LONDON (Alliance News) - Immunodiagnostic Systems Holdings PLC raised its total dividend and outlined a five-year plan to double revenues from current levels, as it saw profit hit by restructuring costs in the year to end-March.
The company proposed a dividend of 8.5 pence, up from 3.0 pence, which the company said reflects a new dividend policy. Immunodiagnostic said it now intends to pay annual dividends of 25% to 30% of net income, as long as its financial position allows for it.
Immunodiagnostic posted a pretax profit of GBP8.3 million, down from GBP10.0 million, despite seeing revenue rise to GBP52.3 million from GBP49.8 million, due to higher distribution costs and exceptional charges of GBP1.9 million.
Exceptional costs included GBP1.2 million in restructuring costs - as it made a number of senior management changes and restructured and relocated it US sales office - GBP244,000 in strategic review costs, and GBP139,000 in legal costs.
The company undertook a review of its business over the last six months, and following this review has set out a five-year strategy. The strategy aims to double revenues from current levels, increase the offering of assays for use on its IDS-iSYS testing technology to over 80 assays, and increase the installed based of its IDS-iSYS instruments by over 1,000.
Immunodiagnostic said is on track for the development of a new version of the technology in the first half of 2015.
It placed 35 IDS-iSYS systems directly during the year, compared to 88 in the previous year. Although this was disappointing, it said, it had seen an improved performance in placing during the fourth quarter compared to the first three, particularly in the US after it restructured its sales operations in the region.
The number of instruments placed through original equipment manufacturer partners was 92, compared to 138 in the previous year, Immunodiagnostic said. Average revenue per instrument was GBP71,000 per year.
The company said its trading in the first two months of the current year was in line with expectations, although it noted that its revenue performance during the year will be dependant on its number of new placements, the launch of its new 1,25 vitamin D automated assay, and the registration and launch of its products in China and Brazil.
Immunodiagnostic said it was confident that its strategic plan would help it to "fully unlock" the potential of its business, and create an opportunity to deliver "significant and sustainable shareholder value creation."
Shares in Immunodiagnostic were trading up 0.1% at 535.25 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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