Animalcare Group plc (ANCR) Earnings Call Transcript

Good afternoon. I'm Ed Torr, the Non-Exec Chairman of the Animalcare Group. Welcome. Thanks for joining us this afternoon to which is actually the first Animalcare Corporate Event Day. And I think you'll understand the reason why it's the first. We'd have liked to have been a few years earlier. But here we are today and looking excited that you can share and interact with our team on the future growth plans we have for the business. As you will see from the agenda, it's a fairly tight timetable, and the team will endeavor to stick to the timings, and we'll then have a Q&A session at 4:30. The objective of today is for the team to share the insight and the details of our future growth plans. And as I said earlier on, it's taken us a little while to get to this day. More importantly, for you, you probably see Jenny and Chris most of the time. You've now got the opportunity to meet all of the team today who will present and give you some idea of how they're going to execute the growth plans. I'm not one for looking backwards, but I thought it was useful to give you a little bit of insight as to how this business has developed over the last six to seven years. We were delighted in August 2018 that Jenny could join the Board. We told her, I would say, warts and all, what she was coming into I think it was a bit tougher than you thought, wasn't it, Jenny? It seemed every stone that she turned, she found a snake. And we had headwinds, no-glow, all over with the business in terms of losing key distributorships, such as TVM, Zoetis, millions and millions of pounds worth of business taken away from us, and we've got to fill the hole. There were certain litigation -- legacy litigation cases taking lots and lots of time from the team. So I'm delighted to have overseen and witnessed what this team here have put together over the last four or five years with Jenny's skill set, international management, product development, a gritty determination to get things right and look after our people. So I think we can start today with the platform that we have some really, really good plans, development plans, product development, M&A activity that you can address or the teams can explain in a bit more detail. Innovation, which is really, really important. Jenny has developed a great team, ethic, good culture within the business, completely integrated now to where it was eight years ago as a disparate set of companies. So rather than listen to me go on, I think it's time to hand over to Jenny so you can go through the growth plans and interact with the rest of the team. Thank you.

Well, thanks, Ed. That wasn't quite what I expected to be in Ed's script, but thank you very much. I appreciate the feedback. And you're right, every time we picked up a stone, Chris and I go and put it back down rapidly and choose which one we then picked up. But today is all about looking forward. And so it's great to see so many people that we know. There's a few new faces. So, hopefully, we get an opportunity to interact afterwards. I think Stifel have put on a cup of tea or something afterwards and maybe one biscuit. So I'm going to share with you just a little bit to start with. And then as Ed said, I'm delighted to have some of our team here to come and share some of the work that they're doing. This is really intended to be a picture of health really. As Ed said, the platform is in pretty good shape. I'm going to touch briefly on the past. I'm going to talk a little bit about today. And most of the time, we're going to talk about the future. So, that's the agenda. I'm going to kick off with a few reflections. Most of you know the story as well as I do and as well as Chris and Ed do. And we're going to share a little bit from Randlab, and that's in the form of a video, slightly different pace and a slightly different look, but hopefully, you enjoy that. We're certainly enjoying having Randlab as part of the team. And then we've got a number of speakers to join us to talk about some of the initiatives that we started now, which we believe will be important growth engines for the future. So I'm going to introduce Cheryl, who heads up our commercial excellence team. And then I'm going to introduce -- or at least Cheryl will introduce Martin to talk about two things. One is the work that we're doing around our dental franchise and secondly, manufacturing. And then Martin is going to talk about our M&A. I don't think there's going to be any surprises in there. Most of you who know us well know what we're doing around M&A, but it will be quite helpful to look at that all in one place and think about how that can be a growth driver for the future. Hafid, who joined us at the end of last year, is now our Chief Science and Strategy Officer, and will be talking about the transformational pipeline. And then Chris will hopefully round it all up with the bit that I suspect some of you are more interested in is the financials. But Chris will do that. So you have to wait until the end to get those bits. Okay. I talked a little bit about the team, and I'm really delighted with the team we've put together. It's been fun. We've got some great brains and the team works really well. So, you've met Ed, you've met me, you've met Chris. Bruce, you will see on video. Alex, I'm just going to say a couple of words. I know Alex will introduce himself. It may seem strange that our Supply Chain Director is talking to you about one of our key commercial initiatives. Alex joined us from a great experience at both GSK Consumer and Colgate. And so comes, bringing a lot of that OTC franchise experience. So Alex is going to talk about dental, and then he'll move on to his home territory of supply chain. So just in case you wondered why Alex was talking about one of our big commercial initiatives, that's why. And then as I say, we've got Martin and Hafid, who are going to talk about their specific areas. Before we do talk about the future, I just do want to touch a little bit on the past. It's interesting because it's a question we still get asked quite a lot about rationalization of the product portfolio. And today, we're not going to spend much time on talking about the things we're already doing, okay? So this isn't -- I'm not going to talk about today's portfolio and exactly what we're continuing to do because that work will continue. But I just wanted to reflect a minute on what we've come from and where we are today because that's really the rationale why we're all here today. We're talking about here we are today, what does the future hold. So, if you look at before 2020, we had lots of brands, and it was highly fragmented. When we talk about fragmented, I think Martin did the work on this, but there was like two brands that were in all of our countries. And that's a really difficult business to manage. Whereas today, we're at 163 brands and many of the brands in our top 10 and top 20 are in multiple countries and some of them are in all of our countries. So we get that economy of everything working together. In 2020, we had lots of distribution contracts, some of which were good, and we've maintained those, some of which were not as good. In fact, they were pretty poor and unstable. And so we've systematically moved to make sure that we're retaining good contracts and that we're terminating poor contracts. Clearly, as Ed said, some contracts get terminated and we'd rather keep them. Interesting to reflect that some of those contracts that were terminated by the owner of the marketing authorization were actually terminated because they thought we were doing such a good job that it would be easy for them to do as good a job themselves. Mixed view. Just in terms of some of the impact of those first two things, if you look back sort of 2020, I think on the next slide, we talk about '21, but our average margin was about 50%. If you look at the top 10 products today, the average margin is at 65%. So, you can see that, that work that was going on behind the scenes has actually improved margin as well. We sometimes forget -- well, Chris and I don't really forget, but I remember when I joined, we had about GBP 26 million of debt. And given that the organization at that time wasn't particularly stable and hadn't got a clear strategy and vision, that was something that kept us awake at night. We were over 2x leveraged, which I know some people feel comfortable and some of you -- some other people have a severe nose bleed at that level. But certainly, for us, it was not a comfortable place to be. I think I'm delighted that we're standing here now with about GBP 9 million, you'll see later in Chris' slides, about GBP 9 million of debt and less than 1x leverage, and we bought Randlab. So I think that's a really important measure of our movement to 2025. In 2020, we had one asset in our pipeline that was Daxocox. When you look at what we've got now and how he's going to share, we've got six assets in our pipeline, and we've had two launches, one of which was Plaqtiv and one of which was Daxocox. So we've moved considerably on in terms of our existing work. We don't normally share with you the actual numbers on the top 10, but people keep asking us for them. So, we thought, why not? We're very proud of where we've got to with that top 10. There's some interesting pieces that we can pull out. If you look at the top 10 products, revenue growth is about 28%, actively driven. That was a strategy we wanted to grow the top 10 products. I mentioned earlier, we're now at 65% versus 56% in '21. So we've already done some improvement to '21 in the top 10. We've changed the share of products that we own versus distribution because we know that owned products, we have greater control and sustainability over, and we're now at 95% in the top 10. So that gives us the confidence that we wanted to get to, to be able to then think about what next. And with the purchase of Randlab, obviously, we've increased our percentage of the equine business. We believe the equine business is a great place for us to be. It's a smaller customer group. So, as a smaller business in the animal health world, we can better access our customers. But also it is growing rapidly. Generally, the margins are good, too. So, for us, we recognized four or five years ago that it was a good place for us to be. Danilon, which is our #2 is about a GBP 5 million product already. And then with the acquisition of Randlab, we're now at 24% of our business in equine. So that's a really good measure for us from the top 10. However, having said that, even before we move on to new organic initiatives that we're going to share, we see there's plenty of opportunity for straightforward organic growth. When you look at the addressable market, Daxocox is still a small market share. It's about 3% of a big growing pain market. So there's plenty of opportunities for us to continue to grow that without doing anything extra, doing the things that we're doing today. And the dental franchise in the vet is about 20% market share. These are European numbers. So there's still lots of opportunity for growth with the vet for dental. In some countries, we are market leader today, but there's still opportunity for growth. So we'll continue to do those things. There's also still opportunities for expansion into new territories. We're already seeing with the Randlab acquisition. We've obviously bought that business. We're expanding into UAE. We're doing more business around Asia Pac. And so there's opportunities there. With Daxocox, we are still gaining regulatory licenses in other countries through our partnership with Virbac, and that will continue. That's only just coming on stream. So there's still an opportunity for expanding our existing products in markets today. And finally, whilst you're going to hear from Cheryl in a minute, about some new initiatives and commercial excellence, just our focus on improving our interactions with our customers all the time is going to be -- continue to be a really important part of our growth. And that maturity is developing. It's really been, I think, a three-year journey so far. And so we will continue to upskill, to build capability, to make sure that our interactions with our customers are as good as they can be. At this point, I thought probably one of the most important things that we've done in the past few years is our acquisition of Randlab. When we first started talking about Randlab, we -- people said, oh Australia, it's a long way away. And what do we know about it and what does the business look like? What I'm going to share with you is just a short video, which gives you a feel of what we bought. Suffice to say we bought we're delighted with. You can see it in the numbers. It's exactly what we wanted and it's doing -- I was going to say it's doing what we wanted. It's probably doing slightly more than we wanted. But it's been a great business. But I can tell you that, but it's even more important if you hear it form Bruce Bell who is the General Manager of our Randlab business.

