TIDMTSTL
RNS Number : 9990P
Tristel PLC
16 October 2019
Tristel plc
("Tristel", the "Company" or the "Group")
Final Results
Results for the year ended 30 June 2019
Tristel plc (AIM: TSTL), the manufacturer of infection
prevention and contamination control products, announces its
unaudited results for the year ended 30 June 2019.
Financial Highlights
-- Turnover up 18% to GBP26.2m (2018: GBP22.2m)
-- Overseas sales up 26% to GBP14.4m (2018: GBP11.4m),
representing 55% of total sales (2018: 51%)
-- EBITDA before share-based payments up 15% to GBP7.1m (2018:
GBP6.2m). Unadjusted GBP6.3m (2018: GBP5.5m)
-- Pre-tax profit before share-based payments up 19% to GBP5.6m
(2018: GBP4.7m). Unadjusted GBP4.7m (2018: GBP4m)
-- Pre-tax margin before share-based payments remained at 21%
(2018: 21%). Unadjusted 18% (2018: 18%)
-- Adjusted EPS 11.08p up 21% (2018: 9.16p)
-- Basic EPS 9.14p up 20% after share-based payments of GBP0.85m
(2018: GBP0.66m)
-- Dividend per share for the full year increased by 21% to
5.54p (2018: 4.58p)
-- Net cash of GBP4.2m (2018: GBP6.7m) after GBP4.7m spent on
acquisitions. Company remains debt free
Operational Highlights
-- Acquisition in November 2018 of the Company's distributors in
Belgium, the Netherlands and France, and in July 2019 of its
Italian distributor. All are trading in line with expectations
-- New 23,000 sq ft warehouse in Newmarket and 14,000 sq ft
warehouse in Antwerp fully operational
-- Awaiting feedback from USA FDA to De Novo pre-submission
request
Paul Swinney, Chief Executive of Tristel plc, said: "We made
solid progress during the year. Top-line growth was driven by our
overseas operations and this trend should continue with the
acquisition of four of our main European distributors during the
year and shortly after the year-end. We were also pleased with 9%
sales growth in the United Kingdom which was higher than in recent
years. Our direct involvement in the French ultrasound market has
been very timely with the publication of new guidelines in the
early Summer. We have built a seven-strong salesforce to take
advantage of buoyant demand conditions. Our progress in developing
both sales and the sales team in China and Hong Kong is
encouraging, focussing our efforts in the near term on the private
hospital sector whilst we wait for new ultrasound disinfection
guidelines to be published which will impact the public sector.
"We are advancing our De Novo submission for Duo to the USA Food
and Drug Administration and are awaiting feedback to our most
recent pre-submission request to the agency. We expect to receive
this before the end of 2019."
For further information:
Tristel plc Tel: 01638 721 500
Paul Swinney, Chief Executive
Liz Dixon, Finance Director
Walbrook PR Ltd Tel: 020 7933 8780 or tristel@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
FinnCap Tel: 020 7600 1658
Geoff Nash / Giles Rolls (Corporate
Finance)
Alice Lane (ECM)
Chairman's Statement
We made solid progress during the year to 30 June 2019. Sales
grew to GBP26.2m from GBP22.2m in 2018, an increase of 18%. The
proportion of our revenue generated in overseas markets continued
to increase and reached 55% in the year (2018: 51%). Overseas sales
grew by 26% whilst UK sales grew by 9%. This difference in the pace
of growth, across our various markets, reflects the higher market
penetration in the United Kingdom than so far achieved in overseas
markets.
In November 2018 we acquired our three distributors in Belgium,
the Netherlands and France. During the seven and a half months
leading up to 30 June that they were under our ownership, they
registered sales of GBP2.1m. If they had continued as our
distributors, we estimate that they would have purchased GBP0.4m of
Tristel products from us during that period, and so we estimate
that the acquisition has impacted the financial year by increasing
sales by GBP1.7m. If the acquisition had not taken place, our
reported sales growth would have been 10%, rather than 18%.
Pre-tax profit before share-based payments was GBP5.6m compared
to GBP4.7m last year, an increase of 19%. (Unadjusted pre-tax
profit of GBP4.7m compared to GBP4m last year, an increase of 18%.)
Our pre-tax profit margin, which is a key measure of our
performance, and before share-based payments, remained at 21%,
while pre-tax profit margin also remained consistent at 18%.
Adjusted earnings per share (EPS), before share-based payments,
were 11.08 pence, up from 9.16 pence last year. Basic EPS were 9.14
pence, a 20% increase from last year, after a share-based payment
charge of GBP0.852m (2018: GBP0.665m). This charge is a non cash
item.
The Group has continued to be highly cash generative and on 30
June 2019 the cash balance was GBP4.2m (2018: GBP6.7m),
notwithstanding the acquisition during the year of its three
distributors in Belgium, the Netherlands and France which involved
a cash outlay of GBP4.7m. In line with the Company's ordinary
dividend policy, the Board is recommending that the final dividend
is 3.50 pence (2018: 2.98 pence), an increase of 17%. Including the
interim dividend of 2.04 pence (2018: 1.60 pence), and the proposed
final dividend, the total dividend for the year will be 5.54 pence
(2018: 4.58 pence), an increase of 21%.
