REG - Tristel PLC - Unaudited Interim Results
24/02/2025 07:00
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RNS Number : 0847Y Tristel PLC 24 February 2025
Tristel plc
("Tristel", the "Company" or the "Group")
Unaudited Interim Results for the six months ended 31 December 2024
Tristel plc (AIM: TSTL), the manufacturer of infection prevention products
utilising proprietary chlorine dioxide technology, announces its interim
results for the six months to 31 December 2024, a period of further revenue
growth, a 14% increase in adjusted EBITDA and a 19% increase in adjusted
profit before tax.
The Company's core business is the sale to hospitals of its proprietary
chlorine dioxide chemistry used for the decontamination of medical devices
under the Tristel brand, and for the sporicidal disinfection of environmental
surfaces under the Cache brand.
The Company remains cash generative, debt free, and maintains a progressive
dividend policy with an 8% increase in the interim dividend. Following a solid
first half, trading remains in line with expectations for the year to 30 June
2025.
Financial highlights
· Revenue up 8% to £22.6m (2023: £20.9m), 9% at constant currency
· UK sales up 7% to £8.8m (2023: £8.2m); Overseas sales up 9% to
£13.8m (2023: £12.7m)
· Gross margin up to 82% (2023: 81%)
· Reported EBITDA up to £5.0m (2023: £4.7m)
o Adjusted* EBITDA up 14% to £6.3m (2023: £5.4m)
· Reported profit before tax up 9% to £3.7m (2023: £3.4m)
o Adjusted* profit before tax up 19% to £4.9m (2023: £4.1m)
· Reported EPS of 5.72p (2023: 6.50p)
o Adjusted* EPS of 8.17p (2023: 8.68p)
· Tax charge of £0.9m (2023: £0.4m)
· Interim dividend up 8% at 5.68p per share (2023: 5.24p)
· No debt and cash of £11.7m (2023: £10.8m) after paying
dividends of £3.9m (2023: £3.8m)
*Adjusted for share-based payments (£0.3m) and exceptional succession costs
(£0.9m), totalling £1.2m (2023: £0.7m)
Operational highlights
· Successful CEO transition from 2 September 2024
· US FDA 510(k) filing for Tristel OPH, a high-level disinfectant
(HLD) foam for use on ophthalmic medical devices, with clearance expected by
summer 2025
· Inclusion in the revised American National Standard for Tristel
ULT technology
· Validation in the German market for the Company's wiping
methodology as a HLD, with updated KRINKO guidelines
Commenting on the interim results, Matt Sassone, Chief Executive of Tristel,
said:
"Tristel has delivered a strong financial performance in the first half of the
year, with adjusted profit before tax increasing 19% to £4.9m supporting an
8% increase in our interim dividend. These results have been driven by higher
first-half revenues, maintained gross margin, and disciplined cost control,
resulting in an adjusted PBT margin of 21% (2023: 20%).
"As outlined in our AGM statement, we remain on track to meet our internal
revenue growth target of 10-15% CAGR over the three years to 30 June 2025.
Following an exceptional performance for our UK business in year ended 30 June
2024, our largest market has now returned to a more typical trading pattern.
Against this backdrop, global revenue grew by 8% in the period (9% on a
constant currency basis).
"Looking ahead, we see significant growth potential in our core medical device
business, using geographic expansion as the primary driver with a focus on
Spain, India, and Austria this financial year. Our largest opportunity remains
the USA.
"USA ultrasound royalty receipts increased to £37k (2023: £4k), reflecting
growing adoption by customers. We are ever more confident in the scalability
of royalties as our US partner, Parker Labs, builds momentum. With support
from our team in Boston, USA Parker is increasingly improving the sales cycle,
leading to faster product take up. The significant level of interest that
potential customers are showing in our product demonstrates the large unmet
need for point-of-care manual high level disinfection.
"To build on this momentum, in September we made our second FDA submission-a
510(k) for Tristel OPH, our ophthalmic high-level disinfectant-and expect
clearance by the end of the financial year. We have also finalised our
commercial strategy and are in the process of establishing distribution
channels.
"We are confident in our ability to maintain and build on our current
trajectory, leveraging our expanding global footprint and innovative product
portfolio."
CEO video
Please find a link to a video overview relating to the Company's interim
results from the Group's Chief Executive Officer, Matt Sassone here
(https://www.brrmedia.co.uk/broadcasts-embed/67af61e5d4dbbf0c3450fa25/tristel-half-year-results/?popup=true)
.
