One Health Group Plc (OHGR.L) Earnings Call Transcript & Summary

Hi. Good afternoon, and welcome to the One Health Group 2025 Full Year Results. Just as a bit of an introduction, my name is Derek Bickerstaff. I'm the founder of One Health and Chairman. I'm actually an orthopedic surgeon by trade and have over 40 years' experience in the health service. I've done about every job within One Health, but we grew it to the point at which I realized, if you like, my limitations, and we really wanted to grow the company. So at that point, we brought in Adam to take One Health to the next level.

Good afternoon. My name is Adam Binns. As Derek touched on, I joined One Health in 2018. Previously, I haven't worked in health care. I've worked in retail logistics and manufacturing, but so this is really exciting opportunity to develop what was at the time a fairly ambitious Sheffield-based SME. I'm a qualified accountant by trade and indeed have worked as the Finance Director of the business before taking on the CEO role in 2019. That's it from me.

Okay. So just a quick introduction to One Health. One Health provides medical services to the NHS. So we're part of the NHS supply chain and have framework contracts to deliver that work. Specifically, we do elective surgery. And we do elective surgery in orthopedics, in spinal surgery, in general surgery and gynecology. And that accounts for about 80% of the waiting list. And as you know now, the waiting list currently stands at roughly 7.4 million patients in this waiting list, which is a huge amount. There were 4 million patients pre COVID. And the -- in 2010, the waiting list were at the lowest at 1.8 million level. Now the government has ambitions to bring the waiting list way down to 92% of people waiting for 18 weeks. And it was last at that level of 2015. So it's a very ambitious project. So how do we work? We basically bring patients to a network of community clinics where our subspecialist trained surgeons see the patients in those clinics. And then if they need an operation, we bring them to a network of 9 independent hospitals that we work through. We've been going for 20 years. And we've noticed steady organic growth over those years. And indeed, we'll explain to you the quite, we think, exceptional growth that we've had over the last year. So given the backing of the government, who on 6th of January wanted us -- did a contract with the NHS -- sorry, did a contract with the independent sector to help with the waiting list. There's a definite tailwind behind One Health to grow. So we've got significant growth -- organic growth opportunity. But in addition, we have a strategic growth plan where we're going to open a series of surgical hubs to increase our surgical capacity to deliver these patients, and we'll tell you about that later on in the presentation. We recently listed on AIM moving from Aquis, and we raised GBP 5.5 million, which we're going to use to fund our first hub.

Okay. So to give some metrics around the business, these based on the full year '25 operational and financial KPIs, to give you some headlines. So a record year, as Dave has touched on already, just over 17,000 brand-new patients, resulted in 42,000 consultations and 7,000 surgical procedures. Very, very roughly around 40% of new patients need some sort of surgical intervention, the rest don't. In terms of the workforce, we subcontract over 130 NHS consultants and across the regions within which we operate. And the first point of contact for the patient, the NHS patient, is one of our 37 outreach clinics. The outreach clinic is a subcontractor of a rented facility. It could be a GP surgery or a dental practice where we book an amount of time. We then send the consultants out to that location to meet the patient in a clinic list. In terms of strong operational KPI performance, the key measures for us in terms of the operations are new patients, consultations and surgical procedures, all seen significant growth, particularly over the last 12 months. Turnover, GBP 28.4 million, up from GBP 23 million last year. And as a reminder, that's all organic growth. We'll talk about surgical hubs and what they mean going forward. But at the moment, we're talking purely about organic growth, doing more of the same in new areas. Our underlying EBITDA was GBP 2 million, up from GBP 1.5 million last year. And that turnover, I'll explain how we receive turnover shortly, is derived from over 60 different NHS commissioners across the areas which we operate. And that includes as well patients transferred from local NHS trust hospitals who have been referred to the NHS have been on the waiting list for too long, they referred back out again to independent sectors to be treated and put back to good health. One of the significant improvements over the year has been had 13% increase in surgical capacity. As I mentioned previously, only 40% of patients need surgery, but that's fundamental to the growth of the business and leading to the surgical hub plan, which we'll come on to shortly. Unsurprisingly, from the IPO, cash is very strong at year-end at GBP 11.4 million. As Derek touched on we raised GBP 7.8 million as part of the IPO, of which GBP 5.6 million came to One Health Group. The rest was selling shareholders through the EBT. Now in terms of the way we receive a patient is through probably one of the best kept secrets in the NHS called patient choice. NHS patients have statutory rights to choose their provider of care should they need a referral for secondary care from the GP. Now One Health will appear as well as independent other independent sector providers and local NHS trusts, but the patient has the right to choose where they receive care. The way that works, once the patients referred to one Health Group, my team in Sheffield will make a phone call to the patient and pick up the