Tristel raises dividend as international growth drives revenue increase

For the six-month period ended 31 December, the infection and contamination prevention firm recorded revenue of £12.0m, up 12% from the same period the year before, which drove a 20% increase in profit before tax before share based payments.

Overseas sales, which represented 53% of total sales, increased by 19% to £6.4m following the November acquisition and successful integration of Ecomed Group for up to €6.8m in a cash and shares deal, which has given the business a direct presence in Belgium, the Netherlands and France.

Paul Swinney, Chief Executive of Tristel, said: "Sales benefited from just over one month's contribution of £0.4m from the Ecomed Group, whose audited and adjusted EBITDA for the calendar year 2018 of €1.17m compares to a threshold target of €0.84m, meaning that the conditions of the acquisition earn-out have already been met. We expect a solid contribution from Ecomed Group in the second half and for the acquisition to be materially earnings enhancing in the years ahead."

Consequently, the AIM traded company upped its interim dividend by 28% to 2.04p per share.

Tristel also hopes to expand its international operations to the US, where the company said it has made "considerable progress" in obtaining regulatory approvals to enter the nation's hospital market, though it added that it will not forecast any material contributions from the US until approval has been received.

Meanwhile, UK sales increased by 5% to £5.6m after the UK hospital business grew sales by 8% half-on-half after a period of flat performance as a line of recently introduced surface disinfectants drove sales.

"We have put in place the best plans that we think possible to mitigate the potential effects of a no-deal Brexit and look forward with a high degree of confidence," said Swinney.

Tristel's shares were down 4.96% at 287.50p at 1147 GMT.