Tristel LON:TSTL the AIM-listed manufacturer of antibacterial cleaning products published its half-year results today (26th February). The Snailwell-based company specialises in infection prevention. Tristel develops products and solutions to help prevent the spread of harmful microbes, particularly in healthcare settings. Their main focus is on disinfecting medical devices and offers various products, like wipes and solutions, that healthcare professionals can use to disinfect reusable medical devices at the point of use, eliminating the need for sending them to a central sterilization department.
- Could EngageXR be a good option for investors in 2025?
- TruFin rebounds from Lloyds Bank contract loss
- Quadrise shares up over 300% in two-months
The firm also offers products for disinfecting surfaces including large surfaces like floors and walls and the company says that its products are formulated to be effective against a broad spectrum of microorganisms, including bacteria, viruses, and spores. Tristel’s technology utilizes a proprietary chlorine dioxide chemistry that they claim is unique in its effectiveness and safety compared to traditional disinfectants.
Back in July 2023 The Armchair Trader noted that Tristel was one on the UK’s top five performing healthcare stocks. In July it was trading at 360p, today Tristel opened at 499.6p climbing to 503.32p on release of its results, up 39.8%. Over one-year the share price is up 45.9% and up 73.6% over five-years.
The company saw its revenue grow 20% year-on-year to GBP20.9m in the six-months to the end of December 2023 with overseas sales up 13% to GBP12.7m and earnings up 21% to GBP4.7m
Tristel profits and dividends up
This led to reported profits before tax of GBP3.4m which were up y-o-y by 44% and the company doubled the interim dividend to 5.25p per share. The company has no debt and cash in the bank of GBP10.8m.
Paul Swinney, CEO, who announced his retirement at the end of the year, said in a statement this morning: “I am thrilled that the company continues to thrive and grow, with a pipeline of new product launches planned for the near term […] This six-month period represents the highest sales and profit performance that the company has experienced in its thirty-year history, including during the early COVID era when demand for our products was unprecedented.”
The company experienced strong growth in 2019-20 during the coronavirus pandemic, and as previously reported, was on the verge of entering the North American market, getting the greenlight from US and Canadian regulators to start marketing its products in the region. Sweeney said: “Our North American business strategy focuses on entering each of the key market segments that we dominate in other countries. Ultrasound is our largest segment globally in terms of disinfection procedure events, followed by ENT, cardiology and airway management. Ophthalmology is a very significant global opportunity in terms of disinfection events, but in all countries very few procedures that should be performed with a high-level disinfectant in fact are.”
The company is tipped to double its revenue in the next five years, with its North American strategy driving growth, and in the period reported saw the first manufacture and launch of Tristel ULT in the United States, a disinfection product that is used on ultrasound units, which also was cleared by regulators for distribution in Canada. The company already has clearance to sell its Tristel OHP product in Canada, a disinfectant for ophthalmic devices, and Tristel is in the process of submitting Tristel OHP to the US regulators.
North American manufacturing plant
The company has established a manufacturing facility in the United States, in New Jersey, with Parker Technologies and Swinney noted that during the first ten weeks of activity in North America, Tristel’s revenue and royalty was GBP46,000. He said: “We are very encouraged by this positive start.”
Bridgewise rates Tristel as ‘Outperform.’ The analyst said: “Tristel’s recent financial results position the company within the top 30% of Health Care firms. Specifically, EBITDA, Lease Adjusted and Return on Equity Ratio (ROE) overperformed relative to its peers. Analysing past performance, stronger relative performance in these metrics has often been associated with a higher likelihood of a company’s stock outperforming industry competitors. Taking into account Tristel’s recent financial performance, the company’s stock seems to offer a promising investment opportunity in the Health Care Equipment & Supplies industry.”
The simplicity and utility of Tristel’s products make regulatory clearance – often a high hurdle for other biotech companies – a great deal simpler, and the North American healthcare market is a vast and profitable market opportunity that could be transformational for the Cambridgeshire healthcare company.
