When a company starts to use its name as a verb, it might be interpreted as a sign of over-confidence. But with motoring sales, excellent cash generation and well maintained margins, Tristel (TSTL) can at worst be accused of sloppy English in its new marketing slogan: "Why disinfect when you can Tristel?"
Either way, the tagline appears to be working. The infection prevention specialist's revenues grew by an average of 14 per cent across the contamination control, human and animal healthcare markets in the year to June. Encouragingly, overseas sales grew by more than a fifth to account for 36 per cent of all revenues. Management also plans to submit multiple products for regulatory approval from the Food and Drug Administration (FDA) in June 2016, and expects to hear back within 12 months.
That process will add to costs, but still leave room for special dividends further to the special payout of 3p per share in August. Chairman Francisco Soler wants shareholder returns whenever cash "is not required for future earnings enhancing investment", while finance director Liz Dixon believes special dividends are "inevitable" if Tristel continues to generate cash at its current rate and there is at least two times cover.
Broker finnCap expects adjusted pre-tax profit and EPS of £2.9m and 5.3p respectively in the 12 months to June 2016 (FY2015: £2.6m and 5.3p).
TRISTEL (TSTL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 109p | MARKET VALUE: | £45m | |
| TOUCH: | 108-110p | 12-MONTH HIGH: | 115p | LOW: 66p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 20 | |
| NET ASSET VALUE: | 34p* | NET CASH: | £4.0m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 9.3 | 0.5 | 1.3 | 0.56 |
| 2012 | 10.9 | 0.6 | 1.8 | 0.62 |
| 2013 | 10.6 | -1.8 | -3.2 | 0.40 |
| 2014 | 13.5 | 1.8 | 3.3 | 1.62 |
| 2015 | 15.3 | 2.6 | 5.4 | 2.72** |
| % change | +14 | +40 | +67 | +70 |
Ex-div: 19 Nov Payment: 18 Dec *Includes intangible assets of £6.3m, or 15p a share **Excludes special dividend of 3p, paid on 3 August | ||||
