Tristel flags record first half, CEO to step down

19th Dec 2023 10:17

(Sharecast News) - Infection prevention products developer Tristel flagged a record-breaking first half in an update on Tuesday, with expected revenues of £20.7m for the six months ending 31 December.

The AIM-traded firm, which was holding its annual general meeting, said that would represent an 18% increase compared to the same period in the prior year, which saw revenue of £17.5m.

It said it achieved revenue growth in all its geographical markets, maintaining a gross margin above 80%, consistent with expectations.

In the United States, Tristel's manufacturing and distribution partner, Parker Laboratories, began production of Tristel ULT in early October following FDA approval in June.

The milestone allowed Parker to stock its national distribution network and supply products to initial beta site users.

Tristel said it anticipated steady progress in expanding its customer base in the US during the second half.

"The business is performing strongly on all fronts and the confidence that we expressed in October in our medium-term outlook remains unchanged," said chief executive officer Paul Swinney.

"With the growth possibilities for our business stronger than ever, and as a business with no debt and forecast cash balances of approximately £10.4m after payment of this year's final dividend on 22 December, we are in a strong position to capitalise upon our global leadership position in the medical device decontamination market."

Additionally, Paul Swinney, who co-founded Tristel in 1993 and had served as group CEO for 30 years, announced his intention to retire within 12 months.

Tristel said he would remain in his role until a successor was appointed and was committed to providing support and guidance during the leadership transition.

The company's board had initiated a formal succession process, with support from the Coulter Partnership consulting firm, and was considering both external and internal candidates.

Tristel said its unaudited interim results would be released on 26 February.

At 0935 GMT, shares in Tristel were down 1.64% at 440.15p.

Reporting by Josh White for Sharecast.com.