Tristel warns continental customers to stockpile product ahead of Brexit
Cambridgeshire infection control business Tristel is advising continental customers to stockpile products to avoid supply delays after Brexit.
The company, quoted on AIM in the UK, posted a thumping set of results for the year to June 30 but its share price slid after the Brexit alert which added that Tristel expected turbulence that it had never experienced before.
Chief executive Paul Swinney said: “Brexit looms. Our response to the uncertainty surrounding this event is to build inventory of all component parts and finished products.
“We have advised our continental customers to increase their stockholdings over the coming months in preparation for possible disruption to the supply chain.
“Based upon available advice, we believe that we will be able to CE mark our disinfectants and sell them within Europe irrespective of the outcome of the Brexit negotiation.
“The only certainty is that we will experience turbulence this year and our normally predictable pattern of trade will be disrupted to some extent. Notwithstanding this near-term uncertainty, the outlook for the Company remains very positive.”
Tristel, which makes infection prevention and contamination control products, hoisted turnover 10 per cent to £22.2 million with overseas sales up 19 per cent to £11.4m – representing 51 per cent of total sales.
Pre-tax profit before share-based payments was up 15 per cent to £4.7m and the full-year dividend per share was increased 13.6 per cent to 4.58p. Tristel ended the year with net cash of £6.7m – up from £5.1m year-on-year – and remains debt free.
Swinney added: “We made solid progress during the year. Whilst sales growth was at the lower end of our target range, adjusted pre-tax profit and net margin exceeded both market expectations and our internal plan.
“Once again, the driver for top-line growth was our overseas activity which now accounts for more than half of the group’s business. Our plans to enter the United States market remain on track and continue to progress well.
“During the year we secured our first product approval and established our capability to manufacture and sell nationwide. We are waiting for additional approvals from the EPA for enhanced product claims for Duo and state registrations before we will start active promotion and marketing in the US.
“We expect to intensify these activities in the second half of the current financial year. Our submission to the Food and Drug Administration for Duo is progressing well and we recently received very constructive feedback from the agency which will help guide us to its completion.”