we are operating is becoming ever more complicated and demanding.

 

In Europe, CE marking is required for medical device disinfectants. Post Brexit, the UK introduced UKCA Marking Certification, which came into effect on 1 January 2021, although CE marking will continue to be recognised in the UK until the end of 2022.  From the beginning of 2023 only products with UKCA marking will be accepted in Great Britain.

 

In Europe, surface disinfectants must be approved under the Biocidal Products Regulation (BPR). Post-Brexit, the UK has mirrored the European BPR process with the GBBPR and will at some stage in the future create its own version of it.

 

The consequence of these developments is that we have to comply with parallel and sometimes competing regulatory frameworks where previously there was only one. Compliance can only be achieved by increasing overhead to attract the best Quality Assurance and Regulatory Affairs people in a highly competitive market for such skills. This is one cause of the upwards pressure on our business costs.

 

We continue to invest in the most appropriate systems for a business of our size and complexity. The organisation is deeply committed to a digital transformation programme across all facets of our operation. Equally, we invest heavily in our IT and cyber security infrastructure increasing spend to £0.8m in 2022 from £0.5m in the previous year.

 

Overseas expansion

We continue to expand our global footprint through a combination of establishing our own subsidiaries and the appointment of national distributors. In April 2022 we took over the customer base built up by a distributor who had worked with us in Singapore for many years, and established a subsidiary with our own sales force.

 

In North America we made our De Novo submission to the FDA for Duo ULT in June 2022. We expect to receive a decision from the agency during the current financial year. With respect to the EPA approval that we received in June 2021, we re-started the state-by-state registration process during FY22 and will launch the product together with our USA partner Parker Laboratories at a series of ultrasound conferences during this Autumn. In Canada, we are launching Duo OPH for ophthalmic devices also in the Autumn of 2022.

 

Our people

I would like to thank our employees for their commitment throughout the year. There were plenty of difficulties to overcome from many directions, on top of which we tackled the largest product re-organisation we have ever undertaken.

 

I spoke in last year's Annual Report about our team being match fit for the better times ahead. Whilst these better times were slow to arrive, the team stuck patiently to the task, and delivered a great performance during the year.

 

Results

Our gross profit margin remained steady at 79% (2021: 80%). Overheads (excluding share-based payments, depreciation, amortisation and impairment) rose by 6% from £16.4m to £17.4m, principally due to the increase in headcount from 189 to 199. The associated increase in wages and salaries of £0.7m (excluding share-based payments) was partially offset by a reduction in travel and the number of medical conferences at which we exhibited.

Adjusted pre-tax profit (before share-based payments of £0.6m and the impairment charge of £2.4m) fell 17% from £5.4m to £4.5m. Unadjusted pre-tax profit (after share-based payment and the impairment charge) fell 60% from £3.8m to £1.5m. The adjusted pre-tax profit margin was 15% (2021: 17%) and the unadjusted margin was 5% (2021:12%).

Earnings per share (EPS) (adjusted for the add-back of the share-based payment charge and impairment of intangible assets) was 8.40 pence. (2021 restated: 11.36 pence). Basic EPS was 1.96 pence (2021 restated: 7.86 pence).

 

Balance sheet, cash and dividend

The Group has continued to be highly cash generative during the year and the balance sheet is debt-free (with the exception of lease liabilities). The cash balance on 30 June 2022 was £8.9m (2021: £8.1m).

The Company's policy has been to pay out half of adjusted EPS in the form of an ordinary dividend each year. Given the extraordinary circumstances of 2021 and 2022, we have decided to deviate from this policy and pay a dividend linked to the market's expectation for the year's dividend. The Board is recommending that the final dividend is 3.93 pence (2021: 3.93 pence), reducing the dividend cover to 0.88 times from the standard 2 times. This final dividend will be paid to shareholders on the register on 18 November and the associated ex-dividend date is 17 November 2022.

