Surgical Innovations Group plc ($SUN)

Good morning, and welcome to the Surgical Innovations Group plc Investor Presentation. [Operator Instructions] Before we begin, I'd like to submit the following poll. I'd now like to hand you over to David Marsh, CEO. Good morning, sir.

Good morning, everybody, and welcome to our Surgical Innovations presentation for the year-end results for 2025. Thank you very much for taking the time to join us. We'll start our presentation looking at our 2025 results and where the impact of how that affected the business.[indiscernible] So in 2025, we delivered revenues of [ 11.6 ], which were broadly flat for the year. And that was in part due to some headwinds we faced, but it also masked a number of important positives that the business achieved throughout the year. For example, in Europe, we've demonstrated very strong growth, 23% and that was based on our sustainability [indiscernible], which continues to resonate and is actually growing in key markets like the U.K. and European market as well. It's interesting to see that as tenders come up, sustainability is becoming more and more of a key feature of those tenders. And so we're helping a lot of our partners to write those tenders responses, and we're beginning to see some successes there. U.K. third-party sales grew by 14%. And this is particularly impressive when you consider that during the end of 2024 and early 2025, we actually dropped out of a number of distribution agreements for, sort of, low-margin, low-volume products like synthetic mesh, for example, which also took a long time for evaluations. So that third-party sales was based on new products that came into the portfolio, as well as some of our long-term relationships like [ MicroLine ] where we saw sales growth. So particularly impressive performance there. Some of the headwinds we faced, we saw SI branded sales impacted by tariffs in the U.S. And we also had a major upheaval within our Indian partner. So they had a complete structural sales change where they lost their sales team at the beginning of the year and have been rebuilding it over the last 12 months. And we've obviously worked closely with them to train that sales team. The industrial [indiscernible] in the U.K., that has also impacted the volume of elective surgery. And it's important to remember that sort of a typical 5-day strike. They stop elective surgery 2 days beforehand, and they don't start it until 2 days afterwards. So it's a longer period than the 5 days, or whatever the period of the strike [indiscernible] So it does impact our business quite significantly. Our OEM sales were down as we anticipated and had previously guided. This was because in 2024, we had a strong result, which included the clearance of back orders from the previous year. This -- last year's performance was further hindered by some supply chain constraints around our component, which was supplied free of charge to us by our OEM partner. That's [indiscernible] being resolved, but it did impact sales in quarter 4 for our OEM business. Another upside for the business is that we saw our gross margins improve to 34%, in part from product mix, but also in -- as we saw some of the cost reduction programs coming through, and sort of we work very close or very carefully on the business to manage our cost base. We also achieved [ our NDR ] certification, and I'll talk the importance of that a little bit later. But this does underscore our commitment to quality, patient safety and compliance as well. And it does position us well for the future. We've spent the year focusing on delivering fundamentals of the business around sales, around profits and cash. But all of this is around the -- is driving sales throughout the last year and into this year as well. So if we take a quick look at the financials, I'll give you the headlines, and then Brent will give you details of those further in the presentation. So as I mentioned, we had revenues of GBP 11.6 million. We improved the margins to nearly 34%. We made an EBITDA loss. That's sort of higher than last year -- or the previous year, sorry. But we had a net inflow of cash of GBP 0.6 million, and we improved our working capital position. If we look at our operational highlights. So MDR, so that was critical for the business. And the reasons behind that are that it allows us to -- one, we've now maximized the cost, but it allows us to focus on delivering new products. Throughout the period of MDR, the R&D team were focused on delivering the relevant documents for the MDR process. We also see an advantage in that it, allows us to sell products clearly into the European market. But what -- where we will see an advantage is that we will see competitors begin to drop out as they fail to achieve MDR, and that will come to a high point in 2028. So we continue to leverage our NHS relationships in the U.K., and that's allowed us to attract new technologies because we work very closely with both clinicians and the NHS. The strong European momentum was a real highlight of last year, 23% growth in that region, and we're continuing to see that throughout Q1. We're maximizing our distribution network. What do we mean by that? So if you look at [ NeoMeds ], who look after our [indiscernible] region, they have a number