Although Tristel (LON:TSTL) has undoubtedly been one of Aim’s more successful companies, it has underwhelmed of late.
The share price peaked at 640p in 2021 amid optimism for its expansion into the US. In 2023, the required regulatory approval came through, providing another surge of demand for the shares. But as 2024 comes to a close, Tristel still hasn’t quite managed to crack the biggest of global healthcare markets.
Tristel is a global leader in infection prevention in hospitals. It is the creator and owner of the chlorine dioxide infection prevention cleaner, which it has used to create products to disinfect medical devices. More recently, the chemical medley has also been used in a new suite of products for surface disinfection sold under the brand name Cache.
Tristel’s chlorine dioxide is the gold standard for device decontamination in the UK and, as such, the company has nearly 100% market share. Still, UK sales rose 31% in the 2024 financial year to £16.2m, driven largely by price rises.
In total, the company generates sales from 61 countries. It operates its own subsidiaries in 16 countries and sells via national distributors in another 45. Management says geographic expansion is key to the company’s growth. In 2024, international sales contributed 61% of the group total, which is pretty much flat on where the company was five years ago. Gaining regulatory approval in new countries is one thing, but generating sales there is proving to be somewhat more challenging.
Could 2025 be the year of international sales success?
International growth, especially in the US, will be key to the ongoing success at Tristel and I have some optimism that new chief executive Matt Sassone will be a key figure here. He took over from the company’s founder in September this year, the second time he has taken over the running of an Aim listed company from an outgoing founder.
Sassone previously led LidCo until its acquisition by US group Massimo in 2021. He then remained as a senior vice president in the enlarged company, based in California. I am hopeful that his knowledge of the US medical device market will provide some assistance to the company’s US expansion plight.
Justifying the share price
Tristel shares have always been…