patient and bring them into our business. We can manage the entire transaction through to discharge back to good health and physiotherapy if required. There's no cost to the patient, this is key. This is fully funded by the NHS. We're paid by the NHS. That's how we receive our revenue. And the way we're paid is against something called the NHS tariff. So the NHS tariff is effectively a master prices for every single thing that a patient can receive within the NHS. We're paid exactly the same as an NHS trust. Difference between us and many trust is we are more efficient and therefore, generate a profit from that revenue. Now clearly, over the past 5, 6 years since the pandemic now, the waiting list they touched on has grown massively. So that's affected our order book that list have been so high. So we see the opportunity going forward has been almost endless. There's talk in the press recently we're taking on current performance rates over 250 years to get down to pre-pandemic waiting list. So you can see there's clearly a very big demand for things that we do. And in terms of lead time, as we call it in the industry, we typically treat a patient within 8 weeks of referral. That can be as long as 6 to 12 months in NHS at the moment for all sorts of complicated reasons have been talked about in the press. Importantly, second bullet point -- second to the last bullet point on that slide, the government, as part of its long-term plans has announced an intention to get back to the old 18-week referral to treatment target by 2029. Clearly, that's the next election. It's a key target for the government and one we're keen to support. On the right-hand side of that slide, what I'm showing is how we allocate our revenue. So typically, if you were to pay for a private hip or knee replacement, you'll pay about GBP 15,000. The equivalent price to the NHS is GBP 7,300. Of that revenue that we receive, we pay an independent hospital for the procedure, a part of that tariff. We pay the surgeon and anesthetist directly. Physio costs if required postoperative and the balance is our gross margin, which is around 18%, although that was slightly improved in 2025, a number of cost reduction initiatives, which brought it close to 20%. So that's effectively how we make gross margin from NHS revenue.

Now this slide is a depiction of the clinical pathway, and I'll take you through this. But basically, One Health owns the whole of this pathway. We own all the steps in this pathway. So patients are referred in at the top end, either through patient choice, as Adam has described or patients transferred to us by trust hospitals. The One Health administration then have to match the specialty of the referral to the specialty of the consultant to a clinic as near as possible to the patient. So that's what the administration do, first of all. The surgeon then goes to that clinic and sees a full list of patients to be seen. We have an electronic patient record and have had that since really the inception of One Health. So the patient -- the surgeon has all the details available. So patient sees the -- a surgeon sees the patient and then defines the treatment. About 60% of times roughly the patient will need conservative management, so the surgeon can give advice, refer on to physiotherapy or refer back to the GP. 40% of the time, however, they need an operation. So the outcomes from the -- for that particular patient by the surgeon is a certain type of operation. That's then picked up by the One Health admin team and the surgeon is linked to the patient with that specific operation to a hospital near as possible to the patient. So One Health in the middle of this sort of spider web provides the logistics support for all this. The surgeon then goes to the independent sector hospital where he has his list, does the operation and then the patient is then referred back out into the community and the patient is seen again by that surgeon out in the community to continue the care and also supervise the rehabilitation of the patient. So all the physiotherapy is again out in the community. So we basically own the whole of that pathway. So why would people choose One Health? Well, the obvious reason, the common reason is that we have short waiting times. So the time to wait to see a One Health patient is roughly 6 to 10 weeks, which is far shorter than can generally be seen within the NHS. The other important point is that we see patients local to where the patient lives. So we take -- instead of having a hospital-centric model, we take our patients out into the community. And that's very popular with the patients and fully supported by the government who want us to take care out of the city, out of the hospital and out into the community. So they are the main 2 reasons why people will choose One Health. Continuity of care is important. If you've ever been to have an NHS consultation, you might be referred to a GP, you might be seen by one of the registrars, you might be operated on by a staff-grade surgeon, you might be seen postoperatively by a nurse. You may never actually see the surgeon you were referred to. With our system at every step of your clinical management is by a subspecialist trained surgeon. The inpatient treatment is good. They're all in independent sector hospitals, which are high quality. The key and something that we're very proud of is the patient liaison team. That's the team I was mentioning to you earlier, who stands in -- sits in the middle of that web organizing everything. So the patient, when they start the clinical pathway with One Health, gets a named liaison team person. So if they have any problem during that pathway, they can always just phone that person who will resolve that problem for them. So it's really like a private practice model, something you'd expect with high-quality private practice care, but