We continued to invest for future growth. During the year we
spent GBP0.5m on product development and testing (2018: GBP0.5m)
and GBP0.2m on intellectual property protection (2018: GBP0.2m).
Both these expenditures are held in intangible assets. We invested
GBP0.7m (2018: GBP1.0m) in regulatory and product enhancement
programmes where we have recognised this cost as an expense.
Included in this cost is an amount of GBP0.5m (2018: GBP0.5m)
relating to our initiative to enter the United States market which
commenced in 2014. The cumulative investment in this regulatory
project and in the establishment of a commercial structure within
the country has been GBP1.7m.
Whilst no revenues have yet been generated from the United
States, significant progress has been made to build a commercial
platform from which to enter the market. During the year we
continued to generate data required for a submission which we
intend to make to the Food and Drug Administration (FDA) to obtain
pre-market approval for our foam-based Duo product as a high-level
disinfectant for medical devices. We have already received
approvals from the Environmental Protection Agency (EPA) for Duo.
We have entered into a partnership with Parker Laboratories based
in New Jersey by which we have put in place manufacturing
capability and a national distribution network. We do not yet have
employees in the United States but have established a
subsidiary.
This is my first address as Chairman, having succeeded Francisco
Soler at last December's Annual General Meeting. To further develop
our Board of Directors we have appointed Dr Bruno Holthof as an
independent Non-Executive Director. Bruno is Chief Executive of
Oxford University Hospitals NHS Trust.
As I look back upon my first ten months as Chairman, I believe
that the Group has successfully navigated its way through a year in
which Brexit was anticipated to take place, an event which posed
significant challenges, particularly in terms of manufacture.
Brexit is yet to occur and has been pushed back, and we expect the
challenges it brings to repeat this financial year. However, I
believe the Group is well-placed to weather this and any economic
downturn that may follow. Finally, I would like to pay tribute to
and thank all our employees who have given great service to the
Company during the year.
Paul Barnes
Chairman
15 October 2019
Chief Executive's Report
Overview
Group revenue was up 18%, adjusted pre-tax profit was up 19%
(pre-tax profit up 18%) and adjusted EPS was up 21% (basic EPS up
20%). We ended the year with cash of GBP4.2m. The Group is
debt-free.
In October 2016, we set out our financial plan for the three
years to 30 June 2019. The two key financial targets of the plan
were sales growth in the range of 10% to 15% per annum as an annual
average over the three years, and the achievement in each year of a
pre-tax profit margin (excluding share-based payment charges) of at
least 17.5%. Both targets became Key Performance Indicators (KPIs)
of the Group. We can report that both these KPI's have been met
throughout the three years.
On 18 November 2018 we acquired three companies, known to us as
the Ecomed Group ("Ecomed"), and consisting of Ecomed Services N.V.
(Belgium), Ecomed Nederlands B.V. (Netherlands), and Ecomed SARL
(France). Each of the three companies have been distributors of
Tristel products: since 2005 in Belgium; since 2013 in the
Netherlands and 2016 in France. The companies have each changed
their corporate name to "Tristel" and represent Tristel Western
Europe in our organisational structure.
During the year the Ecomed acquisition contributed GBP1.7m to
Group sales. If the three companies had continued as distributors
and the acquisition had not taken place, Group sales would have
been GBP24.46m and sales growth would have been 10%.
Strategically, the acquisition expands our direct presence
throughout much of continental Europe, and our coverage was further
increased shortly after the year-end with the acquisition of the
remaining 80% of the share capital of Tristel Italia Srl, bringing
this company under our complete ownership and control.
The management teams of our Western Europe and Italian
acquisitions are continuing as part of the Group management and
sales team. All four companies are essentially sales organisations
and have boosted the UK and European sales force to 30, and the
global sales force to 41. The total Group-wide headcount at 30 June
2019 was 146. The Ecomed acquisition has also added a 14,000 sq.
ft. warehouse facility in Antwerp to our Group's logistics
infrastructure.
We are proposing a final dividend of 3.50 pence per share (2018:
2.98 pence), making 5.54 pence (2018: 4.58 pence) in total for the
year, an increase of 21%. If approved, the final dividend will be
paid on 20 December 2019 to shareholders on the register at 22
November 2019. The corresponding ex-dividend date is 21 November
2019.
Our business: What our marketplace looks like
Our entire business is focussed on preventing the transmission
of microbes from one object or person to another. We pursue this
purpose because microbes can be a source of infection to humans and
animals. They can cause illness or death and place a heavy cost on
individuals and society. We achieve our purpose by applying a very
powerful disinfectant - chlorine dioxide - to the target surface or
medical instrument.
We are unique worldwide in using chlorine dioxide as a
high-performance disinfectant for medical instruments. We are also
one of a very few companies worldwide that can legitimately claim
to be exclusively an infection prevention business.
