Tristel Regulatory News (TSTL)

13 Feb 2006 07:01

Tristel PLC13 February 2006 TRISTEL plc INTERIM RESULTS Tristel plc ("Tristel"), the healthcare business specialising in infectioncontrol, today announces its maiden interim results for the 26 weeks ended 31December 2005. Highlights •Total sales of £1.79m (eight months to 28 February 2005 (34 weeks): £1.95m), an underlying increase of 20% •Profit before tax during the first six months of the financial year was £327,481 (eight months to 28 February 2005 (34 weeks): £5,455) •Interim dividend of 0.275p net per share (maiden interim dividend) •First appointments of overseas distributors concluded in Spain, Portugal, Belgium, Holland, Luxembourg, Turkey, Pakistan and New Zealand •Alliance with Johnson Diversey to develop a product range for the pharmaceutical clean room market Commenting on current trading Paul Swinney, Chief Executive of Tristel, said: "The infection control marketplace is vibrant and our core business of supplyinginstrument sterilants (in solution and wipe form) to United Kingdom hospitalscontinues to grow.We are increasing our share of the domestic market.Havingestablished a solid platform in our home market in recent years, one of the mainreasons for the IPO was to develop the Company into an international businessand that initiative is now underway.Our first export sales have been made tooverseas distributors that we have selected and appointed since the beginning ofthis current financial year. We are also pleased to announce the pan-European alliance with JohnsonDiversey.It is the first time that our infection control technology has brokeninto a major marketplace outside of hospitals.To achieve this with such animportant market force as Johnson Diversey is great testimony to our chemistry." For further information, please contact: Tristel plc Binns & Co PR Ltd Paul Swinney, Chief Executive Paul McManus (paul.mcmanus@binnspr.co.uk)Paul Barnes, Finance Director Ben Knowles (ben.knowles@binnspr.co.uk)Tel:01638 721 500 Tel 020 7786 9600http://www.tristel.com Mob: 07980 541 893 Chairman's Statement I am pleased to announce our first interim results as a public company. We have made good progress during the first half of the 2005/2006 financialyear.Total sales in the first six months were £1.79m compared with £1.95m in theeight months to 28 February 2005, the accounting period used for the purposes ofthe AIM admission which was completed on 1 June 2005.The underlying increase infirst half sales is 20% compared with last financial year. Our core products are the sterilising solutions and wipes that we supply to NHSand private sector hospitals for use in endoscopy, day case surgeries, theatres,ear nose and throat (ENT) and ultrasound departments.We are continuing toincrease our customer base and market share.Additionally, we have expanded thenumber of makes of endoscope washing machines that our chemistry can be used in. The Tristel Duo product, which applies our chlorine dioxide chemistry onto hardsurfaces, has made an encouraging start, having been trialled successfully inthe intensive care and organ transplant units of a major inner London teachinghospital.We are exploring co-branded distribution opportunities for Duo withmajor suppliers of surface cleaning products to the Health Service. Employing a similar co-branded distribution model, we are entering a new marketfor Tristel - pharmaceutical clean rooms - in partnership with JohnsonDiversey.The Tristel chemistry will initially be incorporated in a sporicidalsurface disinfectant for distribution throughout the European Community.Theintention is to develop further chlorine dioxide products for this marketplace. During the first half we have appointed our first overseas distributors and madeour first export sales.The interest shown in the Tristel chemistry at the majormedical trade shows that we have attended has been extremely encouraging.As wehad anticipated when deciding to join AIM, the background reasons for Tristel'ssuccess in our home market clearly exist overseas.We will continue to pursueinternational expansion vigorously. Operating profits (before exceptional items and net interest income/expense)were £0.307m in the first half compared with £0.332m in the first eight monthsof the previous year, whilst pre-tax profits amounted to £327,481 compared with£5,455. Dividend We are declaring an interim dividend of 0.275 pence per share, in line with ourprogressive dividend policy.The dividend will be paid on 6 April 2006 toshareholders on the register at the close of business on 10 March 2006. Current trading We have entered the second half with good sales momentum in our existingdomestic product portfolio and the appointment of