Tristel Share Discussion Threads

[apad] 27/7/2016 08:31

Thanks, P. Should've done this myself.
apad

[piedro] 27/7/2016 08:25

From APAD's thread ...

APAD 26 Jul'16 - 18:38 - 5992 of 5998
Superb review of TSTL investor day:


...

[piedro] 22/7/2016 17:08

Thank you Glaws2 and james188

Give them the 's

[james188] 22/7/2016 16:56

Just a couple of points I picked up in discussions after the main meeting, to add to the very helpful summary provided by Glaws2 above.

1. We have yet to see a breakdown in relation to the strong H2 overseas growth, but I understand that it was reasonably evenly distributed and not due to a spike in one jurisdiction. That said, Germany was mentioned as a strong performer.

2. At the time of the December 2015 AGM, Equity Development produced a very bullish note. Amongst other things,that note referred to Tristel having come up with a "major breakthrough in household cleaners" incorporating chlorine dioxide. I think that there was some cynicism at the time - i.e. that that was hype to drive up the share price. It is certainly true that it is very early days. However, Tristel now have a working name for the product - Puffin - and have designed a prototype container/screwcap containing the Clo2 capsules, which was on display yesterday as one of the new products that is being actively developed. A fairly low cost initiative, but it will be interesting to see if it comes to anything. More generally, I was pleased to see that Tristel continue to be active in developing a range of new offerings.

[piedro] 22/7/2016 16:03

Investor Presentation

[apad] 22/7/2016 15:11

At the last presentation the CEO said the NHS was worse than he had ever known it.
apad

[interceptor2] 22/7/2016 14:29

Thank you Glaws2, much appreciated that you have made the effort to share your notes of the AGM.

Great to have some background information about the process and possible timetable to US approval proposal.

Sounds like sterlings devaluation will have a slightly positive effect, and reassuring that company is overall bullish about Brexit effects.

You can never know what companies sentiment would be after such a momentous event, yet so far I have read more positive sentiments expressed than negatives in other company RNS releases since the vote. It helps if the company has healthy export markets which TSTL has, and increasing at a healthy rate. Yet their UK markets also seems rather strong, which as you mention seemed a surprise to management.

[apad] 22/7/2016 14:24

Pitch perfect.

Have a virtual pint.

apad

[mrchriss] 22/7/2016 14:16

Much appreciated, Glaws. Thank you.

[rcturner2] 22/7/2016 14:16

Cheers Glaws.

[glaws2] 22/7/2016 13:59

Openday very well attended - I guessed at around 80 shareholders. Very professionally run and an attractive workplace. Main presentation held in a marquee in the car park.

Key points - briefly

1. Revenue exceeding expectations - mainly down to unexpected strength in the UK market. The impressive overseas growth was, I think, expected. Management not sure why UK growth so much better; +9% this half compared to -2% in H1 - some down to new product, some to non chlorine dioxide product not being withdrawn as fast as anticipated but mainly due to NHS ordering more. Note that although they sell £4m to NHS it is to many individual purchasing points. Very little visibility over orders from them - they come in a day to day basis.

2. Purchase of Australian distributor - very small company - 4 people almost exclusively selling Tristel product. They wanted the distributor margin - also they have a pipeline of new products coming out of regulatory approval so market will get bigger.

3. Brexit

Sterling devaluation – this will be positive for the company – only around £600k of inputs purchased outside UK whereas sales are £6.6m. Not as clear cut as this as some sales to overseas distributors will be in sterling so the distributor will benefit.
Market access – they already have a German subsidiary company – are drawing up contingency plans to sell to the EU through that if need be.
Overall company bullish of Brexit effects.


4. US approval - confirmed it is the FDA that need to approve the medical instrument disinfectants. Approval being sought in single application for Duo for Opthalmology and Duo for Ultrasound. Met with FDA and have around 75% of queries resolved - rest in process.

This is the first time the FDA has encountered both Chlorine Dioxide products and foam products. The approval process will be challenging but doable.

Plan is to submit the final dossier to FDA by the end of the calendar year – which would lead to approval by end of June 2017. However note these are aspirational dates particularly the approval date which is in the FDA’s gift.

In parallel to FDA application, approvals are being sought from the EPA for a number of products not classed as ‘high level disinfectants’ – mainly surface related. Approval procedure is still onerous but more prescriptive than the FDA

Ask if you have other specific questions.

[glaws2] 22/7/2016 10:48

Apad - I attended - I'm collating my notes and will post something this afternoon.

[apad] 22/7/2016 09:48

No feedback from the investor day folks?

I think they promised a presentation on the website but that hasn't appeared yet.

However, they did say that there would be nothing new.

No more opportunities to increase now.

apad

[rcturner2] 21/7/2016 19:26

Doughnut by name ...

[james188] 21/7/2016 17:50

Well, I wish that I had a few more "boring" performers like this in my portfolio. There are bound to be bumps in the road, but I think that the growth prospects are excellent - and by no means resting solely on the US market.

One snippet today was that Tristel are actively engaged in preparing to make applications in Canada (early days, but not contingent upon progress with the US applications). I will be looking out for the next time that they provide an update of the chart they have previously presented as to the status of key regulatory approval initiatives.

[duncan doughnut] 21/7/2016 16:21

Is this director share purchase enough to keep me interested in this boring performer I ask myself.

[piedro] 21/7/2016 15:49

David Orr - the new boy and first time buy

Re: his appointment. Is he being trained for the Chairmanship?

[rcturner2] 21/7/2016 15:38

Directors buying shares as well now.

[piedro] 21/7/2016 15:36

From: Smartco Research {need to register}

Research Standing
This is a business which has adopted a very appealing low key approach to market entry vs. a big bang approach, but it is taking a long time to come to fruition - SMARTCO Research is continuing to follow the company because there was a change of chairman in June 2012 ... ... a meeting was held with him in March 2014, and SMARTCO Research can now understand why the commercial outlook for the company has significantly improved since he joined.

The chairman referred to in the above para stepped down wef 15th October 2014, so it will be necessary to assess his successor as the company goes through a size barrier which requires experience on the board of successfully building a global business with a multisite operation. .... ....

[piedro] 21/7/2016 15:29

Brummy, thank you for the link

A sensible analysis by a more mature Equity team - AIMHO

[rcturner2] 21/7/2016 14:20

Any feedback from the open day at all?

[brummy_git] 21/7/2016 14:05

Full note from Equity development

www.equitydevelopment.co.uk/doc/1511.pdf

[source] 21/7/2016 11:42

nice from FinnCapp too...

"... The strong cash generation also resulted in a special dividend of 3p per share.

Tristel is also debt free with a cash balance of £15.7mln.

“The weakness in non-chlorine dioxide products did not fully materialise in H2 FY 2016 as we had expected, which together with continuing robust overseas growth, has led to upgrades to FY 2016 and 2017 forecasts,” said analysts at finnCap.

The broker’s forecast for profit before tax increased from £0.2m and £0.3m to £3.1m and £3.5m in 2016 and 2017 respectively.

finnCap raised its target price to 130p."

[bolador] 21/7/2016 11:27

APAD

I think the logic of the Aussie purchase is to enhance margins there.

[mach100] 21/7/2016 11:19

Looks a sparkling update to me and a quick turnaround from all the doom and gloom of the previous update. Hell. even Piedro will have a good word to say!

Lots to like today and the recovery is firmly on track. I would let the froth blow off today's rise before adding but I expect us to push on to 135 and 150p reasonably quickly.

Well done to the Tristel board in this post-Brexit uncertain world.