Tristel, the Suffolk based supplier of infection and contamination control products, reported in their April trading update that the second half of its financial year to June 2011 is anticipated to show results that fall short of expectations. The company now expects its full year pre-tax profit to be c. £0.5 million (vs. the £1.9 million in its broker's previous forecast).
The shortfall is due to a number of delays in Tristel's expansion plans. First, the licence to sell its Stella instrument disinfectant tray system in China has not yet been issued by the authorities (despite approval already being granted). The license is necessary to begin selling the product, and the company is incurring costs from the sales team it has built in anticipation of this event. Second, the Wipes System has not yet been included in Germany's Verbund fur Angewandte Hygiene (VAH) listing (which is a pre-condition for selling into the country's public hospital system). Tristel increased its cost base in Germany in anticipation of the listing. Tristel's broker also anticipated that the company would have launched the sterile Crystel product range to pharmaceutical industry customers (the non-sterile range has already been launched) in H2, but due to a number of factors the launch has not yet occurred.
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