14th Oct 2013 08:32
LONDON (Alliance News) - Tristel PLC as it lowered its final dividend as it posted decreased revenues and widened pretax losses in the year ended June 30 after restructured to tackle declines in its legacy business.
The specialist hygiene products and contamination control company proposed a final dividend of 0.32 pence, bringing the total dividend for the year to 0.40 pence, down from 0.62 pence in the previous year.
The company posted revenues of GBP10.6 million, down from GBP10.9 million in the previous year. It saw a pretax loss of GBP1.8 million, widened from GBP583,000 in the previous year. The company attributed widened losses to non-cash exceptional charges of GBP2.2 million arising from restructuring in China and reviews of the company's IP portfolio.
The company carried out a re-structuring of its engineering function for around GBP119,583 as a provision against slow moving inventory and redundancy costs. Multi-channel endoscopy products, Tristel's legacy business, saw share declines which dominated the company's financial results. The company said that sales more than halved during 2013.
Restructuring during declines in the company's core product area had been difficult, Tristel said, but it was necessary for Tristel to succeed in a changing market environment.
Although the company had seen a poor performance in the first-half of the year, the second-half improved due to cost cutting measures and growth in Tristel's newer products such as its non and single-lumed instrument disinfectant products.
The company that it was cautiously optimistic for the coming year following short-term restructuring. "With all of our overseas operations cash flow positive and with an improved cost structure we believe we can manage the final stage of the decline in legacy products and drive our company to achieve the levels of growth and profitability that the board expects and our shareholders deserve," said Chairman Christopher Samler in a statement.
Shares in Tristel increased 12.9% at 27.10 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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