Our mission is most relevant to hospitals where the risks of
infection to individuals are highest. In the hospital market, which
we refer to as human healthcare, we brand our products Tristel. The
risk of cross infection is also relevant to veterinary practices,
or animal hospitals, and in the animal healthcare market we brand
our products Anistel. Finally, the control of microbial
contamination is also very relevant in critical manufacturing
environments, for example cleanrooms, and in this market our
products are branded Crystel.
A hospital is a vast, multi-faceted organisation. We are not
only unique in providing chlorine dioxide as a high-performance
disinfectant within hospitals, but we are also unique in our focus
upon specific clinical departments within them. We target clinical
departments that carry out diagnostic procedures with small
heat-sensitive medical instruments. These include: the nasendoscope
used in Ear, Nose and Throat departments; the laryngoscope blade
used in emergency medicine; tonometers used in ophthalmology, and
ultrasound probes used in both women and men's health. In these
departments, we are the only simple to implement, affordable,
high-performance disinfection method available. Consequently, in
geographical markets in which we have been present for some time,
we hold a truly significant market share.
Infection prevention is a basic requirement for the safe and
effective provision of healthcare. This is true in all hospitals in
all countries. Our primary focus is on the acute hospital, but the
trend is for medical device procedures to take place outside of the
hospital, and the pool of opportunity for the sale of our products
can be expected to expand substantially over the long term.
Brexit cast its spell over the year. To forestall any potential
disruption to our customers' supply chain we built inventory of all
component parts and finished products in the run up to 31 March and
encouraged key domestic and overseas customers to increase their
stockholdings of our products. Brexit did not take place and we
believe that most of our customers' inventory holdings were then
wound down again in the final quarter of the year. We anticipate
that a similar cycle will repeat as we approach 31 October
2019.
The other significant event relating to Brexit was to move the
location of our Notified Body from BSI's office in the United
Kingdom to BSI in Amsterdam. We believe this will ensure our
ability to CE mark our disinfectants and sell them within Europe
irrespective of the outcome of the Brexit negotiation.
Notwithstanding this near-term uncertainty relating to our
trading relationship with Europe and the rest of the world, the
outlook for the Company remains very positive.
How We Service Our Market
Over 95% of our revenues are of repeat consumable products that
perform a vital function in hospitals. Their use is for the most
part non-discretionary. Our products are typically small packaged
goods, requiring no after sales service, other than comprehensive
training. Capital sales, service and maintenance do not feature,
therefore, in a significant way in our revenue model.
We sell our products directly to end-users in those markets in
which we have established a direct operational presence, and
through distributors in markets where we have no presence.
Our revenues - by sales channel
GBP000's Unaudited 2017-18 Year on year Percentage
2018-19 change change
Human Healthcare Direct sales UK 10,024 8,912 1,112 12%
EU 6,650 4,087 2,563 63%
ROW 4,273 3,961 312 8%
Sales to distributors EU 1,534 1,559 (25) (2)%
ROW 1,465 1,350 115 9%
Contamination
Control Direct sales UK 1,205 1,258 (53) 4%
EU 37 34 3 9%
ROW 51 44 7 16%
Sales to distributors EU 122 96 26 27%
ROW - - - -
Animal Healthcare Direct sales UK 79 96 (17) (18)%
EU 8 3 5 167%
ROW 212 195 17 9%
Sales to distributors UK 488 569 (81) (14)%
EU 21 56 (35) (63)%
Group sales 26,169 22,220 3,949 18%
Our revenues - by technology
The majority of our sales are of chlorine dioxide (CI02) based
products; but we do formulate, manufacture and sell products
utilising other disinfectant chemistries. These include quaternary
ammonium compounds, peracetic acid and alcohol. In 2019, GBP3.7m of
our sales were of non-chlorine dioxide chemistries representing 14%
of the total (2018: GBP3.8m representing 17%). As our chlorine
dioxide product sales increase at a faster pace than non-chlorine
dioxide product sales, and as we continue to find ways to persuade
customers to switch to chlorine dioxide as a superior disinfection
technology, we expect this percentage to continue to reduce in
significance.
GBP000's Unaudited 2017-18 Year on year Percentage
2018-19 change change
Human Healthcare Direct sales CI02 20,009 16,167 3,842 24%
Other 938 793 145 18%
Sales to distributors CI02 2,089 1,995 94 5%
Other 910 914 (4) (1)%
Contamination
Control Direct sales CI02 234 148 86 58%
Other 1,059 1,188 (129) (11)%
Sales to distributors CI02 74 56 18 32%
Other Other 48 40 8 20%
Animal Healthcare Direct sales CI02 15 30 (15) (50)%
Other 284 264 20 8%
Sales to distributors CI02 2 5 (3) (60)%
Other 507 620 (113) (18)%
Group sales 26,169 22,220 3,949 18%
Our revenues - by portfolio and geographical split
Revenues increased by 18% in the year. UK sales grew by 9% and
overseas sales by 26%. Overseas sales are made via two channels:
through the Company's wholly-owned subsidiaries in Germany, Poland,
Switzerland, Russia, Hong Kong, China, Australia, New Zealand,
Belgium, France, The Netherlands and via third party distributors.
