Venture Life Group plc (VLG) Earnings Call Transcript & Summary

Good morning, welcome to the Venture Life Group plc Investor Presentation. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Jay Randall, CEO. Good morning, sir.

Good morning, everybody. Welcome to our results presentation and for the 17-month period to 31st of May. 2026. Just to highlight to you as you go to this and you see numbers, remember, it is a 17-month period. Danny is going through some of the numbers, he'll sort of outline comparatives and growth rates on a 12-month, 12-month basis, but just be aware of that. This morning, I'm joined -- for those who don't meet Jerry Randall, CEO and Founder of Venture Life Group. I'm joined by Danny Wells on the right here, who's our CFO. And we have seen the announcement will be taking over as CEO from me at the end of the year. So exciting time for Danny, time for me and the business. I'm also by Kate B, who just behind me here. Kate is in charge of marketing and innovation, and she'll be taking you through the products, the growth, the innovation we've got coming forward. So as always, there's an opportunity to submit questions, and we'll do our best to answer those as we go through -- so looking at Venture Life, we've gone through a very transformational period in the 17 months to May 26. We've divested of our CDMO operations. We've realized a significant amount of cash into the business. And we've divested of smaller noncore assets, products that are no longer in the business. And as we sit today, this is the picture of the group. So we are on 4 key categories, as we say there in the middle of the page, 8 brands, we have some what we call power brands in there, which are brands we believe the best growth opportunities are going forward. We've got an innovation engine. We've built a really good pipeline of new products that Kate will share with you later in the presentation. And innovation is key to how we drive the business forward and particularly in consumer health care. And in this recent period, about 8% of our revenues are coming from recently launched products. So you can see that's having a meaningful effect on the revenue growth of the business. We still employ the omnichannel model and we will do so going forward. And that means we're selling in the 4 key channels where our consumers and customers will buy products, and that is health and beauty, grocery, pharmacy and online. And at the moment or certainly in the period we just reported, those revenues are roughly within our be split roughly equally 25% or so in each of those 4 channels. And we sit now with sort of just over 60 employees from the group as we stand. So what's really gone in this last period? So in terms of financial and operating highlights, 17% revenue growth for our Power Brands, 16% overall, 19% EBITDA growth on a last 12-month basis. Profit before tax, GBP 3.4 million. We've returned money to shareholders through a share buyback, and that continued also after the period end as well. significant growth in distribution across the U.K. and U.S. through our acquisition and implementation of our Microsoft Dynamics system. We'll go into more detail on those things as we go through. But what we've done is we've successfully pivoted into a pure-play consumer brands business. So we've divested of our development and manufacturing operations in Italy, Sweden. And we divested of those to an Italian group that's now a significant supplier for us, but also working with us on development of new products and innovation. So those relationships and those skill sets that we had in the group before still service our group, but as part of a larger group plus wider capabilities that group has. So we've simplified the business. We're now focused on brand-led consumer health care business. We focused on our brands. We're increasing the investment into our brands, and that's delivering great organic growth to the business, which we'll talk about as we go we've entered higher-growth categories through acquisitions. We've now entered the U.S., obviously, and scaled our business. And we now have a platform in the U.S., not only a revenue earning and profitable platform in the U.S. with a great sales and marketing team that joined us through the acquisition. But that's now a launch pad for our other brands and products going into the U.S. in the coming years. So simplify the business of pure-play consumer health care. And what do we see as our growth drivers going forward? Well, innovation, I mentioned that already, fundamental, we've got some great innovation, some great breakthrough innovation coming through. It's fundamental to growth. That scale in the U.S. U.S.A. is important to us. The U.S.A. consumer health care market is about 4x the size of the U.K. market. And we're very successful in the U.K. market, and we see the U.S. as being a substantial part of our growth story going forward. As I say, we've got a nice profitable already growing operation out there with a great team on the ground with great relationships with the retailers, and we're going to exploit and leverage those -- that team and those relationships to grow in the U.S. with our existing U.K. brands. We've got distribution across all channels, that's growing, great growth across all of them. And fundamentally, we've got a strong balance sheet. And so when we raised the capital from the divestments, we paid off our RCF facility. So with now net cash, we had just under GBP 12 million of net cash in the end of the reporting period. We still retain that RCF. We've got a GBP 30 million committed facility plus a GBP 20 million accordion if we need it. And we will still consider using that for future M&A. So with that strong balance sheet, we can invest behind the brands and look at some nice selective accretive M&A. And I'll now pass over to Danny, who's going to give you a bit more detail on the financial performance of the group. Good morning, everyone.

