(Alliance News) - Immunodiagnostic Systems Holdings PLC on Thursday revenue declined in its first quarter, with weaker performances from its Automated and Manual businesses.
Shares in the diagnostic testing kit and instrument maker were up 7.7% at 210.00 pence in afternoon trade.
Speaking at the company's annual general meeting, Chair Burkhard Wittek said revenue for the first quarter ended June 30 is expected to total GBP9.1 million, down from GBP9.3 million the year before.
Automated business revenue was GBP5.0 million, down 2.1% from GBP5.4 million due to a 21% drop in 25-OH Vitamin D revenue to GBP1.1 million from GBP1.4 million, which the chair said was "mainly a result of the high level of instrument returns in the US market" in financial 2019. On a like-for-like basis, revenue was down 2%.
Manual business revenue was down at GBP2.9 million from GBP3.0 million. Manual revenue will be hurt by the absence of low margin revenue from third-party product distribution but is on track to reach similar levels to financial 2019 nonetheless.
The company's Technology business was the only one to show growth, rising 22% to GBP1.1 million from GBP900,000 due to improved sales to technology partners of spare parts and consumables.
Closing cash and cash equivalents on June 30 stood at GBP28.4 million versus GBP27.7 million the year before.
The chair said: "Q1 FY2020 was relatively soft from a revenue perspective. However, placement numbers remained strong versus Q1 FY2019, and we are optimistic this trend will continue and lead to improving revenue numbers in our automated business for the remainder of the financial year. We are encouraged by the growth in our Autoimmune business, and our guidance remains unchanged to deliver [like-for-like] full year revenue growth versus FY2019."