of companies in Scandinavia, and we've recently brought those businesses on board. And we've seen some real benefits from that already as evaluations are [indiscernible] being undertaken in Sweden and in Denmark. And of course, our sustainability messaging, that continues to resonate in key markets, both in the U.K., both in and -- also in Europe. And as I said earlier, sort of a lot of tenders now include sustainability criteria, and we can -- we tick that box very clearly. We've invested in our sales team throughout the end of last year and into this year. That's been -- the U.K. team has been restructured. It's got better sales management. We've increased the resourcing sales internationally, so that can be focused on key markets. And we continue to drive our international distributor network and the sales efforts and we support them in those. We're looking at exploring our U.S. opportunities. We're speaking to a number of companies that have nationwide distribution. And that gives us a significant opportunity for next year. And of course, we've restructured the company. Both the Board and key positions within the company as well. And we're currently recruiting for a new CFO as Brent steps away from the business later this year. So one of the strategies of the year has been focusing on the fundamentals of the business. And so what does that mean? That means driving sales, which is the key, key component of this. Investing in the sales organization, leveraging our relationships, not just in the NHS, but also with clinicians, our distribution partners and opportunities around the world. It's about focusing on how we can change the U.S. from what has historically been a problem child for us into a significant opportunity. And to focus on the high-margin products that deliver both high value, high margin and create value to the business as well. And then increasing the product offering that we have and that we're able to offer both through the U.K. team, but also our international partners. It's about increasing profits, improving the operational efficiency of the organization and driving those product margins, both through cost down projects, but for also bringing in greater products for our distribution network. So what we do is we're reducing costs all the time and looking at areas that we can reduce costs. Some of this is through areas like the clean room, where we've taken out a number of temps and not backfill those positions. And it's amazing how well the business can adapt and cope with reduced manpower in areas like that. And we also -- we constantly review the structure for opportunities where we can take cost out whether that -- [indiscernible] whether that's something like the [indiscernible] or whether that's adding in operational automation, or robotics, or whether that's taking headcount elsewhere out in the business. And of course, the important thing is improving our working capital. We do that by reducing inventory, and I'll touch on how we've done that later, and Brent will allude to in great detail. It's about managing our creditors and debtors, and the finance team has done a really good job of controlling that now. So we're in better shape than we've ever been. And it's also about improving the supply chain management, the terms that we have with our suppliers, both -- and also our customers as well. And so that leads us into developing a future strategy, developing a vision for the business, where we want to go, how we want to get there -- sorry [indiscernible] Developing and executing a strategy for the U.S., sort of we clearly need to do something there. It's a big part of our market. And then also, as I talked about earlier, is building that R&D development pipeline so that we are always producing new technology for the market. So as we break down into more detail on those 4 pillars that we talked about, so the sales organizer to drive sales. So we've improved the sales organization in terms of the number of people that we have in there, the management of it, the accountability of the sales team. So we've expanded the areas that we cover effectively. The U.K. team now has -- is fully manned. There is a very experienced sales manager in place. We have the product managers in place. And we're also looking at where there are more opportunities, for example, with the [indiscernible] range. We now have a product specialist for energy systems. And if that grows the way we see -- we anticipate it will, we'll add head around that as well. Improved geographical spread. So that's sort of -- as we've increased the number of international salespeople, we can put them into dedicated areas, make them accountable for that. But it's also about looking at opportunities. Now MDR is completed that we can look at countries where registration is more complex, more long term, and we can build the pipeline that way. But we can also look at opportunities that are more immediate opportunities like the Scandinavian opportunities that we have. We're looking at accelerating our sustainability programs and some of that is, sort of, working with our partners in Europe. We have a clinical trial in Germany at the moment, which is around green surgery, and we're one of the key partners in that. And so all of this data feeds back to our