Good morning, everyone, and thank you for joining us today. Larry and I are pleased to present Shaver Shop's results for the first half of FY 2026.

As you'll see, this was a solid half, delivered in a retail environment that remains highly competitive and value-driven, but one where our strategy and execution continue to deliver high-quality outcomes. I'll begin with a brief strategic overview and then walk through the key highlights from the half.

Larry will then take you through the financials in more detail before I return to provide a trading update and outline our priorities for the remainder of FY 2026. We'll start with a snapshot of the business on slide four.

Shaver Shop remains one of the leading specialty retailers in personal care and grooming across Australia and NZ, with 126 corporate-owned stores and a well-established omnichannel platform. We operate a highly differentiated business model built around exceptional customer service, deep product knowledge, and broad specialist ranges, many of which are exclusive to Shaver Shop.

Brand awareness in Australia remains high at around 87%, and we continue to hold leadership positions across numerous personal care and grooming categories. Finally, financially the business remains in a strong position with no debt, solid cash flow conversion, and a consistent track record of paying fully franked dividends.

Just as importantly, we have a highly experienced management team with an average executive tenure of over 12 years, which has been critical in navigating the current operating environment. Moving on to slide five, our underlying business fundamentals remain strong.

We operate in an attractive and growing market, particularly in men's grooming, supported by long-term behavioral trends towards DIY grooming and personal care. Our store network is well-established and consistently profitable, and our omnichannel capability continues to evolve.

Overlaying these fundamentals, our three key growth strategies: strategic category management including exclusives, private brand initiatives, and securing exclusive distribution to innovative global brands wanting to enter the Australian and New Zealand market; range expansion and category quick-up opportunities into adjacencies, with a particular focus on expanding our range of consumable products to increase purchase frequency; and lastly, store network optimization through refits, relocations, and selective new stores. These initiatives continue to deliver broadly in line with expectations.

Turning to our FY 2026 priorities, during the first half we continued to build momentum behind TransformU, our first private brand, expanded our range through new brands and categories, and progressed store network optimization initiatives. We also acknowledge that while we've added several strong exclusive brands, there remains further opportunity to fully unlock their potential through increased brand support and range development.

Moving on to the highlights on slide eight, total sales for the half were $128.6 million, up 2.2% on the prior corresponding period, representing the second-highest first-half sales results in the group's history. Online sales grew 7.6% and now represent 24.6% of total sales, while in-store sales were also modestly higher year-on-year.

The standout result was once again gross margin performance. We delivered a record gross margin of 46.5%, up 100 basis points, driven primarily by the continued success of TransformU, and I'll speak about TransformU more later in the presentation.

Net profit after tax increased 1.5% to $12.2 million. Operating cash flow was strong at $36.9 million, and net cash as at 31st December stood at $25.1 million, noting this is a seasonal high for the business.

The board declared a fully franked interim dividend of 4.8 cents per share, reflecting confidence in the business and our balance sheet. Customer metrics remained exceptional with a Net Promoter Score of 88.9, reinforcing the strength of our service-led model.

On slide 13, we provide more detail around our sales performance. Importantly, we delivered two quarters of sales growth in the half, the first time this has occurred since FY 2023.

In addition, both the online and in-store sales channels posted strong results. Transaction volumes increased 3.8%, supported by improved conversion, although average transaction value declined modestly as consumers remain highly value-conscious and promotional activity remained elevated around key events such as Black Friday and Boxing Day.

Like-for-like sales were up 0.9%, which we view as a solid outcome given broader retail conditions. Our sales conversion metrics in-store were also exceptional across the first half.

Turning to category performance, as highlighted in previous investor presentations, Shaver Shop prides itself on having deep and broad brand representation in our core categories. This is accentuated by a highly proportion of exclusive products, something we take great pride and care of in curating with our suppliers.

Pleasingly, 21 of our top 30 selling products in dollar value were exclusive to Shaver Shop in the first half. A number of these products were either from TransformU or from exclusive distribution agreements like we have for Skull Shaver.

We also extended our brand offering with Mangroomer and PiXTER. All these initiatives are designed to provide customers with a unique offering and shopping experience that can only be experienced at Shaver Shop.

