Earnings Call: H2 2024

May 6, 2025

Annual report

Summary

Revenue rose 5% reported and 7% at constant exchange rates, while underlying EBITDA reached £11.6m. Randlab expanded equine and Asia-Pacific opportunities, and growth investment, product development and bolt-on M&A underpin the outlook.

Good afternoon, and welcome to the Animalcare Group PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I would like to submit the following poll. Then I would like to hand you over to Jenny Winter, CEO. Good afternoon. Hey, good afternoon, everybody, and lovely to meet you again and some of you for the first time. Stick with me and we will go through the presentation and then hopefully either as part of the presentation or separately we will answer any of the questions that have either been pre-submitted or you may have today. Thanks a lot for joining us. We are going to quick intro those if you do not know us terribly well. Then Chris will go through the financial review. We will talk a bit about our strategy for growth and then a little summary and outlook. Hopefully that works for everybody. If we start off just talking about 2024. From my perspective and from our perspective, it does not matter how you look at 2024, for us it was a transformational year, and that is for two specific areas. On the left-hand side of this slide, you can see from a perspective of strategic execution. The first two on here, they were planned over a number of years and so 2024 really was the fruition of some strategies that were put in place in 2021, 2020 and 2021. Firstly, just on Identicare, those of you who joined us before know that this was our microchipping business in, just in the U.K., but microchipping business. When Chris and I looked at this, we realized that there was a huge opportunity for it, but it was not really core to the business that we were running in pharmaceutical. In 2021, we carved this business out and we put in an expert leader and said, "In about five years, wouldn't it be great if we could sell this for about GBP 30 million?" In reality, that is what happened last year, a bit earlier than we planned, but absolutely at the value. That was a 17 times multiple, which for us was really good. So it delivered GBP 25 million into the group. The second thing that came through in 2024 was we had a minority share in a Canadian, excuse me, Canadian biotech business. During 2023 and leading into 2024, the majority shareholder wanted to sell out. Our equity, we agreed to sell out to the purchaser of the majority shareholder's share as well. Actually we doubled our equity. So that was a great return. Again, that generated some cash for us. What was really important about that deal is that the reason why we took an equity in the first place was to secure a long-term license for some dental products, which we will talk about. Actually, when we did the deal in 2024, we not only retained that license, but we enhanced it as well as getting a 100% return on our equity investment. Two other things that were important for us strategically last year. One was a product that those of you invested before are familiar. We did a license on some antibodies and we saw that they moved through and demonstrated clinical efficacy, which is a really important point along quite a long pathway, but a really important point. We also relooked at our pipeline and we have now got some additional assets in our pipeline. There are three further development projects, all of which, if they come through and launch successfully, they will be over EUR 10 million. So it is a really important process. I think the really visible icing on the cake was obviously our purchase of Randlab, the Australian New Zealand veterinary business that specializes in equine products. We that actually completed on the 3rd of January, so it sort of came over the year end. That is a really exciting acquisition for us. Not only is it immediately accretive, but it gives us, opens up all sorts of opportunities that we are going to talk to you about. So that was on a strategic front. Those things all came through. What also was really, really satisfying and pleasing was that on the right-hand side, our organic business growth. Our key products, Daxocox and Plaqtiv+, grew at 30%-40%, which is a really, really positive growth rate and we expect that to continue. What that does and as the bigger brands at the top of our portfolio continue to grow, that compensates because we are always going to have some turnover in this business for a number of reasons, in terms of products that are going to decline, and we will talk a bit more about that. The other good thing about 2024 was that we had growth in the three segments that we operate in. Just as a reminder, those three segments are companion animals, production animals and equine. So last year we had growth in all of those three. That is really important for us because it gives us that balance. It gives us the three legs to our stool. That was good. We held the underlying EBITDA at GBP 11.6. That was a good result because actually 2024 was also a year of investment for us. In order to drive the top line, we know that it is all about our sales and marketing teams and their expertise. So we have continued to invest in those, excuse me, those teams. So we are pleased with GBP 11.6 and we are pleased that the investment is starting to come through because you see it in things like the growth of Daxocox and Plaqtiv+. Even though we did the Randlab deal, we have come out at the other side with a really strong balance sheet. We have got GBP 20 million