AFT Pharmaceuticals Limited (AFT) Earnings Call Transcript & Summary

[Audio Gap] I'm at risk assessment and we'll be ready to report against the new climate standards for the current financial year. I also want to note a couple of other efforts that we've undertaken and we do so generally without publishing, which indicate the values of this company. One weekend last year, some children in Indonesia were poisoned by a tainted medicine. The poison could be mitigated only by a product called fomepizole. And the only supplies available were in our warehouse in Sydney. So during the weekend, our team worked with the Australian government to get those supplies on transport from our warehouse in Sydney to those children in Indonesia. We also worked with Chemist Warehouse in Australia to raise money for men's and women's mental health charters by contributing 5% of gross sales of Maxigesic tablets sold throughout Chemist Warehouse over a promotional period. We expect the momentum we have seen in the last year to continue, supported by growth in the core Australasian markets from market share gains in an existing portfolio and also new product launches. We're also targeting increased growth in international and Asian markets and from an expanded presence in the United Kingdom. Hartley will be expanding on this shortly. For the 2024 financial year, we continue to expect an operating profit of between $22 million and $24 million. We also expect licensing income not included in the guidance range of at least $6 million on the launch of Maxigesic IV in the U.S. following the expected FDA approval later this year. Depending on these timings, this license income could fall into the end of FY '24 or early in FY '25. The one caveat on the guidance is that it does remain subject to the manner in which we decide to undertake our Maxigesic Rapid commercialization strategy in the United States. Before handing over to Hartley, I just want to thank the AFT team for all that they have delivered over the past year and their ongoing commitment. We place a high priority on supporting and developing our people and promoting a diverse and inclusive culture that makes AFT attractive to talented people. We're proud of the way they have embraced the challenges of the last year and delivered such an outstanding result for all our stakeholders. On behalf of the Board and shareholders, we thank them for their efforts. Thank you also to my colleagues on the Board and to our Director -- Managing Director, Hartley Atkinson, for their efforts and commitment to the company's success. In particular, I would like to thank Jon Lamb for his dedication and commitment to the company over a long period of time and to wish him all the best in his retirement. He has played a pivotal role in the growth of the company and personally gave me great support when I joined the Board. On behalf of the Board and the company, I'd also like to thank you, our shareholders, for your continued support. I will now invite Hartley to address the meeting.

Thank you, David. Thank you, everyone. Look, I'll just go through some slides what we wanted to do, just to give you an overview of what we're working on and maybe a little bit of a summary, but not going on too much about what we have already presented. As you probably know, the overall business, as David mentioned, grew by 20%. What we were pleased was every single area, Asia, New Zealand, Australia grew. The only point just to point out is the rest of the world looks as though maybe it didn't grow but that was due to we had some very lumpy licensing income. If you look at product sales, which are probably a better indicator of overall progress, we grew by 71% on the international side. I'll talk about this more later, but certainly, we have a lot of focus on both Asia and international, where we see some really good growth potential. Now some of this is driven -- it's driven by two things as well. It's driven by organic growth from products we already have, but it's also driven by growth from new products. So we do have a lot of new products coming. Last year, we talked about this, and we said, look, over the next 3 years, we have about 74 products. We did, in fact, launch 22 new products last financial year. And now if we look at this year and the next 3 years, once again, we have about 68 new products to launch. So we have been able to also replenish some of our NPD pipeline. What is also important, though, is that some of these products, too, though, we've mainly targeted initially on Australia and New Zealand, and some of these products, so we have been able to look at some of our other business hubs, which is Singapore. We do have a lot of focus on that. And Hong Kong and now the U.K., and we're able to draw quite a lot of that NPD up into these hubs as well, which helps them to accelerate our Asia business and our international business which has included -- the U.K. is included in that. I want to show maybe just one example that was announced, I think, about a week ago. We do have some really interesting products in our NPD portfolio. I mean this is an example of a product from a company called Crossject, which is a French company. They have a very unique needle-free drug delivery system and their first product that we've licensed ZENEO Midazolam, now what the practical use of that if someone's having a fit and it carries on, they can have major health problems going right the way through to brain damage. Now if there isn't a doctor around or something, it's very difficult what do you do? What this enables you to do is someone can actually give it to the patient through jeans or anything. Literally, you go like that, and it's the same as getting an injection. So this is a product with a real positive use, and we've been able to license that. So that's just one example, and that's included within that pipeline of 68 new products. Now this -- we're also doing a lot of our own drug development work. I know we've talked a lot about Maxigesic. In fact, things have shifted on quite a lot where we're busy commercializing Maxigesic. But in terms of R&D, we do have a healthy pipeline and we do also work with partners a lot as well, which sort of helps us with our execution lessens our risk. Hyloris is a company based on the Belgium Stock Exchange, it primarily has quite a similar pipeline to ours actually about the same size. It has a market cap of about EUR 326 million. The difference between them and us is they don't have product sales like we do. And we are doing the existing Maxigesic IV with them. But also we're looking at a number of new projects. What I thought I'd do just to give you a bit of a flavor for another company as the cofounder kindly offered to make a quick, say quick, show you, apologize about 5 minutes presentation clip, which sort of hope gives you a bit of a flavor for what someone else thinks about the sort of things that we're doing. [Presentation]