Sales contribution by category remained relatively stable compared to first half FY 2025. We did see growth in lower-margin categories such as power oral care, hair styling, and female categories.

At the same time, we remain focused on retaining and growing our share in our core men's grooming categories through compelling value-for-money propositions and exclusive ranges. Slide 11 highlights the continued strength of our margin performance.

Gross profit increased 4.6% to $59.8 million, a new first-half record for the business, while gross margin expanded to a record 46.5%. This was achieved despite stronger relative growth in lower-margin categories and reflects the incremental contribution from TransformU as well as the disciplined strategic category management philosophy.

While we now cycle the initial launch of TransformU, we continue to expect it to support strong gross profit outcomes over the medium term as the range expands and brand awareness also builds. Operationally, execution remained very strong, as you can see from slide 12.

In-store sales conversion increased to 47.8%, transaction volumes were up, and units per transaction increased to 1.43. Average transaction value in-store moderated, as I've mentioned on the previous charts.

Online traffic and transactional volumes also increased, and was supported by higher transactional values in particular, due to category mix. These metrics reinforce a consistent message: where we control the levers, execution remains excellent.

Let's now talk about TransformU in a bit more detail on slide 13. In short, the brand continues to exceed expectations.

Since launching in October 2024, the range has grown to more than 100 SKUs, with over 300,000 units sold to date. As a percentage of total sales, TransformU delivered a mid to high single-digit percentage in the first half of FY 2026, remembering this share in first half FY 2025 was in single low digits.

TU was the largest driver of gross margin expansion. Customer feedback on TU products remains best in class, with average customer ratings of approximately 4.8 out of a maximum of 5.0, and return rates below the company average.

In the second half, our focus will be on building brand awareness with increased frequency of social media activity, launching a dedicated TransformU website, and selectively expanding the range while maintaining quality and value. I'll now hand over to Larry to take you through the financial results in a tad more detail.

Thanks, Cameron. As Cameron mentioned, sales increased 2.2% to $128.6 million, with growth across both in-store and the online channels.

Like-for-like sales were up 0.9%. Gross profit increased 4.6%, reflecting the sales growth and margin expansion Cameron's already covered.

Cost of doing business increased 5.5%, largely driven by wage inflation, including the minimum wage and superannuation guarantee increases, as well as the absence of the same level of prior year long-term incentive expense reversals. Earnings before interest and tax increased 2.5% to $18.1 million, with EBIT margin flat at 14.1%.

With net interest expense increasing slightly, this led to NPAT, or net profit after tax, of $12.2 million, up 1.5%, and delivering an NPAT margin of 9.5%. Basic and diluted EPS was 9.3 cents per share and marginally higher than last year.

Turning to the balance sheet, which remains very healthy. Net cash at 31 December was $25.1 million, with no debt and $30 million of undrawn debt facilities.

Inventory increased by $3.4 million compared to the prior corresponding period, reflecting improved stock availability, increased TransformU inventory, new exclusive brands, as well as an additional store. We continue to hold no material concerns about the level or the quality of the inventory we hold.

Net assets increased to $94.3 million, and the balance sheet remains, as I said before, a very strong position. Moving on to our cash flow statement on slide 17.

Operating cash flow was $36.9 million, up $8.9 million on the prior corresponding period. After adjusting for a deferred supplier payment which moved into early January 2026, normalized operating cash flow was still up approximately $4 million to $32 million.

CapEx was modest at $1.2 million, reflecting new stores, refits, and relocations. We expect CapEx to increase somewhat in the second half as we have more store refits and relocations planned in this half.

Overall net cash flow generation for the half was $21.2 million, reflecting the seasonally stronger nature of the business in the first half as well as the normalization of the supplier payment that I mentioned earlier. Now on to dividends and capital management.

The board has once again declared a fully franked interim dividend of 4.8 cents per share, 100% franked, consistent with the prior year. Our approach to dividends and capital management remains unchanged, which is to balance paying a healthy, sustainable dividend while continuing to invest in value-accretive opportunities such as TransformU and exclusive distribution brands.

