Newmarket: Tristel lifts profit forecast again as sales momentum continues
15:29 10 June 2014
Infection prevention and contamination control products manufacturer Tristel today lifted its forecast for annual profits for the second time in less than two months.
Tristel, which is based at Snailwell, near Newmarket, said at the end of April that it expected profits for the year to June 30 to reach at least £1.5million, ahead of previous expectations.
And in a further trading update yesterday, the company added that, with the current sales momentum expected to continue through to the year-end and beyond, it had lifted its earnings expectations further.
Tristel now expects pre-tax profit for the year to June 30 to be “not less than £1.75m”, compared with £480,000 in the previous 12 months, adjusted for a one-off charge of £2.2m linked to reorganisation.
In response, broker finnCap said it was upgrading its forecasts for Tristel for the fourth time since January, with profit before tax now expected to reach £1.8m this year (against a previous forecast of £1.5m) and £2.3m next year (up from £1.8m).
Tristel’s business involves three distinct brands and markets − the flagship Tristel brand which targets the human healthcare sector, Anistel for animal healthcare and Crystel for contimantion control in laboratories.
Paul Swinney, chief executive, said: “We are experiencing a rise in sales in all three portfolios and across most geographical markets. The pace of growth is higher than previously anticipated and with margins also improving and costs stable, the impact on the bottom line is both significant and immediate.
“We can conclude that the re-shaping of our business over the past three years has been firmly cemented in place. The growing revenue contributions from the new products and new markets we have invested in have become both visible and predictable, and with an exciting pipeline of new innovations built upon our proprietary chlorine dioxide technology, we view the future with increasing confidence,” he added.