Thank you. Thomas Jacobsen. We didn't write that speech for him, by the way. Okay. So look, that hopefully just gives you an idea of what someone else thinks you're working in a similar area based on the company and another stock exchange. So one of the other areas we're working on as well. You may have read about recently is our e-commerce offerings. We started up Amazon site in the United States. And also, we've added this in Australia as well, which makes good sense to add to our existing business. China Tmall, what we've done there is from the 1st of August, we've taken over the running of the whole thing ourselves. And we see that's pretty important to sort of really drive the long-term business. We're making pleasing progress, but we see in a long term, there's certainly much better sales that we can gain from Tmall. And Australia and New Zealand, we do also offer the option of having our own AFT pharm shop effectively as well, which is relatively minor in comparison with Tmall and Amazon. Also the United Kingdom, which we mentioned a bit about. So look, this is just to give you an idea. It is a really interesting market. The reason why is that things have changed, obviously, with Brexit. And there used to be really easy companies just to do a deal for the whole of Europe. U.K. was tagged on to that. That doesn't work any longer. So in fact, tying the U.K. in with our existing business in Australia, New Zealand, Singapore, Hong Kong actually works pretty well, and we've been able to do a number of deals, we've included the U.K. as well. So a very healthy pipeline. We're doing 4 product launches this financial year into the U.K. and we now also have a team of 4 people there, our own office, just next to London Bridge or very close to London Bridge. The gentleman just on the far side, this is [indiscernible]. He's a very experienced U.K. former executive, but also he's a medical doctor. He's an [indiscernible]. Very smart guy, and we're really pleased to have him on board. He has very good contacts and knowledge across the whole of the NHS, which is one of the key driving things in the U.K. Chap in the middle is Thomas Gamble. He we sent or he went to Europe about 2 or 3 years ago, and he's been -- he's a commercial manager in Europe, and he's been working there for quite some time. And certainly, it's really good to have him there. And then just recently, Bailey has left New Zealand office, and he's moved up to the U.K. to strengthen our team as well. So look, we have got good sort of significant plans for the U.K. New product development. What we've always done actually for years and years is we've always done a kind of 5-year plan. We've looked at potential. We've done a bottom-up estimate of launching products, what our licensees have told us, et cetera, to see what things could look like in the future. And obviously, the key thing is, that's the plan and the key thing is then to execute it. And certainly, we do know something like COVID looking back at it, it did really slow a number of things down especially things like launching Maxigesic IV into Europe, where in hospital doctors were literally buried with patients with COVID and major problems. Therefore, they're not really open to hearing about a new analgesic, and now we've really seen that turn around, and that's sort of been pretty clear. So basically, we've got a number of ongoing product launches, and this sort of drives the business. When we look at it, if we say take products that we're launching from this year onwards, about 47% of our projected sales come from new launches of new products in new geographies. There is also existing organic growth, though, so this isn't just new products. Our R&D pipeline, obviously, we've talked about Maxigesic. You probably know a bit about that. But we do have quite an existing other pipeline. So it isn't just Maxigesic. We have a number of other R&D products in our pipeline. And then it is sort of leveraging the line extensions and the new launches. It's also growing our presence in Asia with OTC products and online. And then also the U.K. does also have some impact. And certainly, what we're doing at the moment is we've done a lot of work on expanding our pipeline in Australia and New Zealand, but now we're expanding that to other hubs in Singapore, Hong Kong and the U.K. And then also we have the Amazon launch in the U.S. So it's all these sort of things working together. So at the moment, you'll see in these top bets here that's Asia, that's international. That's sort of a fairly modest part of the business. And if we can get things right, we do see that there's a lot of potential in international and also Asia, which is not really a no-brainer because there's so many people, obviously, outside Australia and New Zealand. And in the U.K. market, the 67 million people, which is over double the size of Australia and NZ. And actually to file and register a drug in the U.K. costs the same amount as New Zealand. So the whole cost thing isn't that bad. So that's the sort of thing that we've been carefully working through and is underway. So look, just quickly as well to recap Australia. We grew sales pleasingly by 23%. So making good progress, but there's still a lot more progress. And one of the key targets are wanting to knock off this year as last year, we got close to $100 million. This year, we're very confident we'll roll through $100 million. So that's certainly one of the things we'd be really pleased to do. But Australia is a very key part of our business strategy. Most times -- well, not most