With that, I'll now hand you back to Cameron to briefly discuss our trading results in the second half so far.

Thank you, Larry. We've had a pleasing start to the second half.

Sales are up 3.8% so far, with like-for-like sales being up 1.9% through to 22nd of February. While both in-store and online channels have continued to grow, online has been the stronger performer relatively speaking.

Shoppers remain focused on finding outstanding value for money. That said, we've proven over time that our ongoing success is tied to what we control: outstanding customer service, a differentiated range with a high proportion of exclusive products, and compelling value-for-money offers.

Far in the second half, gross margins are flat compared to the prior corresponding period, now that we are cycling the period after TransformU was launched. Like we saw in the first half, we are seeing higher proportion of sales growth coming from some of our lower-margin categories.

Looking forward, we will continue expanding the TransformU range, and we are well progressed with plans to launch a dedicated website by the end of March. From there, we'll be building the brand with increased marketing activity, support, and investment.

As a result, we expect TransformU to deliver both sales growth and margin enhancement over time. Lastly, a new store at Eastern Creek Quarter in New South Wales is scheduled to open in March, and we have several refits and relocations planned for the second half.

To conclude, Shaver Shop remains a highly differentiated specialty retailer delivering resilient earnings, record margins, and strong cash generation in a reasonably unsettled retail environment. Our strategy is working, execution remains strong, and we continue to invest carefully to support long-term value creation while returning capital to our shareholders.

Thank you for your time today. We're now happy to take questions.

Oh, good morning, Cameron. Good morning, Larry.

Another great result, guys, and particularly around that gross margin that continues to move up with TransformU. Looking back to the investment you made in TransformU, it's looked like it's really starting to contribute and perform well.

If I can just to focus on that for a minute, we saw some pretty impressive contributions up from low single digit to high single digit, correct me if I'm wrong on those numbers. You're putting in additional investment into its own website, etc.

If we look over, say, next 12 months, maybe two years, do you expect to see most of the further uplift in TransformU coming from your existing product range and just selling more of that through better marketing, or do you expect to be rolling out additional TransformU products? Oh,

I think we've certainly got some new products already in the pipeline for TransformU, we'd expect an element of incremental SKUs. The key thing I think, Andrew, we've always stressed is it's really based on filling gaps in the categories.

If we see an opportunity within a category which an existing supplier isn't capitalizing on and the customer wants that, that's the real big opportunity for TransformU. In terms of, I guess, the opportunity for TransformU, there's two things, too, obviously.

Yes, it's obviously taking single mid to high digits of our total revenue at the moment. The key with the marketing support, Andrew, is also to build brand awareness, and hopefully that also stimulates category growth.

At the moment, what we're seeing in general is TransformU taking share from other suppliers where there's a gap or an opportunity in the category. The real opportunity we see is to put some investment behind the marketing, get the social activity right, put some influencer behind the brand, and hopefully that actually stimulates further category growth.

Is seeing continued strength in margin coming from your exclusive product range. It was a great deal you did with Skull Shaver, was that last year or perhaps the year before?

Do you see any other opportunities to do similar sorts of exclusive deals like you did with Skull Shaver?

I think we've mentioned we've actually brought in Mangroomer as well just prior to Christmas. Mangroomer is another exclusive arrangement that we have, and we see significant opportunity for that brand as well.

I think what we're just demonstrating, Andrew, is we're starting to get a track record of taking these brands, which particularly strong overseas, but just don't have the resources or the focus, the time and effort to really focus on Australia and New Zealand. I think that's really where the opportunity is for Shaver Shop, is to come along and obviously we know the market pretty well, and we've demonstrated that through Skull Shaver and we're got some promising thoughts behind the Mangroomer range, which as I said, we really haven't activated our marketing strategy yet on that brand.

It's obviously something that we're focusing on for the next two to three months.

Just finishing off around the products, are you seeing any change in the competitive environment? I can't recall how long JB Hi-Fi have been stocking grooming products, but I walked through their store the other day and I saw them stocking a products.

