An increasing product range and entering new territories will help Tristel to grow even faster.
The infection and contamination control products supplier reported a 15% increase in revenues to £6.85m in the year to June 2009. Profit growth was more modest, rising 6% to £1.29m. A greater proportion of revenues came from washers and the lower hardware margins were made worse by the Euro exchange rate.
Net debt was £392,000 at the end of June 2009. The total dividend was increased from 1.55p to 1.7p a share - including a final dividend of 1.295p a share.
Profits were held back by the costs of building up business in China and the US. Tristel has set up an 85%-owned subsidiary in China.
Clorox has licensed Tristelís chemistry for the US. It will take a couple of years to gain regulatory approvals and launch the products but Clorox, which is known for its bleach-based products, will bear that cost. Clorox has annual revenues of $5bn and has spent a significant amount of time researching Tristelís products and failed to replicate them.
In July, Tristel paid an initial £1m, raised from a share placing at 41p a share, for a portfolio of Medichem products. The final cost will be between £2.15m and £2.4m. These products are selling well and they are using up excess capacity in the factory. They could contribute £1.5m to revenues this year.
Astaire forecasts an increase in Tristelís revenues to £9.51m in the year to June 2010, so there would still be organic growth of just over £1.1m.
Profits of £2.03m are forecast for 2009-10, rising to £2.78m in 2010-11.
At 54p a share, up 3.5p on the day, Tristel is valued at £16m. The shares are trading on just over 11 times 2009-10 prospective earnings, falling to eight in 2010-11.
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