available to continue to drive that growth through M&A and acquisition. So for us, really exciting year, bit of a busy year, but we saw some great results coming through. Regarding Randlab, it's early days, but I'm really pleased to report that it's absolutely on track. It's doing exactly what we expected it to do. Sales are on track, cash, all of those good things. We're seeing Randlab continuing to perform in the way that we'd expected. Actually, if I look at it qualitatively, I think it's even a little bit better because we brought in, or we confirmed in role, a new general manager and a finance and ops person. Actually, the new general manager is already identifying opportunities for growth above what we'd expected. That's really good news. There's some opportunities in UAE, there's some opportunities in New South Wales, and there's more opportunities for export using Randlab Australia as the base. So excited to see what comes of that. As I say, early performance is absolutely on track. Moving on to the right-hand side of that summary in our portfolio. This shows the top 10 products in our portfolio. The top 10 account for about 40% of our business. The top 20 account for 60%, and the top 40 account for 80%. You can see the spread there. Really good thing about this portfolio, firstly, driving 9% revenue growth in 2024. That's really important. That's above the overall growth. We're seeing growth in our big products, which is good. The other important thing is that out of the top 10, nine of the products are growing, and only one is in decline. The growth in some of those, the products near the top, 11%, 17%, and 9%, really important. Those have been some relatively old mature products, and this is another year of growth. These products are continuing to grow year on year, and this drives a lot of the cash generation, a lot of the value. A couple to pick out. If you look at number 5, that's Daxocox, and you can see the march of Daxocox through towards the top of the portfolio. Number 9 is Plaqtiv, and you can see that, the 27% growth continuing to drive up through and become an even more important product. I guess next year you'll see some Randlab products in the top 10. The other important thing to note is that, a good example of what is always going to happen in a business like this at number 8, and you can see that that product is in decline. If I took myself to a vet and they tried to offer me that product for an infected ear, I'd probably say, "Could you give me a more up-to-date version?" We have to accept that some of our products are going to decline, and that's one of them. What we've done in that instance is this year we've launched a new product for the treatment of ear infection, and that will gradually, we hope, take up some of the business that we're losing from number 8. The purple shading are the ones that are novel or differentiated. This means nobody can copy them, nobody can do the same thing, and they're much safer from any price erosion. You can see we've still got a mix. But actually in reality, most of the others are doing pretty well, and they have strong brands and other ways of avoiding that sort of price competition. That is the top 10. The other important thing for us that we look at are these two axes. Firstly, what do we own? That means we own the regulatory marketing authorization, or we own the IP, or we own the license. So nobody can take that away. It is up to us. You can see that we have gradually increased our dependence on products that we own, and that is a really good thing. Randlab takes us up to 30%. What we want to do is to keep moving till we get to 20%, 10%, because we know that the sustainability of our portfolio is better when we own the product. The other axis we look at I referred to on the previous slide, was whether it is novel and differentiated or whether it could have a competitor that looks just the same. We are gradually moving to more of our products being novel. We probably have moved to 70/30, and we are 30% in novel, and with the growth of Daxocox and Plaqtiv, that will continue to increase. That is really important because that, I think, is the lifeblood of the business moving forward. Okay. So really good progress on those two parameters. On slide 8, this is just really a summary of where we are at the end of 2024 in terms of where we have got to and our ability to maximize any growth opportunities that come our way. I am going to hand over to Chris now, who is going to talk specifically about the financials from 2024. Hi. Good afternoon, everyone. I am just going to start on the summary slide, and obviously I will give some more details on certain of these KPIs as we go through the deck. Just to set the scene, I think the title there of the slide, I think it really kind of hits the nail on the head in terms of a strong performance at a time that Jenny has talked about of, it was a busy year strategically with the disposals and the acquisition of Randlab as obviously most of the work was done during the year. Really that demonstrates the strength of the platform and the work that we have been doing on building that platform over the past years. Jenny commented on earlier about the holding the EBITDA. A lot of that holding is a time, and it has been in the past, is when we have been investing in the particular talent base of our organization and also doing some work around the structure of our operation. As a backdrop, really pleased to deliver these results. Just some headlines to pick out. On revenue, you can see the growth is 5%, 7% at constant exchange rates. If we