times pretty much every time when we get a new product, it is Australia first, and then we look at New Zealand second. So we are very much focused on Australasia with Australia leading the drive. New Zealand -- look, we've got a superb result in New Zealand, led by Scott Porter. We got 25% growth. In fact, a few years ago, just talking about doing these strategic plan things, we thought New Zealand probably was quite flat. We might only do about $42 million sort of going forward. Well, clearly, we weren't quite right. and we've managed to really get New Zealand growing again. And we said it has a lot of ongoing growth potential. So certainly, we're pushing very hard in the New Zealand market as well. Asia, that grew modestly at about 24%. We do see a lot of potential though as we're getting new things going. Basically, we have got some new geographies. China is obviously the big chunk of it, Vietnam, Philippines, Thailand. So we had some launches last year. We launched in Indonesia, and we launched in Korea. And those are actually going very well. We're very pleased with them, they are making some great progress. And obviously, then if we can start to replicate that in the other countries, and start to beef up the portfolio in Singapore and Hong Kong, that will help to drive things. With clearly also, I guess, the wildcard being China, we are having a number of licensing negotiations with China-based companies, and we would hope to be able within this financial year to make some further announcements around that as we make progress. International, I think as we mentioned, it has been a bit lumpy due to licensing income, and we recognize it has not been that help from the past, and we've been giving guidance and it's included large, lumpy bits of licensing income, which can swing from one financial year to the other by some event like a delay or something like that with regulatory things. But if you do look at the ongoing sales, you can see they grew at 71% last year. which is satisfactory. But certainly, we'd invite you to watch closely our reporting and see how we progress the international because that's certainly what we're working hard to get some significant progress on. This is our global map, which I think we have shown before. So what we have is, where we've launched products, we have it in yellow. So the yellow is getting more and more, which it should. We are pleased we did our first launch in Africa and Kenya. It's still not maybe a market we think of straight away, but we still sold a couple of batches in Maxigesic IV. It's that kind of all sort of adds up and it's literally going across all these different countries. The clear bits in white are once we have not yet done a deal, the important bit is China. So we're working on that the moment, Japan, making some progress there, and Brazil is the other kind of big chunky one, which is a bit different in terms of regulatory approach, so is China, so is Japan. So these actually are more challenging countries, but we are working on them and do expect to make some further progress in terms of licensing. Now this is our R&D pipeline. We've touched on this a little bit, and also Thomas Jacobson mentioned, it's a good time at the moment. What does he mean by that? I mean, look, this is just something out of [indiscernible], an example. So this company in Singapore called Tessa Therapeutics. Over the years, this company had raised USD 200 million, and it went back to the market because it was loss-making for another raise, couldn't raise any money to shut down the whole thing. So that might sound bad, but actually for people like us, that's actually good news because what we've been able to do is in the last sort of 6 months, we signed 2 deals for new projects, and we're working on some more projects, which really 10 years ago would not have been available. A lot of these companies at the moment have some really good R&D, but they can't raise capital. What we can do is we don't want to shell out money and buy them or something like that. But we can do a deal with them, where we say, look, we'll take over your program, we will execute over the next 3 or 4 years in terms of doing all the clinical studies, then the regulatory, then the commercialization. And then as it succeeds you can get some royalties or some milestones as we had certain milestones ourselves. And it's a very good win-win scenario. And for some of these companies, literally, the only other choice they have, as like Tessa Therapeutics, where it's shut down. So we've been pleased we've been able to do 2 deals. We have a deal for an eye drop for antibiotic-resistant eye infections. And obviously, the danger there is if you have one of those, you could go blind. So this is not a minor thing. It's something therapeutically that's important. So we got that program underway at the moment. And we're also pleased we did a program in strawberry birthmarks or infantile hemangioma. So kids are actually quite commonly born with strawberry birthmarks, sometimes quite bad. At the moment, there really aren't any easy treatments. They can use an oral treatment, which is actually quite dangerous, and they only really use it for severe cases and what we're developing is a topical treatment. So that's working with Massey Ventures, which is part of Massey University and a Wellington-based plastic surgeon called [indiscernible]. So they've sort of done the preliminary work, and we've taken it over. We'll do the drug development side, go through FDA, et cetera, et cetera, and that's kind of how it works. So we have