Tristel Share Discussion Threads

[z1co] 27/2/2024 09:15

!FOLLOWFEED

26/02/2024:

Commenting on the interim results, Paul Swinney, Chief Executive of Tristel, said: "We are delighted to report a record performance on all levels, alongside first sales into the North American market. Total revenue increased by 20% on last year, exceeding our internal revenue growth target.

"Adjusted profit before tax increased by 34% to £4.1m, and we have doubled our interim dividend, putting the Company on track for a record earnings year.

"Looking forward, we expect to make our second FDA submission, a 510(k) for Tristel OPH, our ophthalmic device high level disinfectant, in time for an approval by the end of 2024. Post period end, all reviews under both UK and EU Medical Device Regulations for Tank and Capsule, the newest additions to the Cache range, have been successfully concluded and a positive recommendation for UKCA and MDR certification has been made. This enables us to expand into the largely untapped sporicidal surface disinfection market.

"This six-month period represents the highest sales and profit performance that the Company has experienced in its thirty-year history, including during the early COVID era when demand for our products was unprecedented."

.

[best1467] 27/2/2024 07:14

Regarding CEO on the sidelines of investor meet presentation over the last several years both have always been present .They may have been going out for lunch after with the timing prior to in person presentation in the Pm.
33p to £7 at onstage what’s to moan about unless your just after the quick 10/15% then over to annoyance on a different thread .
You know who you are

[z1co] 26/2/2024 23:20

Daily Mail market report:



Disinfectant firm Tristel reported a record-breaking six months. The group, whose chlorine dioxide chemistry is bought by hospitals to clean medical devices, reported that revenues rose by a fifth to £20.9million in the first half to the end of December while profits jumped 44 per cent to £3.4million.

And its surface disinfection system, which provides a greener alternative to anti-bacterial wet wipes, has been approved by UK and EU regulators. Shares gained 4.4 per cent, or 20p, to 470p.

[z1co] 26/2/2024 23:00

Proactive Investors - Shares in Tristel PLC (LON:TSTL) scrubbed up well after its TANK sporicidal disinfectant system received positive recommendations for both UK and EU medical device certification, which it expects before its June year end.

Regulatory reviews have been successfully concluded for both regimes for the TANK system and accompanying capsules for the company's Cache range, which provides sporicidal surface disinfection in a format which is a sustainable alternative to commonly used pre-wetted plastic wipes.

Once approvals are finalised, Tristel said it will be able to accelerate sales activity for the product, with the board believing this will give it "the opportunity to deliver significant growth in sales of the Cache product range going forward", viewing the sporicidal surface disinfection market as "largely untapped".

Cache sales totalled £3.3 million in the past financial year, representing 9.2% of total annual turnover.

[z1co] 26/2/2024 22:55

Cavendish will have upgrade it's 2023/24 forecasts substantially after the interim results today:

Was forecasting pre-tax profits of £7.6m and total dividend of 11.6p/share.

[glaws2] 26/2/2024 22:54

Regarding the new CEO, they definitely need an experienced outsider, current management's handling of the FDA approval was desperately poor.

[piedro] 26/2/2024 20:28

I have three points to make:

1 - ZICO is on filter so I do not see what he writes

2 - Re: the new CEO, IMHO they need someone with international experience
which seemingly for the CEO and CFO is very limited

3 - Have you ever tried to work out how "Sales by Geographical Regions" are developing?

The last Annual Presentation, {2022-23}, we had ...
Australasia, China & Hong Kong, Malaysia & Singapore,
Western Europe, Central Europe, Southern Europe

Go back a few 2019-2020 we have ...
Central & Eastern Europe, Western Europe, Italy,
Australasia {previously Australia and New Zealand}
Hong Kong, China

It is not possible to find an Annual Presentation where the '
regions' are all the same
Which leads me to the conclusion in N° 2

FWIW - What I have managed to sort out summing the parts of eight periods
is shown below:

[z1co] 26/2/2024 17:43

Bridgewise rates Tristel as ‘Outperform.’ The analyst said: “Tristel’;s recent financial results position the company within the top 30% of Health Care firms. Specifically, EBITDA, Lease Adjusted and Return on Equity Ratio (ROE) overperformed relative to its peers. Analysing past performance, stronger relative performance in these metrics has often been associated with a higher likelihood of a company’s stock outperforming industry competitors. Taking into account Tristel’s recent financial performance, the company’s stock seems to offer a promising investment opportunity in the Health Care Equipment & Supplies industry.”

[z1co] 26/2/2024 17:40

Good article by the arm chair trader:



Tristel tipped to double revenue as it targets the North American market

By John Foster
26th February 2024

Tristel [LON:TSTL] the AIM-listed manufacturer of antibacterial cleaning products published its half-year results today (26th February). The Snailwell-based company specialises in infection prevention. Tristel develops products and solutions to help prevent the spread of harmful microbes, particularly in healthcare settings. Their main focus is on disinfecting medical devices and offers various products, like wipes and solutions, that healthcare professionals can use to disinfect reusable medical devices at the point of use, eliminating the need for sending them to a central sterilization department.

