Buoyant trading driving adj. PBTA up 39%
Tristel develops proprietary infection, hygiene and contamination control products used by: Human Healthcare, Contamination Control, and Animal Care organisations. Investors were today once again reminded of the resilience, strength and underlying momentum behind the Tristel business. Management said that both revenues and profit were ahead of budget for the 10 months to 30 April 2015; and raised adjusted FY15 PBTA expectations to at least £2.5m (£1.4m H2 vs £1.1m H1), or +39% up on last year's £1.8m. We estimate this represents LFL top line growth of 15%, driven by favourable performances from UK, German and Australasian direct sales. Additionally, as operational best practise is rolled out across its 3rd party channel partners, we reckon it is only a matter of time before distributor volumes also catch-up. Therefore we have increased our FY15 sales and adjusted EBITA forecasts to £15.5m (from £15.3m) and £2.5m (£2.3m) respectively. We also upgrade our price target from 100p to 110p/share, reiterating that the stock looks cheap at 84p compared to industry EV/sales and EV/EBIT benchmarks.Tristel is a manufacturer of infection prevention and contamination control products. Its key technology is a proprietary chlorine dioxide formulation. Co. has three segments: human healthcare, which includes the manufacture, development and sale of infection control and hygine products including products that incorporate Co.'s chlorine dioxide chemistry, and are used primarily for infection controls in hospitals; animal healthcare, which involves the manufacture and sale of disinfection and cleaning products into veterinary and animal welfare sectors; and contamination control, which addresses the pharmaceutical and personal care manufacturing industries.
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