Investor presentation
Matt Sassone, CEO, and Liz Dixon, CFO, will present the Company's results in
two separate events open to all investors. The same presentation will be given
at both events which are being held at different times to offer convenient
options for those wishing to attend. Both will be held today, Monday 24
February 2025. The first will be held online via the Investor Meet Company
platform at 11.30am - investors can sign up to Investor Meet Company for free
and register here
(https://www.investormeetcompany.com/tristel-plc/register-investor) . The
second presentation will be held in-person in the City of London at 4.30pm.
For further details and to register for this event please email
tristel@walbrookpr.com (mailto:tristel@walbrookpr.com)
For further information please contact:
Tristel plc www.tristel.com (https://www.tristel.com)
Matt Sassone, Chief Executive Officer Tel: 01638 721 500
Liz Dixon, Chief Financial Officer
Cavendish Capital Markets Limited
Geoff Nash, Camilla Hume, Trisyia Jamaludin (Corporate Finance) Tel: 020 7220 0500
Sunila de Silva, Ondraya Swanson (Corporate Broking) / Louise Talbot (Sales)
Walbrook PR Ltd Tel: 020 7933 8780 or tristel@walbrookpr.com (mailto:tristel@walbrookpr.com)
Paul McManus / Lianne Applegarth / Alice Woodings Mob: 07980 541 893 / 07584 391 303 / 07407 804 654
Chairman's statement
Revenue
During the half, we reported revenues of £22.6m (2023: £20.9m), an increase
of 8%. £1.3m of the £1.7m sales growth in the period was derived from
additional volume of product sold and £0.4m from price increases. Whilst
sales growth was slower in this first half than in recent years, we have
identified the key challenges and implemented corrective measures.
Two primary factors impacted performance:
· A higher than normal turnover of sales staff in France and
Australia. This has now stabilised, enabling our focus in these key markets to
be re-established.
· A dilution of our commercial efforts in the Tristel Medical
device portfolio, due to a focus by our sales teams onto the newer and less
well-known Cache Surface range. We are refining our approach to ensure a more
balanced sales strategy between the two product ranges.
Tristel Medical Device product sales increased by 8% to £19.6m (2023:
£18.3m) and Cache Surface products by 4% to £1.7m (2023: £1.6m).
Sales increased by 7% in the UK, to £8.8m (2023: £8.2m), and overseas by 9%
to £13.8m (2023: £12.7m). Overseas sales represented 61% of the total during
the half (2023: 60%) with international expansion once again driving growth.
Costs, Margins and Profits
Group profit before tax, adjusted for exceptional items and share-based
payments increased by 19% to £4.9m (2023: £4.1m) assisted by cost control
and a steady gross margin. This represents an adjusted PBT margin of 21%
(2023:20%). Gross margin has remained steady at 82% (2023: 81%) and
administration expenses, excluding exceptional costs and share-based payments,
increased by 6% to £13.3m (2023: £12.5m). Reported Group profit before tax
increased by 6% to £3.7m (2023: £3.4m).
Exceptional costs and share-based payments
The CEO succession process, which was completed in September 2024 with the
appointment of Matt Sassone and retirement of Paul Swinney, resulted in an
exceptional overhead cost of £0.9m. The amount includes a retirement payment
to the outgoing CEO and founder and relocation and recruitment costs for the
incoming CEO.
The share-based payment charge of £0.3m is derived from the Group's All-Staff
share option scheme and is valued via the Black-Scholes model. The Board
believes that these share schemes help to retain staff and link their
interests to shareholders. The value of share-based payments is significantly
influenced by the volatility of the Company's share price, a factor that is
out of the Board's control.
Profit and earnings are reported on both an adjusted basis, adding back
share-based payments and succession costs, alongside unadjusted, so that the
underlying profitability of the Company can be understood.
Earnings and Dividend
Earnings per share (EPS) were 5.72p (2023: 6.50p). EPS adjusted for
share-based payments and exceptional items was 8.17p (2023: 8.68p). An
increase in the effective tax rate from 10% to 25% has negatively impacted
EPS.
The Board is recommending an interim dividend of 5.68 pence (2023: 5.24 pence)
to be paid on 11 April 2025. The associated ex-dividend date will be 20 March
2025 with a record date of 21 March 2025.
North and Central America
Income from the Americas in the period delivered £96k (2023: £83k) with
royalties derived from Ultrasound sales in the USA generating £37k. Whilst at
face value this is a small number, it does represent the product being used
for more than 50,000 decontamination procedures. As we acknowledged in our
FY24 results, the sales process is taking longer than initially anticipated,
due to the stringent purchasing bureaucracy of signing up new healthcare
accounts. However, we are very encouraged by the consistent and significant
level of interest that potential customers are showing in our products, in
what is a very substantial and growing market. We believe that the support
that we are providing to Parker Labs and to these customers is increasingly
smoothing the journey through hospitals' Value Assessment Committees, leading
to faster product take up.
