Good morning to all of you, and welcome to this presentation. As usual, I'm here with Septima Maguire, our CFO, and we are going to give you, as Hannah said, an update on our half-year results for financial year 2025. We We will also briefly touch on the recent actions, as well as the plan for return of capital to shareholders and future positioning of the group as announced May 23rd. We will follow the normal program, starting with highlights, moving towards more granularity on the business. Septima will, as usual, take you through more detailed financials. As Hannah said, there will be an opportunity for questions at the end. Starting with highlights, let us start with the event that happened at the very end of the second quarter and consequently has led to actions and developments after the quarter and half-year ended. As you should all be aware of, we completed the genetics deal at the very end of the second quarter. This was an important milestone for us. The transaction provided us with significant proceeds, which also is reflected at the very bottom line of the account for the second quarter and the first half of the year. Post-period, some of the proceeds from the transaction have been used to repay debt, the green bond, and the RSF, paid back in line with what we previously have been communicating. We also have been following up on our obligation in terms of the transition services agreement that we went into related to the transaction. This is now substantially complete. Following the transaction, we've also been executing on corporate streamlining of the group, right-sizing it to the new reality, a smaller, less complex group with two remaining business areas. This process has been going on, is now well- advanced, and it will be reflected in the financial in the time to come and in full when the group is moving into Financial Year 2026. Following the completion of the transaction and the corporate restructuring or corporate streamlining, we have also announced the Board's proposal to return capital back to shareholders and position the group going forward. This happened on May 23rd and constituted a proposal to delist the group from AIM as well as Euronext Growth, offering the shareholders the opportunity to roll into the private company and receive a special dividend, but also providing an opportunity for shareholders not able or willing to remain owner to realize their investment by participating in a tender offer. The Board's proposals are subject to shareholder approval at the AGM that is coming up on June 18th. Moving over to the operational highlights for the first half of this year, which pretty much has developed in line with what we anticipated and communicated when we did the first quarter presentation back in March. As expected, we have seen improvement in trading, in advanced nutrition in the second quarter, partially offsetting the slow performance we experienced back in the first quarter for this business area. The improved performance has been driven by improved product mix, bringing our gross margins back to the 50% range, and have been helped by increased adoption of new and existing nutrition solutions that advanced nutrition has in their portfolio. Our health business area has also continued to perform in line with our expectations in the last part of the first half of this year. This business area is now restructured. We are running a smaller but profitable and cash-positive business currently based on sale of Salmosan and Purisan, one of our two solutions for medicinal treatment of sea lice. Looking at the numbers for the first half, we see that we are down on revenues compared to last year. This is for the remaining business, advanced nutrition and health. This is mainly due to the change in health where we have post-Ectosan Vet that we have active in the first half of financial year 2024. We have also experienced Forex headwinds in advanced nutrition that have created a bigger gap than if we have been looking at the numbers on a constant exchange rate. We also see lowering of the adjusted [EBITDA] compared to the first half of last year. This is mostly related to the lower revenues that I just commented, but also the lower gross margins we experience in advanced nutrition in the first quarter this year compared to the first quarter last year. It should be mentioned that the reduction in the adjusted [EBITDA] has partly been offset by a reduction in operational cost that has been achieved over the first half of this year. This reduction has been significant, but it still does not reflect all the cost reductions we expect to see when we start to see the effects of the corporate streamlining that we are undergoing. Adjusted operating profit ended at GBP 2.4 million for the first half of the year, an improvement over last year. All the financials will, of course, be commented by Septima later. Moving over to a more granular, a more granular update on the operations, starting with advanced nutrition. As already stated, we have seen an improvement in performance in the second quarter compared to the weak start of the year experienced for this business area in the first quarter. The development in the second quarter is in line with what we communicated as expectations when we did the first quarter presentation back in March. The main driver behind the recovery is, as I already said, has been a better product mix helped by better adoption of existing and used nutrition solutions that advanced nutrition holds in their