Outlook

We are confident that we are going to resume the steady upward growth trajectory that characterised our financial performance over the fifteen-year period that followed our IPO in 2005 and ended with the pandemic. We can deliver this from our existing global footprint and our focus on the hospital market.

 

With the USA EPA approval and the Health Canada approval for Duo OPH - both of which we have - and hopefully an FDA approval for Duo ULT during FY23, we will be doing business in North America for the first time in our history. This will represent a step change in the growth possibilities for the Company.

 

 

Dr Bruno Holthof

Non Executive Chair

 

 

 

 

Chief Executive's Report

Overview

The year ended 30 June 2022 was encouraging for the Group. The highlights were:

 

·      The stockpiling by the NHS Supply Chain in the first half of FY21 unwound during the first half of FY22, and the second half of FY22 revealed the true level of demand from UK hospitals for our core products. Second half UK revenue of our core products was £5.7m compared to £3.9m in the first half. NHS stocking and de-stocking due to Brexit was purely a UK phenomenon, but with the UK accounting for 35% of Group sales, it had a material negative impact on the Group in the year.

 

·      The effects of COVID were clearly receding by year-end and have continued to abate in the current financial year.

 

·      The product range rationalisation was successfully executed during the year.        

 

Financial targets

In October 2019 we set a financial plan for the three years to 30 June 2022. The three key financial targets of the plan were:

i)              sales growth in the range of 10% to 15% per annum as an annual average over the three years;

ii)             the achievement in each year of an EBITDA margin (excluding share-based payment charge) of at least 25%, and

iii)            to increase profit before tax (excluding share-based payments) year-on-year, independently of the other two targets.

 

These financial targets were set before the COVID-19 pandemic and the disruption to NHS purchasing patterns caused by Brexit. Although the past three years have been challenging, the business is now in a much stronger position and the Company is proud of its achievements over the period. For transparency, our performance against the targets set in 2019 has been:

 

Financial year	Revenue £m	Annual revenue growth	Average revenue growth	Adjusted EBITDA margin %	Increase in profit before tax (excluding SBP charge)
Ended 30.06.19 (base year)	26.2	-	-	-	-
Ended 30.6.20	31.7	21.0%	21.0%	30.9%	Yes
Ended 30.6.21 - restated**	31.0	-2.2%	9.4%	27.1%	No
Ended 30.6.22	31.1	0.3%	6.4%	24.0%	No

 

** See note 8 for restatement

 

We have re-set targets for the coming three years to FY25. They are:

i)              sales growth in the range of 10% to 15% per annum as an annual average over the three years;

ii)             the achievement in each year of an EBITDA margin (excluding share-based payment charge) of at least 25%.

 

Our marketplace and technology

Our entire business is focussed on preventing the transmission of microbes from one object or person to another. We pursue this purpose because microbes are the cause of infection in humans. They can cause illness or death and place a heavy cost on individuals and society. We achieve our purpose by developing products based upon a very powerful disinfectant: chlorine dioxide, of which we have a proprietary formulation.

 

Our mission is most relevant to hospitals where the risk of transmission of infection between individuals is highest. Infection prevention is a basic requirement for the safe and effective provision of healthcare, true for all hospitals in all countries. Over 98% of our revenues are of consumable products performing a vital function that is non-discretionary.

 

Our strategy focusses upon our proprietary chlorine dioxide chemistry and two principal applications for it: first, the high-level disinfection of medical devices under the Tristel brand (accounting for 85% of continuing product revenues in the year); and second, the disinfection of surfaces in hospitals under the Cache brand (accounting for 10% of continuing product revenues in the year). Within this second activity, we make a distinction between sporicidal efficacy that is achieved with the use of our chlorine dioxide chemistry, and the low-level performance claims that are made by most other disinfectant chemistries. Our objective is to create a clearly identifiable segment within surface disinfection for sporicidal products and to be the global market leader in this segment. 