So as you'll have seen, we did GBP 50 million of revenue across the 17-month period that represented a 16% like-for-like growth against the previous 17 months on the overall top line, although that 17% growth on our power brands. But if we break that down into the last 12 months to May 2026, which is most helpful, we delivered GBP 39 million of revenue in the 12 months to May 2026. That translates to 20% growth level on the business. And as we'll come on to the next slide, there's a growing momentum coming across our power brands, which I'll talk into. Gross profit for the period was GBP 22.3 million for the 17 months against GBP 12.2 million in the 12 months to end of '24. The gross margins are stable across the group, and we'll talk through the shape and the evolution of the gross margin later on in this deck. 17 months was GBP 7.9 million. That includes the last 12 months to May 26, that represents GBP 7.1 million of that EBITDA. So the underlying growth on EBITDA was 19% across the 12 months to May 26, proving out that momentum we're seeing on the top line as well. Adjusted diluted EPS was up to 5.8p against 3.1p in the previous reporting period. And free cash flow was GBP 3.5 million. But as you will have seen in the notes, there were significant exceptional cash costs during the 17-month period to deliver that transformation. We invested in a completely new ERP system, Microsoft Dynamics 365, moving away from having 7 separate ERP systems in the business to one state-of-the-art system that could help us deliver our scalable M&A playbook. So that was a GBP 3 million of cash costs that went out of the business to deliver that and that went live at the end of 2025. We also incurred all of the costs related to our acquisition that happened post period end. So we completed the acquisition of the Femcare and Coxin brands on the 2nd of June, but the costs in relation to delivering that acquisition fell into the period to 31st of May. And finally, as part of restructuring the business and simplifying it to deliver the new business model, we had some restructuring costs over 17 months. So point of all of that was that there was a significant amount of cash that left the business for exceptionals that has suppressed the free cash flow figure on the screen. So adding around GBP 4.5 million back to that in cash cost terms would have increased that free cash flow significantly. And you'll see that for the next 12 months to May 2027, we expect to generate around GBP 7.5 million to GBP 8 million of free cash flow on the business. So we ended the period at GBP 11.5 million in cash against GBP 19 million or just shy of GBP 19 million of net debt at the end of 2024. Just coming back to that U.S. acquisition point, it completed on the 2nd of June, but we actually sent the cash to execute that transaction on the 31st of May due to spanning over a weekend and the deal needing to complete on the 2nd of June. So it's a cash timing on M&A and adding back that GBP 17 million of cash to the number at the end of the period would have meant we ended the period at GBP 29 million of cash. Kate will talk through the details of what's driving the brand later on in the deck, I won't go into detail here, but I'll start at the bottom right-hand slide of this slide. And what we're seeing is a growing momentum coming through the business with our power brands. That momentum is being delivered by our investment in A&P and marketing spend to drive awareness, to drive new engagements, to try new things in digital marketing that we've not tried before. And in the first half of 2025, we delivered 11.5% growth on the power brands, and you can see that stepped up in the second half of 2025 to just shy of 18%. And then in the latest 5 months to May 2026, that growth has continued, and we saw nearly 21% growth in the 5 months to May. So growing momentum coming through the business and giving us confidence that our increase in marketing spend in A&P is giving good effectiveness for the brands. In the middle pillar, just a graphic here showing the key therapy areas of our portfolio. and on a 12-month rolling basis. So from bottom to top, you can see that each of those therapy areas is growing really nicely and consistently over the last 3, 12-month cycles. The bit in dark blue at the right-hand side, that's our noncore business, the oncology support, which is stable revenues, stable margins, long-standing customers, but not part of the business that we invest marketing and promotional costs behind. We thought it useful to give a bit of an overview of the gross margin, how it's transformed over the pre-divestment period and into what the future holds for us with the acquisitions we've just made. So at the left-hand side of this chart is the -- in the first 2 columns is our gross margins before we divested the manufacturing business before we divested our low-margin oral care brand. You can see the business was operating at around 40% gross margin. Then moving in towards 2024, we completed the acquisition of the Health Her business. That was a significantly accretive product mix for the Venturewife Group, which took us a step up in our gross margins to around 45%. And over the last few reporting cycles, we've been able to maintain and stabilize those gross margins around that level despite strong inflationary pressures and headwinds coming from us from the Middle East crisis in particular, over recent months. And particularly, that's been affecting us across packaging components and aluminum, which impacts some of the cost of goods and some of our products and also on our transport and logistics costs. So at the period end just gone, we had to incur extra costs to ensure delivery of customer orders along the delivery dates we had committed to when we accepted those orders. So -- but the important thing is that we are passing these price increases on to our customers. So Jose in our commercial team has been spearheading and leading the team to get into an excellent rhythm and routine around passing these price increases on to our retailers in the U.K. each year at the beginning of the calendar year. And Sara in our international team working with the guys has been very successful in passing on single-digit high price increases to our international strategic partners to make sure that these cost impacts we're seeing are being passed on quickly, although there is a lag effect on the international orders, as mentioned, at the end of this current reporting period. Coming into the right-hand side of the chart, the 