Overseas subsidiary sales to end users increased by 35% to
GBP11.233m in the year, whilst overseas sales to distributors
increased by 3% to GBP3.14m (excluding GBP0.488m UK distributor
sales within the UK).
Our Strategic Assets
We consider the assets that enable the Company to achieve its
strategic goals to be:
-- Our chlorine dioxide chemistry, about which there are three
critically important elements:
1. The formulation is proprietary;
2. We remain the only company using chlorine dioxide for the
decontamination of medical instruments in the world, which gives us
a genuine point of difference from all other infection prevention
companies;
3. The length of time that we have enjoyed this position has
allowed us to collate a significant body of knowledge, including
published scientific data, the testimony of almost two decades of
safe use, a significant global footprint of regulatory approvals
and a library of proven compatibility with hundreds of medical
instruments, all of which would take a newcomer significant time
and cost to match.
-- Intellectual property protection - at 30 June 2019, we held
277 patents granted in 36 countries providing legal protection for
our products;
-- Our people - who hold an unrivalled body of knowledge
relating both to infection prevention and to chlorine dioxide,
allowing us to quickly and efficiently create and bring to market
innovative and market ready products.
Our proprietary chlorine dioxide chemistry
The competitive advantage that we hold is that we are the only
company worldwide using chlorine dioxide to disinfect medical
instruments.
With this same chemistry, we have also established a bridgehead
in hospital surface disinfection, the veterinary market, and the
contamination control market.
The focus of our research and development is our chlorine
dioxide technology, searching for continuous improvements in
increased microbial efficacy, a reduction in hazards, and greater
efficiency in manufacture. In parallel, we invest heavily in the
creation of packaging and delivery forms that enhance and simplify
the user experience.
Our regulatory programme succeeded in attaining 67 approvals for
34 products in 14 countries during the year.
Our intellectual property protection
In its broadest sense, our intellectual property relates to:
1. Patents, trademarks and registered designs;
2. The scientific validation of our chemistry and our products
that has entered the public domain via 29 peer-reviewed and
published papers;
3. 19 guidelines have been published by professional clinical
bodies, infection prevention bodies, and national healthcare
institutions that reference the use of chlorine dioxide in a format
that is recognisable as Tristel;
4. The certification by medical device manufacturers that our
chemistry is compatible with their products. We enjoy official
compatibility with the instrumentation of 55 medical device
manufacturers, with respect to 1,845 of their individual
models.
Our people
At Tristel the basic qualities we seek in our staff are
integrity, inquisitiveness and humility. In our management team, we
also look for excellent decision making and execution ability and a
"know no boundaries" approach. We believe that these qualities can
make the highest possible performance achievable. We view our
colleagues as a key strategic asset of the business.
Delivering on our key strategic financial goal
Our key strategic financial goal is to deliver long term
sustainable growth. The two key performance measures that we target
are:
-- Consistent revenue growth - during the past five years,
revenue has grown from GBP15.3m to GBP26.2m - an increase of 71%.
The compound annual growth rate in revenue since the Group went
public in 2005 has been 16%. Our target over the past three years
has been to grow revenues in the range of 10% to 15% on average
each year to 30 June 2019, which has been achieved.
-- Maintaining the profitability of the Group - during the year
the Group achieved a (before share-based payments) pre-tax margin
of 21%. The benchmark (before share-based payments) pre-tax margin
we set for the plan period was 17.5%. This measure has also been
achieved.
The corollary to achieving these targets is that we have been
highly cash generative given the operational cash requirements of
the business. The Board's policy with respect to dividends is that
if it considers that there are no earnings enhancing opportunities
to invest excess cash, a special dividend for shareholders will be
considered along with other distribution options.
The Board's pursuit of these financial objectives is grounded in
the belief that consistent and sustainable increases in earnings
and dividends will, over time, result in share price growth.
Having successfully delivered upon the 2016 to 2019 plan, the
Board has established a new financial plan taking the Company to
2022, which incorporates two key performance measures. They
are:
-- Consistent revenue growth - to grow revenues in the range of
10% to 15% per annum, on average over the three years to 30 June
2022.
-- Maintaining the profitability of the Group - to continue to
achieve an earnings before interest, tax, depreciation and
amortisation (EBITDA) margin of at least 25%, also stated before
share based payment charges. We have changed the profitability
measure from a pre-tax profit margin to an EBITDA margin, so that
our profitability target does not deter investment in future
revenue and profit generating possibilities, which will impact
amortisation.
Progress in North America
In 2014, we explained to our shareholders that we had embarked
upon a United States regulatory approvals programme. To date we
have focussed upon our chlorine dioxide foam-based product Duo.
We have received approval for Duo from the EPA as an
intermediate level disinfectant.
