Tristel LON:TSTL the AIM-listed manufacturer of antibacterial cleaning products published its unaudited half-year results to end-December today (24th February). The company, based in Cambridgeshire, was founded over 30-years ago and its flagship products are its Tristen and Cache brand of clinical disinfection products and are used in endoscopy, ultrasound, ophthalmology, and other medical fields.
The company reported increased revenue of 8%, up 22.6% year-on-year, with UK sales increasing 7% y-o-y to £8.8m. Export markets were marginally better, with a 9% increase in sales compared to the same point last year. The company is aggressively expanding its network overseas.
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Gross margins were up 82%, and adjusted earnings were £6.3m, up 14% y-o-y. This all led to increased profits, before tax, of £3.7m, up 9% y-o-y. The company had no debt and cash on balance of £11.7m, up nearly £1m y-o-y despite paying dividends of £3.9m.
The company holds approvals for its products across various global markets, including select North American markets, the EU and UK. We tipped Tristel as one of the top performing healthcare stocks of 2023, and the company continued its strong performance in 2024. For a healthcare stock, Tristel has been historically profitable with strong margins, but has been subject to fluctuations due to regulatory hurdles and market penetration efforts.
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Tristel successfully transitioned to a new CEO as of September 2024. The company made key regulatory progress, including filing for US FDA 510(k) clearance for its ophthalmic disinfectant, Tristel OPH, with approval expected by summer 2025. Additionally, Tristel ULT technology was included in updated American National Standards, and its wiping methodology was validated as a high-level disinfectant in Germany under revised KRINKO guidelines.
Growth through geographic expansion
Financially, Tristel delivered strong interim results, with adjusted profit before tax rising 19% to £4.9m, supporting an 8% increase in the interim dividend. Revenue grew 8% globally (9% on a constant currency basis), despite the UK returning to a more typical trading pattern after an exceptional prior year.
Looking ahead, Tristel aims to drive growth through geographic expansion, focusing on Spain, India, and Austria, with the USA representing its largest opportunity. US ultrasound royalty revenue grew significantly, and the company is optimistic about scaling its royalty model with partner Parker Labs.
To build on momentum, Tristel is finalising its US commercial strategy, establishing distribution channels, and remains confident in sustaining its growth trajectory through its expanding global presence and innovative product offerings.
Tristel’s revenue increase was driven primarily by higher product volumes. Challenges such as staff turnover in France and Australia and a shift in sales focus impacted growth, but corrective measures have been implemented. As reported, UK sales grew 7%, while international sales rose 9%, with international sales now comprising 61% of total revenue.
Tristel focused on high-growth markets
The company’s focus remains on international expansion, particularly in high-growth markets with its Cache surfactant range strategy refined to target high-priority hospital areas. The leadership changes, including the appointment of new CEO, Matt Sassone, reinforce Tristel’s growth ambitions. We remain confident in Tristel’s long-term strategy, with continued investment in innovation and market expansion.
The company’s shares opened the week (24th February) at 352p, down from 470p one-year ago. The company has a market capitalisation of £165.5m.
Tristel continues to demonstrate resilience and growth, with strong financials, expanding global reach, and strategic regulatory advancements. The company’s commitment to innovation and market penetration, particularly in high-potential regions such as the USA, Spain, and India, positions it well for sustained success. With a solid cash position, no debt, and a clear roadmap for expansion, Tristel remains a compelling healthcare stock to watch.