26 to 27 column reflects our guidance for the next 12 months. And of course, having just acquired the Femiclear and Croxon brands on the 2nd of June, we're going to get a full year impact into this calendar year -- this financial year into the gross margin accretion from those products coming in as well. Again, similar to the Health and Her business acquired in 2024. These brands coming into the portfolio are significantly accretive to the legacy venture Life products, although the margin underlying on those legacy products is also coming through nicely now as well, typically led by innovation. Innovation is the other key lever of gross margin improvement going into the current period that we're in now. We've got a very strong and robust stage gate process in the group and financial guidelines and metrics and parameters. to sign up for new product launches and make sure they are acceptable margins for the group and a minimum revenue delivery from the first 12 months and 36 months. So these disciplines being installed within our business are in protecting the gross margin delivery and ensuring that step-up into the future periods. On EBITDA, I won't go into as much detail, but I'll just talk to the right-hand side of the chart. So as mentioned up top, the underlying EBITDA growth in the 12 months to May was 19% EBITDA growth. We delivered GBP 7.1 million up to GBP 7.9 million within that 12 months to May. As we move into the right-hand chart, we'll talk to the impact of F and Cox acquisition in a moment, but let's focus back on the current reporting period. So during that period, we divested half of our business. We divested our manufacturing revenues, our Oral Care brands. And instead of rationalizing our overheads to accommodate that lower revenue base. We actually held our nerve in the organization and have invested further in strengthening our capability to deliver our strategy and our growth plans. In particular, we strengthened the areas of digital, marketing, commercial, technology. And we also supported the infrastructure by investing in key roles across procurement and HR and finance, as example, to ensure that we can move into new markets and acquisitions and stab and support the business and support the commercial delivery of those operations effectively and quickly. So there's a lot of leverage over the overheads and the operating cost base during this reporting period, reflecting the fact that the acquisition of Femacare has happened post period end, the cost and the investment to build the team and invest in our capabilities happened during the reporting period. And also we've got the fact that we've been increasing our A&P spend. So we've been increasing our A&P from around 6.5% of revenue in the prior reporting period to around 9.5% of our revenue in this current reporting period. And as you can see, it is driving the top line, it's driving strong growth, but there is still lag effect within that because the spend that you incur in that reporting period is in relation to activities and delivery that will continue to run post period and continue to drive the growth of brands that we're seeing. So always a bit of a lag on those investments. So that investment will come back. The reset of the margin will come back to our target levels of 23% over the next couple of years. That starts with the acquisition of Semiclare. That's just happened on the 2nd of June. That acquisition will add around $14 million of revenue, around $11.5 million, $12 million of -- sorry, about GBP 11 million revenues over the 12 months to 2027 that's built into our numbers and higher gross margins. And as we've said, I think Joe might have said, we took on a small team as part of that acquisition. So that cost is built into our guidance for the 12 months to May. But that team will also work on cross-selling our other brands into the U.S. market through the existing relationships, which I'm sure Kate will talk to later on. The last point to say on this slide, just to give a contextual I talked about the gross margin. I've talked about the EBITDA. I think it's important to talk about the revenue build into the 12 months to May 2027. So we're guiding at GBP 55 million of revenue to break that out, GBP 39 million came from our core business over the 12 months to May 2026. The acquisition of around 11 to 12 of GBP 1 million. And we've got an organic growth rate of building in GBP 4 million of revenues into the underlying for the 12 months to May 27. So that works out just shy of 10% growth on the underlying. And if you look back at our last 3 reporting periods, our power brands is delivering 20% growth quite consistently now. So we feel confident in our ability to deliver these sorts of growth rates. Last slide, cash. I won't go through every bridge, bridge don't worry. We received a lot of cash in the year. We received GBP 56 million from the divestments through the manufacturing and the Oral Care. So what did we do with that cash? Well, the first thing we did was pay down all debt on our RCF facility. So we paid up GBP 22 million of drawn debt. We have no drawn debt on that facility today. We also incurred significant exceptional cash costs, as I've already talked about upfront in this presentation. And we've also funded the share buyback program. So we invested or returned rather nearly GBP 5 million of funds to shareholders during the reporting period, and we've continued to do another GBP 2.5 million return to shareholders since the end of the reporting period, although that program has now expired as of 29th of September. The last point on this slide to highlight is the outflow of the cash timing on M&A, as already talked about that GBP 17 million leaving the business, although the acquisition completed on the 2nd of June. I should have -- I skipped over working capital there. There was an adverse working capital flux of GBP 2 million in the period. That reflects our May billing. -- the strongest month of billing in Benchmark history, around GBP 5 million against an average of around GBP 3 million in the previous 16 months. And that May period really reflects both strong international orders coming through in the May delivery, but also really strong selling to our pharmacy channel. The pharmacy channel has been an area of great success over the last 12, 17 months through investing in field sales reps, attending more exhibitions and conferences in U.K. and Ireland. And it's an area that we'll be investing in more going forward and Kate is going to touch on that later on today as well.