We are now seeing clear signs of sales traction after navigating the lengthy
purchasing cycles, with notable examples of success. For example, a leading
health system in Florida rolled out our product across multiple sites. Having
first purchased in June 2024, this system is now utilising ULT for more than
1,500 cycles monthly. In the same vein a prominent hospital system in
Massachusetts has expanded from initial use at one centre to adoption across
three sites with plans to drive adoption across the whole system during the
second half of this FY. In addition, our strategy to target less-bureaucratic
physician offices is also yielding results, with growing adoption in this
sector. In the first six months, we conducted over 2,200 online training
events, ensuring that customers are well-equipped to use our products
effectively.
Our longstanding partner, Parker Labs, remains deeply committed to the growth
plan. It has invested heavily in building a national sales force while
leveraging its established distribution network for the USA and Canadian
ultrasound markets. This dual approach strengthens our market presence and
supports long-term growth.
With the combination of growing clinical use, expanding customer adoption, and
Parker Labs' continued investment, we are confident in the long-term potential
of the Americas market and remain committed to maximizing this opportunity.
Breakdown of Americas revenues
£,000 H1 FY25 H1 FY24
USA Royalty 37 4
USA product* 4 39
Canada 12 3
Central America 43 37
96 83
*USA product sales denote raw materials and initial products required for
launch.
In September 2024, we filed for Premarket Notification 510(k) with the U.S.
Food and Drug Administration (FDA) for Tristel OPH, our high-level
disinfectant foam for use on ophthalmic medical devices and had originally
targeted the end of the calendar year for clearance. As stated in our AGM
Statement, the Group subsequently received a request for additional
information and remains confident that we can provide this within the required
180-day time frame.
Cache opportunity post-UKCA, MDR & CE Certification
We remain enthusiastic about the opportunity for Cache and its potential to
introduce chlorine dioxide as an environmental surface disinfectant in
hospitals. Expanding beyond our core medical device disinfection business,
Cache strengthens our position in infection prevention while diversifying our
portfolio and building on the success of Tristel Fuse and Jet.
The global healthcare environmental surface disinfection market is valued at
$5 billion, and while this presents a significant opportunity, it is also a
highly commoditised market where established practices and cost-driven
decisions can make adoption challenging. Customer feedback following the UKCA,
MDR, and CE certification of Tank has reinforced this understanding,
highlighting the need for a more targeted strategy.
Rather than aiming for broad market adoption, we are focusing on specific
clinical areas where infection prevention is a clear priority, such as
intensive care units, operating rooms, neonatal, dialysis units and clinical
laboratories. These settings have higher standards for disinfection, making
them more receptive to Cache's superior performance and benefits.
With this refined approach, we are confident that Cache will address the most
critical infection prevention needs in hospitals, ensuring it delivers
long-term value as part of our broader portfolio.
Product technology endorsements
In the period, Tristel ULT technology was included in the revised American
National Standard, a set of guidelines which state the selection and use of
liquid HLDs and gaseous chemical sterilizers that have been cleared for
marketing by the FDA for use in hospitals and other healthcare facilities. The
Group participated in the public consultation for the guidelines and the
update published ensures that chlorine dioxide foam is recognised as a method
of HLD.
We were also pleased to announce that in Germany, updated KRINKO guidelines
(Commission for Hospital Hygiene and Infection Prevention) strongly endorsed
wiping as a method for HLD, further validating our technology and driving
increased adoption.
We believe both the above will help drive adoption of Tristel's HLD products
across both geographies.
Board changes
In September, we welcomed Matt Sassone to the Board as CEO, following a smooth
succession with Paul Swinney, our founder and former CEO of 30 years. Matt
joined the Group from Masimo Corporation (NASDAQ: MASI), a global medical
technology company, where he was Senior Vice-President Marketing. During his
tenure at Masimo, Matt lived and worked in the USA, gaining invaluable
experience in the American healthcare market. His substantial experience in
the medical industry and Board experience on AIM supports our growth plan to
deliver exceptional value to the Group's customers and stakeholders.
Additionally, at our December 2024 AGM, David Orr stepped down from the Board
as a Non-Executive Director after completing his nine-year tenure of dedicated
service, for which we thank him.
Outlook and targets
We are pleased with a solid first six months and the Board remains confident
in the outlook for the year, with international expansion continuing to be a
key driver of growth. Our strategic focus remains on scaling our presence in
high-potential markets, strengthening our commercial execution, and optimising
our product portfolio.