our first overseasdistributors augurs well for the future. Furthermore, we are expanding the number of makes of instrument washing machinesthat our chemistry can be used in and we have won a number of substantialcontract awards so far this year The pipeline of new business opportunities is strong.With our excitingtechnology there are many market sectors to target outside of our core hospitalmarketplace and there remain applications for our chemistry within hospitals forwhich we have still to build a significant level of sales. To date we have served the United Kingdom hospital market through our own salesorganisation.A complementary strategy for building the Tristel business is toco-label our chemistry with a partner who has a strong market position in itssector and is looking for new innovative technology.By pursuing this strategy webelieve we can access distribution whilst continuing to build the Tristel brand.The partnership with Johnson Diversey is an important development in thisdirection.We expect to see more co-branding distribution partnerships emerge inthe months and years ahead. In summary, the first half result is very pleasing.We will continue to grow anddevelop the business and to do so we must exploit the existing product portfolioto its maximum potential, which means taking it into new sectoral andgeographical markets.We must also continue to innovate with our core technologyand possibly develop or acquire new technologies.The timing of when new productswill make a significant impact on the business is always uncertain, but we dohave a healthy pipeline of new ideas and initiatives. Francisco A. SolerChairman 13th February 2006 GROUP PROFIT & LOSS ACCOUNTFor the 6 months ended 31 December 2005 6 months 8 months Year ended ended ended 31/12/05 28/02/05 30/06/05 (unaudited) (audited) (audited) Note £ £ £ Turnover 1,787,447 1,946,794 3,009,115Cost of sales 814,080 891,412 1,448,048 Gross profit 973,367 1,055,382 1,561,067Administrative costs 666,749 723,372 1,121,215Other operating income - - - Operating profit 306,618 332,010 439,852Loss on sale of subsidiary - ( 22,275) ( 22,275)Employee share option costs - ( 278,000) ( 279,956) 306,618 31,735 137,621Interest receivable and similar 20,863 1,475 5,775incomeInterest payable and similar - ( 27,755) ( 39,200)charges Profit on ordinary activities 327,481 5,455 104,196before taxationTaxation 2 ( 81,870) ( 36,115) ( 65,440) Profit/(loss) on ordinary 3 245,611 ( 30,660) 38,756activities after taxationDividends ( 65,551) - ( 119,184) Retained profit/(deficit) for 180,060 ( 30,660) ( 80,428)the period Earnings/(loss) per share 4Basic 1.03p (0.20)p (0.24)pDiluted 1.03p (0.20)p (0.22)p The group has no recognised gains or losses other than as shown above. GROUP BALANCE SHEETAs at 31 December 2005 As at As at As at 31/12/05 28/02/05 30/06/05 (unaudited) (audited) (audited) Note £ £ £Fixed assetsIntangible fixed assets 852,971 498,430 828,832Tangible fixed assets 123,769 92,618 83,168 976,740 591,048 912,000 Current assetsStocks 329,248 184,606 224,710Debtors 604,623 538,676 546,489Cash at bank and in hand 860,168 88,493 1,212,112 1,794,039 811,775 1,983,311Creditors:Amounts falling due within one 929,423 946,099 1,234,015year Net current assets/(liabilities) 864,616 ( 134,324) 749,296 Total assets less current 1,841,356 456,724 1,661,296liabilitiesProvisions for liabilities and ( 96,456) ( 303,232) ( 96,456)charges Net assets 1,744,900 153,492 1,564,840 Capital and reservesCalled up share capital 238,368 30,667 238,368Share premium account 1,455,980 183,964 1,455,980Merger reserve 478,526 478,526 478,526Profit and loss account 3 ( 427,974) ( 539,665) ( 608,034) Equity shareholders' funds 3 1,744,900 153,492 1,564,840 GROUP CASH FLOW STATEMENTFor the 6 months ended 31 December 2005 6 months 8 months Year ended ended ended 31/12/05 28/02/05 30/06/05 (unaudited) (audited) (audited) Note £ £ £Net cash (outflow)/inflow from 1 ( 62,210) 166,891 312,543operating activitiesReturns on investment and 2 20,863 ( 25,980) ( 39,018)servicing of financeCapital expenditure 2 ( 126,595) ( 182,308) ( 244,006)Equity dividends paid ( 119,184) - -Acquisitions and disposals 2 - ( 2,216) ( 1,816) ( 287,126) ( 43,613) 27,703Financing 2 ( 5,980) 60,059 1,170,268 (Decrease)/increase in cash in ( 293,106) 16,446 1,197,971the period Reconciliation of net cash flow 3to net funds/(debt)(Decrease)/increase in cash ( 293,106) 16,446 1,197,971Cash outflow from decrease in - 37,301 423,714debt and lease financing Change in net debt resulting ( 293,106) 53,747 1,621,685from cash flowsOther movements - - - Movement in net debt ( 293,106) 53,747 1,621,685Net funds at 1 July 1,153,274 ( 373,425) ( 468,411) Net funds at 31 December 