Randlab was founded by Angelo Vasili in 2004. Angelo was formerly a racehorse owner and a trainer and had a deep understanding of veterinarians and the equine market. And from this then his simple but revolutionary vision to provide equine veterinarians wherever they practice with comprehensive prescription products and be the people closest to the equine vets. What makes Randlab different is this close relationship and understanding of veterinarians, which we maintain through our gastroscopy days. We don't just make sales calls, we work alongside veterinarians for hours facilitating ulcer screenings. Over 30,000 horses have been scoped through this program creating relationships that go far beyond vendor-client transactions. These intimate conversations have identified real clinical needs and now drive four active innovation projects in our development pipeline. After five years working alongside Angelo and building Randlab, I knew we had created something truly special. So when it came to finding the right partner for growth, we wanted someone who understood our culture and mission as Animalcare does. This was evident during the sales process as the relationships we built with Jenny, Chris, and Martin weren't typical business negotiations, but with genuine connections based on a shared vision. And Animalcare understood not just what we did, but why and how we did it. For me, this represented the perfect opportunity to preserve what made Randlab special, while gaining resources needed for ambitious growth. Most importantly for me is that it meant I got to return to my roots and work closely with equine veterinarians, but now with the backing of a larger organization that truly got our mission. The best part about joining the Animalcare family was that the process went just the way we thought it would. As relationships and expectations established during the sales process remained firmly in place after closing. Having managed multiple acquisitions throughout my career, I know this level of consistency is rare. Animalcare's light touch approach to integrations was brilliant. They understood that our entrepreneurial culture wasn't just nice to have, but that it was essential to our success. Local management led the integration process, ensuring the experiences of our customers and employees remains unchanged while preserving the strong Randlab brand. The human element made all the difference. jenny, Chris, and Martin made multiple visits to Australia and New Zealand attending key events and building genuine relationships with our team. This helped cement the feeling of a true partnership and put a human face on the acquisition. I also joined Animalcare's senior executive team to solidify this partnership. And I feel like I have a real voice in our collective future. One of my first initiatives was bringing our commercial team together for a keep, improve, change or stope exercise. Every team member has in put in our business activities moving forward. We systematically addressed every item throughout 2025, building tremendous confidence that people were heard and valued. This collaborative approach maintained the momentum that has always been our hallmark. Our people remain energized because they can see that joining Animalcare enhanced rather than constrained their ability to serve our veterinary community. Our unique market approach has brought implications for Animalcare's global strategy. Our gastroscopy days aren't just relationship building. They're innovation engine creating conversations about unmet needs that drives genuine product development. Because equine practice is remarkably similar across developed markets. And the equine product category is small but highly fragmented. Our method of targeting practitioners with comprehensive support could serve as a blueprint for international expansion. We've proven that being wherever equine veterinarians gather and truly understanding their challenges creates sustainable competitive advantage. My ambitions for Randlab are clear. First, bring meaningful innovative products to market using insights from our deep veterinary relationships. Second, expand our ethos globally. Provide equine veterinarians wherever they practice in the world with comprehensive prescription products and be the people closest to the equine vets. This doesn't just include geographic expansion, but it is about scaling a proven approach that works across international markets. With Animalcare backing, we can transform how the global equine veterinary market is served. Animalcare has already been incredibly supportive of our ambitions and in enabling us to succeed. Notably, in the year, we appointed new commercial positions to deliver on the opportunities ahead. We recruited a new export manager to capitalize on the significant international opportunities across Hong Kong, the U.K., the Netherlands and emerging markets in Asia and Europe. We also recruited a new sales manager for the Gulf Cooperation Countries to accelerate growth through existing and new distributor relationships. And we have significantly expanded our sales capabilities, doubling our efforts and adding a sales head to enhance customer service and increase gastroscopy days whilst improving the capacity for the team to focus on innovation. Each investment so far has succeeded beyond projections, validating both our strategy and Animalcare's faith in our approach. Our journey with Animalcare represents everything right about strategic acquisitions. They didn't just buy a business, they embraced our approach, supported our culture, and invested in our vision. We've gained our resources for ambitious growth while preserving the entrepreneurial spirit that made it successful. Most importantly, this positions us to serve equine veterinarians more effectively than ever before. After four decades in this industry, I can confidently say this partnership represents the gold standard for acquisitions. This is just the beginning of our story with Animalcare and I'm incredibly excited about the opportunities that are ahead.

So hopefully that give a bit of a sort of a more personal feel for something that we're really delighted by. So I'm going to move on a little bit into the future before introducing the other team members. So, on the left-hand side, business as usual. As I said, we'll continue doing some of the good things that we know work. And then what we're going to do today is introduce you to the next four blocks here. So, in terms of capabilities, we're going to talk to you a little bit about our retail dental franchise. We're going to talk about some more of the commercial investments that we're going to make. We're going to talk about our supply chain because that's a critical part of making sure that our organic growth is at the best margin and most profitable that we can. Martin will share a little bit about M&A, and then Hafid will share a little bit about the pipeline. So hopefully, by the end of the day, you'll have a better understanding about what we see as our ambition for growth. Chris is going to talk through the detail on this. But effectively, what we're looking to do is invest in those areas that we're really confident about that will drive future growth and share some of those with you today because we're looking to try and get to that GBP 150 million in 2030 and then looking for opportunity beyond driven by things that we're starting to invest today. So we're really excited about it. We're really looking forward to the journey. We're sure it's going to be -- have its lumps and bumps and excitement and disappointments. But hopefully, after today, you'll have heard a little bit more from some of the team and have an opportunity to ask more questions at the end. Okay. So I'm going to hand over at this point to Cheryl.