The firm also offers products for disinfecting surfaces including large surfaces like floors and walls and the company says that its products are formulated to be effective against a broad spectrum of microorganisms, including bacteria, viruses, and spores. Tristel’s technology utilizes a proprietary chlorine dioxide chemistry that they claim is unique in its effectiveness and safety compared to traditional disinfectants.

Back in July 2023 The Armchair Trader noted that Tristel was one on the UK’s top five performing healthcare stocks. In July it was trading at 360p, today Tristel opened at 499.6p climbing to 503.32p on release of its results, up 39.8%. Over one-year the share price is up 45.9% and up 73.6% over five-years.

The company saw its revenue grow 20% year-on-year to GBP20.9m in the six-months to the end of December 2023 with overseas sales up 13% to GBP12.7m and earnings up 21% to GBP4.7m

Tristel profits and dividends up

This led to reported profits before tax of GBP3.4m which were up y-o-y by 44% and the company doubled the interim dividend to 5.25p per share. The company has no debt and cash in the bank of GBP10.8m.

Paul Swinney, CEO, who announced his retirement at the end of the year, said in a statement this morning: “I am thrilled that the company continues to thrive and grow, with a pipeline of new product launches planned for the near term […] This six-month period represents the highest sales and profit performance that the company has experienced in its thirty-year history, including during the early COVID era when demand for our products was unprecedented.”

The company experienced strong growth in 2019-20 during the coronavirus pandemic, and as previously reported, was on the verge of entering the North American market, getting the greenlight from US and Canadian regulators to start marketing its products in the region. Sweeney said: “Our North American business strategy focuses on entering each of the key market segments that we dominate in other countries. Ultrasound is our largest segment globally in terms of disinfection procedure events, followed by ENT, cardiology and airway management. Ophthalmology is a very significant global opportunity in terms of disinfection events, but in all countries very few procedures that should be performed with a high-level disinfectant in fact are.”

The company is tipped to double its revenue in the next five years, with its North American strategy driving growth, and in the period reported saw the first manufacture and launch of Tristel ULT in the United States, a disinfection product that is used on ultrasound units, which also was cleared by regulators for distribution in Canada. The company already has clearance to sell its Tristel OHP product in Canada, a disinfectant for ophthalmic devices, and Tristel is in the process of submitting Tristel OHP to the US regulators.

North American manufacturing plant
The company has established a manufacturing facility in the United States, in New Jersey, with Parker Technologies and Swinney noted that during the first ten weeks of activity in North America, Tristel’s revenue and royalty was GBP46,000. He said: “We are very encouraged by this positive start.”

Bridgewise rates Tristel as ‘Outperform.’ The analyst said: “Tristel’s recent financial results position the company within the top 30% of Health Care firms. Specifically, EBITDA, Lease Adjusted and Return on Equity Ratio (ROE) overperformed relative to its peers. Analysing past performance, stronger relative performance in these metrics has often been associated with a higher likelihood of a company’s stock outperforming industry competitors. Taking into account Tristel’s recent financial performance, the company’s stock seems to offer a promising investment opportunity in the Health Care Equipment & Supplies industry.”

The simplicity and utility of Tristel’s products make regulatory clearance – often a high hurdle for other biotech companies – a great deal simpler, and the North American healthcare market is a vast and profitable market opportunity that could be transformational for the Cambridgeshire healthcare company.

[gopher] 26/2/2024 17:31

US company should read invalid

[gopher] 26/2/2024 17:30

Agree with James188 re Liz Dixon but since PS is retiring she may want to make more time. Nevertheless probably the CEO that everyone most comfortable with oas PS remains aboard. The question is whether there are others who can step up from sales or technical to support her.I don't think drawing comparisons with the US company is valid and this isn't a RD product innovation type company. The value is in the time consuming approvals which form a defensive moat.Edison say fairly valued for now and I agree.

[z1co] 26/2/2024 16:21

Some taking profits which always happens but the price will be much by the time the company issues it's full year trading update in July which will no doubt very strong and AHEAD of expectations.

[z1co] 26/2/2024 16:14

CEO ,

"Looking forward, we expect to make our second FDA submission, a 510(k) for Tristel OPH, our ophthalmic device high level disinfectant, in time for an approval by the end of 2024. Post period end, all reviews under both UK and EU Medical Device Regulations for Tank and Capsule, the newest additions to the Cache range, have been successfully concluded and a positive recommendation for UKCA and MDR certification has been made. This enables us to expand into the largely untapped sporicidal surface disinfection market".

[z1co] 26/2/2024 16:12

The company will most likely hike it's full year dividend by 50% or maybe even higher.

CEO ,

"This six-month period represents the highest sales and profit performance that the Company has experienced in its thirty-year history, including during the early COVID era when demand for our products was unprecedented.