sustainability programs. And then the real opportunity that we've got and we've already started this, is to drive some third-party products through our dealer network. So we have a really well-established dealer network, particularly in Europe. And we can leverage that network to pick up third-party products, both for the U.K., but also to feed through to our dealer network. And we're already seeing that with products like Cipher Surgical, where we're beginning to introduce that to some of our partners, and we're beginning to see some activity already. And we see that as an opportunity going into 2026, to get some real incremental third-party sales. And then this business is all about relationships. And it's -- it's sort of a key that we leverage those [indiscernible]. In the U.K., we have really good opportunities with the -- sorry, really good relationships with the NHS, and also with the private health care providers as well. But we're strengthening our clinical relationships as well. So as we bring new technologies, we can go to these key opinion leaders and understand how this will impact their practices, and how we can sort of leverage that relationship to grow the business. And it will allow us to attract new technologies. For example, we have a product which we're reviewing at the moment and there over next week, and we will be taking them to see clinicians in the U.K. and show them basically the depth of our relationships in the U.K. So it will help us attract new technologies too. I talked about the U.S., and this is an opportunity which we really have to capitalize on. So at the moment, we're active in 5 states in the Southeast, in a market that accounts for 43% of the global MIS market. So we are looking at opportunities now with major companies that have nationwide coverage in the U.S. that we can piggyback on. And we're in conversation with a couple of companies around that. And hopefully, we will be able to see some real benefit through this year. Talked about the growth in sales of third-party products within [ Elemental ], and how we had taken -- we walked away from some low-margin, low-volume products, synthetic mesh being a classic one, to focus on some of these higher margin. And some of the products we get from [indiscernible], they are higher margin, they're actually a higher value as well. And so they give us real opportunities to drive sales as we go forward. And it's diversifying that product range as well. So they have to remain within, sort of, the operating room, but sort of we can move into other specialties and [ Aspen ] helps us with that as they have multi-specialty products, and different types of products within the portfolio to help us drive that. And then there's expanding the SI portfolio. This year, and I'll talk about them later on, but there's a number of products that we're adding that are SI branded products. We're looking at opportunities to increase that amongst our R&D work as well. So increasing profitability. I mean that's an obvious aim of the business. And we look at that through improving our operations. We have a new operations director that is [ very enthusiastic ], very metric orientated, and we're introducing new key metrics that are really measurable, and we can measure all aspects of this, and that brings us into the lean operations as well. So the operations team are now far more accountable than they have been in the past. They're driving cost out of the business and looking at ways that we can improve all operational aspects. We're looking at ways to increase product margins, and that's focusing on markets where we can achieve higher pricing. For example, Japan, you can achieve a higher price in Japan. Sort of some of the other markets are lower prices. And so we tailor our activities to maximize our opportunities from a [indiscernible] point of view. We've had through the year, we've implemented price increases, and that will continue through this year, where with the new framework agreement with the NHS supply chain, we've managed to get price increases there as well. And so when you consider 60% of the elemental business comes through supply chain and framework agreements, whereas you can see that, that will impact the business positively throughout the year. That comes into effect from August. And then we're constantly looking at ways that we can reduce our overheads. And that's, sort of, through greater integration in the business is creating a flexible workforce. So, sort of, there is nobody that is tied to the workshop, or tied to the clean room, or tied to packing, or tied to inspection. We can multi-skill people so that we can move them around the facility as demand indicates. So improving working capital. So the first target is reducing the inventory. And in previous years, we carried higher inventory than necessary to deal with the supply chain challenges that the world faced. Well, now it's time to reduce that and bring it back to working levels. And the team are working very hard, and we're already on our way to that GBP 1.5 million target for the year. We're doing this by actively managing the suppliers, and that is getting the suppliers where we have to buy [indiscernible] volumes to achieve pricing is to get the suppliers carry the inventory, not us, and