Strong growth, high profitability Tristel has this morning released interims for the period to 31st December. Revenue for the period was £17.5m (+16% YoY: volume +12%, price +4%) with adjusted EBITDA of £4.6m (+28% YoY), representing an EBITDA margin of 26%. EPS (including share-based payments) was 3.14p, and an interim dividend of 2.62p (flat YoY) has been proposed. The Tristel range of products (for high-end disinfection of medical devices, including ultrasound probes) represented 84% of sales, Cache (surface disinfection products) 10%, Other 6%. North America progress on track Tristel Duo OPH (Ophthalmology) was launched in Canada over the period, and Duo ULT (Ultrasound) was launched in the US under the existing EPA approval (for external & surface use). An FDA approval decision for Duo ULT remains expected in June 2023. Our view We expect continued strong growth over the forecast period and beyond, supported by a well-documented post-Covid backlog of diagnostic procedures, normalised hospital procurement, expanding sales in North America, and market share gain by Cache, over time, at the expense of pre-wetted (plastic) wipes across the Group’s main markets. We expect Duo ULT to become the first FDA-approved, topical product for high-level medical device disinfection. Compared with its principal competitor, Trophon (an automated hydrogen peroxide mist system), Tristel Duo ULT offers both a faster turnaround time (through simplified processing and a shorter microbial kill time) and potentially reduced device damage. We are not making any changes to our estimates at this time. We reiterate Buy, target price 396p.