Thank you, Jenny. Good afternoon, everybody. My name is Cheryl Lawrence-Tarr, and I am Group Head for Commercial Excellence in Animalcare. I've been in the business now for nearly four years and been working on leading the strategy to drive customer excellence, customer engagement and ensuring we have the right systems and processes in place to ensure we have a capable, scalable commercial organization. My background spans European markets, actually come from human pharmaceuticals. So animal health is my first foray in Animalcare is my first foray into animal health. My focus and what I'll take you through today is how we're building a more consistent, scalable and data-driven commercial organization, which enables us to strengthen our execution, enables us to enhance our customer value and ultimately supports the sustainable growth of the group, which is obviously what we're talking about. There are three different areas I'm going to look at. I'm going to give you a brief overview of why commercial excellence is important to support our growth ambitions. What we've achieved so far in Animalcare, and I'm going to talk about a particular case study, I want to share with you some success we've had already. And then I'm going to talk to you about three clear commercial excellence initiatives that we're going to use to accelerate our organic growth. So why are we concerned with commercial excellence. Commercial excellence is now widely recognized as a core driver of predictable and sustainable growth. There are many independent benchmarks that show that organizations with a more mature commercial excellence, organizational ability and capability will drive better returns, outperform peers across revenue, margin and execution quality. So there's some actual value in driving commercial excellence. At Animalcare, it's really all about scaling the behaviors of our very best teams and ensuring that every representative, every manager and every market perform at this level. The framework you see here really gives a picture of the things that we focus on when we talk about commercial excellence. So the foundation stones that we talk about help us focus, help us ensure that we provide quality interactions with our customers, consistency within teams and across markets and create a learning and continuous improvement environment for our teams to operate in. You can see that there are three particular pillars that we focus on: process, capability and tools. Process is really about process harmonization and standardizing those critical commercial processes across the business. For example, incentive design, so our commercial incentive plans, making sure that we have consistent commercial incentive plans across the business that ultimately give us consistency, fairness and drive better alignment across our teams and across the markets. The second pillar is capability, and Jenny has already mentioned something around capability building. If I give you an example of capability, we have really strengthened our first-line leadership capability through structured coaching programs and leadership development performance. This is what turns processes and tools into real behavioral change and improved customer engagement. Tools are the third pillar. A really good example here is where we've established a unified CRM system. So when we're operating as separate businesses, some businesses have CRM systems, customer relationship management systems, some businesses were not using them at all, but they're all different. So it's really important that we have a unified system. And the benefit of that is we have one version of the truth when it comes to understanding our customer environment and our customers. And this enables our teams to be better planned to target more effectively and to ensure that we can perform -- we can target their performance more effectively. Ultimately, this is about transformational leadership. This aligns efforts across functions and ensures commercial strategy turns into consistent execution. Together, these elements increase revenue per rep, improve margin per customer and accelerate speed of execution. And they give us a scalable model that we can apply across all of our markets. So what have we done to date? As Jenny said, we've been working on this for the past three years. So we have made significant progress to date with careful investment, relatively conservative investment around commercial excellence to date, but we've built a strong foundation on which we can build. Over the past few years, we have really been focusing on building a consistent and capable future commercial organization. For example, we began by defining competencies for our critical commercial roles, ensuring that we were very clear what excellence looks like in our critical commercial roles. This helps improve clarity for recruitment, onboarding and ongoing development, which means we bring in and grow the right talent into the business. We also rolled out the challenger-based customer engagement approach, that's a selling model across all of our markets, helping improve how we sell our more novel and differentiated products. This has since evolved into our customer engagement methodology, and we're now supporting local teams to deeply embed this in their day-to-day commercial activities. Recognizing that great performance relies on great leadership, we've invested in strengthening the capability of our first-line sales leaders through targeted coaching and leadership programs that are now better equipped to develop their teams and to drive performance consistently. In parallel, we've taken really important steps to raise the bar on data and analytics. We've aligned our processes across markets and launched the animal care data strategy, which sets a really clear road map for more sophisticated insights and smarter commercial decision-making. Finally, we've tightened the link between strategy and execution, ensuring our focused brands strategic direction is consistently and effectively translated into commercial action in every market, which we measure through a standard set of commercial KPIs. Together, these achievements are laying the foundation for a more scalable, insight-driven and high-performing commercial organization, one that's equipped to deliver sustainable growth. So let me bring this to life for you with a case study. Let's talk about Germany. So Germany is one of the markets where our commercial excellence model is most fully embedded. And the results demonstrate the value of disciplined capability-led execution. We've worked in a really focused and systematic way with the German leadership team to bring commercial excellence to life in this team. The results, if we take example of some of our key brands such as Daxocox and Plaqtiv over the last couple of years, we've seen a 35% growth on '24 for '25 results for Daxocox and a 21% growth versus '24 for Plaqtiv to some of our key brands. So this is significant growth for some really key brands for us that we've seen within the German marketplace. But this isn't just about growth. It's about the quality and predictability of this growth. The German team are consistently delivering results and hitting their targets or exceeding their targets through clear role expectations, strong coaching cadence, sharper targeting of our customers and an embedded customer engagement methodology. This case study validates our commercial excellence model. When teams have clarity, capability, consistent processes and the right tools, the commercial return is material and sustained. Germany shows that commercial excellence isn't only about accelerating growth, it creates reliable and repeatable performance. So our experience over the past few years has really shown what drives commercial performance in our markets. We have proof and alignment on some of the key levers that will unlock outsized revenue and margin impact. You can see here, we've identified three accelerated initiatives to drive revenue in 2026 and beyond. The first initiative I want to mention is capability. This is really about increasing the competitive share of voice and increasing our customer focus. This is about increasing our sales force capacity across markets which have mature commercial excellence foundations, which will help us deliver disproportionate revenue growth. Our top-performing representatives can deliver 25% more revenue than the average. So scaling this capacity has immediate upsides. We will roll this out in 2027 and beyond. The second pillar that we're going to work on as a key initiative to really accelerate this growth is capability. This is really ensuring our commercial teams have the skills to perform to their very best. In particular, we want to strengthen the focus on our face-to-face channel effectiveness, so our vet channel. This is a very important channel for us and really drives a significant part of our growth. In giving our teams more training, more coaching and measuring their results more closely, we will see a significant impact. We expect to see increased effectiveness in every customer call, which in turn will drive higher and faster product conversion and uptake. So ultimately, our customers will use more of our products more often. And this will also increase our customer connections. In terms of investment, we're already embedding and rolling this out in 2026, and we'll continue to do that across 2026 and into 2027. This is an ongoing program, but we expect to go for the short to medium term. The final lever that I want to talk to you about is onboarding. This is what I talk about unlocking performance early. So when we bring new hires into the business, ensuring that they have -- this is probably one of our highest return levers and effective onboarding will accelerate productivity, reduce time to impact for that person joining the team and improve early retention. For example, there is data to show that if you reduce ramp-up time, so time to that person becoming effective, you can -- with a very good onboarding program, you can reduce their time to be effective by 20% to 40%, which means they're in the field more quickly, doing more and generating revenue. Ultimately, we also expect that the fact that the annual sales per rep will go up because they're in the field quicker than you would expect without a clear onboarding program. If you have clear, high-quality onboarding, you retain more people. It's their first experience of the business. So having clear onboarding programs will help you retain good people that you recruit. And through all of this, we expect that the target attainment will increase again somewhere between 10% to 20% is an estimate. Overall, this onboarding process is underway, and we expect to see the first new hires going through this program at the end of 2026 with a particular focus initially on our sales managers and our sales representatives. We forecast to deliver incremental EBITDA from 2027 on for these initiatives through faster time to productivity, higher annual sales per representative, improved retention and more reliable team performance. We now have a validated scalable model that supports our organic growth strategy and strengthens the fundamentals, revenue, productivity and execution excellence. Thank you. Now I'm going to hand to Alex, who's going to talk about another organic growth lever.