split that 7%, it is about 5% volume and 2% price. A lot of it is from volume growth, in particular the brands that Jenny has talked about in the top 10. I will come on to margin in a little bit more detail, but the story here is it is largely FX, and we are expecting that to improve when we go into 2025. As you can see, we had a really excellent year from a cash conversion perspective at 103%. An overview of financial results, just to pick out a couple of things. On gross margin, as I said, most of that movement is due to FX. The reason why is about 75%-80% of our sales are denominated in euros. This is obviously before Randlab. There is a slide in the appendix on FX. But that had about EUR 1.6 million impact on revenue, and clearly that flows down into the gross margin. If we take out FX, the movement is really modest. That is a combination of we have had some increase in cost of goods. We do put price increases through, as I said earlier, the 2% price impact on revenue. Then pleasingly, there is a real positive sales mix, again, linking back to the top 10 that Jenny talked about. It is that positive sales mix that we are expecting to drive the margin improvement back to similar levels, assuming constant exchange rates into 2025. On EBITDA, as I said, there is about 4% increase there, which we feel we have managed really well. That is about EUR 1 million. To break down that EUR 1 million, over half of that is in our people base, which as I said, is a crucial underpin to our platform and future growth. Increase in marketing spend, which is really focused on driving those top brands. Then that is at a time where we have managed some pretty significant wage inflation, notably in Spain, where there was a magnitude catch-up post-COVID. So it is about 14% there. All in all, we have done a really good job to manage that line. Just on a couple of other lines, you can see the PBT is broadly flat, so the 10% increase in EPS is due to tax, specifically deferred tax. We would expect that to normalize out in 2025. With Randlab you are looking at effective tax rates of broadly 26%, which is where we were in 2023. Moving on to this is giving you a bit more detail on where the growth is coming from across the three categories. I will touch on 2024 and then there is a couple of comments I am going to make on 2025. In Companion Animals, for those we talked to at the half year, if you recall, that was flat at the half year. We have had a very good second half of the year as expected. Supply disruption and phasing, et cetera, all worked its way through. This part of the business grew by about 3% at actual exchange rates. The constant exchange rates are in the bracket. Growth from the top brands. Jenny has mentioned those, and also the dental range, which is the Oralade and Plaqtiv brands that grew by 15%. Just to give you direction, the market for dental is one of the faster-growing parts of the market. We have seen in the last 10 years that the market has been growing by 5%-6%. Dentals are probably above that in high single digits. Our portfolio is growing in advance for that, so that is really pleasing. New products contributed GBP 1.4 million. I think at the half year, we said there was some disruption in suppliers and delays. They have all worked their way through. We will see those continue to grow during 2025. On Production Animals, this had a really good year. As a reminder, about 90% of this part of the business is in Southern Europe and international partners. There is not much in Northern Europe. The balance of the growth was driven by growth in quite a few of our largest selling brands. We also mentioned a competitor out of stock that was actually in Germany. It is relatively small, about GBP 0.5 million. That will normalize itself out next year. In Equine, the story here is Danilon. We had 10% growth overall. Danilon is by far our largest brand. It is the second largest brand, as Jenny mentioned, and about 70% of the sales are in the U.K. The U.K. had a very strong year with that brand. I said earlier, there was a couple of comments to make on 2025. I think on Production Animals is anchoring on the important contributor. This is our cash cow, I would call that. The growth margins are very good for our Production Animal portfolio. It is quite small, but niche and profitable. In general, the level of allocation of overhead compared to Companion Animals, for example, is far less. We talked in the past about wanting to hold the absolute revenues at about the EUR 17 million mark. We actually initiated a project during the year led by our Italian country manager, and we are looking to some growth opportunities here. The objective is to continue to grow this part of the business. It will be low single digit, but keep it growing because as you see, having all three parts of the business growing is really important to overall growth. On Equine, obviously the most notable transition in this portfolio is the Randlab acquisition. On the earlier slide, we saw that Randlab more than doubled that side of that portfolio. It also makes it more profitable because the Randlab margins are around 70% in their portfolio, so that is higher than what we have got. This should be growing very significantly this year and really adding to profit. We also talked there on this slide about Danilon territory expansions. That will be relatively modest from a sales perspective, but an important anchor product when we start to look at potentially bringing some Randlab products into Europe over the next two to three years, subject to regulatory pathways. On cash flow, I