Hello, I'm Laurence Newman, the Founder and Chief Executive Officer of The Beauty Tech Group. I'm here to present our 2025 financial results alongside my Chief Financial Officer and Chief Operating Officer, Samuel Glynn. I have 25 years' experience in the aesthetic market, having started my life off selling devices, professional units into clinics, spas, and salons around the world. Uniquely, I've also owned my own clinics, so I've seen the technologies that exist in clinic, but also understood the patient tolerance, how they work, why they work, and understood that technology and beauty were destined to come together. In 2009, alongside my Co-Founder, Andrew Showman, we set up CurrentBody as a platform to sell home-use beauty devices. There are four technologies that sit in all clinics around the world, LED, radiofrequency, microcurrent, and laser or IPL. In the first instance, we were a platform to sell those technologies as and when they became available.
The pivot of this business was when we began to sell our own brand devices and develop those technologies ourselves in 2019, starting with the LED and radiofrequency categories of CurrentBody Skin, a very well-known brand. We since acquired ZIIP in 2022 to cover microcurrent, and more recently Tria Laser in 2024, meaning we have the full suite of those four technologies covered under our three key brands. This business sits in the fastest-growing area of beauty, and The Beauty Tech Group has continued to deliver, scaling its revenue from GBP 20 million in FY 2020 to GBP 141 million in FY 2025. Over that same period, we've progressed from near zero EBITDA to GBP 38 million. This has been a hugely exciting year for the business, culminating in our listing on the London Stock Exchange in October. That has raised our profile massively around the world.
As our first year as a listed company, I feel it's important to give you a little bit more background context on the market that we work in and the products that we sell. As I mentioned in the introduction, we operate three distinct brands, each one targeting a different core technology within beauty tech. ZIIP Beauty in microcurrent, CurrentBody Skin in LED, radiofrequency, and hair health, and Tria Laser for laser. Behind each of those brands are four hygiene factors that we believe are essential for our sustainable growth. A three-year product pipeline, patent and IP protection, clinical studies showing their efficacy and proving them out, and a de-risked dual-source supply chain. CurrentBody Skin and ZIIP both have all four of these in place today. Tria Laser's product pipeline launched in Q1 2026, and dual manufacturing will follow post-launch.
This gives us a clear competitive moat that is very difficult to replicate. Distinct brands, trusted and clinically proven products, and operations that are built for true scale. This is supported by a network of almost 2,700 KOLs actively promoting these brands.
2025 has been a record year across every metric throughout the P&L and balance sheet. We achieved 60% growth from continued operations, hitting GBP 141 million, up from GBP 88 million in the prior year. Adjusted EBITDA reached GBP 37.5 million, also up over 60% year on year. The IPO gave us the opportunity to restructure the balance sheet, and we closed the year in a net cash position of GBP 40 million with no debt. The group's minimal CapEx requirements mean a high proportion of drop through from EBITDA to earnings, reflected this year in an adjusted EBITDA to cash flow conversion of 92%. During this presentation and in the annual report, we reference adjusted numbers in order to reflect the comparable and forward-looking reality of our P&L and cash flow.
The two non-recurring adjustments highlighted on the right-hand side of the page are exceptional costs of GBP 7.5 million relating to the IPO, and secondly, interest costs of GBP 6 million relating to the loan notes, preference shares, and leverage debt the company held prior to IPO. The adjustments reflect the new capital structure and the balance sheet going forward. Share-based payments on an ongoing basis have been moved below adjusted EBITDA to mirror the accounting treatment of our listed peers. The GBP 141 million achieved in the year was entirely driven from the three brands in the group, each at a very different stage of its development. CurrentBody Skin, launched in 2020, covers anti-aging technology and hair regrowth. Despite being the most mature brand, growth continues to accelerate. The 2025 uplift on 2024 in absolute terms was a record, adding GBP 46 million and 59% growth.
ZIIP was acquired in 2022, has undergone a supply chain and product pipeline transformation, and that will not complete till the second half of 2026. Despite that, we closed the year on GBP 13 million of revenue, up from GBP 2.2 million in 2022, 47% ahead of prior year. Tria Laser is the most recent brand to enter the group, and we acquired that at the end of 2024. This means we're right at the beginning of the supply chain build, and product pipeline will take until the end of 2028 to mature. In 2025, Tria achieved GBP 2 million of revenue selling through the older products it acquired alongside the brand, and we launched the updated versions in Q1 2026. Internationally, the group has demonstrated its ability to sustain growth across every one of our core regions. The U.K. now represents only 20% of the group revenue.
Our international mix provides both risk mitigation and significant growth optionality. Considering our international performance alongside the low levels of penetration technology currently has within beauty, it further underlines the scale of the opportunity. The U.S. has been our largest territory since 2024 and remains the single biggest growth lever for the group. Both the EU and the U.S. are significantly under indexing relative to the U.K. when measured on a per capita basis. D2C at 91% of our mix remains the core focus of the business, but we will continue to evaluate retail opportunities across all three brands where deemed incremental. We approach retail opportunities in two distinct categories. First, those that enhance the brand and build trust among our customers, Harrods, for example. Second, those that give us a sustainable access to new customers at volume that complement rather than cannibalize our direct-to-consumer business.
