Strong results in-line with 19th December trading update Tristel has this morning released H1 results for the period to 31st December. Revenue for the period was £20.9m vs. £17.5m in H1’23 (+20), in line with the projections in the trading update on 19th December, with growth across all major geographical markets. Gross margin improved to 84% vs. 81% in H1’23 (and FY’23), with adjusted EBITDA of £5.4m vs. £4.6m (+18%). The Board is recommending a doubling of the interim dividend to 5.24p vs. 2.62p in both H1’23 and H1’22 In a separate announcement, the company has confirmed that its TANK system has received a positive recommendation following review under the EU MDR regime and UKCA, with launch expected before the end of the financial year. Increasing North America traction expected Tristel’s US partner, Parker Laboratories, completed its first production run of Tristel ULT in October. ULT is expected to gain increasing commercial traction in the US market through the remainder of the current financial year and beyond, as the first chlorine dioxide based (and first topically applied) disinfectant to gain FDA approval for high-end disinfection of ultrasound probes. Following a successful beta launch by Parker, an extensive marketing and trade show programme is planned for the rest of 2024. Our view A positive set of results with encouraging gross margin improvement ahead of expectations (FY’24e: 82%), with a positive outlook. We place our target price under review.