REG - Tristel PLC - Trading update & Notice of results

TristelAnnouncement

13/07/2018 07:05

RNS Number : 5194U
Tristel PLC
13 July 2018
 


Tristel plc
("Tristel" or "the Company")
 
Trading update & Notice of results
 
Tristel plc (AIM: TSTL), the manufacturer of infection prevention products, provides a trading update for the year ended 30 June 2018 in advance of the Shareholder Open Day to be held at its headquarters in Snailwell, Cambridgeshire on Tuesday 17 July. 
 
For the year ended 30 June 2018 results will be in line with expectations, showing strong growth across the business.  Tristel will report record turnover of £22.2m (2017: £20.3m) and pre-tax profit (before share-based payments) of at least £4.4m (2017: £4.1m).  Revenue from overseas markets contributed 51.3% of the Group total - a record level (2017: 47%). Tristel has continued to generate significant levels of cash and at 30 June 2018 cash balances were £6.7m (30 June 2017: £5.1m).  The Company has no debt.
 
The Company will declare a final dividend for the year ended 30 June 2018 at the time of the preliminary results to be announced in October. 
 
North America
 
Building upon the EPA approval granted on 19 April, the Company is filing an additional submission to expand the allowable microbiological efficacy claims (20 additional micro-organisms) to enhance the competitive advantage of its Duo product. It is also in the process of filing registrations in the first five selected States, and is adding a second foam-based product format to its registration. This product is branded Jet in the UK and overseas markets and utilises the same chemistry as Duo.  Manufacturing scale up is underway at Parker Laboratories.
 
The Company has lodged a pre-submission review with the FDA in accordance with the guidance given by the agency in the initial consultation meeting in April 2016. The data set presented to the FDA represents a substantial portion of the final submission that the Company continues to expect to make by the end of the calendar year.  The FDA will provide a written response to the pre-submission review 90 days from receipt. This response will be used by the Company to guide its final submission.
 
Mobile ODT ("MODT")
 
MODT is in the process of completing a further US$5m fund raising as it continues the global roll-out of its EVA System mobile colposcope.  Tristel will participate in this funding round pro-rata to its 3.22% shareholding in MODT.
 
MODT is working with the FDA to submit its Automatic Visual Evaluation (AVE) algorithmic model for approval under the FDA De Novo pathway.  Through collaborative research with the United States National Cancer Institute and National Library of Medicine, it has been determined that deep learning derived diagnosis from a visual image of the cervix has a greater predictive ability than conventional cytology (Pap Smear).  MODT's opportunity is to replace cytology in a co-test with HPV screening. 
 
The Company is deepening its relationship with MODT by combining the disinfection compliance and audit App that it has developed during the past year with MODT's App; contracting the software support functions to MODT, and becoming MODT's distributor in the UK, Australia and New Zealand.  Women's health is a key target area for Tristel and given the relevance of HPV to cervical cancer and Tristel's ability to kill the virus on medical instrumentation, thereby avoiding the risk of cross-infection between women, this important strategic relationship for the Company is developing positively.
 
Strategic Focus
 
As outlined in last year's results, the Company continues to invest in future growth opportunities.  These include gaining new regulatory approvals to access new geographical markets (in particular the United States) and to extend Tristel's presence in its existing geographical markets.  The Company is also making strategic investments to position it in the emerging world of digital healthcare.  The Board continues to examine all aspects of the business, including its distributor network, seeking further opportunities to enhance Tristel's long term earnings.


Shareholder Open Day
 
Tristel is hosting an Open Day for Shareholders at the Company headquarters in Snailwell, Cambridgeshire on 17 July 2018 at 11am.  A presentation will be made during the Open Day which will not contain any new material information.  The presentation will be available on the Company website: www.tristel.com/investor-centre. 
 
Notice of results
 
The Company expects to announce its preliminary results for the year ended 30 June 2018 on 18 October 2018.
 
Francisco Soler, Chairman of Tristel plc, comments: "Tristel continues to develop and expand as shown by another year of turnover and profit growth.  2018 marks Tristel's twenty-fifth anniversary.  It has taken a long time for the Company to emerge as the globally recognised force in infection prevention it is today.
 
"In October 2014 I re-took the helm as Chairman, not expecting to still hold the reins nearly four years later.  I have stayed in post longer than intended, but in so doing have played my part in guiding Tristel through a truly transformational period.  The Board and management's vision for the Company today is very different from our view in 2014.
 
"Our shareholders have benefitted greatly too.  On 13 October 2014 our share price was 74 pence.  During the past four years dividends of 18.94 pence per share have been paid.
 
"Now, it is time for me to announce my retirement.  I shall step down as Chair and director at our AGM in December.  The Board has taken its first steps to initiate the search for a new Chairman and we intend to refresh the Board as we look to follow the guidelines of the Quoted Company Alliance Corporate Governance Code for Small and Mid-Size Quoted Companies. I remain a long-term supporter of Tristel." 
        
For further information please contact:
 



Tristel plc


www.tristel.com




Paul Swinney, Chief Executive Officer


Tel: 01638 721 500




Liz Dixon, Finance Director


















Walbrook PR Ltd


 Tel: 020 7933 8780 or tristel@walbrookpr.com




Paul McManus


 Mob: 07980 541 893




Lianne Cawthorne


 Mob: 07854 391 303














finnCap


 Tel: 020 7220 0500




Geoff Nash/ Giles Rolls (Corporate Finance)




Alice Lane (Corporate Broking)



 




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