Great. Thanks, Tanny. Hi, everyone. So I'm going to talk through how the brands and the various therapeutic areas are progressing, starting with Hormonal Health, which is the Health and Hair and Health and Hem brands. So some really fantastic growth in the period, 28% growth. And some of that's come from distribution, but also price increases, new innovation. We launched 12 products during the period and some really strong marketing campaigns behind the brands. Just as a reminder, these 2 brands have significant long-term growth opportunities. We've actually learned during the period that we are now the #1 menopause brand in the U.K. based on sales value. We're uniquely positioned as a hormonal health specialist to support men and women throughout the hormonal journey, and you can see that now in our portfolio. We're also having some fantastic success internationally, especially in the U.S., and we see that, that will only continue with the acquisition of the Femaclear brand, but also a fantastic team out there that give us the launch pads to really grow those relationships with new retailers and also a strong innovation pipeline, which we have a history of great innovation on the 2 brands, thanks to some very deep and meaningful insights that we take from our proprietary data from the app, but also some fantastic university partnerships with Calix and S University. So our near-term growth drivers, as I mentioned, is an increased focus on U.S. retail. The Cameaclear brand in the U.S., the buyers that buy that particular brand are the same buyers that also buy this category. So the relationships that we already own now through that acquisition are going to be very fruitful for us in the coming months. We have a new range of longevity supplements that we're launching in collaboration with Holland & Barrett. And we're also looking to innovate in key risk areas that are associated with hormonal health in the next 6 to 8 months. We're also focusing a common theme with these 2 brands is that those educational moments, so those key inflection points when things change more normally for men and women. And those key moments like men documentaries or podcasts and so on, TikTok as well also coming into that are so critical for the brand. So again, very strong focus in those areas for both Health and Health and Him. Moving on to women's health, so specifically the Balzactive brand. Again, some fantastic growth here and some strong distribution growth as well. Just as a reminder, the brand has a particular strength in bacterial vaginosis, which continues to be the biggest opportunity within intimate and vaginal health, certainly in the U.K. but also more broadly globally. And we have a #1 position in this particular area, and we see that this is a strong area of growth for us. The deep insights again that we've been able to bring from the Health and Care app, but also some of those university partnerships is really starting to deliver some fantastic insights and also corresponding innovation. And we're also uniquely positioned to really own quite an interesting part of the category, which is this major trend in using more natural health products and we compared to our competitors in quite a unique position to really strengthen those credentials and those claims. So as I said, the proven momentum that we've had, so 15% growth has come from some distribution increases, particularly in the high street chains. And we've had our first ever TV campaign, again, really focusing in on educating women about bacterial vaginitis where we were advertising next to Love Island. We've also been executing some cost price increases, as Danny mentioned earlier. And we've launched 2 really interesting innovations into the category, so a dual action bacterial vaginosis and flush product. So this is a 2-in-1 product. And this is really tapping into the insight that women often don't know what they're experiencing. They don't -- there's a lot of symptom crossover. So this has been a really successful launch for us so far, and we're excited to see how this product will perform in the coming year. We also launched a test kit as well, also playing into that insight to support women in identifying what they are experiencing. And we've also had some fantastic international partner range extensions and country extensions as well, which has added to the growth. In the near term, we are agreeing 2 new retailers in the next few months. We have the innovation expansion and distribution expansion of those 2 innovations I mentioned dual action test kits. And we're also launching a new medical device into intimate Oda, which is an opportunity for us to, again, target that miss education amongst women about what they're experiencing with a product that's much more accessible, slightly less medical in its nature. So this product especially has scored extremely well in research. We're also expanding the brand into banc practices for men, which is a huge white space opportunity in the U.K. We have seen several other markets do extremely well in the U.S., Japan and Germany. This category has really matured and developed over the last decade or so. So really excited to see how we can bring the brand into a new space with our retailers. And finally, we're really focusing on health care professional education. We have a fantastic opportunity on this brand to provide GPs with another tool to support women with especially recurring BV. And so we're educating them on the benefits of using lactic acid alongside antibiotics. On to energy management, which is one of the most exciting areas for us at the moment. Just as a reminder, both NIST and Glucagl are really strongly positioned with the NHS being nice recommended and also first-line treatment for type 1 diabetics. This naturally evolves into a really strong sales momentum from this recommendation. So with more than 70% of sales coming from either a