29 February 2020
By Maynard Paton
Results summary for Tristel (TSTL):
- Bumper first-half figures showed very satisfactory double-digit growth following superb sales increases within the UK and various overseas markets.
- The underlying profit performance was complicated by undisclosed acquisition contributions, US regulatory costs, hefty option charges and cheeky bookkeeping.
- Following these results, the coronavirus outbreak has led to an emergency “special exemption” order from China and prompted “substantial” extra purchases by the NHS.
- The accounts remain in good shape with high margins, net cash and respectable cash generation.
- The valuation has become extremely punchy with an estimated underlying P/E of 43. I continue to hold.