got like a whole string. We've got the Maxigesic projects at the top, and we've also got a number of other projects. Some of those are quite close. They've filed. We've got a number of those. We've filed them as well. So it's good to have a mixture, because you don't want everything being promise as a jam tomorrow. So we've got a mixture of things that are quite close we're rolling out now and then some things that are further away. And we'll sort of spend at the moment, we're planning to spend about $12 million in R&D. This may go up a little bit over time to sort of $15 million or $16 million, but nothing really -- we're not planning on anything really extreme. Also, we don't plan on it being a percentage of turnover or something like that. Now just quickly, this is 3 slides on the finance stuff, which is normally more Malcolm's domain. But I mean, look, we are pleased. I think as David's mentioned, we have EBITDA, was pretty even on the year before, but we did spend a lot more. We sort of invested another $8 million or so into Australian expanding our sales team. We have seen another company say they've got the biggest pharmacy force in Australia, we're actually pretty sure we have. We've got a pretty big team. We've got 25 reps visiting pharmacy. We have 6 merchandisers. We have a new doctor team of 10, and then we have another hospital specialist team of 6. So we got about 56 people, Marree, in Australia isn't that. Yes, 56 people in our Australian office, which is mainly a sales office, but we've got a very strong sales presence in the Australian market, and that's something we have invested in. We believe that's really important in long term to get a really good return out of Australia. So that's the reason behind that, but we still managed a pretty good result, we think. Balance sheet is basically David's touched on that. We are targeting the debt have been about 1x EBIT. We are starting to ease off a little bit on stock at the moment. It honestly has been really hard in the last sort of few years to even get a boat to stick your container on. It used to take our logistics people about a month of running around to actually get the boat to get the container on. That has definitely eased up very much over the last sort of 3 months. So that will also enable us to start to cut back a little bit on stock, which will certainly help the balance sheet as well. Cash flow. Look, at the moment, on the cash side, we're well within our banking covenants, and we're happy with the cash flow. It's just -- and we don't see there being any major event around that. So that's just basically fine. And then look, just to sum up in terms of summary and outlook, what we're really working hard on is growth momentum now picking that up and making sure that goes on during this financial year. So basically, we've got the ongoing work around Maxigesic and the line extensions and the international markets, et cetera. And then after that comes the R&D pipeline starts to kick in after Maxigesic. So just really important to keep saying, yes, we are -- we have primarily been a Maxigesic company, but we're not really. We've got this other pipeline that follows it. So that really kind of follows on. We are strongly targeting increased growth in international and Asia markets. Look, and we do recognize it has been a bit muted in the last few years, it hasn't been where we really think it could be. We do believe looking back, the COVID really did slow that down. We can see that going now. And we do think that we can show better results there. And we invite you, obviously, to keep watching because, obviously, talk is cheap, but it's actions that really, really matter. So keep watching there. Then expansion in the U.K. in e-commerce. So certainly, the U.K. is a nice add-on in e-commerce is summing as well, which is pretty important and that can also help the overall growth. There is still organic growth in Australia, New Zealand because sometimes people say to us, look, is it all new products? No. It's a mixture of new products, new territories, but also organic growth with the assisting products. And then we are targeting increased R&D pipeline. We have got 3 projects at the moment under diligence. They're actually all with Hyloris, you saw that company speaking before. So we're working with them on 3, where in we think, very nice R&D projects. So working on that, and we would hope to be able to make some further announcements in the next few months around that. And as David has mentioned, look, we're targeting the -- that guidance of $22 million to $24 million. There is some licensing income which we hope are all going well. We can get them this year, but there was some slight delays in stock or shipping, it could slip into next year. But that's certainly the $6 million part with Hikma for launching Maxigesic IV in the United States. We are targeting in the sort of 12-month stretch cracking through a couple of hundred million turnover. So that's certainly well underway. And then I mean, the only thing, I guess, is that we are looking at various options, we are having discussions presently around Maxigesic Rapid to launch there in the United States with a couple of parties. We haven't fleshed out the exact details. Those discussions are underway. Maybe we did have to spend some money on that. That could have an impact. We don't think that's the case at all at this stage, but we just wanted to at least have that caveat in there, but I don't think it will be an issue. So look, that's everything from my side, and I'll hand it back to David.

