(Alliance News) - Tristel PLC on Monday hiked its payout as its performance improved in the first half of its current financial year.
The manufacturer of infection prevention and contamination control products reported pretax profit of GBP2.8 million for the six months to the end of 2019, up 25% compared to GBP2.2 million a year earlier, as revenue grew by 22% to GBP14.6 million from GBP12.0 million.
"We are 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," said Chief Executive Paul Swinney.
Tristel said the pace of overseas sales growth accelerated to 30% from 19% last year, fuelled by a full six months contribution from the company's three subsidiaries in Belgium, Netherlands and France, which were all acquired in November 2018, and Italian unit, which was acquired in July 2019.
Stripping out the contribution of these acquisitions, underlying overseas sales growth would have been 13%.
Tristel said it has achieved a one percentage point increase in gross margin to 79% due to the elimination of third-party warehouse and transportation costs, with the opening of the company's second warehouse facility in Newmarket, England.
The Cambridge, England-based company declared an interim dividend of 2.34 pence a share, up 15% from 2.04p paid the year before.
Looking ahead, Swinney added: "We are currently experiencing Covid-19. This viral outbreak, together with the ever-present threat of anti-microbial resistance, will be a powerful influence on global healthcare systems for greater investment in infection prevention and control. 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."
AIM-listed Tristel shares were trading 7.0% higher in London on Monday at 422.50 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Tristel (TSTL)