Shares in supplier of infection control and prevention products Tristel (TSTL:AIM) plunged 17% to 557.4p after the firm admitted Covid-related delays to UK patient examinations had continued through the quarter to 31 March and showed little sign of reversing before its financial year-end in June.
The company noted the departments and types of treatment which it serves were experiencing the longest NHS waiting times. For example, the number of people waiting for ear, nose and throat examinations is 366,000; in ophthalmology the number is 494,000; in urology, 270,000; cardiology, 194,000; and gynecology, 265,000.
The good news is that the demand for the company’s surface disinfectant products has been high and it continued to take market share with third quarter sales growing 47% to £2.3 million compared with last year.
GUIDANCE LOWERED
As a result of the delays, the company is now guiding for total global sales to exceed £31 million, on a par with the £31.7 million reported last year but around 8% lower than market expectations. Pre-tax profit is expected to be no less than £5 million.
Research house Finncap has reduced its revenue forecast by 10% to £31 million and earnings per share forecast by 30% to 8.8p, reflecting the impact from operational leverage and increased investments to successfully expand internationally.
CONFIDENT OUTLOOK
Still, the firm remained confident that growth in sales and profits would resume next financial year, and the investments it has made in people, systems and new market registrations have lain the foundations for strong future growth.
Reflecting this confidence, the board expects to pay a final dividend of 3.93 pence per share, giving a total pay-out of 6.55 pence for the full year, a 6% year-on-year increase.
Finncap believes the long-term attractions of the stock remain, saying,’ we expect demand conditions in the UK to improve significantly and for patient examinations to recover as restrictions are lifted.’