then we can call off as and when we need that. And it's sort of making sure that the inventory that we buy in is going to be used in a relatively short period of time. Most of the inventory is obviously SI-related. Elemental is fairly easy to manage is finished goods, and so it can sit on the shelf and we can turn it around in a short period of time. So managing that SI inventory is absolutely key, and the team are accountable for that, and we are seeing progress, as I said earlier. But the easiest way to reduce inventory, of course, is driving sales. And it comes back to point one. We drive sales, we can reduce inventories because we can release what was in stock, we can release that to cash. We're managing cash far more effectively than we have done. [indiscernible] Brent's team have put in place very strong cash management and proactively chasing receivables, and managing effectively our payables as well. So that will continue, and we'll continue to see that improve -- that position improve. And again, sort of about the supply chain management, sort of this is a key part of the inventory improvement and a key part of improving working capital. We're managing terms both of suppliers to Elemental, but also suppliers to SI. And then the reverse of that is we're managing the terms that we have with our customers. So as we move forward, it's about developing and executing a future strategy. So it's about creating a vision and a direction for the business to focus on, and that focus has to be around the customer. The customer is critical, obviously, critical to the business. And we have two customers. We have the clinician and we have the patients as well. So it's making sure that we identify what we're good at, how we can differentiate ourselves from the competition and deliver on those in a timely fashion. It's about identifying products that find solutions for the clinicians and how we develop and source those products. It's about [indiscernible] really. It's excellence in everything we do every day, and it's delivering that by driving sales globally and making sure that the business is forward thinking as opposed to, sort of, the MDR kept us focused looking inwards, we can now start looking outwards and developing new products. And understanding what the drivers of the business are. It is relationships. Relationships are critical to the business. The NHS relationship is critical. It accounts for 60% of Elemental business. Sorry, 80% of Elemental business, but the supply chain is 60% of that. But it's also relationships with those clinicians, and driving, and our suppliers and understanding that. It's creating and expanding on the strong sales channels that we have, sort of that we need to start really leveraging the ability that we have within our networks, and being able to drive that and balancing out the geographical sales. So we're strong in Europe, we're strong in the U.K. We're strong in Japan, but our U.S. business needs attention. Our Middle East business needs attention, and we're putting in strategies to develop that as we go forward. R&D can now focus on a road map for new products. Sort of our company name is Surgical Innovations, and we need to get back to innovating. And that's a key part of how we move forward. Talked earlier about clinical leadership. We can't do the product innovation without clinical leadership, without people, without having those relationships with surgeons, without understanding and addressing what their challenges are. And that, sort of, our business is very much razor-razor blade. And so it's driving the consumable sales to make sure that, sort of, we can deliver on the revenues and their sustainable revenues, and predictable revenues as well. And so bringing everything into operating from a lean, effective manufacturing facility. So just looking at, sort of, where we are on the new product road map. Sort of, this will begin to be filled with more technologies, more -- sort of changing technologies that will allow us to really leverage our term surgical innovations. We're looking to invest in high-impact projects. Things that drive the marketplace, that change the marketplace and create value for the business. We're looking at new materials, and I've spoken before about some of the new materials as we move from silicon to TPE. We're also looking at different manufacturing processes for silicon, and we're looking at different materials. So we're working very closely with [indiscernible] University on some new sustainable materials. And so that will give us an opportunity to create more of our sustainability story and also to take cost out of the business. And so this year, we will see the launch of the illuminated calibration tube. And this is very much a U.S.-centric product as well. So this will help us with our plans in the U.S. And effectively, what this does is it allows the surgeon to have a much more effective guide for gastric [indiscernible] procedures. And then [indiscernible] the long-awaited extension of the [indiscernible] range. So at the moment, we sell about 120,000 [ logic catheters ] a year. But we need to be able to grasp and best sectors for that range. And so these products will be added by the end of the year and will give us a real opportunity in all key markets.

