Tristel shares hit fresh 52-week high on back of trading update

Francisco Soler, chairman of the company, whose high-level and sporicidal disinfectant product utilise chlorine dioxide to create products that aide in prevention of infections in the hospital environment commented that they had "enjoyed a very strong second half with overseas sales continuing to drive progress."

The company announced that their turnover for the year was "in excess of £20m" – up from £17.1m in 2016 and a record turnover for the company resulting in a pre-tax profit of "at least" £4m (FinnCap: £3.6m).

Both were well ahead of market expectations, the company said in a statement.

According to analysts at FinnCap, its house broker, the rate of growth in the outfit's top line clocked in at 13% at constant exchange rates.

On the heels of the update, they raised their target price on the stock to 225p, telling clients the resulting price-to-earnings multiple of 27 "was justified" given the company's greater than 20% return on capital employed.

Soler also pointed to the acquisition of Ashmed – a surgical supplies distributor based in Melbourne, Australia as having made a "significant contribution to the growth."

The news propelled shares in the AIM-listed outfit to a record and 52-week highs.

Tristel also stated that they had cash balances of £5.1m at period-end, down £0.6m on the year prior and that the company was completely free of debt.

With over 50% of revenue in the second half having come from overseas markets, principally because of the purchase of their Australian distributor, the group was looking to further capitalise on this and had made significant in-roads towards their North American market entry.

Soler said, "We are pleased that overseas sales in the year represented almost half of the total and we anticipate that our overseas operations will continue to expand."

As of 1328 BST shares in the outfit were ahead by 7.49% to 229.50p.