Tristel books strong first-half as it enters North America markets

20th Feb 2023 11:00

(Sharecast News) - Infection prevention developer Tristel reported a 16% increase in first-half revenue on Monday, to £17.5m, driven by 21% growth in underlying revenue.

The AIM-traded company said its overseas sales expanded by 12% in the six months ended 31 December, to £11.2m, while UK sales increased 24% to £6.3m.

Its gross margin also increased to 81%, up from 80% in the same period a year ago.

Tristel's core business is the sale of its proprietary chlorine dioxide chemistry, which is used for the decontamination of medical devices under the Tristel brand, and for the sporicidal disinfection of environmental surfaces under the Cache brand.

The firm's reported EBITDA increased 16-fold to £3.9m, up from £0.2m in 2021, while adjusted EBITDA also increased, by 28% to £4.6m.

Reported profit before tax was £2.4m, swinging from a loss of £1.2m year-on-year, while adjusted profit before tax increased 41% to £3.1m.

Reported earnings per share came in at 3.19p, compared to losses of 2.08p a year ago, while adjusted earnings per share slipped to 4.65p from 4.97p.

The company maintained its interim dividend at 2.62p per share, and had no debt at period-end, with cash reserves of £8.4m after paying dividends of £3.3m, including a special dividend of £1.4m in August.

On the operational front, Tristel launched 'Tristel Duo' into the North American ultrasound and ophthalmology markets, and generated additional data for its FDA De Novo submission, which it said would be delivered by the March deadline.

"We are delighted to have increased sales by 16% on the first half of last year, above our long-term target for revenue growth," said chief executive officer Paul Swinney.

"In all regions the level of diagnostic examinations utilising our products is significantly higher than before the commencement of the pandemic."

Swinney added that the company had now entered the North American market, having launched 'Duo Ophthalmology' in Canada and 'Duo Ultrasound' in the US under its EPA approval, as it expected the FDA's decision on its De Novo submission in June.

"The growth prospects for the group are stronger than ever, and we look to the future with confidence."

At 1234 GMT, shares in Tristel were flat at 315p.

Reporting by Josh White for Sharecast.com.