We are preparing a submission to the FDA for Duo as a high-level
disinfectant. The intended use patterns will be for intra-cavity
ultrasound probes, nasendoscopes, and lastly certain ophthalmic
devices. If successful, this will position us in three of the
clinical areas in which we are most successful in other
geographical markets.
We have appointed Parker Laboratories as our contract
manufacturer for supply to each of these targeted clinical areas.
We have granted Parker marketing rights for Duo's use in ultrasound
where they are the market leader in the United States for
ultrasound conductive gels. In the ultrasound segment, the
contractual arrangement is royalty-based.
Focus
We have set objectives which are visible to everyone inside the
Group, and we make them equally visible to all other
stakeholders.
We look forward to meeting these objectives and continuing the
progress of the Group. We look to the future with confidence as
Tristel continues to grow and expand its geographical reach.
Paul Swinney
Chief Executive Officer
15 October 2019
Tristel plc
Consolidated Income Statement
For the year ended 30 June 2019
Unaudited
2019 2018
GBP 000 GBP 000
Revenue 26,169 22,220
Cost of sales (5,504) (5,040)
--------- --------
Gross profit 20,665 17,180
Share based payments (852) (665)
Depreciation, amortisation and impairments (1,537) (1,564)
Administrative expenses, excluding share
based payments, depreciation, amortisation
and impairment (13,579) (10,971)
--------- --------
Operating profit 4,697 3,980
--------- --------
Finance income 5 2
Finance costs (1) -
--------- --------
Net finance income 4 2
Share of profit of equity accounted investees 45 24
--------- --------
Profit before tax 4,746 4,006
Income tax expense (715) (734)
--------- --------
Profit for the year 4,031 3,272
========= ========
Profit/(loss) attributable to:
Owners of the company 4,031 3,272
========= ========
Earnings per share from total and continuing
operations attributable to equity holders
of the parent
2019 2018
Basic - pence 9.14 7.62
Diluted - pence 8.86 7.33
The above results were derived from continuing operations.
Earnings before interest, tax, depreciation and amortisation for
the year ended 30 June 2019 were GBP6,279,000 (2018 GBP5,568,000).
(Note 4.)
Tristel plc
Consolidated Statement of Comprehensive Income
For the year ended 30 June 2019
Unaudited
2019 2018
GBP 000 GBP 000
Profit for the year 4,031 3,272
Items that may be reclassified subsequently
to profit or loss
Foreign currency translation gains/(losses) 149 (112)
--------- --------
Total comprehensive income for the year 4,180 3,160
========= ========
Total comprehensive income attributable to:
Owners of the company 4,180 3,160
========= ========
Tristel plc
Consolidated Balance Sheet
As at 30 June 2019
Unaudited
30 June 30 June
2019 2018
GBP 000 GBP 000
Assets
Non-current assets
Property, plant and equipment 1,466 1,328
Goodwill 4,146 998
Intangible assets 8,803 5,954
Investments 807 589
Investments accounted for using the equity
method 65 46
Deferred tax assets 709 399
--------- --------
15,996 9,314
--------- --------
Current assets
Inventories 2,957 2,279
Trade and other receivables 5,370 4,286
Cash and cash equivalents 4,170 6,661
--------- --------
12,497 13,226
--------- --------
Total assets 28,493 22,540
========= ========
Equity and liabilities
Equity
Share capital 446 432
Share premium 11,427 11,058
Foreign currency translation reserve 83 (66)
Merger reserve 2,205 478
Retained earnings 9,191 6,518
--------- --------
Equity attributable to owners of the company 23,352 18,420
Non-controlling interests 7 7
--------- --------
Total equity 23,359 18,427
--------- --------
Non-current liabilities
Deferred tax liabilities 756 205
Current liabilities
Trade and other payables 3,539 3,201
Income tax liability 839 707
--------- --------
4,378 3,908
--------- --------
Total liabilities 5,134 4,113
--------- --------
Total equity and liabilities 28,493 22,540
========= ========
EA Dixon
Director
Tristel plc
Consolidated Statement of Changes in Equity (Unaudited)
For the year ended 30 June 2019
Foreign Non-
Share Share currency Merger Retained controlling Total
capital premium translation reserve earnings Total interests equity
GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
At 1 July 2018 432 11,058 (66) 478 6,518 18,420 7 18,427
Profit for the year - - - - 4,031 4,031 - 4,031
Exchange difference
on translation
of foreign
operations - - 149 - - 149 - 149
----------- ----------- ----------- ---------- --------- -------- ----------- -----------
Total comprehensive
income - - 149 - 4,031 4,180 - 4,180
Dividends - - - - (2,210) (2,210) - (2,210)
New share capital
subscribed 7 369 - - - 376 - 376
Share based payment
transactions - - - - 852 852 - 852
Acquisition of
subsidiaries,
increase/(decrease)
in equity 7 - - 1,727 - 1,734 - 1,734
----------- ----------- ----------- ---------- --------- -------- ----------- -----------
At 30 June 2019 446 11,427 83 2,205 9,191 23,352 7 23,359
=========== =========== =========== ========== ========= ======== =========== ===========