it is purely for the NHS. Not surprisingly, we score very highly on quality of care measures. So we will always look at 3 factors. Have we got enough patients, have we got enough surgeons? Have we got enough operating capacity to do the operations on these patients? Well, first of all, patients. As I said earlier, there are 7.4 million people waiting on the waiting list, which is an enormous amount. So there is no shortage of patients who would want to see One Health. And I think that's reflected in our last year, where we had a 28% increase of new NHS referrals. As I said, all these -- as Adam said, all these patients referred to us from patient choice as well as referral from the trust hospitals to deal with their waiting list. And the government is very supportive of this. They're very supportive of patients' choice. On the 6th of January, there was an agreement made between the independent sector and the NHS to promote the independent sector to deal with this waiting list problem. And through that, the government is promoting patient choice. As I mentioned earlier, we see patients from trust hospitals, and we currently work with about 6 trust hospitals. But as our geography grows and it grows organically all the time, we just come across more and more and more patients who want to refer to us, and we come across more and more trust hospitals who want to refer to us to deal with their internal waiting list problems. So we have no shortage of patients. Do we have enough surgeons? Well, the answer is yes. We have increasing number of surgeons who want to join us. And the last year, we had 15 new subcontracted clinicians who joined our practice. The reason why they join us is we -- all surgeons within their NHS contract have a period of time where they can do their private practice should they so wish. They don't have to do that, but it is available for them. And that's been available since the inception of the NHS in 1948. So surgeons have that spare time that they can use with us. Because we work in more underprivileged areas, the surgeons really don't have a lot of access to traditional private practice. That means private medical insurance or self-pay. They just aren't the numbers there. But if they work with us, we can fill their clinics and we can fill their operating list with patients. Now we might -- we pay them per case as well. We might pay them less than they might get in using traditional private practice, but they haven't got access to that anyway. So they like our model. The other reason that they like our model is that we take all the admin off them. I mean I'm a surgeon myself, and we like seeing patients and operating patients. We take all the admin off them, we fill their operating list and we fill their clinic list. Another important part of working with One Health is our clinical governance, which is very, very robust. And we ask all our surgeons to involve themselves within that clinical governance framework. If they don't, then they don't remain with One Health. But the surgeons like that because it can be quite a lonely space working in private practice as a one-man band. In the NHS, you've got the support of your colleagues, and it's the same within One Health. You have the support of all the peers within you. So you always have fallback to ask a colleague about a particularly difficult case. We have regular audit meetings where we discuss radiology and difficult case management. So they feel much more -- much happier, much more secure in that type of environment. And again, because, again, we're constantly growing our geography organically, more and more surgeons come to join us. So we don't find any difficulty finding surgeons and nor do we anticipate any difficulty finding surgeons. So finally, the operating capacity. Now we have not found problems with finding operating capacity. We only work within -- with independent sector hospitals using their spare capacity. And again, because we work in more under privileged areas, the hospitals that we work with don't have access to the traditional private practice, just the same as the surgeons. So we find these private hospitals have a certain bulk of beds always available, which we're able to fill for them. And they like us because we fill their spare capacity months and months in advance. So we don't find any difficulty finding operating capacity. And indeed, what we're good at is maximizing the operating capacity with the hospitals we work with now. But as we grow our geography, we're constantly finding more and more independent sector hospitals who want to work with us. So we don't have any real problem with them. However, what we have found is that in some of the areas we work out in the community is we are -- our patients are having to travel too far to get to the local independent sector hospitals because remember, these hospitals are built in areas of -- within the cities where they can attract more private practice -- more private paying patients. So we find patients have to travel too far. So we plan to drop our surgical hubs into these more underprivileged and under-resourced areas. Now that's not to say that we're going to take capacity that we already have from the independent sector hospital. We're not. We're going to carry on that. We're going to carry on with that organic growth. But we know in the areas that we work that the cohorts of patients who have limited availability near them, both NHS and independent sector. So we have a plan to open our independent sector hospitals within those areas. And the other obvious reason to do this is it increases our revenue and our profits above what we could do with just organic growth. So just to reiterate, we're not taking patients from our organic growth into these hubs. These are new patients that we know that are out there because we're seeing them already.