Thanks, Cheryl. Good afternoon, everybody. So, as Jenny introduced me this afternoon, my previous experience is within a major multinational and more specifically, I was part of the team that led a very similar model to the one I'm going to talk to you about to be implemented extremely successfully while growing that business. So we think we've got a really big opportunity in our dental franchise. We want to expand into online and omnichannel retail in a very targeted way. If I talk through the market a little bit. So currently, the nonprescription medication market, the oral care market and hygiene market in Europe is worth about EUR 3 billion, and it's growing 7% a year. We have products in each of those areas, but the largest part of our portfolio is within dental care. And when you look at that part of the market, it's forecast to be around EUR 760 million by 2028. We know that there's a large unmet medical need for dogs to have dental treatment. Currently, only about 10% get dental treatment. So we've got a big market. It's growing, and we know there's a long runway. Today, our focus is really around about 1/3 of that market, which is vets and vet clinics. That's a good business. It's growing at 4% to 5% a year, and it's going to remain our heartland. Vet recommendation is absolutely key to the success of our brands, and it will remain so. The vet is the person that gives the initial recommendation that the pet parents take. But we also recognize that repeat and consistency of treatment isn't particularly high. So we believe and we can see because significant parts of our portfolio are already sold in this area by our customers and by our customers' customers that there's an opportunity for us to expand into this space and start to get some share within that remaining 70% of the market. We know that our portfolio works today in that space. And currently, about 20% of our sales are in brands that are nonprescription medication. So this is already a material business for us. So how are we going to do that? So we want to professionalize online retail within our business. We're going to build a small pan-European team focused around three pillars: targeted digital marketing, winning the digital shelf and account management and investing in account management to win those key customers. We're going to use industry expertise to do that. So we've recruited the former Chief Commercial Officer at Colgate-Palmolive -- former Customer Officer, sorry, at Colgate-Palmolive, who was also instrumental in executing this strategy within Hill's as a consultant to give us strategic direction and also to help us identify potential pitfalls as we implement this strategy. We're bringing in this small proven team of experts. We're focusing on a limited portfolio to start with. Products we already can see are generating sales in this channel. And if we put the right focus and vigor in terms of targeted advertising, in terms of keyword search within our retail customers, our online and omnichannel retail customers, we'll be able to move our products up in the search rankings within those customers. We're starting small, and then we will expand and invest based upon the success of that business. So we see an opportunity to build on our existing growth within the vets by bringing in the omnichannel and e-commerce retail sector. We've got the right products to do that in terms of our ownership around Plaqtiv rights in Europe and Orozyme globally. We've also got other OTC products, which we can expand into that space as we prove the model works. We know we're currently in retail, but it's fragmented and small. So we've got a good reason to think that we can grow there rapidly. And we really see a significant opportunity here somewhere -- and we're aiming for around a 20% per year CAGR growth on our OTC portfolio over the next five years. So now I'm going to move on to manufacturing strategy and what we're aiming to do in this space. So, as Jenny alluded to, the team since 2018 have done a great job reducing the business complexity. But we've still got a complex manufacturing network for the size of our business. Last year, we worked with about 70 contract manufacturers or distribution partners. That split our scale across a wide number of partners. And as a result, we're not able to leverage efficiencies that you get from consolidating volume together. That leads to sometimes lower service. And we've got a couple of our key products where there are capacity constraints, which we want to resolve. And also some of our suppliers take too long to contract with us for new products where it's hard to find new suppliers that are willing to work with us. We believe as we can -- if we can consolidate our network down, we will unlock significant EBITDA and revenue opportunities by improving our supply performance, being able to spend more time on our products and improving and finding cost of goods savings around our products and being quicker to bring products to market. So how are we going to do that? First of all, we're going to leverage the volumes we have, bring them together into a smaller number of strategic partners and then focus on changing the way we work with those partners. We want to be an important part of those partners' businesses. And we want to put continuous improvement at the heart of that relationship through the contracts we sign with them. For example, one of the partners we've identified, we will become 30% of their business. So, one of their top customers, and that's unlocked a lot in terms of supply chain reliability. We'll get a higher priority in terms of product availability. They'll spend more time from a technical perspective and investing in our products to find opportunities to improve manufacturability and reduce cost, and we'll be able to look further down the supply chain at their suppliers and their suppliers' suppliers to put buffer and have the right levels of product at the right stage in the supply chain. It's also given us a really good opportunity to look at where we're manufacturing to find the right balance between the regulatory environment, the balancing political risks and also cost locations in terms of labor. So, in terms of executing that plan, we started in 2025. We've identified four waves in the initial program and a wave would be a number of products that are being transferred within a dose form. So, for example, our tablet products that are moving. We've completed detailed business cases, contracts have been signed with suppliers. And because of the scale of this program, we've developed -- we've take an existing resource from the business, created dedicated project teams to manage it and backfilled that resource. We've also made the decision to invest in some capital with a number of those partners that will be repaid based upon volume that goes down those production lines, again, emphasizing that partnership approach that we're taking with these partners. There'll be ongoing costs in terms of the project team, regulatory fees and transfer costs, which are built into the plan. The first transfers are completed in 2027. The last transfers will be completed at the end of 2019 or into 2030, and that's when we'll see the full results in terms of the EBIT and revenue benefits we expect. Overall, about 20% of our revenue currently is being touched by this change. So it is a significant activity. We recognize the risk -- the fact that we've put full-time project resource in, the way that we've looked and found our partners focused around partnership is a key risk mitigator as well. And also, we aren't being asked to leave our existing contract manufacturers so we can continue to manufacture with them until everything is ready to complete the transfers. Okay. And now I'm going to hand over to Martin.

