LONDON (Alliance News) - Immunodiagnostic Systems Holdings PLC Monday warned that its full-year revenue will be below current expectations, after the low level of placements and an acceleration in the decline in manual revenue it previously warned about continued and it was hit by adverse currency fluctuations.
It added that it was considering a number of opportunities to streamline and simplify its businesses as part of its efforts to control costs and drive efficiencies. It said it will give more details on this when its releases its interim results on October 14.
In a statement, the maker of diagnostic testing kits for clinical and research markets said it expects its revenue for the year to March 31, 2015 to be between GBP45 million and GBP47 million, which would be down on the GBP52.3 million revenue it reported for its last financial year. It said adverse currency moves had wiped about GBP1.5 million off its revenue compared with the last year.
"These unfavourable short-term trends are continuing and specifically we have not seen, nor do we anticipate in the near term, our placement rates to pick up materially," the company said.
"We continue to work on a number of significant commercial opportunities that would provide upside to the revenue range indicated above. However, due to the uncertainty around success and/or timing, the impact of these opportunities has not been factored into our current expectations," it added.
In June, Immunodiagnostic Systems set out a five-year strategy plan after reviewing its business. 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.
It said Monday that it is sticking with the plan. It said it was making good progress in expanding its presence into Brazil and China, and it is focused on improving its competitiveness.
"We are committed to the delivery of our strategic plan and believe that we have put in place a number of the key building blocks in order to execute it. We can accelerate our strategy through the acquisition of complementary diagnostic groups and intellectual property which will introduce new growth areas and ultimately return IDS to long-term sustainable growth," Chief Executive Patrik Dahlen said in a statement.
The company's shares were down 15.9% at 395.10 pence early Monday, the second-biggest decline on the AIM All-Share index.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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