Thanks, David. Good morning, everybody. So when we reflect on 2025's performance, I think there's really two key things really to speak to. I think one is around financial stability and creating financial stability within the business, within the P&L in terms of how we manage all elements of the P&L. We spoke to revenues, but certainly around our cost base, around operational efficiencies, but also how we manage the balance sheet. And of course, when we refer to the balance sheet, it's cash and working capital levels, and I'll speak more to this in a moment. But also throughout 2025, the actions undertaken throughout the year, it's really created the foundation and the platform to then progress into 2026, and deliver improved financial performance throughout this year as a result of actions taken last year. And then you can see on the headline figures here. Despite slightly lower sales '25 versus '24. And of course, like any business, despite there being ongoing pressures on our cost base and our supply chain, we have seen and do report improvements in our gross margin. We have seen operating losses reduced from GBP 0.8 million to GBP 0.7 million year-over-year. We are now reporting positive operating cash flows of GBP 0.6 million in the year, and our net debt has held firm on a year-over-year basis. So it's certainly not a case of job done, but I think it, kind of, illustrates how we are benefiting from many of the actions taken throughout the year. So, I mean, looking at this revenue analysis slide, I mean, I won't spend too much time on this as David has spoken at length about revenue performance. But I think, again, it's just a good visual to kind of illustrate that whilst we are in 2025 reporting softer sales than in the prior year, actually, there are several revenue streams, which are very positive. So David has spoken about positive sales growth in distribution, and mostly offsetting what we've seen in OEM and our SI branded. So there are green shoots, and we are optimistic that as we move through 2026, we will be able to deliver stronger sales performance, which will, of course, support the wider business financial performance. So looking at the margin analysis, I mean, there's two kind of cuts really of the margin that we should look at. I mean in terms of the underlying gross margin, so sales less cost of sales, as David has spoken to, you can see year-over-year, we've increased from almost 31% to 34%. So a notable increase, almost 300 basis points. And really, that's kind of driven by several factors. I mean one is a different sales mix. So stronger levels of distributor sales has supported margins. But beyond that, we have seen pricing -- the benefit of stronger pricing year-over-year, which is an achievement in the very competitive markets within which we operate. So I think any pricing upside is kind of a reflection of our capabilities. But also, we're kind of driving efficiencies throughout operations. And so there's kind of 3 tiers really which are supporting gross margins and will continue to support margins as we move through 2026. When we reflect on contribution margin, slightly lower, which essentially is gross margin less than overheads, you can kind of see there's been a reduction from 28.8% to 26.3%. And really what's driving that is that line which you see in net cost of manufacturing. And kind of one of the drivers here really is that throughout 2025, we proactively sought to reduce our inventory holdings, and that's something we must do and continue to do. But an offset to reducing inventory levels, it supports working capital, which in turn supports cash flow. But what that means is throughout the year, it means in real terms, there's less activity running through operations, you're recovering less cost into your overheads. So almost it's largely a onetime correction where we reduced inventory holdings to the right level. But what that means is almost, say, a blip in the year in 2025, where therefore, we reduced -- we recover less costs in our P&L. And so we see the contribution margin dip slightly. But we do expect that to kind of recover as we move into 2026. And whilst we're talking about 2025, I think it is good to kind of speak in detail about some of the actions undertaken last year that will bring tangible benefits to 2026. So we know that throughout last year, we utilized extensively temporary resources, temporary headcount. And as we move throughout the year, we actually concluded the year with having no temporary resource in the business at all. And so as a result, we expect to see anywhere between GBP 300,000 and GBP 500,000 of savings to our P&L in 2026. The reason we will see that benefit is we've reduced the use of temporary staffing, but at the same time, we have not backfilled that headcount with permanent heads. We've not increased our underlying headcount overall. So they are going to be real savings that we will see on a year-over-year basis. We also see the benefits of several cost-down exercises. And essentially, we have reengineered some of the materials and some of the processes that underpin our products. Some of those initiatives were introduced and executed late last year. So the benefits were running through our P&L in Q4, and we'll continue to see benefits as we move through 2026 on a year-over-year basis. But there are also other R&D and engineering initiatives, which are in flight, which are expected to conclude around about the midyear stage, which in turn will give us further benefits. So again, these are projects which are underway right now. And if successful, we will generate further cost savings, which in turn will support