Foreign Non-
Share Share currency Merger Retained controlling Total
capital premium translation reserve earnings Total interests equity
GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000 GBP 000
At 1 July 2017 427 10,705 46 478 4,399 16,055 7 16,062
Profit for the year - - - - 3,272 3,272 - 3,272
Exchange difference
on translation
of foreign
operations - - (112) - - (112) - (112)
----------- ----------- ----------- ---------- --------- -------- ----------- -----------
Total comprehensive
income - - (112) - 3,272 3,160 - 3,160
Dividends - - - - (1,818) (1,818) - (1,818)
New share capital
subscribed 5 353 - - - 358 - 358
Share based payment
transactions - - - - 665 665 - 665
----------- ----------- ----------- ---------- --------- -------- ----------- -----------
At 30 June 2018 432 11,058 (66) 478 6,518 18,420 7 18,427
=========== =========== =========== ========== ========= ======== =========== ===========
Tristel plc
Consolidated Statement of Cash Flows
For the year ended 30 June 2019
Unaudited
2019 2018
GBP'000 GBP'000
Cash flows from operating activities
Profit before tax 4,746 4,006
Adjustments to cash flows from non-cash
items
Depreciation of plant, property &
equipment 584 548
Amortisation of intangible asset 886 950
Impairment of intangible asset 67 67
Share based payments - IFRS 2 852 665
Gain on fair value of investment (98) -
Loss/(profit) on disposal of property,
plant and equipment 21 (17)
Unrealised profit/(loss) in foreign
exchange 72 (78)
Loss/(profit) on disposal of intangible
asset 12 -
Finance income (5) (2)
--------- -------
7,137 6,139
Working capital adjustments
(Increase)/decrease in inventories (415) 13
Increase in trade and other receivables (414) (587)
(Decrease)/increase in trade and other
payables 49 54
Corporation tax paid (871) (1,124)
--------- -------
Net cash flow from operating activities 5,486 4,495
--------- -------
Cash flows from investing activities
Interest received 5 2
Purchase of intangible assets (669) (997)
Purchase of investment in Ecomed (4,706) -
Purchase of investment in MobileODT (120) -
Purchase of property plant and equipment (678) (516)
Proceeds from sale of property plant
and equipment - 63
--------- -------
Net cash used in investing activities (6,168) (1,448)
--------- -------
Cash flows from financing activities
Share issues 383 358
Dividends paid (2,210) (1,818)
--------- -------
Net cash used in financing activities (1,827) (1,460)
--------- -------
Net (decrease)/increase in cash and
cash equivalents (2,509) 1,587
Cash and cash equivalents at the beginning
of the period 6,661 5,088
Exchange differences on cash and cash
equivalents 18 (14)
--------- -------
Cash and cash equivalents at the end
of the period 4,170 6,661
========= =======
1 Accounting policies
Basis of accounting
These financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by
the European Union (EU).
There have been no new financial reporting standards effective
for the year which have impacted the accounting policies stated
below. Tristel plc, the Group's ultimate parent company, is a
limited liability company incorporated and domiciled in the United
Kingdom.
Basis of consolidation
The Group financial statements consolidate those of the Company
and all of its subsidiary undertakings drawn up to 30 June 2019.
Subsidiaries are entities over which the Group has rights or is
exposed to variable returns from its involvement with the investee
and has the power to affect those returns by controlling the
financial and operating policies so as to obtain benefits from its
activities. The Group obtains and exercises control through voting
rights.
Unrealised gains on transactions between the Group and its
subsidiaries are eliminated. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of the
asset transferred. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure
consistency with the accounting policies adopted by the Group.
Acquisitions of subsidiaries are dealt with by the acquisition
method. The acquisition method involves the recognition at fair
value of all identifiable assets and liabilities, including
contingent liabilities of the subsidiary, at the acquisition date,
regardless of whether or not they were recorded in the financial
statements of the subsidiary prior to acquisition. These fair
values are also used as the basis for subsequent measurement in
accordance with the Group accounting policies. Goodwill is stated
after separating out identifiable intangible assets. Goodwill
represents the excess of the aggregate of the consideration
transferred and the amount of non-controlling interest over the
fair value of the Group's share of the identifiable net assets of
the acquired subsidiary at the date of acquisition.
Non-controlling interests, presented as part of equity,
represent a proportion of a subsidiary's profit or loss and net
assets that is not held by the Group. The Group attributes total
comprehensive income or loss of subsidiaries between the assets of
the parent and the non-controlling interests based on their
respective ownership interests.