portfolio. A lot of actions have been taken in advanced nutrition over the last years to better the position of that business area, especially in situations with challenging market conditions. Besides streamlining and strengthening the organization, we have continued to maintain and build a diversified portfolio of products and solutions that is well positioned in situations where producers seek to optimize performance and yield in their production. This fits well with the challenging market conditions that we have experienced, I will say, for two years now, and the subsequent behavior that this is spurring by the producers that are seeking to better their margins. They are looking for proven, well-documented solutions that we are able to provide them from our advanced nutrition business. In the last part of the first half of the year, we have also seen helpful effects of new solutions launched and that now are gaining traction. Just one example of that is a new algae product launched early in the first half of this year that has been positively received. A significant improvement driver for the improvement in performance since December has been the Artemia product mix that has become better since we have gotten access to a higher- grade Artemia. This has actually come true as we expected, and we also commented that in our first quarter presentation. Looking at the market situation for advanced nutrition, we still have experienced challenging market conditions in the shrimp market throughout the whole period. We have also experienced some cautiousness related to U.S. trade tariffs over the last two months. Like for many other businesses, this has not been helpful for us either. All in all, the market conditions in shrimp continue to be a challenge to our performance in the advanced nutrition business area. It should, however, be noted that the situation in the shrimp market stays in contrast to the situation in the much smaller marine fish market in the Mediterranean, where the market conditions have stayed positive with improved and pricing benefiting the farmers, thus also benefiting our sales. Moving over to health, which now is a much smaller business, it is restructured, profitable, and cash-positive. The operations in this business area have developed in line with our expectations over the period. Albeit if you look at the revenues, they are significantly down compared to last year when we still were operational with Ectosan Vet on that. The current business is, as I have already said, based on Salmosan and Purisan only. It should also be noted that the comparative numbers versus last year reflect a significant timing effect of a large sale. This year, the large sale did happen post-period into when we were moving into Q3, as opposed to last year when it happened in Q2. The restructuring of the health business is clearly reflected in the significant reduction in operational cost for the business area. Likewise, the continuous tuning of the Salmosan Purisan business is shining through in increased gross margin. As stated, the current business is based on Salmosan Purisan only, as we have post-Ectosan Vet while developing a more financially viable land-based configuration and business model for this solution. We are still working on this solution and working to re-launch the solution, but it's still also subject to securing customer uptake on the new business model. This ends my initial go- through Septima, and I will leave it up to you to take us through more on the financials. Thank you, Trond. As we have now completed the sale of the genetics business, we will focus on the continuing business. That is the group in total, which we operated during the half year, less the business being sold. It is important to note that the perimeter of the disposal is the standalone genetics business without any allocation of the group corporate costs. Those continue within the results of the continuing businesses. Looking at some of the key numbers by business area within the continuing group. For nutrition, overall sales fell by 1% at a constant exchange in the half year, improving from where we ended quarter one, driven by growth in diets of 6% offset by a shortfall in Artemia and health of 6% and 12% respectively. Sales into the shrimp market continue to be a challenge, whereas sales in the marine fish market grew by 14% versus the first half of last year. For health, sales fell by 73%, but this was driven by the exit of Ectosan from the market. When you break it down by product area, sales of Salmosan and Purisan fell to GBP 3 million from GBP 5.7 million in the first half of last year, driven in the main by the timing of the bulk order, which in March 2024 was GBP 2.4 million and in which we had a smaller bulk order of GBP 1.2 million, which fell into April 2025. This product continues to deliver from a sales and product profit perspective. Looking at operating costs and R&D. Firstly, looking at operating costs, the changes we've made in health have resulted in a reduction in OpEx from GBP 3.4 million last year to GBP 1.3 million this year. In nutrition, we have had a decrease of GBP 0.2 million at actual exchange rate, but absent foreign exchange impacts, this was a real cost decrease of GBP 0.8 million, offset by a reduction in the credits from the sale of tax credits, which reduced by GBP 0.6 million versus last year. Within corporate, there has been an incremental increase of GBP 0.1 million from GBP 3.9 million to GBP 4 million. Within the total cost