Retail and wholesale remain an opportunity but should be viewed through a hardware lens, ensuring any partnerships are structured for sustainable year-on-year growth. Gross profit margin has seen continuous improvement over each of the last four years. The three main areas driving this are, firstly, the discontinuation of third-party distribution. Secondly, increases in sales prices of our products and technology improvements. This underlines the pricing elasticity of what are essentially medical and performance-driven products. Thirdly, supply chain improvements, particularly ZIIP margins up over 12 percentage points on prior year, reaching 70% in 2025. Adjusted EBITDA following the trend of gross profit for 2025 reached GBP 37.5 million, +64% on prior year at a margin of 26%. 6 percentage points improvement in gross profit was offset by one point in marketing and one point in fixed overhead, meaning a +4% EBITDA margin in 2025.
Applying return on capital employed to this year's EBITDA gives over 50%, a uniquely strong metric versus our peer groups. This slide demonstrates the bridge between gross profit and PBT. The adjusted chart on the right is reflective of the ongoing cost structure. After gross profit, the cost base consists of GBP 32 million variable costs and GBP 19.5 million fixed. Working down from adjusted EBITDA are share-based payments, then depreciation and amortization. We split this into two elements, operating cash incurred, D&A representing GBP 3.4 million. This is scaling in line with revenue over time. The unwinding of brand and IP amortization created through historical transactions, which is fixed at GBP 2.4 million per annum. Adjusted free cash flow conversion has been continuously strong over the last few years and reached 92% in 2025.
Some key points to call out for this year are there is no interest expected in 2026 outside the lease interest, given the new debt-free balance sheet. Working capital movements were positive in 2025. However, this will vary depending on product development cycles. The cash tax payment was elevated as we transitioned from paying in arrears to quarterly installments upfront. Capital expenditure included GBP 2 million of office upgrades, which will be sufficient for the short to medium term. With no debt, strong margins, and low CapEx requirements, we are clearly well-positioned to continue generating excess cash. Organic growth is therefore unlikely to require significant cash commitments, and we are also very well invested from a brand and product pipeline perspective. We are focused on maximizing return for investors for the additional cash and will keep capital allocation policies such as buybacks and dividends under review.
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Following a strong FY 2025 performance and continued momentum into the first quarter of FY 2026, the group expects revenue for FY 2026 to be in line with current market expectations. Improvements in gross profit margins achieved during FY 2025 are expected to be sustained, and the group is therefore guiding to an improvement in profitability relative to the current market expectations. The group can confirm that it's currently not experiencing and does not anticipate any material impact on its financial performance as a result of the ongoing geopolitical disruption in the Middle East.
This is an important slide and a neat infographic that shows how we see our addressable market and also where we sit in terms of our efficacy. If you think of skincare efficacy on a scale of one to 10, topical skincare creams, serums sit at the lower end around zero to four. At home beauty devices sit in the middle around four to seven, and clinical devices and invasive procedures like injectables are at the top, nine to 10. At home devices sit in a really attractive sweet spot. They are significantly more effective than topicals alone and materially more convenient and affordable than clinic or invasive procedures. Critically, they are supported by independent and clinical evidence. The opportunity is straightforward. There is a vast existing base of skincare consumers already spending on topicals.
Our job is to convert them upward into higher efficacy, technology-driven solutions, and that's exactly what our brands do. This slide is taken from a significant OC&C report on the sector. One of the most important things the data shows is that beauty tech has a broad demographic spread, which closely mirrors topical skincare. This is not a niche. The addressable market is substantial. The core customer is female, aged 25-54, with 86% falling into the medium to high affluent bracket. When you compare the affluent distribution of a home use device purchaser to topical skincare users, the profiles are remarkably similar. Beauty tech is not priced out of the mainstream. Following on from this, while the market is still at a relatively early stage, the customer signals from the OC&C independent survey are really compelling.
It's clear that these devices are far more effective than topicals alone when they're used regularly, and 82% said they would buy another device. Most importantly for me, 79% of people are using their device weekly or sometimes more. Cross-category buying is getting stronger. 48% of users have already purchased a different technology device, and average prices remain incredibly strong, GBP 275-GBP 780 per category. We estimate five to seven lifetime device purchases per customer every four-year active life. To put this opportunity into real context, the at-home beauty device market currently represents only around 1% of the wider beauty market, so the room to grow adoption from topical to tech is huge. The flywheel is really clear. High efficacy drives high retention, which drives cross-category buying and a strong lifetime value.
