Financial Performance - Group revenue increased by 4.9% year-over-year in H1 2025, with Hospital revenue growing by 4.7%[12] - Group adjusted EBITDA reached £133.8 million, a 2.8% year-over-year increase, representing a margin of 16.8%[12] - Group adjusted PBT was £15.3 million, up 17.7% year-over-year, excluding impacts from National Insurance and National Minimum Wage rises[12] - Adjusted free cash flow was £23.8 million, a decrease of 11.2% year-over-year[12] - The company delivered efficiency savings of over £10 million in H1 2025 and expects £20 million in H2 2025[15] Hospital Performance - Hospital revenue reached £732.3 million, a 4.7% year-over-year increase[15] - Hospital adjusted EBITDA was £130.0 million, a 3.3% year-over-year increase, with a margin of 17.8%[15] - Hospital adjusted EBIT was £74.5 million, a 2.2% year-over-year increase, with a margin of 10.2%[15] - NHS patient revenue increased by 16.2% driven by a 13.0% increase in volume[22] Primary Care Performance - Primary Care revenue was £64.4 million, a 6.5% year-over-year increase[39] - Primary Care adjusted EBITDA was £3.8 million, a 14.0% year-over-year decrease, with a margin of 5.9%[36] - Excluding new clinics, Primary Care EBITDA grew by over 6% year-over-year[39]

Financial Data and Key Metrics Changes - The first quarter adjusted operating earnings per share was $0.23 compared to a negative $0.02 in the fourth quarter, indicating a significant recovery [26] - The company expects nearly $800 million of run rate quarterly EBITDA in the first half of the year, accelerating to $1.1 billion by Q4 [10] - The company anticipates free cash flow for the full year to be in the range of $100 million to $300 million [24] Business Line Data and Key Metrics Changes - The Packaging Solutions North America business saw higher sales and adjusted EBITDA due to the addition of the DS Smith North American business and benefits from sales price increases [29] - The adjusted EBITDA contribution from DS Smith operations in North America was $7 million for two months of the first quarter, with expectations for an additional $25 million in the second quarter [33] - The Packaging Solutions EMEA business benefited from two months of the former DS Smith European legacy business, contributing $104 million to adjusted EBITDA for the first quarter [37] Market Data and Key Metrics Changes - Industry demand in North America was down 2% in the first quarter, with expectations for this level of demand to continue into the second quarter [13] - Demand across European markets was soft in the first quarter but is expected to remain stable on a quarter-to-quarter basis [13] - The company noted a significant gap closure to market by approximately 500 basis points in the North American packaging business [19] Company Strategy and Development Direction - The company outlined three pillars of its strategy designed to drive sustainable value creation, focusing on building an advantaged cost position, superior customer experience, and profitable market share growth [8] - The company is targeting $1.9 billion of cost reductions by the end of 2027, with approximately $400 million already achieved [15] - The integration of DS Smith is a key focus, with significant synergies expected from the combination [16] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment, noting strong negative consumer and business sentiment [12] - The company is prepared for three different scenarios regarding demand, with a focus on controlling its own destiny through strategic execution [14] - Management emphasized the importance of maintaining a disciplined approach to strategy execution despite external challenges [70] Other Important Information - The company will report legacy IP and DS Smith businesses in North America as Packaging Solutions North America and in EMEA as Packaging Solutions EMEA [20] - The strategic option process for the global cellulose fiber business is ongoing, with several interested parties in the due diligence phase [21] Q&A Session Summary Question: What demand assumptions are being used for the full year EBITDA guidance? - Management indicated confidence in landing between 3.5% and 4% EBITDA if demand remains stable, with April showing signs of stabilization [49][50] Question: How has the tariff situation impacted the pulp business? - Management noted a mid-single-digit risk to demand due to tariffs, but overall demand remains stable [62][63] Question: Can you provide more details on market share gains in North America? - Management reported improvements in service and reliability, leading to a turnaround in market share, particularly among small to medium-sized customers [78][79]