mentioned earlier that we had a really strong year from an operating cash perspective. You can see how that is made up on the table on the right-hand side, really driven by essentially two things. One, good control of working capital, and then secondly, lower cash taxes. We have still an eye on tax efficiency, particularly with R&D. Just moving to the bridge. I have circled the free cash generation there, so a really strong year. That was about GBP 2 million up on the prior year. Within that box, you can see there is about GBP 2.5 million of CapEx. That is largely as historically centered around R&D, and I will come onto later what they look like. Again, a really strong year from a free cash flow perspective. What that meant with the, you can see that there is some significant movements in M&A, but we ended the year, as Jenny said, with a very strong balance sheet, so around GBP 9 million of debt. On a pro forma basis with Randlab included, the leverage is about 0.7 times, so below one. The GBP 20 million is giving us the capacity, so that is levering up to two as an assumption. That is where we get the GBP 20 million of capacity from. On this capital allocation slide, the left-hand slide is largely unchanged or is unchanged. A couple of things to bring out here is that I have talked about how we are managing our balance sheet and the discipline we have got. We are prepared to leverage up to X if needed for the right deal. Obviously, we did not with Randlab because of the really successful equity raise. On new product development, Jenny is going to give more details on how we are going to spend this. We have talked, I think, for a while now about investing around 2%-3% historically in R&D. The benchmark really to truly grow your innovation pipeline is 5%-10%. We are expecting to invest around 5% of revenues this year, and then that will go probably upwards over that 5%-10% range over the next five years. On the right-hand side, I just wanted to really highlight here how strong Animalcare has been in the past at delevering the balance sheet. With Randlab, that deleverage profile will continue, probably get a bit stronger. The reason we highlight is that the deleverage is really important to create the capacity for another Randlab deal. We are expecting to delever by about half X per year. We should be in net cash around 2027, subject to the M&A bolt-ons. At that time, hopefully, we will be able to have the capacity to do another Randlab. A very quick summary. As I said, really pleased with the year, strong set of results at a time of lots going on strategically. Really, the right-hand side, as you say, we have got a really strong balance sheet to execute further M&A and licensing deals going forward. My summary is we are in a really good position from a financial perspective. I hand back to Jenny. Sorry. Can you still hear me? Yeah, got it now. Yeah. Yeah. Sorry. I'm going to talk about building blocks for the future. As Chris has said, the companion animal, equine, and production animal will continue to be a really important platform for us. And they're all growing, equine more than the others. Randlab's a great opportunity. And where we really see our competitive strengths are on the relationships that we're building, the expertise that we're building in the commercial teams. This will help for new product introductions. It will help for continuing to drive data products and collectives. We're really clear that that's just a very important part of our success. We're also strengthening partnerships and really getting. For me, I think we're getting much better at understanding who to work with and how to make the most of those partnerships. Randlab's clearly strengthening their footprint in Asia Pac as well. Really for us, and those of you who've met us before know that there's three things that drive our growth strategy. Making sure organic growth is at least at market level, and you've heard from Chris, that's definitely the plan. Inorganic growth, small over the next couple of years. We keep talking about doing another Randlab in three years. Slightly bigger and not called Randlab, but doing something in three years to make sure that we continue that progression and growth. Then the third area is, of course, developing the pipeline because the market is driven by novel and innovative, and vets want the science and the technology and the efficacy and improved safety. We really do need to pay attention to the pipeline. What I am going to do is just go through each of these areas and not go comprehensively into everything we are doing in them, but just to give you some examples of the way that we are working. The first one, using Daxocox as an example. You can see here, and you have seen earlier, that the growth on Daxocox is great. It is around 40%. When you look at this graph, if you just park the green bits on the top for a minute. Those are the sales to Virbac, who are our partner, who distribute and sell in markets where we do not have a sales force. You can see that is quite bumpy. That is partly because they may order for a year and then not order the next year, for example. Just ignoring that and then looking at the bars, which are our own market, you can see that Spain is doing a great job. There is nothing specific in the Spanish market that is driving that. That is all about our internal capability. We have always known that Spain is one of our best markets. They have got really good reps who have been in place a long time, know their customers really well, and they are calling on the right customers with the right