(Alliance News) - Diagnostic testing kits and instruments maker Immunodiagnostic Systems Holdings PLC on Wednesday warned results for the first quarter of financial 2021 will be significantly impacted by reduced "laboratory testing volumes", as it posted nearly a four-fold jump in financial 2020 profit.
The Tyne & Wear, England-headquartered company expects to see a significant year-on-year reduction in revenue for the first quarter of financial 2021 due to a reduction in routine medical testing in hospitals and laboratories across the world, whose focus has been on Covid-19 treatment and testing.
Chief Executive Jaap Stuut said: "Our results in Q1 of FY2021 will be significantly impacted by reduced laboratory testing volumes, however, once the pandemic subsides, we believe we are in a strong position to continue our revenue growth. Additionally, we have an opportunity to commercialise our range of automated and manual SARS-CoV-2 antibody testing kits, which we plan to launch during June 2020."
For the year ended March 31, Immunodiagnostic Systems recorded pretax profit of GBP3.3 million, many times higher than GBP840,000 profit a year ago. Adjusted earnings before interest, tax, depreciation and amortisation increased 26% to GBP6.1 million.
The profit jump was attributed to revenue growth and a sharp rise in finance income to GBP2.1 million from GBP495,000. The rise in finance income was mainly due to foreign exchange gains from the liquidation of immunodiagnostic Systems Nordic A/S.
Annual revenue increased 2.2% to GBP39.3 million, in line with the company's expectations. Automated business revenue rose 3% to GBP23.4 million, Manual business revenue dropped 8% to GBP11.4 million and Technology business revenue jumped 29% to GBP4.6 million.
Margins improved to 44% from 43% due to cost efficiency efforts, which were partially offset by an adverse sales mix.
Immunodiagnostic Systems said it remains well positioned to weather the storm of the Covid-19 pandemic and, in the short term, will focus on commercialising opportunities arising from increased levels of SARS-CoV2 antibody testing using a range of automated and manual test kits which are slated to launch in the first-quarter of financial 2021.
By Tapan Panchal; tapanpanchal@alliancenews.com
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