Okay. So where does One Health operate today? On the map on the right-hand side of the slide there, I've shown in the dark blue, our current operating regions. I'll come back to the excess on the map in a second and explain a bit more about those. The orange is our plan for the next 3 years, and we're already making inroads there with outreach clinics and finding, as Jake touched on, new independent sector hospitals to help support us. And then yellow ultimately within 5 years is where we'd like to be. And that will continue. That's the organic growth. And just to repeat the point, it's important. We operate in areas where there is quite a lot of deprivation, not much medical insurance. For example, Sheffield, our hotspot where our head office is, it's around 6% private medical insurance is the uptake rate. So clearly, a higher reliance on the NHS as a provider, which we are part of in terms of the way we subcontract with them. We are with relatively high population density. And more importantly or most importantly to the hub strategy, areas where there's a lack of surgical capacity, be that other independent sector providers like Circle and Spire and Ramsay or the NHS themselves. So we'll now talk about those Xs on the map effectively. The light blue of the ones that highlight on there is a current site. We're quite well advanced on that. I'll give you some detail around that in a second. That's where we'll drop our first surgical hub. The next 5 geographies highlighted are areas that meet the parameters as touched on the top of the slide on the left-hand side, so high dependence on NHS, not much surgical capacity available from the current providers and also a high population density. And we can test that by opening outreach clinics. It's a really good barometer of future demand where we can open outreach clinic, for example, in a GP surgery, just 1 or 2 days a week, advertise that capacity on the GP's system called ERS, which is where you see one health availability. If that clinic fills fast, we know there's demand for that. We can test areas very quickly. So it's a useful barometer.

So what do we mean by a surgical hub? Well, what we don't mean is a hospital. We don't need a hospital because all our work is done out in the community. So all our consultations, all of diagnostics, all our rehabilitation is done out to the community. So a surgical hub is simply somewhere where the patient gets their operation. Now the concept of surgical hub isn't new. It's used in countries throughout the world. It's fully supported by the government. They are very keen to do this. It's also fully supported by the Royal College of Surgeons. And basically, you take patients away from the acute sector who certainly say, in wintertime, take up the beds that you had reserved for your elective work and then they're not available because you're having to manage chronic bronchitis, et cetera, et cetera. So the concept is not new. And indeed, it was part of the health reforms brought in by Tony Blair in the 2000s, where he developed the independent sector treatment -- center program where he encouraged the independent sector to build hospitals to build these hubs to deal with what then in the 2000s was an unacceptable waiting list. And here we are 20 years later with another labor government. And again, they're supporting us and pushing us to do this. Now the one -- the NHS would like to open the surgical hubs, and they are and they are opening some surgical hubs, but they lack the capital investment to be able to do this as well as they would like. And so increasingly, you will find, and you've heard recently how the governments are, again, looking to the independent sector to provide capital for infrastructure within the NHS. And this is one example of how they might do that. So this concept of a surgical hub is not new. And again, we're opening these hospitals where there's little or no surgical provision, but we have lots and lots of demand. And again, to reiterate the point, this is to complement our organic growth. This strategic growth is in addition to our organic growth, and we reckon that we can increase our revenue by GBP 8 million to GBP 9 million per hub once it's fully established.

