Having embarked on an ambitious expansion programme last year, contamination and infection control products maker Tristel is now looking to cash in on its increased sales.
The company saw sales surge to £5.06m in the second half of 2011 from £4.57m in the corresponding period of 2010, with overseas sales doubling to £0.78m from £0.39m.
"The revenue growth achieved in the first half augurs well for the future," claimed Paul Swinney, Chief Executive Officer of Tristel.
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"Our UK hospital infection control business increased sales of instrument disinfectants by 23.2% in the areas that we focus upon today of ENT [ear, nose & throat], urology and cardiology. We managed to slow the pace of decline in sales in our legacy UK business that focused on digestive endoscopy," Swinney added.
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Administrative expenses shot up to £3.21m from £2.53m the year before, which was a major reason why profit before tax tumbled to £0.26m from £0.43m at the interim stage of 2011.
"We have now levelled off our investment in people and overhead and as we continue to grow sales in the areas we invested in last year we will see a significant improvement in profitability," predicted Swinney.
In the meantime, shareholders are having to swallow a cut in the interim dividend to 0.27p from 0.435p last year.
Basic earnings per share rose 47.3% to 1.37p from 0.93p the year before as a result of a research & development tax credit. The firm finished 2011 with £0.41m, which it says is adequate - in conjunction with its banking facilities - to carry out its growth plans.
"Much of the investment made last year has still to bear fruit in terms of sales contribution but the scale up of our capabilities, both in terms of plant and people, is now behind us. We can look forward to a resumption of the consistent profit growth that marked our first six years on the AIM market," pledged company Chairman, Francisco Soler.
The market seemed convinced, with the shares rising 2p to 38p in early trading.
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