health care professional recommendation or a prescription. There is still, however, a significant opportunity for penetration gains. We believe we own around 20% of the hyper occasions for type 1 diabetics in the U.K. And a vast majority of the rest of those hyper occasions are coming from dietary sugars, so things like orange juice and jelly babies. But the body generally prefers glucose as the fastest-acting sugar to be absorbed by the body and obviously what can be a very serious situation. So we're continuing to educate health care professionals and consumers about using a pure glucose product in these situations, and we have a number of strategies underway to really go after that penetration opportunity. We also have really strong potential for geographic expansion, particularly in the U.S., which I'll come on to in a minute, but also broader than that, and we've had a lot of interest from other markets in the Lyft brand in particular. The proven momentum here is obviously 16% growth in the last 17 months, which is, again, a really strong performance from this brand. This has mainly been driven through online, so Amazon and web, but also in the pharmacy channel, where we have, as Danny mentioned, a really strong field force team, and we're looking to expand that as we move forward in the coming months. We've also launched a new format under this brand, which is the Lift gels. And again, the performance of these products already are exceeding our expectations, a very convenient format that's portable for our type 1 diabetics and other users as well. We've also been driving very heavily and focusing heavily on this health care professional opportunity. As I said, such a critical part of the patient journey is understanding what options are available to type 1 diabetics and that hyper management, which is obviously very difficult to manage. And we're also leveraging our new in-house digital team, which is now from the health and care side working across the whole organization, which is building some fantastic growth and momentum on online. So looking forward in the next 12 months or so in the next period, we have a really exciting opportunity to launch this brand into bricks and mortar into the U.S. The products are already available on Amazon or some of the ranges. But we've had some extensive research -- extensive interest rather from many of our strong relationships with retailers that we have through the Femalear team. We're also accelerating our U.K. pharmacy growth nationally, so taking our field force, which currently only operates in London and growing that nationally across the U.K. And we're continuing to roll out the Gel innovation with lots of distribution and interest from our U.K. retailers. We're also looking to launch some paper roll chews in the coming months and a breakthrough nighttime innovation. And this is tapping into a fantastic insight that we've gathered around nighttime hypos. They represent a large proportion of the hypo occasions for the type 1 diabetics, and it's a really difficult hypo occasion to manage for those patients. So an area we're very keen to support our consumers on this. And finally, we're really doubling down on our health care professional engagement and really educating our consumers and our health care professionals about this improvement or benefits of glucose versus dietary sugars. On to EC then, again, some really strong growth on this brand as well and some good distribution growth, which came quite late on in the period. Just as a reminder, this is the #1 brand recommended by audiologists and specifically helps the whole family from AV right through to the elderly with EOax problems. And also, we have the swim product, which is a very unique proposition in our portfolio. And we -- that brand -- sorry, that product in particular has been growing fantastically well. We have a significant opportunity for geographical expansion and some really strong relationships over the long term that we are continuing to work on to see long-term growth with those partners. And the distribution increases alongside a fantastic radio campaign have driven some really strong growth in the last few months. We're looking to -- we've also just launched the swim product, which has been relaunched that product to extend it into share and bath, which allows us to really increase the usage occasions for that product and make it slightly less seasonal. And we're looking to -- sorry, we have done a fantastic job in improving the relationship with our international partners, really sharing best practice, which is we're starting to see the fruits of that as that part of the business grows. Near term then we're doing some repackaging and redesigning of the packaging to improve the standard shelf of the product and also really doubling down on the in-store activities that we know are really driving that return on investment. We're also increasing the engagement of pharmacists and audiologists and going after new international expansion opportunities, which should really grow the brand in the short term. Finally, I'd like to cover the Femoclear brand, which I know will be new to some of you as our latest acquisition. Some really fantastic momentum behind this brand with plus 30% during this period, again, with some excellent distribution gains. Just as a reminder, so the product range is based on a proprietary patented formulation, which is an oxygenated olive oil. This particular formulation has 4 patent global patents, which also have a lot of time left on them for around 15 years. They've really done a fantastic job the Feminlear team in establishing this brand as a leading bacterial vaginosis and yeast product. And as I said, exceptional momentum and growth in this brand that we can see continuing over the coming months. It also has -- in a similar way to Bioactive, some of those fantastic natural credentials playing