 

With respect to Tristel, our proposition is unique in two respects: first, we are the only provider of chlorine dioxide-based high-level disinfectants validated and regulated for use with semi-critical medical devices; and second, we are unique in applying the active ingredient in a manual process. Other high-level disinfection processes using the active ingredients peracetic acid and hydrogen peroxide - alternatives to chlorine dioxide - require automated equipment to contain and control the chemistry.  

 

Manual application means Tristel products are ideally suited for hospital departments that carry out diagnostic procedures with small heat-sensitive medical instruments. These include: nasendoscopes used in Ear, Nose and Throat departments; laryngoscope blades used in emergency medicine; cardio echo probes used in the diagnosis of heart disease; tonometers used in ophthalmology, and ultrasound probes used in both women and men's health. In these areas of the hospital, we are the simplest, quickest, and most affordable high-performance disinfection method available. Consequently, in geographical markets in which we have been present for some time, we hold truly significant market share.

 

The cleaning and disinfection of environmental surfaces in hospitals is ubiquitous and the global expenditure by hospitals on surface disinfection is far greater than the expenditure on decontaminating medical devices. The capability of a disinfectant to kill bacterial spores is the defining hallmark of the best-performing biocides, and chlorine dioxide is one of the elite chemistries that can kill spores.

 

We expect a legacy of COVID-19 will be that hospitals will be more rigorous in their selection of the best performing and most scientifically validated disinfectant products, which will benefit Cache. 

 

Revenue by segment

We segment our business to reflect our corporate strategy. We have developed distinctly different brands for the two segments: Tristel for medical device disinfection and Cache for sporicidal surface disinfection. Our strategic intention is to develop the Tristel and Cache brands and product portfolios with a significant degree of independence from each other, but both anchored upon our chlorine dioxide technology platform and using the same sales teams in all countries.

 

The other segment, which we regard as non-core, represents a much-reduced number of products that were not discontinued in our rationalisation programme, and whose remaining product life span is relatively short. During the year, the revenue split across these segments was:

 

£m	Brand	Revenue 2020-21	% of total	Revenue 2021-22	% of total
Medical device decontamination in hospitals	Tristel	24.0	77%	25.4	82%
Environmental surface disinfection in hospitals	Cache	4.0	13%	3.2	10%
Other - non-core	Various	0.6	2%	1.0	3%
Continuing products		28.6	92%	29.6	95%
Discontinued products	Various	2.4	8%	1.5	5%
Group		31.0	100%	31.1	100%

 

 

 

 

 

Revenue by channel

We sell our products directly to end-users in those markets in which we have established a subsidiary, and through distributors in markets where we have no corporate presence. During the year, the revenue split by sales channel was:

 

	2020-21 Revenue	2021-22 Revenue	Year-on-Year change	Percentage change
Hospital medical device decontamination: Tristel
EMEA direct	17.2	18.1	0.9	+5%
APAC direct	5.0	5.3	0.3	+6%
Worldwide distributors	1.8	2.0	0.2	+11%
Tristel global	24.0	25.4	1.4	+6%
Hospital environmental surface disinfection: Cache
EMEA direct	2.3	2.5	0.2	9%
APAC direct	0.7	0.5	-0.2	-29%
Worldwide distributors	1.0	0.2	-0.8	-80%
Cache global	4.0	3.2	-0.8	-20%
Other revenue: various brands	0.6	1.0	0.4	67%
Continuing products	28.6	29.6	1.0	3%
Discontinued products	2.4	1.5	-0.9	-38%
Group	31.0	31.1	0.1	0%

 

Revenue by geography

The proportion of our revenue generated in overseas markets continued to increase and reached 65%. The history over the previous five years is shown in the table below.