Audit exemption
The following subsidiaries are exempt from the requirements of
the UK Companies Act 2006 relating to the audit of individual
accounts by virtue of s479A of the Act :
-- Tristel International Limited - Registered number
07874262
-- Scorcher Idea Limited - Registered number 04602679
Changes in accounting policy
EU adopted IFRSs not yet applied
As of 30 June 2019, the following Standards and Interpretations
are in issue but not yet effective and have not been adopted early
by the Group:
-- IFRS 16 Leases (effective 1 January 2019)
-- IFRS 17 Insurance contracts (effective 1 January 2021)
The Directors anticipate that the adoption of IFRS 17 in future
periods will have no material effect on the financial statements of
the Group.
IFRS 16
IFRS 16 - Leases was issued in January 2016 and will be adopted
by the Group effective 1 July 2019. The standard provides a single
lease accounting model, requiring lessees to recognise assets and
liabilities for all operating leases unless the term is 12 months
or less or the leased asset is of a low value. As at the reporting
date, the group has non-cancellable operating lease commitments of
GBP4.8m. Of these commitments, the Group expects to recognise right
of use assets of approximately GBP3.1m on 1 July 2019 and lease
liabilities of GBP3.3m (after adjustments for prepayments and
accrued lease payments recognised as at 30 June 2019). The modified
retrospective transition approach will be applied with the right of
use assets being measured as if IFRS 16 had always been applied
using the transition discount rate, subsequently an adjustment to
equity of GBP0.2m is expected as at 1 July 2019. Comparative
results will not require restatement.
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 2018 have had a material effect on
the financial statements.
2 Publication non-statutory accounts
The financial information set out above does not constitute the
company's statutory accounts for the years ended 30 June 2019 or
2018. The financial information for 2018 is derived from the
statutory accounts for 2018 which have been delivered to the
registrar of companies. The auditor has reported on the 2018
accounts; their report was (i) unqualified, (ii) did not include a
reference to any matters to which the auditor drew attention by way
of emphasis without qualifying their report and (iii) did not
contain a statement under section 498 (2) or (3) of the Companies
Act 2006. The statutory accounts for 2019 will be finalised on the
basis of the financial information presented by the directors in
this preliminary announcement and will be delivered to the
registrar of companies in due course.
The Board of Tristel plc approved the release of this unaudited
Preliminary Announcement on 15 October 2019.
3 Segmental Analysis
Management considers the Company's revenue lines to be split
into three operating segments, which span the different Group
entities. The operating segments consider the nature of the product
sold, the nature of production, the class of customer and the
method of distribution. The Company's operating segments are
identified initially from the information which is reported to the
chief operating decision maker.
The first segment concerns the manufacture and sale of infection
control and hygiene products that includes the Company's chlorine
dioxide chemistry, and are used primarily for infection control in
hospitals. This segment generates approximately 92% of Company
revenues (2018: 90%).
The second segment which constitutes 3% (2018: 4%) of the
business activity, relates to the manufacture and sale of
disinfection and cleaning products, principally into veterinary and
animal welfare sectors ("Animal healthcare"). During prior years
all sales for this segment were made to a distributor who supplied
the end user.
The third segment addresses the pharmaceutical and personal care
product manufacturing industries ("Contamination control"), and has
generated 5% (2018: 6%) 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
gross profit, and strategic decisions are made on the basis of
revenue and gross profit generating from each segment.
The Company's centrally incurred administrative expenses and
operating income, and assets and liabilities, cannot be allocated
to individual segments.
Un-audited Contamination
Human Healthcare Animal Healthcare Control Total 2019
GBP000 GBP000 GBP000 GBP000
Revenue
From external
customers 23,946 808 1,415 26,169
Cost of material 4,736 275 493 5,504
Segment gross
profit 19,210 533 922 20,665
Gross margin 80% 66% 65% 79%
Centrally incurred income and expenses
not attributable to individual segments:
Depreciation and amortisation of non-financial
assets 1,537
Other administrative expenses 13,579
Share-based payments 852
Segment operating profit 4,697
Segment operating profit can be reconciled
to Group profit before tax as follows:
Finance income 4
Results from equity accounted associate 45
Total profit before tax 4,746
Contamination
Human Healthcare Animal Healthcare Control Total 2018
GBP000 GBP000 GBP000 GBP000
Revenue
From external
customers 19,869 919 1,432 22,220
Cost of material 4,161 369 510 5,040
Segment gross
profit 15,708 550 922 17,180
Gross margin 79% 60% 64% 77%
Centrally incurred income and expenses
not attributable to individual segments:
Depreciation and amortisation of non-financial
assets 1,564
Other administrative expenses 10,971
Share based payments 665
Segment operating profit 3,980
Segment operating profit can be reconciled
to Group profit before tax as follows:
Finance income 2
Results from equity accounted associate 24
Total profit before tax 4,006
The Group's revenues from external customers are divided into
the following geographical areas:
Unaudited Contamination
Human Healthcare Animal Healthcare Control Total 2019
GBP000 GBP000 GBP000 GBP000
United Kingdom 10,024 567 1,205 11,796
Europe 8,184 29 159 8,372
Rest of World 5,738 212 51 6,001
Total Revenues 23,946 808 1,415 26,169
Contamination
Human Healthcare Animal Healthcare Control Total 2018
GBP000 GBP000 GBP000 GBP000
United Kingdom 8,912 665 1,258 10,835
Germany 3,989 - 34 4,023
Rest of World 6,973 254 135 7,362
Total Revenues 19,874 919 1,427 22,220
4 Income tax
Tax charged in the income statement Unaudited
2019 2018
GBP'000 GBP'000
Current taxation
Overseas tax 798 850
UK corporation tax 221 255
UK corporation tax adjustment to prior periods (16) (2)
------------- ----------
1,003 1,103
Deferred tax
Arising from origination and reversal of temporary
differences (322) (369)
UK deferred tax adjustment to prior periods (20) -
Tax rate effect 54 -
------------- ----------
Tax expense in the income statement 715 734
============= ==========
The tax on profit before tax for the year is lower than the
standard rate of corporation tax in the UK (2018 - lower than the
standard rate of corporation tax in the UK) of 19% (2018 -
19%).