message, and you can see the impact that is having. Our primary strategy in 2025 is to make sure the learnings that we have got from the Spanish team are rolled out into all of our other markets. Fundamentally, Germany and the U.K. are always a bit slower in uptake, but you can see them starting to build now. That is our primary focus, to continue that 40% growth into the future. Actually, if we got all of the countries up to the level that Daxocox is in Spain, then we are pretty quickly on that way to the GBP 5 million-GBP 10 million that we state on the bottom right corner. We are not just depending on that. We have done another few things around Daxocox to help build that franchise. The positioning of Daxocox is all around compliance and convenience. We have launched some new strengths, partly because the bigger dogs, they were having to have more than one tablet, and that does not fit with compliance and convenience. We have increased the shelf life, which is a really important thing for wholesalers and ordering patterns. We have also submitted this year, which best case could launch late this year, but probably in 2026, for some new indications. At the moment, this product is for chronic pain in osteoarthritis, and we have now submitted for approval in acute pain, so that expands the franchise. Then the other thing is, and I talked about Virbac, our partner previously. Virbac are now submitting this in a whole range of countries outside of Europe. Until this year, we have been Europe, but we have got submissions in 10 or 11 countries, including South Africa and Australia, which could be quite significant markets for us through Virbac. This is an example of how we are focused on growing organically. Daxocox, clearly the biggest driver. Plaqtiv, we have got some opportunities that Chris mentioned. We are looking at that organic portfolio all of the time to keep it refreshed, keep building, and drive that growth. The second pillar is about M&A. You will have got used to us saying by now, because I think we have all said it a few times, that we will not do anything big in the short term. We have got some bolt-on opportunities, a couple of million that would drive revenue and EBITDA or would bring products in on a license, which may be 18 months, 2 years before we could launch. The little schematic on the right-hand side is one that is really a snapshot. In fact, this slide was probably put together 2 weeks ago. It is not a change already. But we have already got one non-binding offer out in a geographic expansion for us. We have got a couple of in-depth discussions. When we talk about in-depth discussions, that means we have signed a confidentiality, we have exchanged information, and we are starting to look at things like is it technically feasible, is it strategic fit, and do the financials work. Early discussions are usually when we have got a confidentiality in place and we are just walking through the detail. You can see in our 3 areas that we are looking at for M&A, fueling growth and building scale. Geography, that is very focused on the Asia-Pacific region, but we are also looking at some opportunities in Europe. In terms of companies and brands, most of these are actually brands. Looking at brands that we could bring in that could launch in the next 18 months to 3 years. We have got 6 very active conversations, 4 of which are brands, 2 companies, and some early discussions. When we talk about early assets, these are things that will need quite a lot of work to get to launch. They are obviously less expensive if you get them earlier. We have got a couple of really interesting conversations going on there. At any one time, this is the sort of activity that is going on behind the scenes. Okay. Moving on, one of our main areas of development is of course, building on what we bought in terms of Randlab. We had always said there were 3 things that appealed to us about Randlab. The priority number one was it immediately accretive great cash and profitability. The second one was that it builds an equine franchise and helps us to expand into equine in other countries as well. You have already seen that we have Danilon, which is our lead brand. What we are doing at the moment is working with Randlab to look at everything they have in their portfolio. What could we bring to Europe? What have we got in Europe in equine that we could take to Australia and New Zealand? Randlab are also doing their own product development focused on the Australian-New Zealand market. We are looking at those products to see whether we could also bring those into Europe. We are doing our own work with the VHH antibodies, which I will talk about in a minute. One of the indications there is for horses. So we are working with the Randlab team to make sure that we could take those into Australia, New Zealand as well. Finally, there are some other upsides that we are looking at in terms of building that franchise, helping use their expertise. There are some great people in the Randlab business. But also because Australia and New Zealand are really important equine markets, having those as part of our company makes us more attractive to people who want to partner. Because it means that we actually have sales and marketing resources in all of the big equine markets. Equine is a very interlinked, it's the competition horses, the race horses, it's a very international kind of business. So they are really important. On the right-hand side, the third reason why we wanted to make the Randlab acquisition was that it gives us a presence in Asia Pacific region. Already