Thank you, Hartley. Okay. So now we're at the stage where we can ask for questions on the financials or business update or any other matters you want to raise at this stage. And as I mentioned before, all of us and management are around, we'll stick around and have a cup of tea with you afterwards, and we're happy to answer any questions then. So anyone who wants to ask a question, please, could you raise your hand and state your name prior to asking your question. But could you please wait until the microphone which is there is available for you because otherwise those who are now actually attending by audio won't be able to hear your question. And also, in the interest of fairness to everyone, if you speak, please do so concisely and be considerate to other shareholders who may want to ask questions. So opening up the floor to questions, Anyone first. Sir?

My question is -- my name is [indiscernible]. And my question is, in 2020, I purchased some AFT shares. And again, in 2021, I purchased more. The average cost of those shares was $4.65. As at the end of last month, they're trading at $3.70. Having listened to the good news, can somebody up there tell me why the share price hasn't risen?

Okay. It's a very good question, if I may say so. I wish I knew the answer to that. It's not an easy question to answer. If I look at the company now compared to the company we were, well, 2 to 3 years ago and actually back in the IPO when we IPOed in 2015, we were a very different company. You'll have seen from the graph that we've had significant and ongoing growth and now profitability as well. So -- and now we are -- so we're continuing to grow, and we're now starting to pay a dividend. But I don't know that I can answer your question is to why the share price is so low. I mean, obviously, we discuss this matter regularly. We'd like to see the share price higher. We will continue to do what we've said we're going to do and try our best to grow the company and to pay a dividend. We're not just a one-product company selling in one region. We've got multiple products, and we're selling globally. So hopefully, we can turn that around for you. But at the end of the day, we're not in control of the share price.

Perhaps what you could do or take a leaf out of the labor part's manifesto and pay the TV people [indiscernible].

I am not in control of that either unfortunately, but thank you for your question.

David, my name is [indiscernible]. I wish to inquire whether you have business in Texas of U.S.A.

Well , I mean we don't at the moment. We'd like to, but at the moment, we don't.

That's good news. Then there's a big, big opportunity for this company and your share price will rise many times. Yes, because I have read the economies that is dated this year, 18th of March to the 24th of March that issue. They have 3 pages about Texas. It is very, very different from the early 1990s at that time, many times more. Why? Not just because of booming oil price, only accounted for not yet 40%. And then 1/3 is IT and then the other 1/3 is manufacturing. According to the earning power, Saudi Arabia is #1, earning power last year per person. And the second one is Belgium. That's very good. There's just one that from pharmaceutical company [indiscernible], and they can expand our business in Europe. And then the third one is Texas. Texas only have about 30 million people there. But all this earning revenue is #1 in U.S.A. last year. U.S.A. has 50 states, and it is the #1 earning power. And guess what? The Republican there is where the business open, and they don't have income tax for people working there.