our P&L. And so in those cost-down initiatives, we would expect year-over-year savings of several hundred thousand pounds, which will support our contribution margin and of course, will support the P&L overall. As we look at operating expenses, there's actually not so much to kind of call out here. I mean what you can see is total operating expenses have decreased slightly from GBP 4.1 million in 2024 to GBP 3.9 million in 2025. And in most spend areas, the kind of level of spend has kind of held flat. As you may recall, in 2024, the business took a very difficult decision of undertaking restructuring and as a result, removed costs from the business. And so of course, it was critically important that as we move throughout 2025, we were very careful about the cost we reintroduced into the business. Having taken a difficult exercise, we just need to be very careful about how we progress throughout 2025. And that is why we see most spend areas, we decreased the spend or spend held flat. The only outlier is really our investment in sales and marketing, where, again, as we progress through 2025, we're very mindful of making sure we aligned our cost base with top line growth. And again, we do want to, kind of, burden the P&L with extensive and unnecessary headcount. We kind of watch carefully as we progress throughout 2025. As we concluded the year and with more confidence around the marketplace, and understanding clearly what our requirements are, we have proceeded with investment in our sales and marketing footprint. We recruited several hires in the sales space into the business in November and December of last year, and there were further hires in January of 2026. So we have moved forward with investing in headcount in the sales and marketing space, and that investment will underpin the sales growth that we expect to see in 2026. But just more generally, this speaks to the thing I opened with, which is around the rigor and diligence with which we manage our cost base. We're just, kind of, being very careful, very considered and doing all the things you'd expect a high-performing business to do. Manage our costs, empower our department heads to own their cost [indiscernible] scrutiny around all cost lines, processes, efficiencies and so on and so forth. I mean, as we reflect on our financial position, I mean, I think there's a couple of key areas really. I mean, I think as David spoke to and I touched upon, really is the focus on working capital. So working capital being, yes, inventories, but also receivables and trade payables. And again, it's just having that rigor around the supporting processes. So in terms of trade receivables, maintaining good relationships with our customers so that customers do not become -- we do not see excessive levels of overdue invoices. We've got really good customers, and they will pay to time. We just need to make sure that we continue to manage them and chase them where appropriate. And if we do that, we stay on top of our receivables, there will be no overdue balances. In terms of trade payables, of course, we ensure that we pay our suppliers to time, and to terms to maintain those good trading relationships. But at the same time, we engage in discussions with them around credit terms, around cost increases that they may wish to pass on to us to again, to optimize the levels of working capital in that space. And certainly a success story has been around inventory levels and inventory holdings. I mean, we've seen inventory reduced from GBP 3 million to GBP 2.2 million year-over-year. And that really has been a reflection of efforts undertaken within the business. We have sought to reduce inventories to levels that are appropriate for the business at site, so ensuring that we have all the right process in place. We have a lean methodology, of course, but what we're really doing is ensuring we have a very robust sales forecasting process to know what lays ahead for the next 3 to 6 months, which in turn will guide us on the levels of finished goods that we need to manufacture. We ensure that we know our supply chain well. So we know minimum order quantities. We know lead times. At the same time, we also know what the levels of buffer stock emergency stock we need to hold on our shelves to ensure that we can satisfy customers. And at the same time, if there is a spike in demand, we can be responsive and satisfy customer demand. So we've done that very -- in a very considered manner. But at the same time, as a result of that, we have seen a reduction in inventory, which will support, and has supported, working capital levels and that in turn supports the levels of free cash we have at our disposal. We've also seen borrowings reduced. It's reduced from GBP 0.5 million as we ended the year to GBP 150,000 at the year-end. And this reflects a CBILS loan that exists and we continue to repay. This will be fully repaid in May 2026, and that will also give us back about GBP 400,000 a year to our cash flow because that loan will be fully repaid. And it's worth noting that we have, and continue to have, very good relations with our bank, and they continue to be a very supportive stakeholder in this exercise. So we're seeing a much stronger cash position. And should we see that cash position continue to improve as will be expected from sales growth throughout 2026, it just allows us to have better conversations around how we might invest, whether it be in R&D, whether it be in sales opportunities, capital, the facility, our workforce and so on and so forth. So there has been good progress made throughout 2025, and we expect that journey to continue through 2026.