Through continued investment in innovation, market expansion, and execution, I
believe that Tristel continues to be well-positioned to drive long-term
shareholder value. We look forward to further progress in the second half of
the year and beyond.
Bruno Holthof
Chairman
Condensed Consolidated Income Statement for the six months ended 31 December
2024
( ) Restated*
6 months ended 6 months ended Year ended
31-Dec-24 31-Dec-23 30-Jun-24
(unaudited) (unaudited) (audited)
Note £'000 £'000 £'000
Revenue 2 22,573 20,943 41,933
Cost of sales excluding depreciation (4,005) (3,883) (7,974)
Depreciation included within cost of sales (94) (191) (381)
Total cost of sales (4,099) (4,074) (8,355)
Gross profit 18,474 16,869 33,578
Distribution expenses (275) (274) (327)
Administrative expenses
Share-based payments (267) (691) (1,089)
Depreciation, amortisation and impairments (1,277) (1,174) (2,392)
Other (12,025) (11,351) (22,788)
Exceptional items (982) - -
Total Admin expenses (14,551) (13,216) (26,269)
Other operating income - - -
Operating profit 3,648 3,379 6,982
Finance income 156 125 318
Finance costs (147) (67) (218)
Profit before taxation 3,657 3,437 7,082
Taxation (927) (355) (593)
Profit/(loss) for the period from continuing operations 2,730 3,082 6,489
Profit/(loss) for the period attributable to the Group's equity shareholders 2,730 3,082 6,489
Earnings per share from continuing operations
attributable to equity holders of the parent
Basic (pence) 5 5.72 6.50 13.68
Diluted (pence) 5.68 6.31 13.54
Earnings from continuing operations before interest, tax depreciation,
amortisation and impairment for the period ended 31 December 2024 were
£5,019,000. (Period ended 31 December 2023: £4,744,000). Year ended 30 June
2024: £9,755,000.
31 December 2023 has been restated to align to IAS 2 in relation to
classification of expenditure included in cost of sales, the restatement has
no effect on the Profit for the period.
Condensed Consolidated Statement of Comprehensive Income for the six months
ended 31 December 2024
6 months ended 6 months ended Year ended
31-Dec-24 31-Dec-23 30-Jun-24
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Profit for the period 2,730 3,082 6,489
Items that will be reclassified subsequently to Profit and loss
Exchange differences on translation of foreign operations (363) 64 (368)
Other comprehensive income for the period 2,367 3,146 6,121
Total comprehensive income for the period 2,367 3,146 6,121
Attributable to:
Equity holders of the parent 2,367 3,146 6,121
2,367 3,146 6,121
Condensed Consolidated Statement of Financial Position as at 31 December 2024
6 months ended 6 months ended Year ended
31-Dec-24 31-Dec-23 30-Jun-24
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Non-current assets
Goodwill 4,861 4,662 4,997
Intangible assets 4,989 4,757 4,885
Right of use assets 5,596 5,599 5,538
Property, plant and equipment 3,391 2,770 3,364
Deferred tax asset 818 626 613
19,655 18,414 19,397
Current assets
Inventories 4,613 4,450 4,681
Trade and other receivables 6,845 6,538 7,524
Income tax receivable - 625 718
Short-term investments - 6,000 5,650
Cash and cash equivalents 11,736 4,767 6,139
23,194 22,380 24,712
Total assets 42,849 40,794 44,109
Capital and reserves
Called up share capital 477 475 476
Share premium account 15,296 14,530 14,933
Merger reserve 2,205 2,205 2,205
Foreign exchange reserves (1,010) (215) (647)
Retained earnings 14,491 14,127 15,443
Equity attributable to equity holders of parent 31,459 31,122 32,410
Minority interest - 7 -
Total equity 31,459 31,129 32,410
Current liabilities
Trade and other liabilities 4,521 3,671 5,482
Income tax payable 271 - 76
Current leased asset liabilities 1,038 814 1,034
Total current liabilities 5,830 4,485 6,592
Non-current liabilities
Deferred tax 643 41 277
Non-current leased asset liabilities 4,918 5,139 4,830
Total liabilities 11,390 9,665 11,699
Total equity and liabilities 42,849 40,794 44,109
Condensed Company Statement of Financial Position as at 31 December 2024
6 months ended 6 months ended Year ended
31-Dec-24 31-Dec-23 30-Jun-24
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Non-current assets
Intangible assets 1,072 1,008 1,086
Investment in subsidiaries, joint ventures and associates 15,717 14,838 15,414
16,789 15,846 16,500
Current assets
Trade and other receivables 15,351 6,662 14,151
Income tax asset 6 6 6
Short-term investments - 500 350
Cash and cash equivalents 369 550 380
15,726 7,718 14,887
Total assets 32,515 23,564 31,387