into that trend around natural -- and also, we're excited to see how we can leverage in the long term some of the VLG insights that we're able to get from our symptom tools, the app and the health care app with the ginaltcker and also university partnerships to really drive momentum on this brand as well as Balance Active. So as I said, the distribution increases have been really, really impressive on the brand in the last few months, and we're really starting to see even more gains over the coming months as well with some regional opportunities coming to fruition. Digital marketing excellence is also something we're very excited about within the organization. There's been a huge gains for the Femcare brand, and they're bringing a fresh thinking to the rest of the portfolio. And promotional effectiveness and new innovation, again, has driven some really strong bricks-and-mortar performance. Looking forward then, there continues to be further distribution gains and opportunities within our current large national and regional retailers. And in addition to this, an opportunity to expand the brand into new retail as well and already some strong discussions going on for this particular opportunity. We're also applying our stage-gate process and innovation ideas over to the Family Clear brand. And we've got one particular new exciting area with a new infection area that we're looking at, which will be first globally and a very exciting opportunity in the U.S. in 2027. We're also looking at evolving the brand into Menoport as well as part of that innovation strategy. And finally, another area of opportunity that we're looking at is really improving the visibility of the brand with health care professionals. At the moment, there is a significant use of boric acid amongst health care professionals in the U.S. And there is -- but there is unfortunately, the boric acid does have some issues around lip toxicity. And we believe that the oxygenated oral formulation is a fantastic substitute for that product. So working with the team to develop the strategy around health care professional advertising.

Great. Thanks, Kate. Thanks. So if we look back over the 7-month period, let's see where we come from where we are now. So we were a vertically integrated business. We have a manufacturing footprint with the CDMO operations and a broader portfolio with some smaller, less interesting space for us. So over this period, we've divested of the CDMO operations. We think that's the right thing for us to do to focus on the growth and development of our brands. And we've disposed of our CDMO operations to a much bigger and progressive industrial group based in Italy who are growing those businesses. But also within that, they offer us a wider relationship with lots more capabilities outside of those CDMO capabilities that we pass on to them. which we're now beginning to benefit from and building a very sort of strong and mutually beneficial relationship with that group. I suppose to oral care assets, they were very early into the business, and they've now gone to we've now also acquired an interest in Femiclearan, which does 3 things for us. It's given us a very interesting patented technology, great brand, #2 in the fem care market in the U.S., lots of products in that portfolio, very early stage in the growth cycle. That group of products and brands came to us already with a lot of inherent growth in it through distribution gains already in place that will be having a full year impact in 2026 and 2027. So now we're a focused asset-light ready-to-execute business. In those 3 things into the U.S. acquisition of the brand. We also had a great sales and marketing team that's now joined us from that business. And that team is going to be the launch pad for us into the U.S. for a lot of our other current brands. So giving us a real sort of boost into the market, which is 4x the size of the U.K. consumer health care market. All through this, we've stuck to our strategic pillars that we developed at the start of 2025, and they're listed at the bottom here. So acquiring and transforming interesting brands with good growth to profit, having a #1 brand mindset. Our brands are either #1 or #2 in the category. omnichannel approach fundamental. And what we see in the U.S., a similar structure in the market to the U.K. So you have a small number of very large distribution partners with large distrib.y require marketing support into those distribution points as we do in the U.K. So it's a market we understand, but we've also got a great team that's joined us from the U.S. to help us do that in the U.S. integrated digital capabilities. You see in the ERP is a lot more AI and robust data in terms of we grow. And ultimately, just retaining our core entrepreneurial ways of working, which are fundamental to be agile, fast moving. So just looking at the market we're in, there are quite a lot of significant sort of structural tailwinds that sit in our business. Now of course, you'll all be aware of a lot of the global economic trends at the moment, disruptions that there are. But as Danny showed you our gross margin progression, we're managing those issues around cost of goods and supply chain. We're working with our manufacturing partners to do that. But -- we have a lot of good positive tailwinds, aging demographics. I report recently in the U.K. that by the end of the century, the number of over 65 would have gone up by 50%, the number of over 80s would have more than doubled. So people are looking to live a longer, healthier life. that's what Healthpan how long do you live that healthy life. So there's a lot of demand for that performance driven wellness. People want to be proactive about looking after the long-term health and a more holistic approach and the use, particularly of gut health and. all of those are pushing into our portfolio, and we are starting to make sure we make use of