[z1co] 26/2/2024 16:05

The management today have increased the interim dividend by 100% to 5.24p , this is a clear sign that they are very confident that the company will keep growing it's revenue , PBT , EPS and also be very cash generative.

Very rare that a company increases it's dividend this much unless they know that their business will trade very strongly and ahead of expectations for the foreseeable future.

In the past companies that have significantly increased their dividends , their share price has also performed very strongly.

[james188] 26/2/2024 15:35

I suspect that Liz Dixon is a likely candidate for the CEO role and so the current CEO deliberately stepped back during the presentation/Q&A. Being the lead presenter takes a bit of getting used to.

I was interested in the significant increase in staff numbers (27 more people into sales, marketing and distribution). That compares to 90 people in that category at the end of FY 2023 and 78 people at the end of FY 2022. I regard that as good news. This is the time for the company to motor.

[74tom] 26/2/2024 15:10

Presentation certainly didn't set the world on fire, it felt a bit as though the CFO was hung out to dry by the CEO, who sat next to her but only answered one question (and the answer was by far the most comprehensive & confident of the meeting). Unsure why the outgoing CEO felt the need to be a bystander, especially after such positive results.

Valuation looks challenging to me, (even assuming for a full year beat and 14p EPS, they are on 33x FY24 P/E) especially if they want to be treated as a growth company but insist on paying out a material proportion of their EPS as a dividend. Wouldn't shareholders prefer them to invest in their R&D resource so they can get products to market faster?

Nanosonics also reported today on the ASX , missed expectations & shares fell 15% to multi year lows. Their revenues are double TSTL, but due to them spending ~£16m PA on R&D their reported PBT fell to below TSTL. Market cap down to £410m with £60m cash, so on an EV/Sales basis they are now around 20% cheaper than TSTL vs level pegging on Friday. Quite a divergence, which is understandable based on today's results alone, but seems to underestimate their installed base on 30k machines in the US.

Either way, a quality company & long term success story, but based on today's call I'd be concerned that the outgoing CEO will be difficult to replace and hence the 34x rating offers next to no margin of safety.

[z1co] 26/2/2024 12:12

Nice 15,000 buy @ £4.90

[wad collector] 26/2/2024 10:43

Nice to see something blue in the portfolio this morning. I like the £10.8M cash pile and the doubling of the dividend particularly!

[z1co] 26/2/2024 08:46

Bought a few after the expected pull back.

These were excellent results well ahead of expectations.When a company doubles it's dividend it usually means they are very confident that trading will remain very good for the foreseeable future.

Waiting for the price to settle down before adding more.

[gre] 26/2/2024 08:40

Fantastic results even before US growth kicks in. Also expecting big increase in Cache sales in UK and Europe now that the Tank and Capsule certification imminent.

Happy days.

[paulisi] 26/2/2024 08:06

Decent results. Expect further growth on a high margin once US sales kick in.Nice upward movement in share price this morning.

[zimbtrader] 26/2/2024 07:58

Tristel plc (AIM: TSTL), the manufacturer of infection prevention products utilising proprietary chlorine dioxide technology, announces its interim results for the six months to 31 December 2023, exceeding internal growth targets by delivering 20% revenue growth and 44% growth in pre-tax profits. The Company also announces a doubling of its interim dividend payment.The Company's core business is the sale to hospitals of its proprietary chlorine dioxide chemistry used for the decontamination of medical devices under the Tristel brand, and for the sporicidal disinfection of environmental surfaces under the Cache brand. Financial highlights·      Revenue up 20% to a record £20.9m (2022: £17.5m)·      Overseas sales up 13% to £12.7m (2022: £11.2m)·      Reported EBITDA up 21% to £4.7m (2022: £3.9m)·      Adjusted* EBITDA up 18% to £5.4m (2022: £4.6m)·      Reported profit before tax up 44% to £3.4m (2022: £2.4m)·      Adjusted* profit before tax up 34% to £4.1m (2022: £3.1m)·      Reported EPS up 104% to 6.50p (2022: 3.19p)·      Adjusted* EPS of 8.68p up 87% (2022: 4.65p)·      Doubling of interim dividend to 5.24p per share (2022: 2.62p)·      No debt and cash of £10.8m (2022: £8.4m)*Adjusted for share-based payments of £0.7m (2022: £0.7m)Operational highlights·      First manufacture and launch of Tristel ULT into the United States ultrasound market·      Approval of Tristel ULT by Health Canada post-period end·      UK & EU Medical Device Regulation reviews of Cache Tank and Capsule successfully concluded and positive recommendation for UKCA and MDR certification made post-period end 

[zimbtrader] 26/2/2024 07:56

The Board is recommending an interim dividend of 5.24 pence (2022: 2.62 pence) to be paid on 12 April 2024. The associated ex-dividend date will be 21 March 2024 with a record date of 22 March 2024.