Capital and reserves
Called up share capital 477 475 476
Share premium account 15,296 14,530 14,933
Merger reserve 1,727 1,727 1,727
Foreign exchange reserves 63 63 63
Retained earnings 14,686 6,686 13,828
Total equity 32,249 23,481 31,027
Current liabilities
Trade and other liabilities 257 73 351
Non-current liabilities
Deferred tax liabilities 9 10 9
Total liabilities 266 83 360
Total equity and liabilities 32,515 23,564 31,187
Condensed Consolidated Statement of Changes in Equity for the six months ended
31 December 2024
Share Capital Share Premium Merger reserve Foreign exchange reserve Retained earnings Total attributable to owners of the parent Non-controlling interests Total Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
30 June 2023 (restated) 474 14,188 2,205 (279) 14,089 30,677 7 30,684
Transactions with owners
Dividends (3,735) (3,735) (3,735)
Shares issued 1 342 343 343
Share-based payments 691 691 691
Total transactions with owners 1 342 (3,044) (2,701) (2,701)
Profit for the period ended 31 December 2023 3,082 3,082 3,082
Other comprehensive income :-
Exchange differences on translation of foreign operations 64 64 64
Total comprehensive income 64 3,082 3,146 3,146
31 December 2023 475 14,530 2,205 (215) 14,127 31,122 7 31,129
Transactions with owners
Dividends (2,489) (2,489) (2,489)
Shares issued 1 403 404 404
Share-based payments 398 398 398
Dissolution of non-controlling interest (7) (7)
Total transactions with owners 1 403 (2,091) (1,687) (7) (1,694)
Profit for the period ended 30 June 2024 3,407 3,407 3,407
Other comprehensive income :-
Exchange differences on translation of foreign operations (432) (432) (432)
Total comprehensive income (432) 3,407 2,975 2,975
30 June 2024 476 14,933 2,205 (647) 15,443 32,410 - 32,410
Transactions with owners
Dividends (3,949) (3,949) (3,949)
Shares issued 1 363 364 364
Share-based payments 267 267 267
Total transactions with owners 1 363 - - (3,682) (3,318) - (3,318)
Condensed Consolidated Statement of Changes in Equity for the six months ended
31 December 2024 (continued)
Share Capital Share Premium Merger reserve Foreign exchange reserve Retained earnings Total attributable to owners of the parent Non-controlling interests Total Equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Total transactions with owners brought forward 1 363 - - (3,682) (3,318) - (3,318)
Profit for the period ended 31 December 2024 2,730 2,730 2,730
Other comprehensive income :-
Exchange differences on translation of foreign operations (363) (363) (363)
Total comprehensive income - - - (363) 2,730 2,367 2,367
31 December 2024 477 15,296 2,205 (1,010) 14,491 31,459 - 31,459
Condensed Company Statement of Changes in Equity for the six months ended 31
December 2024
Share Capital Share Premium Merger reserve Foreign exchange reserve Retained earnings Total Equity
£'000 £'000 £'000 £'000 £'000 £'000
30 June 2023 (restated) 474 14,188 1,727 63 10,833 27,285
Dividends (3,397) (3,397)
Shares issued 1 342 343
Share-based payments 691 691
Total transactions with owners 475 14,530 1,727 63 8,127 24,922
Profit for the period ended 31 December 2023 (1,441) (1,441)
31 December 2023 475 14,530 1,727 63 6,686 23,481
Dividends (2,827) (2,827)
Shares issued 1 403 404
Share-based payments 398 398
Profit for the period ended 30 June 2024 9,471 9,471
Total comprehensive income 9,471 9,471
30 June 2024 476 14,933 1,727 63 13,828 31,027
Transactions with owners
Dividends (3,949) (3,949)
Dividends received 5,000 5,000
Shares issued 1 363 364
Share-based payments 267 267
Total transactions with owners 1 363 - - 1,318 1,682
Profit for the period ended 31 December 2024 (460) (460)
Total comprehensive income - - - - (460) (460)
31 December 2024 477 15,296 1,727 63 14,686 32,249
Condensed Consolidated Statement of Cash Flows for the six months ended 31
December 2024
6 months ended 6 months ended Year ended
31-Dec-2024 31-Dec-2023 30-Jun-2024
(unaudited) (unaudited) (audited)
Cash flows from operating activities Note £'000 £'000 £'000
Group profit/(loss) before tax for the period 3,657 3,437 7,082
Adjustments to cash flows from non-cash items
Depreciation of leased assets 544 505 1,064
Depreciation of plant, property & equipment 356 350 691
Amortisation of intangible asset 446 477 951
Impairment of intangible asset 33 33 67
Share-based payments - IFRS 2 267 691 1,089
(Profit)/Loss on disposal of PPE and intangible assets 6 - (8)
Lease interest 109 66 218
Finance income (156) (125) (318)
5,262 5,434 10,836