Okay. So why do a surgical hub is the obvious question. On the left-hand side of the slide there, that is the current margin we generate from the organic growth model. So the biggest part of that pie chart, the dark blue is the amount we pay to the independent hospital that we use, be it part of Circle or Spire, Ramsay Group that we pay to use the operating theater. We then pay the medical team, that being the surgeon, the consultant or pay consumables directly as well associated with things like physiotherapy. The balance is our gross margin, which is around 18%. The benefit of the surgical hub where appropriate, and again, this is on low-capacity regions where there's no operating facility. We will develop, build and drop in one of our surgical hubs, and we'll talk about what that looks like in a second. But one of the big benefits of that is obviously the margin generated in addition to the existing margin because we own that capacity. So effectively, the margin the independent hospital sector will make today comes into One Health. So the 2 sides of the model. Organic continues as was. On the right-hand side, that's the solution, which is the surgical hub for the regions highlighted on the previous map. So in terms of what's the surgical hub, quite a complex slide, so I'll talk you through it. On the bottom right-hand side there is a physical plan that's fresh from the architects. That's exactly what it's going to be. On the top center of that plan, you can see the outline of the operating theater around that are 12 beds. And there are 12 beds on the basis of maximum capacity, we can do 6 patients a day, then go to overnight bed for recovery. of bringing 6 new patients following day. So 6 plus 6, clearly 12. We have the ability to generate up to 1,500 procedures a year. So working on a 5 hour -- sorry, 5-day working week and 10 hours working a day, that's 1,000 procedures a year. As I showed on that pie chart previously, the average revenue for a hip or knee is around GBP 7,000. So multiply that through, you get to very quickly get to GBP 6 million annual revenue. However, because we own that facility, we can move to 6 working days and a 12-hour working day, which gives another 50% in terms of inpatient procedures, so 1,500, which takes revenue from GBP 6 million to GBP 9 million per annum. Going back to the margin slide previously, that's showing a gross margin of 30% compared to today's 18%, so clearly margin enhancing. And one of the benefits of our business model. Because we prebook patients 3 to 4 months in advance where appropriate, we can preload the hub before it opens. So once we've got a completion date, we can effectively patients booked in for the first 2 to 3 months, scheduled at 5 or 6 per day, so we're not waiting for it to start. So a fairly compact operations, you can see it's a single operating theater, 12 beds, everything else is done back in the community again. In terms of very approximate what it might look like, that start impression of the hub that we're going to be developing in the next couple of weeks following planning coming back, which is due shortly, and we expect it to take 1 year to build and be open in our financial year '26, '27, generating revenue and margin. So where are we up to with our first hub? Well, we've financed it. That's through the placing proceeds and also our cash reserves. So we have the money to do it. We've had offer accepted on land subject to planning. So that's all in place. Planning was submitted in March, and we are expecting very shortly to hear from them. We're hoping perhaps towards middle to end of this week, if not the week after. So it's going to happen very soon. Once we get the planning permission, then we have everything available. We have the builders. We have the specialist teams who are going to be putting in the laminar flow theater areas so that these specialist areas within the hospital, that's all planned and ready to go. We would hope, therefore, to be opening this hub. It takes about a year to build it. So we're hoping to open this hub in summer, autumn of 2026. Now this hub is a blueprint for our future hubs. We already have a separate piece of land in West Yorkshire that we've identified that we're about to take an option on to develop our next hub, obviously subject to planning. So we're well on the way. We've had very, very good feedback from the planning department because we're ticking a lot of the boxes to what they want to develop in their area. Okay. On some financials, could you introduce it for us?

