Infection prevention and contamination control specialist Tristel (TSTL:AIM) reported full-year revenues up 21% to £31.7 million and pre-tax profit up 27% to £7.1 million, slightly ahead of the level indicated in July. The shares added 2.4% to 510p.
Excluding acquisitions, the underlying growth in revenues was 11%, in line with the medium-term target of 10%-to-15%. The company has been internationalising the business with this segment growing 32% to £19 million, now representing 60% of group revenues up from 55% last year. All 12 overseas subsidiaries reported record trading.
During the lockdown in the final quarter the medical contamination division was impacted by a reduction in regular hospital procedures, reducing revenues by around £0.5 million. However, this was more than offset by booming demand for the company’s hospital high level surface disinfectant product under the Cache brand, where sales jumped 87% to £4.9 million.
The company believes the market for surface disinfectants is larger by value than the medical devices market and its product enjoys the same differentiating advantages in the high level protection of patients in the intensive care wards operating theatres.
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Tristel received regulatory approval in India for Tristel Duo for ultrasound and is in late stage negotiations with GE Healthcare India and Genworks health which has a nation-wide footprint in rural communities to distribute the product. Meanwhile a national distribution agreement was signed with GE Healthcare Russia for the ultrasound market.
In the US the company is pursuing a submission to the Federal Drug Administration (FDA) for a high level disinfectant for ultrasound probes and has appointed Parker Laboratories to be a contract manufacturer and distributor for Duo’s use in ultrasound. Parker has a nation-wide reach selling gels used in diagnostic and therapeutic medical ultrasound.
Tristel has received approvals from the Environmental Protection Agency (EPA) for its hospital surfaces disinfection product JET and is making a supplemental submission to improve label claims for two approved products.
The company continues to make progress in key global markets which underpin its medium-term revenue target and achieving at least a 25% earnings before interest, taxes, depreciation and amortisation (EBITDA) margin, which was handsomely bested for the full-year when it hit 31%.
The full-year dividend increased 12% to 6.18 pence per share and management indicated it will continue its stated policy for the dividend to be covered two times by adjusted earnings per share.