Thank you, Brent. [indiscernible] next slide. Thank you. So we'll just run through that summary, and then we'll be happy to take questions. So the investment in sales that we've talked about a lot during this presentation. We -- we're seeing that beginning to drive early momentum in most of our markets. So that's a really positive start to the year. The strong cash management that Brent has talked about, that's allowed us, as we continue to keep those -- that management in place, that allows us to provide flexibility to invest and to take advantage of other opportunities. Whether that be R&D or whether that be investment in sort of sales, or wherever it's needed within the business. The MDR is a significant achievement for the business and, sort of, I'll keep waking [indiscernible] about this because it really changes the dynamics of the business. Products that we can continue to sell in Europe. It gives us an advantage over our competitors and really strengthens the regulatory credibility of the business. And it now allows us to start focusing on new products. For many years, we were hindered by the -- sort of the constraints of MDR. We're now -- we've now unlocked that. We can now develop a nice pipeline of new technology. We're beginning to leverage the distribution network that we've got throughout the world, particularly in Europe and drive some third-party products through this network. The other advantage of it is it makes Elemental more attractive to U.S.-based companies because they can see that they've got an opportunity for an English-speaking partner to drive all of their European business. And that -- so the smaller high-tech companies coming from America are looking for a partner like Elemental that can help them sort of establish a base in the whole of Europe. So it's a real opportunity for us to leverage that. The growing demand we see for SI branded products in Europe is significant. It's supported by our sustainability messaging, which that begins to resonate in other key markets as well. And we have to work hard now to make sure that we can transfer that success in Europe to other key markets. We continue to sign new long-term agreements with key suppliers. We have some under discussion, as we speak now. We strengthened our agreements with Aspen, and we strengthened our agreements with [ MicroLine ], and they really underpin the U.K. distribution model. It's a real, sort of, strength of the business that we can attract these technologies, and our relationships allow them to keep those relationships agreements as well. And then the operational efficiencies that we're driving through the business to keep costs down, to drive initiatives, to continue to drive initiatives to improve margin and to create a more streamlined structure that, again, delivers cost savings and will improve profitability. So the company has worked very hard during 2025 to get the building blocks in place. And it's, sort of, we focus very much on the fundamentals, focusing on the fundamentals and drive the business forward. And now it's about the execution of all of these plans and strategies that we've had in place, and to deliver value. So that concludes our presentation. We're happy to take questions.