 

	2016-17	2017-18	2018-19	2019-20	2020-21	2021-22
Revenue split %
UK	53%	49%	45%	40%	37%	35%
Overseas	47%	51%	55%	60%	63%	65%
Annual revenue growth %
UK	3%	2%	9%	7%	-10%	-3%
Overseas	43%	19%	26%	32%	3%	2%

 

We have fourteen subsidiaries selling directly into the hospital marketplace in the United Kingdom, Belgium, the Netherlands, France, Italy, Germany, Switzerland, Poland, Hong Kong, China, Malaysia, Singapore, Australia, and New Zealand. We have subsidiaries in the United States, Japan, India, and Ireland which are not yet active in terms of selling. We closed our Russian subsidiary early in the current financial year.

 

During the year, in another nineteen countries, we sold products through national distributors.

 

 

 

 

Our Strategic Assets

We consider the assets that enable the Group to achieve its strategic goals to be:

 

Our chlorine dioxide chemistry

There are three critically important elements that account for the unique positioning of our chlorine dioxide chemistry:

 

1.     The proprietary formulation,

 

2.     Our focus over two decades on exploring the potential for chlorine dioxide in the decontamination of medical instruments. There is another application for chlorine dioxide chemistry which all other businesses have concentrated upon which is water treatment. From the inception of our business in the 1990's we looked in a different direction - towards medical device disinfection - a direction which others have not followed, and this has given us the pioneer's advantage,

 

3.     The length of time that we have enjoyed this pioneer position has allowed us to collate a significant body of knowledge, including published scientific data, the testimony of almost two decades of safe use, a significant global footprint of regulatory approvals and a library of proven compatibility with hundreds of medical instruments, all of which would take a new entrant significant time and cost to match.

 

Our regulatory programme succeeded in attaining 21 approvals for 16 products in 5 countries during the year.

 

Intellectual property protection

On 30 June 2022, we held 137 patents granted in 33 countries providing legal protection for our products.

 

In its broadest sense, our intellectual property relates to:

 

1.     Patents, trademarks and registered designs,

2.     The scientific validation of our chemistry and our products that have entered the public domain, via a number of peer-reviewed and published papers,

3.     The certification by medical device manufacturers that our chemistry is compatible with their products. We enjoy official compatibility with the instrumentation of 56 medical device manufacturer, with respect to 1,449 of their individual models.

 

Our people possess an unrivalled body of knowledge relating both to infection prevention and to chlorine dioxide, and they are a key asset for the future of our business. Their domain knowledge relates to the manufacture of chlorine dioxide-based products and their development. The Company's R&D investment focusses exclusively on our proprietary technology, searching for improvements in microbial efficacy, reductions in hazards, and greater efficiency in manufacture. In parallel, we invest in the creation of packaging and delivery forms that enhance and simplify the delivery of the chemistry and the user experience.

 

Progress in North America

Health Canada

In FY 21 Tristel Duo OPH was approved by Health Canada as a class 2 medical device and included in Health Canada's Medical Device Listing. Duo OPH is a high-level disinfectant intended for use on ophthalmic instruments including ultrasound devices and re-usable tonometers and lenses that contact the cornea. Early in the current financial year we entered into a distribution agreement with Medical Ophthalmics Inc., Toronto for Duo OPH.

 

United States Environmental Protection Agency (EPA)

We received our first approval from the EPA for our foam-based disinfectant for surfaces in April 2018. We successfully enhanced the performance claims of the product with a second approval in January 2019 and then registered the product in three States before curtailing the nationwide registration programme until a third submission could be made to bolster further the competitive positioning of the product. This submission was made in October 2020, and we received the third approval in FY21, which expands the product's efficacy claims to include mycobacteria, with all efficacy claims are within a contact time of two minutes. We recommenced the State-by-State registration programme during FY22, and we expect all registrations to be granted by 31 March 2023.

In September 2022 we announced that DUO has been launched in the United States through the Company's distribution partner Parker Laboratories Inc. at three conferences and trade shows.