The differences are reconciled below:
Unaudited
2019 2018
GBP 000 GBP 000
Profit before tax 4,746 4,006
========= ==================
Corporation tax at standard rate 902 761
Adjustment in respect of prior years (36) (2)
Increase from effect of capital allowances
depreciation 10 -
Expenses not deductible for tax purposes 166 24
Other temporary differences (175) 131
(Decrease) from effect of patent box (226) (163)
Tax rate differences 225 115
Enhanced relief on qualifying scientific research
expenditure (151) (132)
--------- ------------------
Total tax charge 715 734
========= ==================
5 Dividends
Amounts recognised as distributions to Unaudited
equity holders in the year:
2019 2018
GBP000 GBP000
Ordinary shares of 1p each
Final dividend for the year ended 30
June 2018 of 2.98p (2017: 2.63p) per
share 1,303 1,130
Interim dividend for the year ended 30
June 2019 of 2.04p (2018: 1.60p) per
share 907 688
--------- -------
2,210 1,818
--------- -------
Proposed final dividend for the year
ended 30 June 2019 of 3.50p (2018: 2.98p)
per share 1,560 1,287
Company
Dividend received from subsidiaries (2,793) (1,465)
========= =======
The proposed final dividend is subject to approval by
shareholders at the forthcoming Annual General Meeting and has not
been included as a liability in the financial statements.
6 Earnings per share
The calculations of earnings per share Unaudited
are based on the following profits and
number of shares:
2019 2018
GBP000 GBP000
Retained profit for the financial year
attributable to equity holders of the
parent 4,031 3,272
----------- -------
Shares Shares
'000 '000
Number Number
Weighted average number of ordinary shares
for the purpose of basic earnings per
share 44,086 42,956
Share options 1,399 1,688
----------- -------
45,485 44,644
----------- -------
Earnings per ordinary share
Basic 9.14p 7.62p
Diluted 8.86p 7.33p
A total of 320,000 options of ordinary shares were anti-dilutive
at 30 June 2019 (430,000 at 30 June 2018). Contingent options would
be dilutive but are excluded. The Group also presents an adjusted
basic earnings per share figure which excludes the share-based
payments charge:
Unaudited
2019 2018
GBP'000 GBP'000
Retained profit for the financial year
attributable to equity holders of the
parent 4,031 3,272
--------- -------
Adjustments:
Share based payments 852 665
--------- -------
Net adjustments 852 665
Adjusted earnings 4,883 3,937
--------- -------
Adjusted basic earnings per ordinary
share 11.08p 9.16p
--------- -------
7 Share capital
Allotted, called up and fully paid shares
Unaudited
30 June 30 June
2019 2018
No. 000 GBP 000 No. 000 GBP 000
Ordinary of GBP0.01 each 44,563 445.63 43,192 431.92
Number GBP'000
30 June 2018 43,192,133 432
Issued during the year 661,415 7
Issued on acquisition 709,775 7
---------- -------
30 June 2019 44,563,323 446
========== =======
661,415 ordinary shares of 1 pence each, related to the exercise
of 661,415 share options issued during the year (2018: 442,716) in
addition to 709,775 ordinary shares of 1 pence each issued on
acquisition (2018: nil). The weighted average exercise price was
81.84 pence (2018: 80.80p).
8 Annual report
Printed copies of the annual report and financial statements,
along with the notice of AGM, will be sent to shareholders prior to
the Company's Annual General Meeting taking place on 17 December
2019 in Snailwell, Newmarket.
9 Post balance sheet event
The Company acquired 80% of the share capital of Tristel Italia srl (TI) from
Michael Donaldson for GBP595,000 in July 2019. Tristel previously owned 20%
of TI since 2007 when it supported Donaldson to introduce Tristel's medical
device disinfectants into Italy.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR LFFEIISLELIA
(END) Dow Jones Newswires
October 16, 2019 02:00 ET (06:00 GMT)
Grafico Azioni Tristel (LSE:TSTL)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Tristel (LSE:TSTL)
Storico
Da Mar 2023 a Mar 2024