A well-developed pipeline of innovative products and a series of strategic acquisitions have established a range of globally recognised tissue-healing brands, generating 9% revenue CAGR over 10 years. We believe that our ongoing commitment to innovation will create more growth drivers, recurring revenues and better outcomes for clinicians and patients, whilst providing value for payors. Ongoing investment in innovation through specialist R&D hubs continues to expand our range of revenue-generating product platforms with strong gross margins, reducing the reliance on any single market and generating more consistent, recurring revenues. In 2023 we invested £12.6 million in R&D, representing 10% of sales (2022: £12.3 million, 9.9% of sales). We are underpinned by an established and profitable portfolio of in-house developed and acquired products. Successful commercialisation and growth have been achieved through our flexible distribution strategy in over 80 global territories. Continued expansion of this network is further extending the platform for growth.

We manufacture almost all of our products across nine, specialist, multi-national locations. Extensive investment in regulatory infrastructure ensures a smooth transition of new products into the market at a time of increasing global regulatory requirements.

The level of technical expertise, lean manufacturing practices and quality processes throughout all of our specialist facilities allows us to deliver top-quality products and excellent service to a broad range of customers.

The number of recent approvals across our product portfolio in the US market demonstrates our ability to work with the FDA and meet its equirements. In addition, significant investment in regulatory processes has enabled us to comply with increasing levels of regulatory requirements dictated by the new European Medical Devices Regulation (MDR) and we are well prepared to meet the deadlines that have been set.

We operate in global healthcare markets where spending is increasing as the global population ages and where treatment backlogs are at a record high. The surgical and woundcare products we offer are used on a daily basis, making the business highly cash generative with recurring revenues.

Our supply chain is tightly managed, helping to prevent any disruption to business while inflationary pressures are managed through negotiated price rises with our customers. In addition, the business is not leveraged, shielding it from interest fluctuations.

The essential nature of healthcare and increasing pressure on healthcare systems ensures a consistent and rising demand for tissue-healing technology used during surgical procedures, emergency intervention and the treatment of chronic wounds. The unprecedented length of surgery waiting lists illustrates the pent-up demand that fuels growth in these markets, while healthcare providers endeavour to accelerate patient throughput to address the backlog. In addition, our diversified range of product platforms allows us to mitigate against movements in the surgical or woundcare markets.

In spite of the global supply chain crisis, we have successfully managed the supply of raw materials, preventing any disruption to product shipment. Global inflationary pressure has been addressed through careful pricing negotiation with our customers, ensuring wherever possible that profits are not significantly impacted.

Consistent top-line growth, good profitability and strong cash-generation after payment of a dividend has established a robust balance sheet. This enables us to invest in long-term growth opportunities and leverage our business model further through internal innovation and a targeted acquisition strategy.

With a cash position of £60.2 million (as of December 2023) and significant debt-funding potential, we have the potential to leverage our business model further. This will be achieved through ongoing investment in our new product pipeline and strategically aligned acquisitions that can expand the technology base, increase manufacturing capability and enhance distribution coverage.

Through this organic and acquisitive growth strategy, we believe we can sustain robust, long-term growth ahead of the market rate, increase our profitability and maximise returns for shareholders.