Tristel Regulatory News (TSTL)

15 June 2012

Tristel plc

("Tristel" or "the Company")

Trading update

Tristel plc, the manufacturer of infection prevention, contamination control and hygiene products, provides a trading update in advance of its financial year end on 30th June.

On 3rd April Tristel announced the termination of its supply arrangement with Medichem International (Marketing) Limited ("Medichem"). Since that announcement Tristel has created a new brand identity, "Anistel", for the product portfolio that it had previously manufactured and supplied to Medichem. Anistel has been successfully launched and the product range includes surface disinfectants, instrument cleaners and disinfectants, and skin disinfectants. All the products are designed specifically for veterinary use. Tristel owns the intellectual property rights for the products and, as a consequence, the Anistel products are identical in both formulation and performance to those that were previously manufactured for Medichem.

In launching the Anistel brand Tristel has mobilised its existing resources as well as recruiting an in-field and telesales marketing team with experience of the veterinary market. The launch has also been accompanied by a national advertising campaign and direct marketing activities.

The most popular supply route for UK veterinary practices is via three major national wholesalers. The Directors are pleased to announce that one of the three has committed to stock the Anistel range from 18 June 2012, and discussions are progressing with the other two. A growing number of end-users request Anistel products from them in response to Tristel's national sales and marketing campaign.

Revenue for the year ended 30 June 2012 is now expected to be not less than £10.7m. As a result of the small adjustment to revenues coupled with certain additional costs in relation to the Anistel launch, the Directors now anticipate that adjusted profit before tax will be no less than £650,000. The outturn for the year may improve if the other two national veterinary wholesalers place their initial stocking orders by the end of June.

Paul Swinney, Chief Executive of Tristel, comments: "The termination with Medichem was not planned and the dispute that caused it arose with very little warning. The Company has reacted extraordinarily quickly and effectively to the disruption. In a ten week period we have established our own brand and direct presence in the veterinary market. We are in the process of taking over the market share enjoyed by the products sold through Medichem for the past three years, but now selling them directly and not through an intermediary. Whilst it is difficult to complete this type of transition by the immoveable date of a year end, we are confident it will be achieved. Notwithstanding the short term impact of this recent upheaval, the Directors are certain that Tristel's business model is more robust as a consequence of it".