of corporate, this includes GBP 1.4 million to support the genetics business. Within R&D, we continue to invest in the nutrition business in line with the strategy to support future growth potential within nutrition. The spend in health had reduced as part of the restructuring of health. Moving on to the next slide to look at the income statement in totality. As you can see, for the continuing business, revenue fell by 17% at a constant exchange rate based on factors we have noted before. From a gross profit perspective, product mix in the first quarter did drive down margins in nutrition, but this has recovered somewhat in the second quarter. In addition, nutrition still has increased freight costs due to having amended freight routes due to the geopolitical instability in certain areas. This has resulted in freight costs being higher by GBP 1 million in the half year. Overall, this resulted in a drop of gross profit within nutrition of 17% at constant exchange rate. You must note that at an absolute level, the nutrition business continues to deliver gross profit of GBP 17.8 million in the half year. Health also saw a reduction in gross profit by 68% to GBP [1.8] million, driven by the exit of Ectosan and also the timing of the bulk sale of Salmosan, as noted before. Salmosan and Purisan delivered gross profit of GBP 1.8 million, which represents a gross margin of 62%, albeit on lower sales volumes. Having already looked at the breakdown of operating costs and R&D, we can see that these at a group level are down year- on- year. As a consequence, we were able to partially mitigate the reduction in gross profit, resulting in adjusted EBITDA of GBP 4.2 million within the continued business. Depreciation and amortization for the continued business reduced significantly from GBP 14.8 million to GBP 8.5 million, reflecting the exit of the PSV model in health and the depreciation associated with those right-of-use assets. Exceptionals of GBP 4.1 million relate mainly to costs associated with the strategic review and the divestment of genetics. Looking at net financial expenses, this was effectively flat year on year, with more favorable FX gains of GBP 0.4 million offsetting higher interest costs by GBP 0.3 million. When we look at the bottom line, profit for the period of GBP 76 million. This is driven by the profit on the discontinued activities of GBP 89.1 million, which included the profit on the disposal from genetics of GBP 90.1 million. Moving on to the next slide to look at the cash flow. When we look at the cash flow, this is for the whole business for the half- year, including genetics. This will change to a significant degree as we move into the future, with the debt repaid and the intention to return capital to shareholders via the tender offer and the subsequent dividend. As you can see from an operational perspective, we had an outflow of cash generation on operations driven by lower trading in genetics and, of course, the cost of corporate offset by nutrition and health. From a working capital perspective, we had an inflow of GBP 3.5 million, driven by the timing of payments associated with the genetics disposal, offsetting working capital outflows driven in the main by the payments under the take-or-pay contract within nutrition of GBP 9.9 million, which occurred in the first quarter. The next payment on this contract is in quarter three of financial year 2025. In terms of taxes, we have historically paid tax mainly in Iceland, Norway, and Belgium. In financial year 2025, year to date, the taxes paid related to genetics are GBP 2.1 million, which will now fall away. From an interest perspective, the majority of the cash out for interest relates to the interest on the debt at PLC and genetics, both of which have been repaid as part of the proceeds from the sale of genetics. When we look at CapEx of GBP 2.4 million, this was broken down into genetics CapEx of GBP 1.2 million, which will not reoccur, and the balance being nutrition CapEx, which will continue as we continue to invest in our facility in Thailand. At the 1st of April 2025, we refinanced the existing RCF to ensure that the remaining group had facilities to support the business's working capital needs going forward. The facility is now $19 million and is currently undrawn and has a term until 31 March 2028. This, along with the much-strengthened balance sheet, will allow the business to continue and to grow into the future. Back to you, Trond. Thank you, Septima. A few words on how it looks from where we stand today, starting with advanced nutrition, our biggest business area. We expect to see a continuation of the trend that we experienced during the second quarter or the first half of the year, more normalized margins driven by a normalized product mix and the decisive actions that have been taken to strengthen commercial effort, broaden product portfolio, and increase efficiency in that organization. We do not bet on a significant improvement in the market conditions for shrimp, which is our main market, while we, of course, will utilize the opportunity that is present in the more positive marine fish market. It's a smaller market, but it has been a positive market for us lately in the Mediterranean. As noted earlier, there is also uncertainty related to the announced U.S. tariffs. Like for many other businesses, we just have to see where it lands. In terms of the health business, we have, as we have stated, started the line in line with the year in line with our expectations. We