Tristel PLC Trading update (8919F)
July 21 2021 - 1:00AM
UK Regulatory
TIDMTSTL
RNS Number : 8919F
Tristel PLC
21 July 2021
Tristel plc
("Tristel" or the "Company")
Trading update
Positive signs of recovery in out-patient departments and
continued growth in surface disinfectant product sales
Tristel plc (AIM: TSTL), the manufacturer of infection
prevention products, provides a trading update for the year ended
30 June 2021.
In the last update on 25 April, the Company stated that second
half sales in all markets had started slowly because COVID-19 was
causing the postponement of hospital admissions and fewer patient
examinations with medical devices that Tristel's products
disinfect. The effect of the pandemic was being felt more acutely
in the UK than in overseas markets. Conversely, sales of Tristel's
surface disinfectant products were ahead compared to last year.
In April, sales for the year ending 30 June were anticipated to
be GBP31m and pre-tax profit (before share-based payments) to be no
less than GBP5m.
As the fourth quarter progressed, demand for the device-based
products accelerated as hospital out-patient departments gradually
returned to pre-pandemic levels of activity. Surface disinfectant
product sales have continued to grow.
It is expected that the upturn in sales activity, combined with
a gross margin maintained at 80% and tight control over operating
costs, will translate into sales of GBP31m (2020: GBP31.7m) and
pre-tax profit (before share-based payments and the exceptional
item explained below) of GBP5.5m (2020: GBP7.1m) for the year.
In 2017, Tristel made an equity investment in a medical device
company focussed upon women's health. The investment led to a close
collaboration between the two companies which has been a key
influence in the development of Tristel's 3T App and new exciting
product development initiatives that are underway involving AI, and
for which several patent applications have been made.
The Company's shareholders had initiated a sale process for the
business to enable the technology to find a home within a larger
medical device company with the resources to succeed in the United
States market. The process has not been successful to date, and
whilst the company continues to operate as a going concern, Tristel
will take a conservative approach to the carrying value of the
investment, totalling GBP0.8m, and fully impair this in the
financial year just ended. This expense is non-cash and will be
recorded as an exceptional item.
As announced on 24 June 2021, Tristel has succeeded in gaining
its first regulatory approval in Canada for the Duo OPH
disinfectant for ophthalmic devices, and an enhanced approval for
additional efficacy claims from the USA EPA for the Jet surface
disinfectant product. A more detailed update on the progress of the
USA FDA submission for Duo ULT for ultrasound probe disinfection
and the commercial development plan for North America will be
provided with the final results in October 2021.
Balance sheet and dividends
The Company's cash position on 30 June 2021 was GBP8m compared
to GBP6.2m last year.
The Board has committed to declare a final dividend of 3.93
pence, making a total of 6.55 pence for the year. This distribution
level represents a one-off divergence from the Company's stated
dividend policy of two-times cover.
Outlook
Towards the end of the financial year the Company witnessed an
increase in hospital admissions and patient examinations. The
Company is confident that sales and profits growth will resume this
year and the investments made in people, systems and new market
registrations will lay the foundation for strong growth in the
years ahead.
Paul Swinney, CEO of Tristel, commented: "The second half of the
year was a frustrating period for the Company. Since Spring 2020
our ordinarily stable and predictable business has been disrupted
by both Brexit and the pandemic. We have waited for signs that
healthcare provision in our main twenty-five markets would return
to normal, and finally we are seeing signs of this occurring."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information please contact:
Tristel plc Tel: 01638 721 500
Paul Swinney, Chief Executive
Officer
Liz Dixon, Finance Director
Walbrook PR Ltd Tel: 020 7933 8780 or tristel@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07854 391 303
finnCap Tel: 020 7220 0500
Geoff Nash / Charlie Beeson
, Corporate Finance
Alice Lane, ECM
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBLGDRBXDDGBG
(END) Dow Jones Newswires
July 21, 2021 02:00 ET (06:00 GMT)
Tristel (LSE:TSTL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Tristel (LSE:TSTL)
Historical Stock Chart
From Apr 2023 to Apr 2024