Tristel hikes dividend as interim profit rises 36%

AIM-listed Tristel lifted its dividend and reported a rise in first half profit and revenue as the company’s international expansion continues.

For the six months ended 31 December, pre-tax profit was up 36% from 2014 to £1.5m on revenue of £8m, up 8%.

The group, which produces infection control and hygiene products, hiked its interim dividend by 95% to 1.14p.

Chief executive Paul Swinney said: "We are pleased to report strong half-on-half profits growth, which has translated into an increase in cash and a substantial increase in the interim dividend.

“Overseas sales accounted for 36% of total revenue and increased by 20% during the period. Our international expansion continues with many regulatory approvals awaited, not only in healthcare markets in which we already sell, but also in countries in which we have no presence. This includes the United States.”

Tristel said the clearest challenge in its development was to counteract the expected slowing of sales growth in the UK, which it plans to do by targeting more rapid growth in overseas markets and a steady pipeline of new product launches.

Tristel said two of its products have been selected for its approach to the US market, and it is currently in talks with the Food and Drug Administration in preparation for a full regulatory approval submission this year.

At 1300 GMT, Tristel shares were down 20% to 115.70p.