Working capital adjustments
(Increase)/decrease in inventories 68 119 (112)
(Increase)/decrease in trade and other receivables 679 855 (444)
Increase/(decrease) in trade and other payables (961) (1,130) 671
Lease interest paid (109) (66) (218)
Tax 147 181 153
Net cash flow from operating activities 5,086 5,393 10,886
Cash flows from investing activities
Interest received 156 125 318
Purchase of intangible assets (775) (300) (1,044)
Purchase of property plant and equipment (374) (228) (1,138)
Cash deposit to short-term investments - (3,558) (3,218)
Short-term investments returned to cash 5,650 - -
Net cash used in investing activities 4,657 (3,961) (5,082)
Cash flows from financing activities
Payment of lease liabilities (499) (426) (1,022)
Share issues 364 342 676
Dividends paid 4 (3,949) (3,735) (6,224)
Net cash used in financing activities (4,084) (3,819) (6,570)
Net (decrease)/increase in cash and cash equivalents 5,659 (2,387) (766)
Cash and cash equivalents at the beginning of the period 6,139 7,113 7,113
Exchange differences on cash and cash equivalents (62) 41 (208)
Cash and cash equivalents at the end of the period 11,736 4,767 6,139
Condensed Company Statement of Cash Flows for the six months ended 31 December
2024
6 months ended 6 months ended Year ended
31-Dec-2024 31-Dec-2023 30-Jun-2024
(unaudited) (unaudited) (audited)
Cash flows from operating activities Note £'000 £'000 £'000
Profit/(loss) before tax for the period (460) (1,441) 8,130
Adjustments to cash flows from non-cash items
Depreciation and amortisation 59 48 138
Share based payments - IFRS 2 267 691 -
(Profit)/Loss on disposal of PPE and intangible assets - - 35
(134) (702) 8,303
Working capital adjustments
(Increase)/decrease in trade and other receivables (1,200) 4,476 (3,013)
Increase/(decrease) in trade and other payables (94) 90 156
Net cash flow from operating activities 1,428 4,566 5,446
Cash flows from investing activities
Acquisition of subsidiaries - - (7)
Purchase of intangible assets (348) (134) (265)
Cash deposit to short-term investments - (500) (350)
Short-term investments returned to cash 350 - -
Net cash used in investing activities 2 (634) (622)
Cash flows from financing activities
Share issues 364 343 676
Dividends 4 1,051 (3,397) (6,224)
Net cash used in financing activities 1,415 (3,784) (5,548)
Net (decrease)/increase in cash and cash equivalents (11) (554) (724)
Cash and cash equivalents at the beginning of the period 380 1,104 1,104
Cash and cash equivalents at the end of the period 369 550 380
Notes to the Financial Statements for the six months ended 31 December 2024
1 Accounting policies
Basis of Preparation
For the year ended 30 June 2024, the Group prepared consolidated financial
statements under UK adopted international accounting standards. These
condensed consolidated interim financial statements (the interim financial
statements) have been prepared under the historical cost convention. They are
based on the recognition and measurement principles of UK adopted
international accounting standards which are effective from 1 July 2024.
Forthcoming requirements: This table lists the recent changes to the
Standards that are required to be applied for annual periods beginning after 1
January 2024 and that are available for early adoption in annual periods
beginning on 1 January 2024
Effective date
1 January 2025 Amendments to IAS 21 - Lack of exchangeability
There are no other standards that are not yet effective and that would be
expected to have a material impact on the Group in the current or future
reporting periods and on foreseeable future transactions.
None of the standards, interpretations and amendments effective for the first
time from 1 July 2024 have had a material effect on the financial statements.
Accounting Policies
The interim report has been neither audited nor reviewed and prepared on the
basis of IFRS accounting policies.
The accounting policies adopted in the preparation of this unaudited interim
financial report are consistent with the most recent annual financial
statements being those for the year ended 30 June 2024. An additional policy
is required to define exceptional costs and is detailed below:
Exceptional costs
The Group has incurred non-recurring costs in relation to the succession of
the outgoing CEO. The amount includes a retirement payment to the outgoing CEO
and founder and recruitment costs for the incoming CEO. These costs are
recorded separately to ensure transparency within the financial statements.