United States Food and Drug Administration (FDA)

After more than five years of data generation, we lodged our De Novo submission for the high-level disinfectant Duo ULT with the FDA in June 2022. Our best intelligence is that De Novo submissions are typically decided upon by the Agency within twelve months.

 

Outlook

We have set objectives which are visible to everyone inside the Group, and we make them equally visible to all other stakeholders. The new financial year has started strongly with first quarter sales up 20% on the prior year - a sales run rate of £34m. We look to the future with confidence as Tristel continues to grow and expand its geographical reach.

 

Paul Swinney

 

Chief Executive Officer

 

 

 

 

 

 

 

 

Tristel Plc

Consolidated Income Statement for the Year Ended 30 June 2022

						Restated*
	Note		2022 £ 000			2021 £ 000
Revenue	3		31,123			30,998
Cost of sales			(6,464)			(6,255)
Gross profit			24,659			24,743
Share based payments			(596)			(824)
Depreciation, amortisation and impairments			(2,777)			(2,813)
Administrative expenses, excluding share based payments, depreciation, amortisation and impairment			(17,325)			(16,376)
Other operating income			167			32
Impairment of intangibles			(2,439)			-
Operating profit			1,689			4,762
Movement in fair value of investments			-			(807)
Finance income			1			1
Finance costs			(195)			(195)
Net finance cost			(194)			(194)
Profit before tax			1,495			3,761
Income tax expense	4		(568)			(105)
Profit for the year			927			3,656
Profit attributable to :
Owners of the company			927			3,656
Earnings per share from total and continuing operations attributable to equity holders of the parent
							Restated*
				2022			2021
Basic - pence		6		1.96			7.86
Diluted - pence		6		1.94			7.77

The above results were derived from continuing operations.

*In the current year, the consolidated income statement has been restated, see note 8.

 

 

 

Tristel Plc

Consolidated Statement of Comprehensive Income for the Year Ended 30 June 2022

		Restated*
	2022 £ 000	2021 £ 000
Profit for the year	927	3,656
Items that may be reclassified subsequently to profit or loss
Foreign currency translation gains/(losses)	138	(600)
Total comprehensive income for the year	1,065	3,056
Total comprehensive income attributable to:
Owners of the company	1,065	3,056

 

 

 

*In the current year, total comprehensive income has been restated, see note 8.

 

 

 

Tristel Plc

 

Consolidated Statement of Financial Position as at 30 June 2022

			Restated*
	Note	30 June 2022 £ 000	30 June 2021 £ 000
Assets
Non-current assets
Property, plant and equipment		2,791	3,119
Right of use assets		5,209	5,423
Goodwill		5,242	5,265
Intangible assets		4,138	6,704
Deferred tax assets		1,493	2,489
		18,873	23,000
Current assets
Inventories		4,420	4,266
Trade and other receivables		5,851	5,255
Income tax receivable		713	170
Cash and cash equivalents		8,883	8,094
		19,867	17,785
Total assets		38,740	40,785
Equity and liabilities
Equity
Share capital	7	473	471
Share premium		13,996	13,600
Foreign currency translation reserve		(65)	(203)
Merger reserve		2,205	2,205
Retained earnings		12,371	14,687
Equity attributable to owners of the company		28,980	30,760
Non-controlling interests		7	7
Total equity		28,987	30,767
Non-current liabilities
Lease liabilities		4,997	5,276
Deferred tax liabilities		720	637
		5,717	5,913
Current liabilities
Trade and other payables		3,222	3,476
Lease liabilities		814	629
		4,036	4,105
Total liabilities		9,753	10,018
Total equity and liabilities		38,740	40,785

* In the current year, right of use assets have been disclosed separately from property, plant and equipment in accordance with IFRS 16.47. The prior year right of use assets of £5,423,000 have been restated to reflect the same split.

Deferred tax assets, income tax receivable, income tax liability and retained earnings have also been restated.  See note 8.