So I think I'll try and answer what I think your question is, but perhaps we can move on. But so Saudi Arabia and Belgium, we're certainly working in those areas, obviously. And as far as the United States is concerned, we will do our best to get our products in Texas and the rest of the U.S. very quickly, but not at the moment.

But it will be very good to try there. And yesterday, because I've been to the -- what should I say, AGM of [indiscernible], and they have already business opportunity there. And I think Dr. [indiscernible], do there well and you can do there well as well.

Thank you ma'am. Next question anyone?

Your ads we see on TV, they're done in-house or done professionally?

Well, they're done professionally, but I'll let maybe Hartley answer if he wants to.

The reason why I ask is I was wondering if it would be a good idea to get either Lisa Carrington or the other Lisa who does pole vaulting. That might be someone you could approach, that might put a bit more use into the advertising where pain may be particularly the pole vaulter, who's been out of action for quite a long time with injuries. And that might be placed to look to enhance your product.

Yes. That's a good idea. Well, sporting stars with -- we don't know how many of them use Maxigesic, but maybe we should provide a few complimentary packs to them and see whether we can get them to do that. Thank you. Anyone else want to ask any questions? Good opportunity now Hartley is here. He hasn't said anything yet in the questions.

Jim Felton, shareholder. You just talked about Maxigesic. And I must say the company is doing excellent taking on the work is very good. But can I ask about the market share with Maxigesic in New Zealand, Australia. I always hear people talking about the other competitive products, and even my doctor talks about other product. Is it gaining market share. It can be difficult [indiscernible].

Yes. I mean, I guess our main market, where we're focused on both markets, the largest potential market is Australia. We are a clear market share leader in Australia way ahead of the other product, and have been for ages. In New Zealand, it's pretty close. Their sales are a bit ahead of ours. We saw more tablets than they do. So it depends, I guess, on volume, we sell more, and they sell a bit more dollars. So it depends exactly how you define it. But, yes. Look, I mean, we believe what's also important is we've got a much bigger range than they have. And to be honest, we haven't launched and rolled that range out. So over time, we also see that as we get other parts of our range kind of roll in, we'll get a lot stronger a lot. We've had a very successful launch in New Zealand and Australia of our hot drink where the product you're talking about doesn't actually have a hot drink variant. So we're able really to build up a whole thing around that portfolio of products like oral liquid for kiddies. We've launched in Europe, Hot Drink, we've launched Australia and New Zealand. We have a cold and flu version. So we have a wholesale portfolio. Some of the other companies are almost conflicted because products like Panadol or Nurofen are very much mainly focused around those 2 things where we're very much focused on the combination. And over time, this is never a quick 5-second thing, unfortunately. But over time, we can build our whole portfolio, which we still think will be more significant over time.

Have you got studies that show that Maxigesic is actually doing on people prefer that? Do you know what people think about it?

Yes. Look, we've got a number of clinical studies and they're usually what they are, that's a comparison against the individual components. So basically been against Paraconica by itself, ibuprofin by itself. And what we've shown in those studies is that the pain relief is greater. So it's up to 70% greater and then also it's faster acting. So the two things generally with pain that people are wanting us speed of action. We don't have -- no one specifically had studies against the combinations, but they do against the individual ingredients.