Yes. So just as a quick overview to start with, we're very, very happy with this last year, underpinned by a 28% increase in new patient referrals. And understandably, and not surprisingly rather, this has led to a 23% increase in revenue and a significant increase in our profitability. Just a couple of highlights from the last year. Adam will go into more detail on the specifics of the numbers, but a couple of highlights from the last year. We've moved our bank to Barclays Bank. We have a GBP 1.1 million property, which is our head office in Sheffield. But other than that, we don't have any debt. We've moved to a different bank who are very supportive of what we're doing, and we're getting much better interest rates on the cash that we have. Another important point over the last year is that we've moved to 5-year contract with our largest NHS commissioners. Now traditionally, the NHS have always only offered 1-year contract. And we've been doing this for over 20 years now. We've never lost a contract. We've only ever gained contracts, but it just became a very repetitive process. We've moved with 2 of our largest commissioners to 5-year contracts, which we were very, very happy with because that gives us the confidence with regards to our future investments. So one of our biggest is in Lincolnshire, and it's not surprising that our first hub will be in Lincolnshire. So we're very pleased with this move to 5-year contracts.

Okay. So I'll give you a quick overview of the significant KPIs we use daily within my senior team in the business. So operational first. This really encapsulates the previous slides we've been through with you. So you can see across the board, I've shown '23 as well for information that we've seen perpetual growth for the past 4 years since the pandemic. Clearly, pandemic is an interesting year, but we're a long way past that now. You can see growth there in new patient referrals, the associated consultations because every patient needs a first consultation gets referred then has follow-ups post procedure and a larger number. Number of surgical procedures, just over 7,000 Consultants, Derek touched on the reasons they find our business attractive, but we've grown that by 17, which is a really good indicator of strength of the business. We now find them applying to us rather than chasing them. We've got a rich stream of new consultants. And behind that, 80 is a strong pipeline of new future consultants based on where we open up next and the specialty that they provide for us. And again, just to repeat the point, it's an important one, but we are very, very strict about who joins the group. We don't take all comers for obvious reasons. We're not creating tins of beans here. We're taking surgical procedures on patients. That's absolutely paramount. We get the best consultants, and we will select and deselect appropriately based on what we see coming through the front door. Our reach committee is the front door as far as the patient is concerned, 37 of those, and that's a network we review regularly. In terms of making sure we've got in the right place and they're full. If they're not, we close them and move them on. Because it's a contract, there's no cost to those apart for rental. So very, very quick to set up and very easy change should we need to. The surgical operating facilities there is independent hospitals we use. We work with Circle, Spire. We're currently in dialogue with Ramsay, but we expect to continue our organic growth through the increased use of more of these independent hospital groups, but also getting better capacity within those groups. So it's twofold, and we've seen good growth from that as well. Finally, on that slide, this is about the internal patients that have been referred to NHS already and are set on a waiting list. Trusts are rewarded for achieving year-end targets. And very often, and we saw it very, very strong last year in the second half of the financial year, they ask us if we can approach patients on their waiting list, ask them if they like to come to One Health Group for treatment and over 80% do, they discharge to good health and the hospital achieved their internal targets and broaden accordingly, and we see additional volumes as a second revenue stream beyond the traditional GP referral. In terms of headline finance numbers, I mentioned already, we saw GBP 28.4 million revenue this year, an increase in gross profit, not only in pound note terms but margin as well. We're approaching 20% this year up from 18% last year. So we're very pleased with that. And that's down to a number of really effective initiatives we put in place at cost of sales level over the last year and now coming through. It's also worth mentioning we saw a profit uplift down to a tariff uplift. The tariff may recall is the prices upon which we are paid by the NHS. So halfway through last year, you may remember the settlement done with the junior doctors, we saw some quite significant pay rise. That, in turn, affects the operating cost of the hospital, which in turn affects the tariff in terms of what you get paid for each procedure. So One Health as an independent provider, also benefit from that tariff uplift, which is around 4%, which gives us a revenue and margin uplift for the whole year. It's also retrospective. So although it was applied at half year, we claim back at the start of April. So that gives an uplift in the year. Dividends remained strong at 6.2p. We've said from the outset, we have a progressive dividend policy, and that continues. Net cash, unsurprisingly, very strong following the IPO when we put a lot of cash in the bank. Just a quick summary. This table appears in the annual report that was put on our website this morning, just to show the reconciliation from '24 to '25 and that growth from GBP 1.5 million to GBP 2 million. And in terms of this year, we've added back the cost of the IPO around GBP 400,000 to get to underlying adjusted EBITDA just over GBP 2 million, which is a strong achievement.

