13th Oct 2014 09:23
LONDON (Alliance News) - Biotechnology company Tristel PLC Monday said it swung to a profit in its last financial year, prompting a significant increase in its dividend for the year, as the group took on the full benefits of its recent restructuring.
The company, which makes infection protection, contamination control and hygiene products, posted a pretax profit of GBP1.8 million for the year ended June 30, compared with a pretax loss of GBP1.8 million last year, when it booked GBP2.2 million in restructuring costs from a 15% reduction in headcount and a restructuring of its operation in China.
Alongside the absence of exceptional costs, the company's profit in the recent year was driven by a near 28% increase in revenue to GBP13.5 million, up from GBP10.6 million last year, boosted by a 32% increase in international sales, which it said now account for a third of its total revenue.
"The results for the year reflect the significant progress Tristel has made since our restructuring began in 2012. Group profits have returned to the levels reported in 2011 which marked the start of the diversification and geographical expansion that was necessary to replace the declining sales of the group's legacy endoscopy products," said Chief Executive Paul Swinney in a statement.
Tristel raised its dividend per share for the full year to 1.62 pence, up from only 0.4 pence a year earlier. The company said it remains optimistic for the "immediate future".
"We believe that our company is very well placed to take advantage of the current trends in the global disinfection market. However, we are realistic in our assessment of Tristel's market reach and recognise that our ambitions must be tempered by our size and that we must be cautious in the way in which we deploy our assets to meet the potential opportunities. We also recognise that in order for Tristel to build upon its position we will need to invest in new products and that innovation must remain at the core of our business," it said.
The company said it held gross cash of GBP2.77 million at year end, compared with only GBP0.6 million a the end of last year.
Tristel shares were down 1.3% Monday morning at 73.50 pence, near the top of the stock's 52-week range of 23.50p to 90.50p.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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