Thanks, Alex. So good afternoon. So I'm Martin Gore, Director of Strategic Alliances and Acquisitions. And over the next four slides, I'm going to show you what we want, the criteria we're using when we're looking, how we lead find and then how we score and evaluate. And finally, just go over briefly the rationale for the InVetro investment last year. So what we really want, that's going to work is another Randlab. We want it to be immediately revenue and EBITDA positive. Ideally, a portfolio that's owned and sustainable, so not so many distribution products, some NPD opportunities, they have a pipeline, new geographies in attractive markets, great team and culture. We found as we saw earlier on with Randlab that was really important, especially when it came to integration and going through the whole M&A process. Bring additional expertise. So again, with Randlab, we've seen with our equine developments that Hafid will talk about, having some equine experts in the business is really helpful. And then we've got up to about GBP 25 million as a pot for M&A. But if the right opportunity comes along, we would look at an equity raise as well. So we have quite a robust process now to evaluate opportunities, and we split that into four main areas and have some other considerations as well. So the first is geographic expansion. And we have some higher priorities and some more medium priorities, the higher priorities. First one, France, which is probably no surprise. I've been saying that for a while. Secondly, subscale current countries like Italy and Germany. Thirdly, building on the acquisitions we've done down in Australia and New Zealand. Then we look at the U.S. Now for the U.S., we're really looking at how do we maximize our future NPD opportunities. If we've got a pipeline of products that we want globally, the U.S. is an important market to maximize those, we really need to be there ourselves. And we're always on the lookout for other opportunities, especially in Europe outside of those countries already listed. Secondly, the portfolio. So the top priority is companion and equine. Intellectual property, so what we're meaning there, owning their own assets. So a novel prescription product is our ideal. Then after that, enhanced generics, then generics on novel OTCs, but they are the real kind of priorities. A sustainable niche. So Jenny earlier on mentioned equine. We saw that as a really good niche for us now because most of the big boys have completely exited from equine. Market-leading portfolios. So, again, Randlab is fantastic. They've got the biggest portfolio of equine products in Australia. So if we can find someone with a first or second range of portfolio, that's ideal. Low overlap with current products and then production animal. So it's still important for us, not as high as companion and equine, but if good production assets come our way, we'll absolutely look at those as well. So, the pipeline in NPD, again, companion and equine, the same with the intellectual kind of property, looking for novels and pals. Getting a technology base, we can do multiple developments from. So the VHH antibodies is a good example. That will be a priority. Late stage, you can get something within 2 years, so it becomes revenue positive quite quickly would be the high priority. And again, as you go down generics and production animal. So, financials. So the accretive and profitable for a full acquisition. I think that's really important. A little bit different if we're looking at investments, and we'll come on to InVetro. Strong cash flow, low additional investment. So after the investment of buying the company, ideally, we find someone that's got a strong business plan, and we don't have to put any other money into that, that will self-fund itself. Sustainable business, so a business again that doesn't have many distribution products. And the potential for synergies. So maybe not so much the cost synergies, which can be important in different deals, but we also look strongly at the positive ones. So what cross-selling opportunities are there? What innovation and people can we really leverage? And we're starting to see that with Randlab and InVetro. In other considerations, relationships. I think you saw it again with the Randlab piece. It was a key part of how will this company work with us in the future and how can we work with them when we're actually doing the deal, will we come together nicely. And that really helped us for the next part of this is ideally, we want to do deals off market. And it was a relationship with Randlab or InVetro helped us do them off market. So really important. So firepower coverage. And as I mentioned, we could raise funds if we need to and then integration complexity. the easier, the better. So these are all the kind of key areas we look at. So building that pipeline. So we do a lot of work on the right-hand side, how we get the leads in the first place. So actually, I've just been across -- the world's biggest animal health conference is 200 meters across the road right now in the last couple of days. So we intend a lot of industry events. So all the big ones here in the U.S. are out there. Internally, we've got a really good network. Doug lots of -- Doug, our Board member there and Ed, lots of contacts globally, Hid, myself, we've been really building up that network. Desk research, the most boring part, but a bit that pays back a lot, classic and actually Plaqtiv came from desk research. I also run our export business. So I'm out around the world meeting people anyway, and that's been really good for finding opportunities. And then inbound. I think now we're at the point that consultants know us. We've got good contacts of all, let's say, the top 10, 20 animal health companies and their BD team. And we've seen a lot more inbound coming in the last two to three years, even more so since we started doing deals. So that's given us a nice big kind of database of opportunities. So we've prescreened now over 600, 700 different companies over the last kind of 18 months or so. And if you look at every 100 of those, only about 10% will get through the first initial two phases. So we have -- we've got quite good at killing stuff quickly. So, we'll assess it, look at if it's good, we'll take it to the next level, do some more work, and then we'll see from there and only about 10% get to that stage. And out of the 100, only 1%, 2%, 3% ever make it all the way through. And when I speak to other animal health companies, people doing the same role as me, that seems to be about the industry standard. But there's obviously a lot of work going on just to get those one or two deals. So the rationale for InVetro, those don't know InVetro, we completed last year an investment of 25% for AUD 3 million, only about GBP 1.5 million. So that given us 25% of the business with a call option in '29 to take us to 51%. So InVetro themselves, an Australian company, they're commercial already. So they started selling this year, doing really well. It was down there a few weeks ago, ahead of where they thought they would be. Companion animal, so it ticks that box. They're working on enhanced generics and some novels, been taking some human products, moving into animal health, just launched the first veterinary Trazodone. So for a really new company, doing really, really well. And no overlap with our current portfolio. So it's been a fairly low initial amount. It's only GBP 1.5 million. We can spread that out to '29 for the next payment if we go ahead. And there are potential for synergies. We're already seeing the positive ones. They've taken a number of our products down to Australia. And if they carry on with their pipeline developing ally, we want to bring those across to Europe. And then there is the cost savings potentially in the future. They're already talking to Randlab, how can they use their warehouse, how can they use their back office and help grow together. So they're actually working really nicely together. Other considerations, it's a really strong team. And one thing we are really impressed about was the two founders there. And Jenny met them, Chris met them, I met them beforehand. The culture is really, really similar. And we have a very good shared vision together, really, really impressive team. No manufacturing, obviously aligned with we want to carry on growing in Australia, New Zealand. We think there's really good long-term value creation. So they want to try and get to or they've got really strong plans to get to a AUD 20 million, AUD 25 million business within the next few years. And we've got a lot of faith they will do that as well. So getting in nice and early and getting that 25% for the GBP 3 million, we think will prove to be a very good long-term investment. And we're paying it in -- well, up to the 51% that sitting in two stages. So that was the rationale. We think it's really, really strong. Just going back to the number of companies that we've looked at and reviewed. So there's actually currently about eight that we think tick all of our boxes, and we're in early discussions with one of them. So that's where we are at the moment. And I'll now hand over to Hafid to talk about R&D.