Thank you for your question. Any other questions? Okay. Well, as I say, you can have a chat with any of us over refreshments. We'll be happy to answer your questions. Okay. We'll now come to the formal matters requiring resolution, and these are outlined in the notice of meeting. And there will be an opportunity to ask questions on each of those matters being put to shareholders. As is now required by -- and today's listing rules a poll will be conducted for each of the resolutions, and this will be conducted together at the end of the formal business. Your Board supports each of the resolutions being put to the meeting. And as stated in the Notice of Meeting, each director intends to vote all shares and undirected proxies held by them in favor of the resolutions. Proxies have been appointed for the purposes of this meeting in respect of approximately 87 million shares, representing approximately 83% of the total number of shares on SU. We'll share the proxies cast for each resolution shortly. So Resolution 1 relates to the remuneration of AFT's auditors. The proposed resolution is to authorize the directors to fix the auditor's remuneration for the current year. In accordance with the Companies Act, Deloitte has been automatically reappointed as the company's auditors. Details of the statutory audit fees paid to Deloitte for the financial year ended 31 March 2023 are set out in the 2023 annual report and the 2023 audit fees are expected to be comparable to last year's fees with appropriate provision for an increase as the audit scope broadens with the kind of expansion. So I now propose as an ordinary resolution that the directors are authorized to fix the fees and expenses of Deloitte as auditor for the 2023 financial year. Are there any questions concerning this motion? There appears to be no discussion. So the poll on this resolution will be conducted at the end of the formal business. We will now move to the next resolution, which is that Marree Atkinson be reelected as a Director of AFT Pharmaceuticals. Marree is retiring by rotation in accordance with the listing rules and offers itself a reelection. The Board recommends Marree as a director and unanimously supports her reelection. Marree's bio is set out in the notice of the meeting. And I'll now invite Marree briefly to address the meeting on her proposed reelection. Marree.

Good morning, everyone. Thank you, David. I'm very pleased to be offering myself up for reelection to the Board this year. As a co-founder of AFT 26 years ago now, I've got great experience across all departments. At the very beginning, it was just the 2 of us. And I can tell you that I've done most of these people on the job at one time or another, although at a much smaller scale, of course. And my current role is as Chief of Staff, my day to day job is for the care of our biggest asset, which is 113 employees and a few contractors amongst them as well. I'm fully involved in every employment decision and deal with HR issues almost daily. I've seen AFT grow from a team of 2 as I see it to 113. We continue to grow. Our employees have great job security, and we have great retention rates. I think that speaks volumes to our culture and how the company operates. When we launched 26 years ago, actually 25 years ago to the market, we had 2 ethical products and another over-the-counter product. As you've heard today, we've now got 150, and we're operating right across the world with various hubs amongst them with our own team members in those hubs. I'm proud to have been part of this journey so far, our ability to adapt and perform in the international pharmaceutical market at a really high level is something to be proud of. And I know that we've got a lot further to go. I bring to the Board a comprehensive understanding of our operations and what's involved as well as international relationships with all of our suppliers and people that we've out-licensed to. I have personal relationships with all of them and in shorter keep that up so that it's not just to any one part of that company. So we spread that around. Many of these relationships we've had for more than 15 years, and it's really important to the running of the business. I'm able to translate these communications through to the Board who don't have the executive role that I have. So I'm excited for -- I don't know -- I had to read this because I'm actually very excited about AFT's future. And I look forward to supporting my fellow Board members and employees in the near future. Thank you.

Thank you, Marree. I now propose that Marree be reelected as a director of AFT. Are there any questions or matters for discussion on this?

She is a great contributor to the Board, by the way. So that's why we're all supporting.

Okay. Thank you. So now we're just setting out the proxies for each of the resolutions, and you'll see those on the screen. And now ladies and gentlemen, as there is no further business, we'll conduct the polls on the matters described in the notice of meeting. Please use the voting card that you received when you registered on arrival, and please complete your voting paper by ticking for, against or abstain in the appropriate place on the form for each resolution. If you have any difficulty, please raise your hand and someone from computershare will come and assist you. Please remain seated until your voting cards being collected, and computershare will come around with the ballot boxes, which they've got now and collect the voting cards. Are there any matters of general business to be discussed. In that case, please just carry on to your voting and all your cards in, please? Any more? Thank you. On behalf of the Board, thank you for your attendance at the 2023 Annual Meeting. We'll announce the results of the polls to the stock exchanges this afternoon. And I now invite you to join us for refreshments, which are obviously over there. They're not there yet. Well, the biscuits and the coffee anyway. Thank you. And I now declare the meeting closed. Thanks very much, everyone.