those. So we're also unlocking new markets through a considered M&A strategy. So this acquisition in the U.S., as I said, given us 3 fantastic benefits there, the products, the team and the access to the U.S. market. And so we now have access to the U.S. retail home care market. It's a GBP 500 million market. It gives some opportunity also with cross-correlation of those products coming back into the U.K. under our Ball Active brand to expand in that U.K. women's health health category. And we think there's an up to GBP 200 million opportunity for us in the U.S. of taking our brands that we sell in U.K. and Europe, our products into that U.S. market. So fantastic growth opportunities there with an experienced team, great knowledge about that into market in one of the strongest consumer health care markets in the world. So let's look at our evolution and our growth ambition. So looking at the left-hand column here, this is the numbers we just reported. Remind you that's a 17-month period. So if you look on the like-for-like for sort of our last 12 months, so the 12 months to May 25 compared to the 12 months to May -- we were -- we delivered about GBP 39 million of revenue comparable period to May 26. And our guidance is to deliver nearly GBP 55 million of revenue in May 2027. So you can see there's great growth there. Some of that's the acquisition, obviously, and that comes into our profit loss account in period to May 2027. But also there's a good 10% organic growth built into the forecast and guidance we have in the market. And as Danny mentioned earlier, our track record of growth is much higher than that. So during the period, integrated the health care business, which was Kate was one of the founders of. We've got great verticals in the team. We simplified the business. We've invested in our capability, not only in increasing the support behind our products, but also in bringing in additional highly skilled people into the business. We've got strong brand momentum as we go into this year. We've got a strong balance sheet. And that acquisition of Fem is going to give us substantial upside as we go forward. And I think that U.S. market is one of our biggest near-term growth opportunities. And as I think Kate already mentioned, good traction from retailers in the U.S. taking to our existing power brands. And so what's our ambition? Well, our ambition is to significantly grow the business and become an important meaningful platform in our space. And we've got an ambition that in the 2030s to reach up to $300 million of revenue running at 25% EBITDA margin. How will we do that? Well, we're going to bring organic growth to the business, continue to drive it. So compound annual growth rate over the last 2 years of over 20% -- we're going to focus on the U.S. expansion. And we're also going to look to do additional accretive M&A. We do have a debt facility. That actually has a ceiling which goes up to 2.5x our trailing EBITDA plus if we buy EBITDA, but we're not going to go that high. We'd look to go to 1 to 1.5x net debt EBITDA margin. We sit on nearly GBP 12 million of cash at the end of this financial period. By the end of this calendar year, that we've grown. So we've got good cash generation. And we're going to deploy that in growing the business, growing the organic growth of the products and selective M&A. So really to sort of round up here, just want to pick up the overall of the business. So we've got -- we're in great markets. We're in markets that are resilient in consumer health care. We've got price protection in our products. You've seen that through the margin accretion that we've got. We got great in our total addressable markets in the areas that we're in women's health and men's health. We've just opened up one of the biggest consumer health care markets in the world with a great team on the ground with great products with great relationships into retailers, and we'll look to exploit that further forward. And so having simplified the business, that's where our focus that goes. We've got a great team in place. We've got a great senior leadership team. We've got great expansion opportunities. We've got momentum in the business. We've got some great brands, brands that hold #1 or #2 space. We're in strongest territories. We have some great partners outside of U.K. and U.S. So we partner with Bayer and Cooper across Europe as well as a number of other partners like Pharmacy and Nautica. So we've got access to all of those markets, and we see great opportunities I'm really delighted that Danny is going to be taking over as CEO. I've been on this journey for 16 years, and the team have been sac and they continue to be. We've got a very energized team here. I'm not disappearing. I'm going to be -- remain on the Board for a while and remain helping the company to grow and develop, but it's going to be under Danny's leadership from the 1st of January with the support of Kate and the other management team that we have. So very excited about the future. And I think I'll start -- as we said, going into Q&A, I'll start with one comment, which I know the anonymous junk on the boards have all been saying, oh, Jerry is going to dump your stock. I can assure you that's not the case. The stock is substantially undervalued. It's got a long way to go. So just to put all your minds at rest, that's not going to be the case, and I'm still going to be involved in the business for a good amount of time. So great period, great. lots more growth to come. We have got some pre-submitted questions. So I'm very happy to run through those, and we'll each deal with them as you go around. I'll read that question, and then we'll answer those as we. So first question we have, which is a pre-submitted question, which could you please talk to the decline in Health & Her for the 5 months ended 31st of May, which I presume in 2026. So Danny, I'll pass back to you...