with Randlab, they have a presence in U.A.E., New Zealand, and they export to places like Japan. What we want to do is to build on the footprint of Randlab, keeping the sales and marketing intact as an equine specialty to bring in companion animals and companion animal business. That's from two perspectives. One is our companion animal business that we could take into Australia and New Zealand, but also there are some really nice companion animal businesses in Australia that we think would really work well putting them together with the Randlab business. So those two things are very active at the moment in terms of looking for growth opportunities. Moving on then to our pipeline. I noticed in the pre-submitted questions, there were quite a lot of conversations and questions about our VHH antibodies. So I'll pick those up here if that works okay. This is really demonstrating how we think about this pipeline. On the left-hand side, we probably look at about 50 products a year, and we give them a quick look over, don't spend any money on are they strategic fit, are they feasible, and do the financials work. In that, we're only looking for novel and differentiated products. We don't want generics. We don't want products that everybody else has got. This is really making sure we invest our relatively limited resources in the right thing. Then in that middle three to five years, so we make a decision, that's the point at which some spend starts. Usually three to five years, really hard to predict because different products take different amounts of time, depending on the size of the studies, at what time we get hold of them. But we usually assume somewhere between three and five years until they're actually launchable. There's a process it needs to go through. Those of you familiar with human pharmaceuticals, it's very similar. It's just smaller patient numbers and quicker. So in human, you do phase I, II, and III. In animal health, we generally just do one clinical study. So it shortens that a bit and certainly fewer numbers. So all the products go through that. The gray line just underneath the purple is just representing that the spend early on is really very well controlled and very small, and it builds as you go forward. So one of the things I would say to Chris, if we look at maybe five years' time and you think, "Oh my God, you'd need to spend a significant amount of money," I would say, "That's great," because it means we're just about to launch some really, really good products. Because they've gone all the way through and we're just doing the final stage. Just a few words on the VHH antibodies. Those of you who are familiar with us, you know that we did a deal with a Dutch company called Orthros. That is a license deal. We have the rights to these specific VHH antibodies from Orthros to do and develop as we will. We did the early stage, very early stage development with Orthros as our development partner. We just actually switched development partner to somebody who is much more familiar with the commercialization of assets. We are still licensed from Orthros, but the development is actually being done by a different contract development organization. Where we are with those, we have tested them in the clinic in a very, very small, very controlled study. We know that they do what they are supposed to do, but they are really early stage. There is probably four or five years to go still on these antibodies. Spend is really modest at the moment. Spend will increase as we go and get more certain about whether or not we can launch these. The deal is that at launch, we have the rights to them around the world. We would pay a royalty back to Orthros. These are in effect their license to us. Those are really important. They are way off and they are probably, I don't know, sort of 30%-40% probability of getting to the other end, and we need to manage that. The really important thing is if they do get to the other end, they are game-changing growth for us. Somewhere between the EUR 50 million and EUR 100 million revenue. These are sort of really important. Won't spend much now, but if they come through, they really are truly game-changing. That is those ones. The next one along on our novel pain franchise, this is much more likely to get there. Same as the other two, but more likely to get there. It is related to Daxocox, so we know a lot about these products. These are in pain, and there would be an injection and oral for dogs, cats, and horses. That is a little bit further along, and we are working on those. Daxocox expansion is here separate to the Virbac contract. Virbac don't have a contract for all our countries, and we are just looking at the moment about North America and whether we can do something with Daxocox in North America. We will know fairly quickly as to the FDA's view on it. The Randlab new product development. They have four products that they are developing, and I mentioned earlier, we are looking at those to see whether we can bring those to Europe. Those, whilst they are on the right-hand side, they are relatively low cost. They are not expensive development programs. That is the way we think about it. That is where the Orthros, the VHHs are in that program. We aim to have at least one prescription medicine or big indication launched every year. That is really important. This year we are launching two new products in ears and skin. We are launching the new strength of Daxocox, and we could, depending on regulatory timelines, start registering new indications. We want to try and have new launches every