Thank you, Martin. Good afternoon. It's great to be here, and we're grateful for your time today. What I would like to do this afternoon is share some key elements of our strategy and how we plan to take Animalcare and our business to the next level of growth and value creation. I'm Hafid Benchaoui, I'm a vet by training, and I completed a PhD in veterinary pharmacology. I have been doing drug and vaccine discovery and development for the past 30 years. Over those years, I've had the incredible luck and privilege to work on a decent number of novel veterinary products that have added considerable value and addressed and continue to address some key unmet needs of the veterinary profession in our industry. What you see here is the team that I'm leading at Animalcare. The people that we have bring proven expertise across all the functions that an R&D capability needs in order to operate effectively from clinical development to pharmaceutical development to regulatory affairs and other support functions that help us execute our strategy and manage the R&D portfolio, the pipeline end-to-end across the drug development cycle. When we look at our capital allocation for R&D relative to the leading players in our industry, and whether we look at that as a percentage of revenue or as an absolute dollar value, we can see that we have a prudent approach to R&D investment compared to others, but the company has come a long way from 2.5% to 3% to now investing 5% in new product development and innovation. And as R&D proves itself as a value driver in the coming years, there will be scope for greater investment into innovation and into new therapeutic opportunities. The other thing to point out here, which is captured on the right-hand side of this slide is that we typically target common pathways of disease and pathogenesis across our three companion animal species of interest, meaning that a single discovery program on a given target can lead to multiple products for dogs, cats and horses. As you will see with one of our pipeline assets, E6132, which targets the common pathway of COX-2 inhibition to tackle pain and inflammation in dogs, cats as well as horses. And we aim to leverage more and more of this built-in efficiency, particularly with the VHH antibody technology so that we can achieve more with less. So investment in a single discovery program has the potential to result in three products through antibody engineering of a common active backbone. The other efficiency we have is in our lean operational model. Having worked in big animal health companies before, I know that a vast component of their R&D spend is fixed costs and goes into operating, maintaining and funding a significant footprint of R&D sites, animal facilities and laboratories and the payroll that goes with that. We have an inverse ratio to that in the sense that the majority of our capital goes into directly funding the projects. And this gives us maximum flexibility whilst allowing us to use and to tap into a wide network of external partners to get the work done. So we retain the technical leadership and the oversight, and we outsource all of our execution. We also have a robust governance through what we call internally the fill process. This is from idea to launch process that ensures we tightly manage costs and risks across the R&D portfolio. This is a cross-functional governance format that involves the senior leaders in the organization to really oversee each R&D project from its integration into the pipeline right through to commercialization, ensuring we pay attention to strategic fit, commercial value and return on investment, competitive landscape as well as development costs and technical and regulatory feasibility and risks. And this is not just a one-off exercise. It's a process that regularly and continuously shepherds each project in the R&D portfolio across the different stage gates of the drug development cycle. And I will talk more about those stage gates shortly. This slide outlines the three pillars of our strategy towards our ambition to grow the top line above the GBP 100 million mark. We aim to do that through proprietary innovation that will result from both organic and partnered R&D efforts spanning both small molecules and monoclonal antibodies. We intend to accelerate the winners for speed to market with the view of this pipeline being revenue generative within the 2030 horizon. Other engines of growth that are within our focus are M&A and external innovation, which Martin has covered through in-licensing of novel technologies, mAbs, stem cell technologies, drug delivery technologies for longer-acting modalities of treatment and disease management and co-development partnerships and bolt-on acquisitions. And the third pillar, as Jenny indicated, is to build on our existing brands through geographic expansion beyond Europe and the U.K., particularly North America, Australia, New Zealand, LatAm. Claim extensions as we did with the postoperative pain claim for Daxocox and really maximizing the value of our dental and derm brands through our omnichannel strategy, adding a retail OTC component to our commercial operations and activities. So we'll now switch gear and delve into the pipeline. But before we do that, let's have a quick look at the industry standard of what the drug development cycle looks like and what the stage gates are for a pharmaceutical R&D project. And this is what we are using now to manage the stage gate transitions of our projects at Animalcare. Briefly, if we are starting a project from scratch, it will enter the discovery stage or phase, which is essentially laboratory based. And here, we validate the target in the lab, and we screen candidates for their affinity and potency against that target to be able to select lead candidates or a lead candidate that has all the attributes and take it into proof of concept. This is the stage at which we test our chosen candidate in the diseased animal against the target disease, and we establish that the product works, it is safe, and we can make it. Once we have passed that hurdle, we move into exploratory development. And at this stage, we optimize the formulation, we select the dose and we scale up to a larger volume. Once that's done, we move into full development. And this is when we do the pivotal regulatory studies for registration. And that includes, of course, taking our candidate into the real world and testing it under field conditions in what we call pivotal field efficacy and safety studies. After that, it is submission of our dossier and interacting with the regulatory agencies with the view of securing approval, which then leads on to commercialization. What you see at the bottom is the PTRS, the probability of technical and regulatory success. It is a metric that measures risk. It is a data-driven metric in the sense that the more data we generate to address the three key questions around efficacy, safety and quality, the higher that score is and the less uncertainty there is. It is a long process that can take up to nine years if we are starting from scratch from discovery, but we're always on the lookout for ways and tactics to accelerate and shorten that development time frame. An example of that is to do things in parallel, but that requires, of course, some risk tolerance. This is our pipeline. The clinical stage and late-stage assets are pharmaceuticals, the blue bubbles. And in early stage, we have our VHH antibodies, our biologics, the yellow bubbles. Pain, inflammation and osteoarthritis are key targets for us across the two modalities, small molecules and biologics and across our three companion animal species of interest. Dermatology is also of interest to us. So we are developing a bispecific VHH antibody to address the unmet need of sweet etch in horses. This is a seasonal insect bite-induced skin allergy that causes severe pruritus and lesions for which all currently available solutions are suboptimal. The bispecific dual approach allows us to effectively address both the itch as well as the underlying allergic reaction pathway and the hypersensitivity mechanism of the disease for a longer-lasting and durable therapeutic effect. A really innovative approach that will make a huge difference to veterinary dermatology and to equine medicine. I mentioned earlier that we are targeting common pathways of disease, and this is why we are proposing to pursue our osteoarthritis VHH asset for both equine and canine species as we are doing with the pharmaceuticals with E6132 and the common pathway of COX-2 inhibition, as I mentioned earlier. Our most advanced asset in the pipeline is at the top there. It's Daxocox U.S., which is in full development. We are designing a development program that meets the needs and the requirements of the FDA. We have drafted our study protocols, and we are in discussion with the agency. Once we have FDA concurrence on those designs, we can immediately start the clinical trials in the U.S. So the thing to note about this pipeline is that it includes some high-value products that have the potential to drive significant growth over the next 5 to 10 years and beyond. So we have a proprietary VHH asset with proven potency against a common osteoarthritis target in the horse and the dog. And this is why we now have these two projects reflected in our pipeline. As you can see from this slide, the mAb market in canine osteoarthritis is poised to reach USD 1.5 billion in 2033. The asset has been invented for the horse, and we have it. We know it binds and it is potent against the corresponding canine OA target. We're proposing to develop it for the dog, which will allow us to seize some of the opportunity that you see on this slide. We're not starting from scratch for the dog. We are maximizing the value of an asset that we already have. Part of the reason I have joined Animalcare is, frankly, the belief and investment the company has made into this technology, the VHH antibody technology. Besides the fact that it is a validated technology in human health with five VHH antibodies registered across the globe and many more in late-stage development. It holds enormous promise in animal health because of the multiple advantages it offers. VHH antibodies are 1/10 the size of conventional IgG antibodies. And for that reason, they have better ability to distribute into tissues and to access hard-to-reach targets and epitopes. Their size is why Sanofi have trademarked the name Nanobody for them. They are extremely stable. And in terms of production, they can be expressed through microbial systems, mainly yeast, but also bacteria, which are much more economical than mammalian cell expression. They are highly modular, meaning that because of their small size, you can have them as building blocks that you can link together to, for example, increase their potency or to aim at multiple targets as we are doing with our bispecific VHH for sweet itch or to extend their half-life and the duration of action. It's an amazing technology and the benefits of it are just emerging. There is much more to come. To conclude, we have an ambitious growth strategy through our partners and through our own scientists. We have credible end-to-end capabilities that can take our novel therapeutic candidates from discovery right through to commercialization. We have a very exciting R&D portfolio with the right mix of technologies and some key therapeutic areas and indications. And it's a pipeline that is gaining traction and momentum. The fact that we already have proprietary VHH antibody assets with proven potency against a major canine and equine osteoarthritis target is demonstrative of that momentum. That's all I wanted to say. I hope this has given you some helpful insight, and I'll now turn it over to Chris.