Yes. So as we've highlighted in the June trading update, the comparative period in May 2025 had the initial sell-in to CVS Pharmacy for the Health & Her business 5,000 stores, it's around GBP 800,000 of revenue in May 2025. So stripping that back, the underlying growth of the Health and Her business in the 5 months to 2026 was still 20% to 21% -- so continuing backing up that strong momentum growth story that we are talking about from earlier today.

Anks,anny. And the second question, which I think we've gone some way to answer, but I'm happy to give a bit more color is what do you believe the road map to getting to GBP 300 million sales look like? Danny, I'll ask you to talk to that.

No problem. I'll just cover at a very high level. As we, again, been talking about today, we've been growing our brands, our power brands at 20% top line quite consistently now for a few reporting periods. So continuing to grow those brands at that sort of level takes our underlying business from GBP 50 million to GBP 125 million over the next 5 years just as the baseline. And then we'd be looking using the debt facilities that Jerry has already talked about and our ability to draw up to 2.5x trading EBITDA, including whatever we acquire, we've got a lot of financial firepower there to go after acquisitions. And we would plan to add around GBP 100 million of revenue over the next 5 years through acquisitions and grow those at 20% as well. That's your GBP 300 million at top line. And Jerry has already talked about the market opportunities in the categories where we're actively looking at those, whether it's asset deals in the U.S. is bolt-ons, the infrastructure we've just created, but also opportunities within the U.K. providing that the acquisition multiples are in line with our historic target range of 7 to 8x EBITDA.

Thanks,any. I'll just add a couple of things on to that. First thing is that ambition does not require an equity raise in capital markets. That's ambition excluding that. And I think also sort of clear to say that we generate a lot of cash out of this business. Danny has already demonstrated that. And in the current financial period we're in, based on our guidance to the market, we'd expect to generate GBP 8 million of further cash within that period. So very cash generative and that cash will go into the growth of the business. The next presubmitted question was sales are spread across a large amount of countries. Do you see any large opportunities in any of these? Or are the U.S.A. and U.K. your main priorities? I'll take that question. Yes, the U.S.A. and the U.K. are our main priorities at the moment. They are the markets where we have the key retail relationships where we deal direct with the retailers. We have joint business plans. We work at a strategic level with category leads in all those big retailers. So you're talking of the likes Bar in the U.K., Tesco, Morrisons, et cetera. And in the U.S., with those big retailers that we're already involved with through our existing business and the acquisition, so that's Walmart, Walgreens, CVS, Target and many others. So those are our 2 key markets. If you add those 2 markets together, substantial part of the consumer health care market. But we do access the European market through our key partners, Bayer. And in those markets, those partners are responsible for marketing support and distribution. So that allows us to access a wider European market, but on a less resource-intense basis from. The next question, which is, are you still seeing growth in health and coming through in the U.S.A.? And what are the current products do you see having the largest opportunity?

The answer to that question is yes, we are still seeing some growth both on bricks and mortar and in the U.S. -- sorry, on Amon. There's 2 products that really stand out for Kerry menopause and the weight management product. And we're seeing that, as I said earlier on in the presentation, there's some significant opportunities driven by the relationships that the Fem team has. The same buyer covers both supplements for menopause and women's health as they do for intimate and health. So we see -- we're hoping that, that momentum will continue and hopefully step change quite significantly if we can land some new retailers and really expand the distribution significantly.

Great. Thanks, Nick. Next question just come from Richard F. where do you see online revenue getting to as a percentage of the group? And what is the product pipeline looking like? I'll ask Danny to cover the sense of the group. And just to say, we've alluded to some of our new product pipeline in the presentation. But frankly speaking, for commercial sensitivity reasons, we're not displaying that pipeline here because we've got some really good breakthrough innovation, and we don't want to give the competition a heads up too soon. Danny, would you like to cover the online piece?