year. It really helps keep the portfolio fresh and compensate for things that undoubtedly will drop out. Just in terms of opportunity, if all of these come true, some would be at 5, some would be at 10, 20, 30, and if everything worked really well, it might be up to 100. That is the way that we work with this portfolio. Okay. That was really me coming to an end. Just to reiterate, 2024 was truly transformational. We have seen double-digit growth in some of our great products, in our top products. Randlab acquisition gives us that equine and Asia Pacific opportunity as well as the opportunity in Randlab itself. We are looking at some new products. Some of them could be transformational, but we need to manage the fact that some of them are fairly early. Our balance sheet and our cash that we have got or the opportunity that we have got to spend, means that we will be doing some smaller deals in the next couple of years. Hopefully you get the feeling that Chris and I are going into, or we come into 2025 with confidence. It is still there as we move towards the half year and it is really exciting about the future. That is the end of the formal presentation part, and we have time for Q&A. Jenny, Chris, thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the Q&A tab situated on the top right-hand corner of your screen. Just while the company takes a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via Investor Meet Company dashboard. As you can see, we have received a number of questions about today's presentation. Jenny, could I please ask you to read out the questions and give responses where appropriate to do so, and I will pick up from you at the end. Yeah. I have got two up in front of me that I am going to address first. The first one I will address which was, over the next 5 years, do you anticipate retiring to the South of France or are you hungry to keep building Animalcare? My French is appalling. I will not go to the South of France whatsoever, I am sure. Actually, from my perspective, I think we have just got to the exciting point. There has been a lot of work getting to this point and getting the business in such good shape, and I am really excited about the next step. So I have no plans for either heading off to the South of France or retiring. So, I am very excited about the future. There was another relatively straightforward. I am going to give Chris all the difficult ones, but I will answer the next one because it is easy. A U.S. tariff question. We have one product that we import from the U.S. It's about EUR 1 million in Germany, and that's the only exposure that we currently have identified, can identify. I'll always say that there might be some small excipient, but it will be small, buried in some product that we haven't yet found. But at the moment we have very limited exposure to any tariff. There was another question. Is the Chinese market an opportunity for the likes of Danilon, Oralade, Plaqtiv, Daxocox? We currently don't have any marketing authorizations in China. That's a fairly strategic decision. I was going to say difficult. It's not difficult doing business in China, and I come from a business that has lots of exposure in China and there are some fantastic opportunities. We haven't exploited them at the moment, simply because we want to make sure that if we do go into China, we go in with a really reputable distribution partner, that we really understand and do our proper due diligence. So we see that there's lots of opportunities elsewhere before we focus on China. VHH antibody for horses move forward from here. Expected timeline. I think I did say, I think it's probably 4-5 years still from launch. It'll be a shorter regulatory profile because it's horses and you have to do fewer studies. But there's quite a lot of work to do, and we need to make sure we can commercially manufacture and all of those things. So probably 4-5 years. Chris, do you want to answer the AIM to Main Market question? Yes. Okay. There was a question on thoughts about moving the share listing from AIM to Main Market. I think for us, and this is demonstrated by the really successful equity raise, AIM is working for us. So we see that we've got continued access to capital. We've got a really supportive shareholder base and strengthening and widening shareholder base with the equity raise. And secondly, as most of you know, the administrative burden between AIM and Main Market is different. So we think the flexibility of that, plus continuing our access to capital means that we've got no plans to move to Main Market. I'll pick up on the exposure to U.S.-China tariffs. Jenny has mentioned about the direct impact on there, which we feel is going to be very small. Obviously, most of you have seen that there have been some big impacts on the currency market. I'd reference the appendix in our deck because we tried to give some really clear guidance on where that's going to be. Where we stand now, I think, the good news is that the-- So generally, a strengthening sterling is bad for us from a P&L translation perspective. But the good news since the end of the year is that the euro strengthened a little bit against sterling, so that's positive for us. But the Australian dollar has weakened relatively significantly against sterling. I think we assumed the time of the deal at AUD 1.95 and we're at AUD 2.05. We're not changing any forecast at the moment because obviously, it's quite hard to see where that volatility is going to land. But what we will do is give some really clear guidance at the half year about what the impact was or will