Excellent H2 and ahead of forecasts
​Despite fears over the global economy, NHS budgetary constraints and BREXIT, the company today said that it had enjoyed a "very strong" 2nd half - reporting H2 revenues of >£9m, up 13.5% YoY.
FY16 adjusted PBTA (pre SBP and unrealised forex gains) and net cash came in above expectations too, at £3.1m (+20% vs £2.6m LY) and £5.7m (vs ED at £4.5m) respectively - driven by an outstanding performance from overseas (42% of H2 sales vs 36% in H1), augmented by an encouraging rebound in UK Healthcare
As a result, a 3p/share special dividend is to be paid from surplus funds on 5th August (ex div date 28th July) - which, when added to the normal annual payment (estimated at 3p based on 2x cover), represents a generous 6.0p return for the year, equivalent to a 5.2% yield.
Elsewhere, the firm has bought the assets and business (including people, customers, stock, etc) of Ashmed Pty Ltd, its Australian distributor, for Au$1.35m plus certain compensation payments for the re-purchase of inventory. In the US the process of seeking product authorisation from the FDA and EPA carries on at pace, and is on track to (hopefully) obtain approval in 12 months' time.
We have duly upgraded our FY17 turnover and PBTA forecasts by +9% and +7%, to £19.5m and £3.54m respectively. Likewise, our fair value share price target climbs 8% to 135p.
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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