Do you see them providing a similar sort of competition that the big department stores provided, and, just going back to the broader question, any change in the competitive environment in the Australian market?

Not really. Obviously JB probably gaining some traction in this area over the past few years, but I'd be speculating and it is probably more perhaps share of the traditional department stores, the Myer and David Jones, who used to be reasonably solid in this category, but they seem to have lost significant focus in sort of small electrical personal care over the last five to six years.

From our point of view, I'd be confident, Andrew, that we're still the dominant market leader in the categories that we compete in, and really haven't seen a material change over a number of years now in terms of competition or environment.

dominant market player and the fact that you're able to sign deals like Skull Shaver and Mangroomer, I think a reflection of what the suppliers are seeing. Just going on to pretty strong online growth, and I think at the last result and since then, we've had discussions around the social media presence and the work you've put into improving that social media presence.

Do you think that's what's driving your online growth or there's some other dynamics at play there? Oh,

it's a combination. I think our organic traffic is up, there's definitely some of the social activity that we're doing and the influencer activity is generating some incremental sales online.

I also think it comes down to our promotional program execution, Andrew. I think we've had a particularly strong promotional program over the last six or seven months, and we're still seeing a lot of traffic generated through paid search, and obviously that's still a primary channel for our traffic, and obviously then that's the balance of getting that conversion correct because you're obviously trying to generate the traffic through paid search, but still make sure it's a profitable sale.

Okay. Excellent.

Done on a great result, guys. Thanks.

Thanks, Andrew. Thanks, Andrew.

Cameron, Larry, congrats on the result. Just on the trading update, slide 20, the final point, three full store refits, two relocations planned for the second half.

Can you just walk us through what sort of uplift in earnings and sales you expect once those have gone through? Also, can you also sort of describe how you handle the transition when you're doing a refit, your customers aren't disrupted, or when you're relocating, and are they to bigger stores or what's the reason for those refits, relocations?

Thanks. Thanks, Bruce.

Generally speaking, I'll answer your first question. In terms of the sales uplift that we tend to see after doing a refit, it generally results in around a 10% increase in the first year in sales, which flows through to profitability, obviously.

The refits are where we update the look and feel of the store to the latest brand standards that we have. Relocations are where we're choosing to move the store within a centre because it's either too small a store and we think the opportunity to actually increase the size of the store is going to lead to increased profitability, or we're in a location within the centre that we just don't think is the right fit for our brand.

In both those scenarios, we're looking for sort of similar types of returns, and certainly if we're increasing the size of the store, we take some pretty prudent estimates on what we think the sales uplift is going to be before we make any of those decisions to move the store. The real key drivers at the moment are most the stores that we are doing are probably 15, maybe 10 to 15 years since the last refit.

They're reflecting some of the old brand standards that we had back in mid to late 2000s decade or early 2010s. Now that we've moved on to a much more contemporary look and feel with some of the colors that we're using, still using the oranges to accent and make sure that our brand is recognized, but reducing the influence of the amount of orange that's actually in the storefront and across the store itself.

Does that answer your question, Bruce?

Pretty much so. Secondly, the exclusive brands, 21 out of 30 are your top sellers, and there's a particular focus you talk about the ones that you sign on, Skull Shaver and the others.

There seems to be less of a focus or no mention of: is there any exclusive brands that over the period or over the last year or two that you've decided not to continue, whether or not they've decided not to supply or you guys have just gone the margins aren't there, we're not going to stock your product any further?

Certainly at product level there would be. It wouldn't be significant, but it would be a few out there where we've just sort of thought, this now crosses over with TransformU, or we don't want to be held to a minimum purchase quantity per annum, because we actually feel that that's a greater risk than actually the exclusive opportunity provides.

I think there would be some examples of that, but certainly nothing material at this stage. It's kind of more sort of BAU.

That kind of stuff happens pretty frequently, although, yeah, obviously we are seeing now that TransformU is where it fills the gap. If a supplier then has a product in that space and we've already filled the gap and we're making great margins and the customer's happy, well, obviously that sort of spot's taken.

Yep. Okay.

That's it from me at this stage. Thanks, guys.

Thanks, Bruce.