Our customer sits across these three distinct addressable markets, anti-aging, hair removal, and hair regrowth, all currently at very low levels of device penetration. In anti-aging, 70% of women already use topical anti-aging products, but only 2%-5% have purchased a device. The technologies here are LED, RF, micro, and laser. In hair removal, within the GBP 13 billion hair removal and hair care market, penetration is 2%-4%, which we will service with our Tria brand. In hair regrowth, device penetration sits at just 1%-2%, and that's the lowest of all device categories, and arguably, the biggest untapped opportunity for us. Across all three markets, 77% of women are using solutions addressing the same need, and 28% are using professional treatments. The conversion opportunity from topical and professional to at-home devices is huge. Moving on to product pipeline.
On average, it takes us about two- years from conception to market. That's a long development cycle, and it means the industry will be led by those who invest early and those who think furthest ahead. We currently have 49 products in our pipeline across our three brands, split across iterations of existing products, range extensions, and entirely new product innovation. Our product team of around 30 people work across the U.K., California, and our China offices, giving us global coverage of design, engineering, and sourcing. The technologies we work with are not new. They're backed by hundreds of clinical studies conducted over decades in professional clinical settings. What we do is replicate those technologies at consumer scale, and then we conduct our own independent clinical studies on each of our products as we bring them to market, proving the efficacy and safety of each device that we sell.
We also have substantial studies in progress as we research new approaches and new products as part of our ongoing innovation program. Clinical evidence is central to everything that we do, and the potential to unlock further uses for these technologies remains significant. I'm working personally with the University of Manchester Dermatology Centre on how LED can be advanced.
New entrants into beauty and health markets invariably come from entrepreneurial category-defining companies. Large corporations simply do not have the flexibility or authenticity to create new brands. Instead, they acquire into markets or buy product brands. Beauty technology also carries a substantial technology moat, R&D investment, component sourcing, medical device manufacturing at scale, clinical studies, and regulatory approvals. For a cash-constrained start-up, these barriers are very difficult to clear. This combination gives the group a distinctive and defensible competitive position that's extremely difficult to replicate. The first of our dual moats is our supply chain. There are three layers to our supply chain which provided the foundations for growth over the last six years, despite the volatile economic backdrop. Development or redevelopment including ZIIP and Tria of the product to ensure that the core componentry has multiple suppliers.
Dual source manufacturing supply from two separate countries for each brand mitigates any risk. Finally, seven localized warehouses to serve the customer, alongside each and every one of those warehouses being able to sell globally. The graph in this slide showed a percentage of our revenue, which is driven by customer searching for our brand, reaching 78% in 2025, underlying the importance of brand and trust to the customer built up over many years, and the difficulty of competitors of taking any of our market share. Our marketing strategy leverages doctors, dermatologists, and beauty influencers, known as key opinion leaders, KOLs, to demonstrate the real-world performance of our products. The left-hand graph shows that we generated over 5,000 revenue producing pieces of content across our product portfolio in 2025.
The top right graph illustrates the diversification of revenue across our KOL base, importantly demonstrating that we have carried no material concentration risk from any single content creator. The bottom graph underlines the longevity of a typical KOL partnership, with individual relationships continuing to generate revenue over many years, compounding our sales growth over time.
I hope this presentation has demonstrated the real strength of the group's financial performance, not just in 2025, but consistently since the business was created in 2009, and in particular, those last five years since the pivot into our own brand. What sits behind that fantastic performance is what we've set out across this presentation. As I close the summary, I want to draw your attention to the key elements of what makes this a unique investment opportunity. Firstly, beauty technology is without doubt the fastest growing segment within the beauty industry, a market that is already highly attractive and notoriously robust, even through difficult economic cycles. We're operating in the right market at the right time. Secondly, we have our three brands well-positioned across each of those core technologies, hugely focused within beauty technology.
Two of those brands, ZIIP and Tria, are right at the beginning of their journey with a significant investment in the supply chain, product pipeline, and all of those regulatory approvals that are so important. That means the upside is overwhelmingly forward-looking. Next, our geographic mix. Even as a U.K. business, we're already generating revenue growth across every core region. When you look at the penetration levels in the U.S. and Europe relative to the U.K., the runway ahead is clearly substantial. We have the infrastructure in place to scale. Our supply chain manufacturing capabilities and global distribution are already built over many years. In technology-led markets, that key operational foundation is essential and extremely difficult for anybody looking to enter the market to replicate. Finally, our brands themselves. I'm sure many of you have seen and have used them.
We are well-positioned as the thought leaders in the beauty technology sector, and that evidence is clear. 78% of our revenue last year was driven by brand-led search alone. That level of brand pull underpins the defensibility and price inelasticity of this business. In my opinion, those elements combined together provide a fantastic opportunity for anyone looking to invest in The Beauty Tech Group. 2026 Q1 has seen a record quarter underpinned by our brand and product pipeline and our fantastic international growth. Thank you for listening and all your ongoing support. In particular, huge thanks to my incredibly talented team and all the people that sit behind this incredible business.