Expansion in Hong Kong and US paying off for Tristel
Export markets are booming and paying off on the bottom line for Newmarket business Tristel plc which makes infection prevention and contamination control products.
Its interims for the six months ended December 31 show revenue up 10 per cent to £10.7 million and pre-tax profit before share-based payments 18 per cent higher to £2m.
Overseas sales increased 28 per cent to £5.4m and represented half of total sales; the interim dividend has been lifted 14 per cent to 1.6p per share. Cash of £4.9m compares to £3.9m the prior year despite global expansion. Chief executive Paul Swinney (pictured), said: “We are very satisfied with overseas sales growth of 28 per cent and with overseas revenues now accounting for one-half of all revenues.
“We have increased our pre-tax profit margin, before share-based payments, to 19 per cent from 18 per cent last year, even after costs of £0.5m incurred in the US regulatory programme.
“We are progressing steadily with our planned entry into the North American hospital market having satisfied the additional data requirements of the EPA.
“A decision is expected from the EPA during the second half of this financial year. Our expectation continues to be that sales in North America will start next financial year.
“For many years we have been represented in Hong Kong by distributors and have now decided to employ our own team in this market. We expect the increased margin from selling directly to hospitals to exceed operational costs in next financial year.
“In the second half of this financial year, there will be an exceptional early termination payment to the distributor of approximately £0.2m.”
Tristel’s share price on AIM opened up almost 5p (1.8 per cent) to 279.90 following the update on Tuesday.