Tristel upbeat on US potential after solid full-year results

(Sharecast News) - Infection prevent products group Tristel has raised its dividend after reporting strong growth in annual profits and a double-digit increase in revenue, as the company delivered an update outlook, driven by strong demand in the US. The company, whose core business is its namesake proprietary chlorine dioxide chemistry used in hospital decontamination products, reported an 11% increase in turnover over the 12 months to 30 June to £46.5m.

Adjusted pre-tax profit was up 23% at £10.1m, supported by an improvement in the gross margin to 81% from 80%.

Operating cashflow fell slightly to £10.3m from £10.9m, though the full-year dividend was raised by 5% to 14.2p per share.

Tristel said it achieved a number of several important milestones during the year, including: the FDA clearance of Tristel OPH, a disinfectant foam for ophthalmic medical devices; updated US standards recognising chlorine dioxide foam as a recommended means of high-level disinfectant for medical devices; and the publication of independent clinical evidence with leading institutions such as the Mayo Clinic.

"These achievements further validate our differentiated technology and expand our addressable market," said chief executive Matt Sassone.

Meanwhile, the demand in the US market "remains significant", Tristel said, following its first full year of commercial activity in North America. The company said it has high volumes of leads and engagement across 200 health systems and is prioritising "deeper adoption within these accounts to establish sustained, recurring revenue growth".

Shares were down 0.6% at 356p by 0850 BST.