[Operator Instructions] I'd like to remind you that recording of this presentation along with a copy of the slides and the published Q&A can be accessed [indiscernible] dashboard. [indiscernible] ask you to read out the questions to share with the team and I'll pick up from you at the end.

Yes, no problem. Okay, first question. Will the company see share price growth with the dividend? Obviously [indiscernible] on the share price perhaps comment on future [indiscernible]

Yes. I mean, I think -- sort of, when you look at the size of surgical innovations and dividends. At the moment, we're talking about investment back into the business. So cash that is available, we are investing back into the business. We're investing in, sort of, the structure of it. We're investing in the sales teams, and it's about driving and delivering -- driving sales and delivering value. So sort of the -- I would say, for the foreseeable future, this is about investing back into the business is a key part of our focus.

Can you elaborate on the European momentum that you're experiencing? Is this mainly from new -- existing markets, or new markets?

It's a bit of both. So we are moving into new markets. We've got a better footprint in Scandinavia, and that is -- that's definitely driving some momentum there. Our existing markets are also growing as well. So a lot of the European markets are around tender-based systems. And as sustainability becomes a key part of that, we're driving that messaging with our partners. We're providing them with the clinical data, and we're able to really leverage that sustainability as a key driver for the business. So the answer -- the simple answer to the question is, it's both. It's both existing business and it's new business that we're seeing growth from.

Are you able to provide any more detail on the U.K. [indiscernible] organization?

Yes. So we now have -- so we have 7 territories in the U.K., which are fully manned. We have one energy specialist because we see a real opportunity with the Aspen Energy devices. This is slightly out of our normal call point in that it tends to be clinics. And, sort of, that's an opportunity which we're exploring, and we expect that to perform really well this year. So we have someone that manages the national accounts for the NHS supply chain, the private sector, and they do an outstanding job there. So our relationships with supply chain and private sector are really, really strong. And I can give you an example of that actually. So many of you will be aware that [ Stryker ] suffered a cyber attack, and they had a supply chain issue. And we were the first company that the NHS supply chain contacted to go through our portfolio of products and see what we could drop in place to pick up that shortfall of [ Strike ] product. So it's key -- it's building key relationships like that with both the supply chain, and NHS supply chain and the private sector that are key. We have a really good sales manager in place, and he's --sort of the key to this for me was to make him a field sales manager. I don't want somebody that's sitting in an office. I want somebody that is actively out there helping the sales team, developing new opportunities for us and helping the sales team close business as well. So it's a really -- I would say it's a really progressive sales team structure that we've got in place now, and we are beginning to see the momentum develop from that.

A question on conference attendance. Did Surgical attend the [indiscernible] Global Surgical Conference? And are you attending [indiscernible] in San Antonio in May?

I'm not familiar with the [indiscernible], but we -- our partners were at the [ AORN ], so we have representation there. And our international guidance that looks after the U.S. was at the AORN.

Brilliant. Have you got FDA approval for LogiTube?

We do. Let me just clarify that. So as I mentioned in the presentation, we -- the illuminated version of it is really focused on the U.S. market. It's something that the U.S. clinicians look to have. And whilst we don't have FDA approval at the moment, it is going through FDA approval. So we would hope to have that, I would say, early second half of the year.

How is the search for the new CFO going? Do you see any issues on this one?

No, we are, sort of, at an advanced stage in this process. It feels me talking about it. But yes, we're in an advanced stage, and we'll obviously notify the market when we've got something more tangible to say.

And then finally, again, do you see any requirement for fundraise in the next 12 months?

So as part of the strategy that we're building at the moment, it's looking at all areas of the business and, sort of, looking to see if there are areas where we would need incremental funds. As the business stands at the moment, we don't have a need for it. But sort of -- if and when that becomes a possibility, we'll obviously notify the market. But we're in a very strong position for now.

That's great. Thank you for answering all those questions you can from investors. And of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which is particularly important to the company, David, [indiscernible] just ask you for a few closing comments.

Yes. First, thank you, everybody, for staying the course and listening to the presentation. I like -- so when we look back, sort of, 2025 has been very much about putting building blocks in place, focusing on the fundamentals of the business and making sure that as we enter 2026, it's about driving the sales, driving the operation and creating accountability, and profitability within the business. And I think sort of the early -- the early stages of 2026 are looking very -- they're looking positive. We've got momentum in sales. We're improving efficiencies throughout the plant. And, sort of, we're keeping a tight control of costs and cash. And so the business is well placed now to start growing and to start really delivering on value. So thank you very much, and look forward to seeing you in September.

That's great. Thank you for updating investors today. Could I please ask investors not to close the session should be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This may take a few moments to complete and will be greatly valued by the company. On behalf of the management team, we'd like to thank you for attending today's presentation, and good afternoon to you all.