Tristel (LON: TSTL), the AIM-listed maker of chlorine dioxide disinfectants for hospital equipment such as ultrasound probes, said today that revenue for the year to 30 June rose 10% to £51.1m. Adjusted pre-tax profit rose 15% to £11.7m, and the company said trading was in line with market expectations.
The shares were 440p at 8:33am, up 2.33% on Friday’s 430p, within a day range of 430p to 440p. That is towards the top of their range over the past year. The results came out at 7am.
Adjusted profit excludes government R&D credits, share-based pay and one-offs. Reported pre-tax profit rose 30% to £11.0m, but that was helped by smaller exceptional costs, which were CEO succession expenses, of £0.27m against £1.36m a year earlier.
Adjusted earnings per share grew far less than adjusted profit. The income tax charge rose to £3.0m from £1.8m, which on the desk’s calculation lifts the effective tax rate to about 27% from about 21%. The company does not explain the gap, and the higher tax charge is the desk’s reading.
| Year to 30 June | FY25 | FY26 |
|---|---|---|
| Revenue | £46.5m | £51.1m |
| Adjusted pre-tax profit | £10.1m | £11.7m |
| Adjusted EPS | 17.15p | 18.19p |
| Dividend | 14.20p | 14.91p |
| Operating cash flow | £10.3m | £11.1m |
| Cash and short-term investments | £12.8m | £16.0m |
The company has no bank debt. On the desk’s arithmetic the interim dividend was held at 5.68p, so the whole increase sits in the final payout of 9.23p, up 8.3%, payable on the 17th of December.
There is no numeric guidance for the new financial year. Chris Lee, who became chief executive on 1 August, keeps the medium-term targets of double-digit revenue growth and an adjusted EBITDA margin, underlying operating cash profit as a share of sales, of at least 25%. The US is the main opportunity, though Americas sales were only £0.8m, against £0.3m.
Lee was cautious on how quickly it will build:
We remain realistic about the pace of adoption. US hospital systems are large and their evaluation and procurement cycles can be lengthy.
Chris Lee, Chief Executive Officer, Tristel
Lee also said competitors have become more active in Tristel’s established European markets, which it is defending with patents, guideline inclusion and manufacturer compatibility certification.