Thank you, Hafid. Good afternoon, everyone. So we seem to have lost my name on the slide, but I am Chris Brewster, CFO. So I'm going to spend about 10 or 15 minutes just talking you through and bringing everything together that you've heard today from a financial perspective. And I'm going to do a bit of reflection before we move on. So hopefully, what you've seen from what you've heard today so far is that Animalcare is in good health. We've got a clear strategy and an ambitious growth plan. When Jenny and I are presenting the 2024 results about a year ago, that was just a few months after the Randlab acquisition, I recall that as CFO, and this is coming from a naturally cautious but optimistic person that I felt excited about the potential to scale our business over the medium and long term. And a year on today, I still very much feel that way, was seen Randlab integrated and delivering the value that we clearly saw at the time of the acquisition. We have an enlarged and stronger organization from which to execute the growth strategy with confidence. And we're doing that from a position of financial strength. So reflecting more what you've heard from Jenny and the team. Importantly, you can see that the growth plan is diversified and balanced across all three of our strategic pillars. Work on accelerating organic growth is underway. Our innovation pipeline is building momentum, and our balance sheet gives us the flexibility to pursue M&A when the right opportunity fits the strategy. When I look ahead to 2030, I see a business that is materially bigger, more profitable and more resilient, a business with stronger margins, continuing strong cash conversion and a higher revenue mix from own innovation. And importantly, at that point, we'll have a business with the capability to grow beyond 2030 because by then, we expect our late-stage pipeline will be ready to deliver the next wave of product launches. So I'm just going to start with capital allocation as this provides a bedrock of the investment case. I suppose the key message I want to land is that we have the firepower, which we will continue to apply with discipline to accelerate investment in organic growth and investment in the R&D pipeline, and that's importantly without compromising the balance sheet strength that is the enabler for M&A. The capital allocation framework we've got on here is largely unchanged from what we previously presented during recent roadshows. So what I'm going to do is just focus on a couple of areas that link to the -- what you've heard and the changes that you've heard earlier. So, firstly, and importantly, to set the scene, we are starting from a position of financial strength. So, on the right-hand side of this chart, you can see that we ended 2025 with leverage at 0.7x EBITDA. As Martin noted, that translates to capacity of around GBP 20 million to GBP 25 million, assuming peak leverage around 2x. As we successfully did with Randlab and again, Martin mentioned, we are willing and open to use equity to increase the capacity while maintaining that leverage peak should a larger deal come along. In terms of the capital priorities on the left-hand side, a couple of points to draw out. So, on the organic growth, we've explicitly added here the near-term strategic investments and initiatives to accelerate organic growth. And as we said before, the pipeline investment will be funded from our strong operating cash flows, which, of course, have been enhanced by Randlab in the last year. And as Hafid has shown, our current target for investment is around 5% of revenues annually. And just to be clear, and we brought this out at the interims, future investments will comprise both P&L expenditure on research and CapEx on development. And you will see this starting to come through in our numbers when we announce the 2025 prelim results. And this change from 2024, just to give people some comfort is already factored into the consensus analyst forecast. So, our growth strategy is deliberate. We're shaping Animalcare to sit at that sweet spot of growth and cash generation. So just working up from the bottom of the slide, across the business, we are already optimizing our already strong foundations through initiatives such as delivering our manufacturer strategy to drive dependable cash flow and margin enhancements. These are the foundations that give us the firepower to fund the investments. Targeted investment in initiatives and projects to accelerate near to midterm organic revenue growth will continue, and that's while investing in our long-term future through R&D innovation. And again, all of this while selectively using M&A as a growth accelerator. This balanced approach gives us midterm growth, strengthening resilience and long-term upside and positions the growth -- the group, sorry, for double-digit growth and beyond and importantly, 2030. So this is a slide that Jenny had up earlier. And just to -- so we have a clear picture of where we want to be by 2030. So how do we intend to get there? So near-term organic growth is driven by the initiatives are underway, commercial excellence, expanding our commercial capacity, developing the retail channel in dental. Towards the end of that five-year period, NPV begins to deliver value as we launch the first products from our pipeline. And subject to InVetro meeting certain commercial thresholds, which the early signs are really positive. So I was out there in Australia in January. That business is already cash generating, which is a lot earlier than we thought. And so importantly, that GBP 3 million that we put into the business can now be used to accelerate some of the projects that we thought we'd take will start to accelerate maybe this year or next. And we expect with the option to take 51%, that will contribute meaningfully from 2030 of the options there at the end of '29. And finally, to link what Martin has already outlined, we're confident and ready to pursue further M&A to layer in inorganic growth and accelerate the top line. And for illustration, we've included a potential M&A transaction around mid-'27. The firstly aligns to the strategic priorities that Martin outlined. And secondly, is on an investment level. within our stated firepower range. So just to be clear, we have one acquisition in there for five years and then InVetro, so a pretty conservative approach. We will have the firepower to do more towards the end of that cycle should that come around. Again, so Jenny highlighted that our ambition is to reach GBP 150 million of revenue by the end of 2030. And I think as I said on the previous slide, the building blocks of the four contributors of revenue growth are balanced. So you can see that the growth plan is not reliant on any one single lever. It is diversified and balanced across the 3 strategic pillars. These four elements inevitably contribute differently, both in terms of scale and timing. Underlying performance provides early resilience. organic initiatives drive near-term uplift. M&A adds mid-period upside and NPV brings growth later in the cycle. So let me bring together how our investment strategy translates through to profits and with a focus here on EBITDA. So, to set the scene, we start from a strong EBITDA base of 2025. Hopefully, you'll have seen our recent trading update, and we said in there that our EBITDA versus '24 is up by approximately 15% -- 50%, sorry, not 15% versus 2024. And obviously, that significant scale has definitely been come through from Randlab. Our base business is expected to remain strong. So we talked earlier about the top 10, there's growth potential and growth pathway across those brands, supported by the manufacturing strategy that Alex talked about, which is expected to deliver incremental margin expansion over time. Alongside that, the organic growth initiatives we're already putting in place strengthen the EBITDA curve year after year. 2026, as you can see on this slide, will be a year of upfront investment which we expect to drive incremental EBITDA growth from 2027 through to 2030 as the new dental franchise and our commercial excellence and capacity activities take hold and importantly, gain scale. We're investing in R&D to seed the next wave of high-margin product launches. As I noted earlier on capital allocation, this investment comprises both OpEx within EBITDA, as you can see here as well as CapEx. And we expect to launch with launches from our pipeline to come through from 2029, which importantly, post 2030, have -- the pipeline has the ability to drive transformational growth beyond that. And that gives us, importantly, a really a long-term engine for value creation. And finally, as I said, we'll use the firepower to accelerate that growth through selective accretive M&A and by increasing our stake in InVetro. So, taking together these components, base strength, organic initiatives, targeted R&D investment and strategic M&A, these provide a clear pathway to accelerated EBITDA growth with stronger margins with the ambition to reach an EBITDA margin of 25% by 2030. So, to my final slide, I just wanted to bring everything together by looking at where we'll be -- growth strategy can take us in 2030. So, as we've said, we'll see a pathway to around GBP 150 million of revenue in 2030, delivered through investment and execution of all three of our strategic pillars. At that point, the business will be generating sustained double-digit growth, underpinned by a product portfolio, which we think will more weighted towards companion animals and importantly weighted towards owned IP versus today. We also expect to have a broader geographic reach with the first products from our pipeline entering the large and strategically important North American market. As I've said, EBITDA is expected to scale progressively alongside revenue growth. As the base business continues to strengthen and the organic initiatives mature, we expect to deliver meaningful margin expansion. That's both in terms of improving margins, and we've given a margin target here of 60% to 65% over that time as well as EBITDA margin, as I've talked about. And we expect to deliver this with disciplined capital deployment. So cash conversion consistently above 80%, a resilient balance sheet with peak year leverage around 2x and the financial flexibility to continue investing while maintaining a dividend to our shareholders. 2030, as you've seen, is not the end point. It's the point at which our R&D pipeline will be at a late stage and ready for the next wave of commercial launches, setting up further acceleration in revenue growth and further diversification of our portfolio and geographic footprint by 2040, we've given an illustration on the slide there. Okay? Thank you very much. I'll hand over to Jenny.