foresee that the trading on Salmosan Purisan will continue to be in line in the period to come, as it is a well-placed tool in the sea lice toolbox for customers, even if it's a small product. We will, of course, continue our effort to bring Ectosan Vet back in the market, but it will be subject to customer uptake and commitment to the new business model. Finally, as stated initially, we have announced the board's proposal to return capital back to shareholders and on future positioning of the group, including the delisting of the group and re-registration as a private company. These proposals are subject to shareholder approval in the upcoming AGM that happens on June 18th. With those words, I think we are ending our presentation, Hannah. Thank you very much. We just have a couple of questions around the offering. Obviously, when the Board first put the formal sale process in place back in January of 2024, the share price was at GBP 0.40. If we look today, we're being invited to tender your shares at GBP 0.25. Can you give us a little bit more color on why there is this disconnect between the two prices? That's where the offering is coming in. It is an offer which is on a premium to the share price that has been over the last period. It's an offering that is in line with what we have seen as practice from similar transactions. The offering is in line with the advice that is given from independent financial advisors. That's the totality of the whole thing, and that's why it has ended as it has ended. Thank you. Which country will the private company be registered in? Septima? The private company will still remain a U.K.-registered company. What will happen is we will deregister as a PLC, subject to the shareholder vote, deregister as a PLC, and establish ourselves as a limited company in the U.K. Thank you. Minority interests. Trond, you referenced there, obviously, the decision to sell the genetics business, which obviously would result in a smaller company. At the time, you've made a great commitment to protecting minority interest rights. I think there are a few people on the call who feel that they haven't fully been represented. What can you say to them? No, I think we stand by the commitment to defend also the minority interest in this. As I said, it's important to see the total context of what we are doing. The total proposal comes with an open invitation for everybody to roll into the new private entity. The intention of that entity is clearly outlined in the documents that all shareholders have been receiving. It makes sense to do what to do in order to delist the company now. I think it stands on a very, very strong commercial reasoning. I do not see why the minority shareholders should not be fairly represented. If they choose to roll, and if somebody chooses otherwise, it's a free choice for them. Looking ahead within the private company, are there any safeguards in place to protect minority shareholders from the big three? If I may, part of the documentation that is on our website at the moment is our new articles of association that are being proposed for the company as its private organization. What I would encourage everybody is to look on that section of the investor relations website, which has all of the documentation associated with the proposal. That will allow them to make their own decisions based on the information that is available so that they can then deem whether or not they're happy with those minority protections. There is a multitude of information around that on our website, which is part of our regulatory requirement in this process. Thanks. Will there be a return to existing shareholders if they elect to stay invested in the private company? If so, can you quantify these? That is the intention. What we have said is that we have a pot of money available for distribution, which is the net proceeds associated with the genetics divestment. Dependent on the take-up of the tender offer, the balance of that pot, so to speak, will be then distributed by way of a special dividend. If we have a low uptake, the majority of that pot is available for dividend. If we have a high uptake, it will still be the balance in amount. The reason behind this is to allow the remaining business sufficient liquidity and cash resources as they move forward into their new future to run the business effectively and to be able to focus on the business for the future. What have been the costs of structuring the tender and going private? If memory serves me correctly, we referenced that in the circular. I think it is between GBP 1 million-GBP 1.5 million, but I can go and check that quickly. If it is different, I will get back to you. Thank you. The details given to shareholders when comparing the offer to go private versus the tender offer make it very difficult to compare the two. What is the range of outcomes that the special dividend could be for private shareholders? I think you've sort of touched on that in terms of the unknown for take-up, haven't you, Septima? It is. That is it for the questions. I'll give it a moment if anyone has anything else that they would like to submit. Otherwise, thanks for your time today. I hope our listeners found it helpful. I mean, if there are other questions that you want to have answered out of this forum, we will do our best to address them. Otherwise, thank you for listening, and thank you both for your presentation. Thank you, everybody. Thank you, everyone. Thank you, Hannah.
Loading workspace