Tristel, the Suffolk based supplier of infection and contamination control products, announced its interim results to December 31st 2010. Total sales increased to £4.6 million (FY 2009/10: £4.0 million), primarily due to a full period contribution from manufacturing the Medichem veterinary cleaning products. Pre-tax profits declined to £433,000 (H1 FY 2009/10: £656,000) as a result of increased costs associated with investments in its UK based and international technical, sales and marketing teams. Fully diluted EPS declined to 0.88p (H1 FY 2009/10: 1.52p) after dilution from the company’s £3.9 million equity fundraising to support its manufacturing facility expansion in November 2010.

Tristel’s top line growth is pleasing, but the more significant story is the execution of the strategy it announced last November in conjunction with the fundraising. The company is in the process of expanding its Hospital Infection Control business in international markets and launching a new cleaning and disinfection product line for the pharmaceutical/cosmetics manufacturing industries. Progress along both of these fronts has been good, but any benefits have yet to be fully reflected in the company’s financial statements.

International hospital sales increased by 147% to £386,000 for the half, as the company increased its German and Chinese marketing and sales capabilities. Tristel has begun to achieve sales in Germany to private hospitals, and this should increase further once its products receive a listing from Germany’s VAH (Association for Applied Hygene) – an endorsement that will facilitate sales to public hospitals. Though Tristel’s Stella semi-automated disinfection system has received regulatory approval in China, it is still awaiting the official marketing approval. In anticipation, it has appointed a number of distributors and hired a team of four based in Shanghai to manage sales.

Tristel recently launched its Crystel brand of pharmaceutical/cosmetic industrial cleaning products, and is set to begin manufacturing sterile products from its new clean room facility after commissioning is completed.

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