be at the half year and full year. So we will keep an eye on that. We had a really good question about proportion of revenue growth over the next 3 years, split between new products, existing products in new market and acquisitions. So I will just pick that up. I think for us, we see that kind of proportion being relatively similar or very similar to what the market has done. So if we look at the last 10 years, about 60% of growth in the animal health market has come from new products, whether it is innovations, new indications, et cetera. So, if we class new products as typically, you launch things like Daxocox, for example, that Jenny has told you, and there is lots of things that we are doing with that in terms of territory expansions, et cetera. So I think we will be in line with that, but that will include Daxocox and Plaqtiv, and new products obviously that either we are launching in 2025, some of the ones that Jenny mentioned or later on. From an existing products in new markets, this is territory expansion. So, we have got the partnership with Virbac for Daxocox outside the U.S. Obviously, Jenny has mentioned U.S. potential there. So we would estimate about half of that. The remaining 40%, probably half will come from those existing products into new markets, and then the balance is from the existing business. Then on acquisitions, we have talked about looking at a number of smaller bolt-on opportunities. Jenny mentioned about companies and brands. Directly in the next 2 to 3 years, obviously we said we are not capacity to do another Randlab, but target of between EUR 5 million to EUR 10 million of additional revenue on top of organic growth there. So hopefully that answers the question. Thanks, Chris. I am going to come back to the most excited about the business in 2025. I think there were a couple on Orthros. I would like to think we have covered them, but just a quick comment. There is one that says, "If we have got a long shot R&D project with Orthros, what is the development milestones and timelines over the next 12 to 24 months? And what are the gating risks, regulatory, manufacturing, partner dependency to the release of a product?" I thought we had covered that, but just to reassure you, there is a very detailed development plan. We are in the stage of we know it works, and we are working on the molecule to make it the best it can possibly be. Once we have done that, we need to do a safety study, and we then need to do our clinical study. During that process, we'll look at scale-up manufacturing. Once we've got all the data, then we come to a submission. We've got a very clear sort of timeline. The partner dependency, as I mentioned, we've moved away from Orthros as our development partner and moved to somebody who has commercialized exactly this sort of product. The other one, if Orthros does lead to a product, how do you see the commercial model working? We will own the license, so we have the rights to sell it in any country that we want to sell it. There is a royalty stream back to Orthros. I think that should have covered most of the Orthros ones. Yeah. I'm going to come back to what you're most excited about for the business. I'm excited about three things really. First, I'm excited to see where Daxocox can take us, because I think we've really got momentum in the product. We've got some exciting add-ons to go, and I think that will be a really exciting sort of journey over the next couple of years. In terms of M&A, I think the Randlab deal was fantastic, and I want to make sure that we build on that appropriately. Some of the work we're doing about building up that Asia-Pacific opportunity is really exciting. In the pipeline, I think there's a few really big milestones. I'm generally very excited about our pipeline. I think getting to the next phase with the VHH portfolio is exciting. The others are too. I find the pipeline really motivating at the moment. That's mine. I don't know, Chris, whether you have something different for most excited about the business. No, no, absolutely align with you, Jenny. I think we've got lots to be excited about. I think Karen on the M&A agenda, but I think the pipeline's looking like we've got some really exciting opportunities. Obviously, they're high risk, but some really nice opportunities. I think we've come to the end of the questions. Does anybody else have a quick check questions for us? Jenny, Chris, thank you for answering all those questions from your Karen investors. The company can review all questions submitted today and will 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. Jenny, could I please just ask you for a few closing comments? Yeah. I'd just like to thank everybody for attending. It's really good to speak to this group of people. Your feedback and your questions are always spot on and actually really helpful for us developing how we share information with you in the future. I really appreciate that. You probably have hopefully felt some of our excitement. You even heard the CFO say he was excited. That's kind of a really positive message. We look forward to speaking to you again at the interim. Thanks ever so much for your time. Jenny, Chris, thanks for updating investors today. Can I please ask investors not to close this session, as you'll now be automatically redirected to provide your feedback in order that the management teams will better understand your views and expectations. This will only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team of Animalcare Group PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all. Thank you.