Shares in infection prevention and contamination-control products group Tristel (TSTL:AIM) bucked the weak market trend gaining 7% to 422.5p on Monday after it reported interim pre-tax profits up 25% to £3m, 7% higher than indicated at the annual general meeting in December.
Today's move takes the gain in the shares over the last six months to almost 50%.
Chief executive Paul Swinney admitted he was ‘very pleased with our progress in the first half. Sales growth has been above our target range of 10-15% and margins have improved also.'
The current Covid-19 outbreak provides a significant tail-wind for the company. ‘As a globally-recognised infection prevention brand, with some of the world's best-known disinfection technology, there are significant macro factors that will support Tristel's continued progress’ added Swinney.
Overseas growth accelerated from 19% in 2018-19 to 30% in the first six months of the current financial year helped by the acquisitions made in November 2018 and five months of revenue contribution from Tristel Italia which was purchased in July 2019. Overseas revenues represent 56% of total sales.
At the group level organic revenue growth excluding acquisitions was still a highly respectable 13%.
The company has obtained product approvals in China and expects to receive its first medical device approval in India during the next few months.
The board is recommending a 15% increase in the dividend to 2.34p paid from earnings per share (EPS) which were 31% ahead at 5.89p.
Tristel operates in Shanghai and confirmed it has no significant exposure to the supply of components for its products in China.
Meanwhile, the firm received a waiver from the Chinese authorities to ship 10 pallets of its surface disinfectant to the Military despite the product not yet being formally approved.
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