Great. Thanks very much. Hopefully, you found that an interesting run through some of the things that we've been working on and we're going to continue to work on. I'm sure there's lots of questions, and we have got about 30 minutes for questions. Before I do that, these things don't happen by chance. So just a quick rundown of some thank you. Thank you to the team who presented. I don't know who -- I'm not quite sure who it was who thought it would be a good idea to do a capital markets event as we were in the annual report and the year-end and the Animal Health Investment Forum and all the other things that we've been doing. So that has put an extra strain on the team here. So thank you all very much. That's been great. Thanks to Stifel and the team at Alma. A really big thank you to one lady who's sitting here, Lorna, who kept saying, don't say anything. So Lorna is our Group Finance Director. And Lorna has held us all together and been just an absolute help. So I didn't want you to go unrecognize there. We said we've made you sit there and wear a hat. So, thanks, Lorna. That's been great. We do have an opportunity for Q&A. The way that we're going to run the Q&A is there's two of the team, Rose and Kimora, I believe, are going to be equipped with microphones. And so if you flagged that you would like to ask a question, do wait for the microphone. We are recording it. So we want to make sure that we -- firstly, that we can hear the question and secondly, that we capture it on the recording. So we'll ask Rose and Kimora to do that. Chris and I will look around the front here and try and work out who's best placed and likely to have the information to answer the question, Lorna. So anyway, we will ask each of the relevant people, if Chris and I usually won't know the answer to stand up and place so you can be captured on the camera. Okay. Chris do you want to, yes, come up and we can.

Has anybody got any burning questions, Lucy?

My name is Lucy, I'm from Canaccord. This is an R&D question. Just interested to hear about -- it's a bit predictable, I'm afraid. AI is having quite an impact in the R&D process of the drug development cycle. Interested in how that -- those tools are being used in your business and how you are -- I guess, are there opportunities to uniquely apply AI in your R&D process in order to accelerate that.

You want to still have that.

Yes, you should still. Can we have? Yes.

Well, you're absolutely right. I think AI has a lot to offer, both in the drug discovery process as well as clinical development. At the moment, our focus is to really leverage the technology in relation to clinical development where we can measure the clinical endpoints, for example, a lame horse or an itchy horse and be able to quantify that itch or that lameness and be able to compute that and get a quantitative measure of the disease and any therapeutic effect that results from our intervention. So that's the realistic kind of outlook for us to be able to use the technology for now. In the future, of course, it's going to be drug discovery.

Okay. Thanks, Hafid. You've got either way there and you're either, yes.

Seb Jantet from Panmure Liberum. If I can start off with a question, first of all, just on the kind of sales reps. So if you can add a sales rep that cost you GBP 100,000, they generate GBP 700,000 of revenue, why aren't you adding as many as you possibly can? So what I'm guessing is that you're limited to the areas you can go in. So maybe if you could just give us a sense of how many you think you can realistically add in and get to that type of performance and where you think you can add them?

Cheryl , you've to pick that one up?

Thank you. It's a really good question. And I think you could say just keep adding all the sales reps into all of the markets. But you have to add them in you have to do a sales force optimization exercise. So you have to understand what the opportunity is in that particular market. So in some markets, the opportunity is clearly going to be bigger. So you have to create that opportunity to understand what's the optimal size of that sales force for that particular market. So that's the first step you need to do. The other thing you need to think about is you have to have a commercially excellent, mature market for that to really work. So if all of the systems and processes and tools are working in synergy together, adding in more headcount will give you more capacity and more results. If you just add them in when you haven't got all of that working together, then you won't get the same return. So it's not as simple as just adding more people in. It's adding more people in the right number of people into the right market and then making sure you've got the right level of maturity to really optimize that extra headcount.

So if I could just drill down then. So how many are we talking about and in which markets?

So in terms of -- so currently, we have over 100 people that sit in the market. So over our markets currently, we have 100 sales teams. In terms of what that looks like going forward, that would be decided once we create the sales force optimization exercise, which is part of what we're doing in 2026. So that would give us those numbers that were most optimal for that particular sales market.

Okay. Second question is just around the development pipelines and the timings on those. So clinical trials and development process have a horrible habit of moving to the right. So I'm wondering kind of how much safety net you built into the kind of years you put in that nice chart with all the bubbles on it.

Hafid, do you want to have a shot at that one? Or do you want us to take responsibility because we landed you in it?

Well, we want to be aggressive. So what you see there is an aggressive outlook into the future. We want to be able to deliver with ambition. So what you see there is realistic. We -- I think once we get the regulators to give us the go ahead like we're doing now with the FDA, I think the pathway is fairly predictable in terms of conducting, for example, the field efficacy and safety studies. So we can be fairly confident there. I think with the early stage, that's where the uncertainty lies where you have to repeat certain studies or a candidate doesn't work, you have to replace it with another more efficacious candidate. So the early stage has more uncertainty than the later stage.

Just last question then. Just on the margins and the journey from where you are today to 25%. And looking at that chart you put in there, it looks like a lot of it could come from gross margin. So I guess I'm just trying to get a sense of -- if I think of the gross margin drivers in the business right now, you've clearly got some work around the supply chain. You've got some work around the mix in the business, and you're going to have some inherent operational gearing, assuming that most of the product development stuff is really going to drop post the 20 visits. Just to get a sense of what's the mix like? What is the key driver of that margin enhancement?

Yes. So the margin enhancement will be from the sales mix, particularly if you look at -- or firstly from the sales mix. So particularly if you look at the dental portfolio, that's one of our most profitable parts of the business. So we expect that to continue to grow. And as you can see, Alex talked about a 20% CAGR on an already profitable portfolio. So it's there. Jenny talked about Daxocox and Plaqtiv. So you saw the margin on the top 10 brands, and there's a pathway to grow there. And yes, so inevitably, a lot of that's through sales mix and also leveraging that top line. So that's why I was saying the gross margin is important, but also scaling that top line with the right level of investment means that the operating leverage will increase over time.

And the supply and manufacturing...

Yes. Sorry, yes. Manufacturing strategy. Yes, that's a few percentage points on our EBITDA margin if you talk about 20% of the revenue. So yes, that will have two really important things really. The financial side is one side, but really important is the sustainability of that supply. And I think we've got a really good balance on those projects that we've talked about.

There was one. Sorry, you, sorry, James, I think. You go there.

It's Andrew from Investec. Just a quick one on R&D, actually, if I can, again, going back to R&D.

We should just made you stand up.

You've got some material opportunities in your pipeline. I'm just trying to work out whether they necessarily carry higher inherent risk. And what I mean by that is sort of just trying to understand the maturity of the end markets that you're targeting. Is there lots of white space still available in those end markets and therefore, the hurdle you have to get over on those larger projects is achievable? Or is it very, very competitive things you're going after and therefore, the clinical data has got to be absolutely brilliant for you to get that through. So any flavor you can give me there?

Shall I have a kick off at it. And on the commercial element of it, those markets are big, big markets. So there is lots of scope. The addressable market is significant. There are other competitors in there. It's not -- it's definitely not white space apart from the one that talked about in terms of equine sweet itch. That's a pretty open market. So that's a nice market to go into. One of the things that we do as a very early stage is do what we call a target product profile. And actually, that is looking for what differentiates this product to either what's on the market at the moment, but more importantly, what we think is going to be on the market at the point that we launch. So, in each case, and we had a really interesting conversation about the VHH, how do you make sure that, that is differentiatable at the point at which you get to market. Having said that, like Cheryl, I come from human health, and there are some really good examples of where second to market has been very successful. And actually, third to market has been super successful, too. So we've got quite a lot of space, but we do have to make sure that our delivery is right. We need to deliver the right thing. So that's why that process, the fill process is so important. So if you get to a place and you go -- actually, we've got a me too or slightly me not quite there, then we need to be really quick to say that's not the right place for us to invest. In our pipeline at the moment, we see significant opportunities for all of those. And we're clear on what the space is. Commercial excellence and execution is going to be key.

Can I just add?

Oh, sorry, Hafid, yes.

So you look at the mAb market, for example, in animal health, there are less than 10 mAbs on the market. Human health, 120 plus. So there is plenty of room to innovate. There are no VHH antibodies on the market for animal health. So the opportunity is there for us to grasp.

James?