So we believe the outlook for One Health is extremely positive. It's underwritten fundamentally by the government who are wanting to move patients from the NHS out into the independent sector to speed up the treatment because we need to get the waiting this down to manageable figures. And the governments have set their target and they set milestones along that target of getting 92% of people only waiting 18 weeks by 2029, which haven't been achieved since 2015. So the Secretary of State for Health, Wes Streeting has repeatedly made statements supporting the independent sector. Bottom right is a press article which appeared only last week. So this is constantly being put out by the government. So we will continue our geographic growth, our organic growth, as we described earlier. And although we can't report the figures, we know for the first quarter of 2026, this growth remains strong. So we're very happy with that. In addition to that, we have the delivery of our surgical hubs, which again is something which is supported by the government. And as we said earlier, we have the patience to be able to put through this, and this will increase both our revenues and our profits. As Adam said, we continue with our progressive dividend policy. Now forgive me for these figures, but we were asked what the market opportunity was for One Health. So we did a calculation. Of the 4 specialties we do, the NHS currently spends GBP 13.4 billion on those 4 specialties and the independent sector at present only does 11% of that work. So there is a massive opportunity. There's a massive amount of patients and consequently, revenue and profits to be made. So we're going to continue our organic growth. We're going to have our strategic growth with our original hubs. And it's our ambition in the medium term to turn our revenue to about GBP 80 million in the medium term and then up to GBP 200 million in the long term. So we are very, very enthusiastic with regards to our growth. So in summary, we're addressing a market need. We're part of the NHS supply chain, and we have the full support of the government with regards to growing our business as supported by the elective reform plan, which is out in January 2026. Patient choice is being promoted by the government, and it's very good for us and it's very good for the customer. The customer is able to get some traction on how they are being treated. We're not a new company. We've been around for 20 years. As I say, we started life in the first labor government where they wanted to deal with waiting list, and we're now in the next labor government doing exactly the same. So we've grown organically ever since then. We're financially robust. We have multiple growth strategies, not only our organic growth where we're going to grow we simply grow our geography, but we're also going to grow strategically with regards to our surgical hubs. We just believe at this stage that there's a step change that's happening with regards to the NHS. There has to be some reform to the NHS moving forward. And we believe we're in a very good place to be able to grow our business, both currently with regards to what the labor government wants to do with regards to increasing the amount of independent sector work, but also should there be any changes in policy from subsequent governments that might come in with regards to how the NHS is funded. And elective care, elective surgery is very easy to be done by the independent sector. More difficult problems are things like mental health, cancer, primary care, et cetera. But the sector that we're in, which is elective surgery is very easy to do. So we feel that we're in a very, very good position. We're very excited for the future for this company. So that is the end of our presentation, and I believe we have some questions to be able to go. I think we've got another 20, 25 minutes. So we're very happy to take some questions.

And I think we're going to move to you being able to see us rather than just those slides. Okay. We'll start the questions, Derek. So I've got a few on the screen here, so we'll talk them through. So I had a question come in saying, how do you view the change of the NHS in relation to revenue growth? I think that's quite easy one to pick up, if I do that one. So clearly, we touched already on waiting list of well over GBP 7 million. without support the independent sector, Derek already that we've got Wes Streeting very keen to use us more to get their waiting list down. So we can see not infinite revenue growth, but certainly for the next 200 years, which I think is pretty sufficient. And also as well, bear in mind as well that there's a view as well that the private self-pay boom is probably finished. So from an organic growth perspective, we need there's more capacity in hospitals now for us to use. We're seeing more of that locally where a hospital use for many, many years is now given us more growth or more capacity than ever before. So it's a case now of there's a massive opportunity out there, well placed to support it organically. And those we discuss will drop in locations where we can turbocharge growth because there's no real supply. So another question. Why are you building a surgical hub where you've always had a capital-light model?