The financial information for the six months ended 31 December 2024 and 31
December 2023 has not been audited and does not constitute full financial
statements within the meaning of Section 434 of the Companies Act 2006.
The financial information relating to the year ended 30 June 2024 does not
constitute full financial statements within the meaning of Section 434 of the
Companies Act 2006. This information is based on the Group's statutory
accounts for that period. The statutory accounts were prepared in accordance
with UK adopted international accounting standards and received an unqualified
audit report and did not contain statements under Section 498(2) or (3) of the
Companies Act 2006. These financial statements have been filed with the
Registrar of Companies.
2 Segmental Analysis
Group revenue lines are split into fourteen geographic regions, which span the
different Group entities. In accordance with IFRS 8, aggregation criteria has
been applied to five operating segments where similar economic characteristics
are shared. The directors consider the operating segments to have similar
economic characteristics as they have similar operating margins, and the
nature of products sold, and customers are similar. Management consider these
operating regions under five reportable segments. The geographic segments
consider the location of the sale and product type sold, which is split into
three sub divisions. The Company's operating segments are identified initially
from the information which is reported to the chief operating decision maker
which for Tristel is the CEO.
The group uses a matrix to analyse segments, to analyse the geographic
segments against product divisions. The first product division concerns the
manufacture and sale of medical device decontamination products which are used
primarily for infection control in hospitals. These products generates
approximately 87% of Company revenues (2023: 87%).
The second division which constitutes 8% (2023: 8%) of the business activity,
relates to the manufacture and sale of hospital environmental surface
disinfection products.
The third division addresses the pharmaceutical and personal care product
manufacturing industries, veterinary and animal welfare sectors and has
generated 5% (2023: 5%) of the Company's revenues this year.
The operation is monitored and measured on the basis of the key performance
indicators of each segment, these being revenue and adjusted profit before
tax, and strategic decisions are made on the basis of revenue and profit
before tax generating from each segment.
6 months ending 31 December 2024 (unaudited)
Hospital medical device decontamination Hospital environmental surface disinfection Other revenues Total 2024 Profit Before Tax
£000 £000 £000 £000 £000
UK to UK and Overseas distributors 9,064 1,285 665 11,014 3,137
Australia 1,712 10 126 1,848 83
Germany 2,914 39 58 3,011 136
Western Europe 4,196 252 183 4,631 208
Other ROW 1,760 127 182 2,069 93
Total 19,646 1,713 1,214 22,573 3,657
6 months ending 31 December 2023 (unaudited)
Hospital medical device decontamination Hospital environmental surface disinfection Other revenues Total 2023 Profit Before Tax
£000 £000 £000 £000 £000
UK to UK and Overseas distributors 8,483 1,251 528 10,262 2,957
Australia 1,762 7 130 1,899 85
Germany 2,673 27 43 2,743 123
Western Europe 3,838 175 158 4,171 188
Other ROW 1,546 182 140 1,868 84
Total 18,302 1,642 999 20,943 3,437
Year ending 30 June 2024 (audited)
Hospital medical device decontamination Hospital environmental surface disinfection Other revenues Total Profit Before Tax
£000 £000 £000 £000 £000
UK to UK and Overseas distributors 16,238 2,547 1,208 19,993 6,095
Australia 3,378 16 251 3,645 164
Germany 5,451 57 88 5,596 252
Western Europe 7,342 290 334 7,966 358
Other ROW 3,929 525 279 4,733 213
Total 36,338 3,435 2,160 41,933 7,082
6 months ending 31 December 2024 (unaudited)
Hospital medical device decontamination Hospital environmental surface disinfection Other revenues
Dec 2024
Total
£000 £000 £000 £000
Revenue
From external customers 19,646 1,713 1,214 22,573
Cost of material (2,785) (782) (438) (4,005)
Depreciation included within cost of sales (85) (5) (4) (94)
Gross profit 16,776 926 772 18,474
Gross margin 85% 54% 64% 82%
Adjusted gross margin 88% 57% 67% 85%
Centrally incurred income and expenses not attributable to individual
segments:
Distribution costs (275)
Depreciation and amortisation of non-financial assets (1,277)
Other administrative expenses (12,025)
Share-based payments (267)
Exceptional items (982)
Operating profit 3,648