860,168 ( 319,678) 1,153,274 NOTES TO THE GROUP CASH FLOW STATEMENTFor the 6 months ended 31 December 2005 6 months 8 months Year ended ended ended 31/12/05 28/02/05 30/06/05 (unaudited) (audited) (audited) Note £ £ £1. Reconciliation of operating profit to net cash (outflow)/inflow from operatingactivitiesOperating profit 306,618 332,010 439,852Depreciation charges 75,737 42,631 64,902Loss on disposal of fixed assets 273 1,082 1,082Increase in stocks ( 118,693) ( 174,006) ( 214,110)Increase in debtors ( 58,134) ( 174,904) ( 190,723)(Decrease)/increase in creditors ( 268,011) 140,078 211,540 Net cash (outflow)/inflow from ( 62,210) 166,891 312,543operating activities 2. Analysis of cash flows for headings netted in the cash flow statementReturns on investment andservicing of financeInterest received 20,863 1,475 5,775Interest paid - ( 27,139) ( 44,478)Interest element of hire purchase - ( 316) ( 315)payments Net cash inflow/(outflow) for 20,863 ( 25,980) ( 39,018)returns on investments andservicing of finance Capital expenditurePurchase of intangible fixed ( 80,236) ( 52,985) ( 197,838)assetsPurchase of tangible fixed assets ( 49,359) ( 137,350) ( 54,195)Sale of tangible fixed assets 3,000 8,027 8,027 Net cash outflow for capital ( 126,595) ( 182,308) ( 244,006)expenditure Acquisitions and disposalsDisposal of subsidiary - ( 2,216) ( 1,816) Net cash outflow for acquisitions and - ( 2,216) ( 1,816)disposals FinancingNew loans in year - 20,000 20,000Loan repayments in year - ( 53,587) ( 440,000)Hire purchase capital repayments - ( 3,714) ( 3,714)in yearDirectors' loans repaid ( 5,980) - ( 7,952)Share issues - 17,001 1,596,575Share buyback - - ( 75,000)Government grant received - 80,359 80,359 Net cash (outflow)/inflow from ( 5,980) 60,059 1,170,268financing 3. Analysis of changes in net At 1.7.05 Cash flow At 31.12.05debt £ £ £Net cash:Cash at bank and in hand 1,212,112 ( 351,944) 860,168Bank overdrafts ( 58,838) 58,838 - 1,153,274 ( 293,106) 860,168 Debt:Hire purchase - - -Debts falling due within one year - - -Debts falling due after one year - - - - - - Total 1,153,274 ( 293,106) 860,168 NOTES TO THE INTERIM REPORTFor the 6 months ended 31 December 2005 1. Basis of preparation The accounts of the Group for the 6 months ended 31 December 2005, which areunaudited, were approved by the Board on 6 February 2006. They have beenprepared in accordance with the accounting policies set out in the Annual Reportand Accounts for the year ended 30 June 2005. The results contained in this statement do not constitute statutory accounts asdefined in Section 240 of the Companies Act 1985. The financial information forthe full preceding year is based on the statutory accounts for the year ended 30June 2005. Those accounts, upon which the auditors, Hedges Chandler, issued anunqualified audit opinion, have been delivered to the Registrar of Companies. The financial information for the 8 months ended 28 February 2005 is based onthe accounts for that period prepared by Deloitte & Touche LLP for the purposeof the AIM Admission Document in May 2005. 2. Taxation Taxation for the 6 months ended 31 December 2005 is provided at 25% on profit onordinary activities, being the anticipated rate of taxation for the period. 3. Reconciliation of movements in shareholders' funds 6 months 8 months Year ended ended ended 31/12/05 28/02/05 30/06/05 (unaudited) (audited) (audited) £ £ £Profit/(loss) for the financial 245,611 ( 30,660) 38,756periodDividends ( 65,551) - ( 119,184) 180,060 ( 30,660) ( 80,428)New share capital subscribed - 187,003 1,666,719Share related charges (UITF 17) - 228,000 207,600Purchase of own shares - ( 75,000) ( 75,000) Net additions to shareholders' 180,060 309,343 1,718,891fundsOpening shareholders' funds 1,564,840 ( 154,051) ( 154,051) Closing shareholders' funds 1,744,900 155,292 1,564,840 Equity interests 1,744,900 155,292 1,564,840 4. Earnings per share 6 months 8 months Year ended ended ended 31/12/05 28/02/05 30/06/05 (unaudited) (audited) (audited) £ £ £ Profit/(loss) for the financial period 245,611 ( 30,660) 38,756after taxation Weighted average number of ordinary 23,836,820 15,297,247 16,050,830shares for basic earnings per share Weighted average number of ordinary 23,836,820 15,297,247 18,002,893shares for diluted earnings per share The weighted average number of shares for the periods shown above takes accountof a four for one bonus issue of shares on 23 May 2005. 5. Copies of Interim Report Further copies of the Interim Report may be obtained from the Company'sRegistered Office at, Tristel plc, Lynx Business Park, Fordham Road, Snailwell,Cambs, CB8 7NY, UK. This information is provided by RNS The company news service from the London Stock Exchange