27th Nov 2013 09:36
LONDON (Alliance News) - Immunodiagnostic Systems Holdings PLC Wednesday reiterated its full-year outlook for modest revenue growth and pretax profit in line with the previous year.
The AIM-listed company said it saw rising revenues in the half year ended September 30. However, pretax profit took a hit as it restructured its management team and wrote-off costs relating to an abandoned project.
Immunodiagnostic makes and distributes medical diagnostic products, as well as working on research and development projects.
Pretax profit was GBP4.1 million in the recent six months, down from GBP6.3 million. Profit was hurt by exceptional costs of GBP1.1 million, including restructuring costs as it streamlined its executive management team, and write-offs for a project that it didn't identify that it abandoned during the development stage.
Revenue increased 13% to GBP26.9 million from GBP23.8 million in the previous year, driven by growth in revenues from its automated analyser system IDS-iSYS, which offset declines in revenues from its manual-tests range.
The company said it had made good progress on its strategy of increasing its portfolio, its geographical foot print, and developing a next generation of its IDS-iSYS syem in the first half of the year.
IDS-iSYS is used to detect particular substances in samples to aid diagnosis or monitor a disease. The company has developed a next generation version of the instrument that it expects to launch commercially in the first half of 2015.
During the period Immunodiagnostic launched a subsidiary in Brazil and selected distribution partners in the Russian and Indian markets. The company said it is now prioritising South Korea and Japan, and has begun a review of potential distribution partners in those territories.
Immunodiagnostic said that although its newly appointed senior management team would help drive changes within the company needed to execute its current strategy, it believes that it needs to build a new long-term strategic plan. It said it expects to announce details of such a plan before the end of the financial year.
In October, Immunodiagnostic said it had appointed Jorge Cerda as operations director and Hans-Werner Griesser as technical director.
Shares in Immunodiagnostic Systems were trading up 4.5% at 527.50 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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