Operating profit can be reconciled to Group profit before tax as follows:
Net finance income 9
Total profit before tax 3,657
6 months ending 31 December 2023 (unaudited)
Hospital medical device decontamination Hospital environmental surface disinfection Other revenues Dec 2023
Total
£000 £000 £000 £000
Revenue
From external customers 18,302 1,642 999 20,943
Cost of material (2,729) (699) (455) (3,883)
Depreciation included within cost of sales (167) (15) (9) (191)
Gross profit 15,406 928 535 16,869
Gross margin 84% 57% 54% 81%
Adjusted gross margin 86% 60% 54% 82%
Centrally incurred income and expenses not attributable to individual
segments:
Distribution costs (274)
Depreciation and amortisation of non-financial assets (1,174)
Other administrative expenses (11,351)
Share-based payments (691)
Operating profit 3,379
Operating profit can be reconciled to Group profit before tax as follows:
Net finance costs (expense) 58
Total profit before tax 3,437
Year ending 30 June 2024 (audited)
Hospital medical device decontamination Hospital environmental surface disinfection Other revenues Total June
2024
£000 £000 £000 £000
Revenue
From external customers 36,338 3,435 2,160 41,993
Cost of Sales excluding depreciation (5,690) (1,441) (843) (7,974)
Depreciation included within cost of sales (330) (31) (20) (381)
Gross profit 30,318 1,963 1,297 33,578
Gross margin 83% 57% 60% 80%
Adjusted gross margin 87% 60% 63% 83%
Centrally incurred income and expenses not attributable to individual
segments:
Distribution costs (327)
Depreciation and amortisation of non-financial assets (2,392)
Other administrative expenses (22,788)
Share-based payments (1,089)
Operating profit 6,982
Operating profit can be reconciled to Group profit before tax as follows:
Net finance income 100
Total profit before tax 7,082
3 Income tax
The tax on profit before tax for the year is lower than the standard rate of
corporation tax in the UK (2023 - higher than the standard rate of corporation
tax in the UK) of 25% (2023 - 20%).
The differences are reconciled below:
6 months ended 6 months ended Year ended
31 December 2024 31 December 2023 30 June 2024
(unaudited) (unaudited) (audited)
£000 £000 £000
Profit before tax 3,657 3,437 7,082
Corporation tax at standard rate 914 859 1,773
Adjustment in respect of prior years - - (75)
Expenses not deductible for tax purposes 45 266 405
(Decrease) from effect of patent box (86) (392) (1,034)
Increase from effect of foreign tax rates 4 (5) (1)
Tax losses not utilised and other differences 165 (341) (303)
Remeasurement of deferred tax due to changes in tax rate - - -
Enhanced relief on qualifying scientific research expenditure (115) (32) (172)
Total tax charge 927 355 593
4 Dividends
Amounts recognised as distributions to equity holders in the year:
6 months ended 6 months ended Year ended
31 December 2024 31 December 2023 30 June 2024
(unaudited) (unaudited) (audited)
£000 £000 £000
Ordinary shares of 1p each
Final dividend for the year ended 30 June 2024 of 8.28p (2023: 7.88p) per 3,949 3,734 3,734
share **
Interim dividend for the year ended 30 June 2024 of 2.62p (2023: 2.62p) per - - 2,488
share
3,949 3,734 6,222
Proposed interim dividend for the year ended 30 June 2025 of 5.68p (2024: 2,708 2,485 -
5.24p) per share
** Based on shares in issue at 18 December 2024 of 47,692,093 (14 December
2023 of 47,419,693).
The proposed interim dividend has not been included as a liability in the
financial statements.
5 Earnings per share
The calculations of earnings per share are based on the following profits and
number of shares:
6 months ended 6 months ended Year ended
31 December 2024 31 December 2023 30 June 2024
(unaudited) (unaudited) (audited)
£000 £000 £000
Retained (loss)/profit for the period attributable to equity holders of the 2,730 3,082 6,489
parent
Shares Shares Shares
'000 '000 '000
Number Number Number
Weighted average number of ordinary shares for the purpose of basic earnings 47,692 47,420 47,421
per share
Share options 346 1,404 423
48,038 48,824 47,844
Earnings per ordinary share
Basic (pence) 5.72p 6.50p 13.68p
Diluted (pence) 5.68p 6.31p 13.54p
£'000 £'000 £'000
Retained profit for the financial year attributable to equity holders of the 2,730 3,082 6,489
parent
Adjustments:
Exceptional items 982 - -
Tax on exceptional items (246) - -
Share-based payments 267 691 1,089
Tax on share-based payments 165 341 (303)
Net adjustments 1,168 1,032 786
Adjusted earnings 3,898 4,114 7,275
Adjusted basic earnings per ordinary share (pence) 8.17p 8.68p 15.34p
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