Tristel Plc’s (LON:TSTL) shares are higher today after the maker of infection prevention products lifted its dividend 23% as it achieved higher first half results that exceeded its expectations.
The company – which provides its products to human health, contamination control and animal health – posted pre-tax profits and share based payments of £1.7mln in the six months to 31 December 2016, a 15% increase on the prior year’s £1.5mln.
Tristel said it met its targeted pre-tax profit margin of 17.5%.
Revenue rose 22% to £9.8mln from £8.0mln, beating the group’s targeted growth range of 10-15%. The growth was driven by international sales, which represented 43% of total sales and rose 45% to £4.2mln.
Results were also supported by sterling weakness following the Brexit vote last June and a profit contribution from the acquisition of Australian company Ashmed in August.
Its cash balance fell to £3.9mln at period-end from £4.3mln a year ago following the £1.1mln of the Ashmed, a surgical supplies distributor located in Melbourne.
Tristel raised its interim dividend to 1.40p from 1.14p.
“I believe the business is in good shape and shareholders can confidently look forward to their company's further progress and growth in the years ahead,” said chairman Francisco Soler.
Shares rose 9.81% to 164.72p in late morning trade.