Disinfection products supplier Tristel (LON: TSTL) was more profitable than forecast and there is little contribution from North America yet.
NHS activity recovered so UK growth was fastest, but overseas sales were 17% ahead. In the year to June 2023, revenues were 16% higher at £36m, while adjusted pre-tax profit improved from £4.5m to £6.2m. Net cash was £9.5m at the end of June 2023. The dividend was raised by 10% to 10.5p/share.
Tristel is still awaiting regulatory approvals for newer Cache hospital surface disinfection products, so most of the growth was in the hospital medical device decontamination division.
Manufacturing capacity has been validated in the US and sales have commenced for the products that have FDA approval. The initial focus in the US is the ultrasound probes market and further product approvals will expand the potential market into ophthalmic and ear, nose and throat devices.
Cavendish forecasts a 2023-24 pre-tax profit of £7.6m, and then £10m the following year. The share price rose 5.06% to 415p, which puts the shares on 30 times prospective earnings, falling to 25.