LONDON (Alliance News) - Immunodiagnostic Systems Holdings PLC on Tuesday forecast that its revenue in the second half will be "slightly below" its first half as medium-term trading conditions remain challenging and it reported a fall in pretax profit.
Immunodiagnostic supplies products for the clinical laboratory diagnostic market.
For the half year to end-September the company reported a pretax profit of GBP827,000, down from GBP2.8 million a year before, as revenue slipped to GBP19.4 million from GBP22.1 million.
Automated revenue, meaning revenue derived through its IDS-iSYS technology, fell to GBP9.0 million from GBP10.3 million, mostly as a result of a drop in revenue from its 250H vitamin D product due to continued price pressure and a number of 250H vitamin D only IDS-iSYS instruments. Revenue from other speciality tests fell 4.8% compared to the previous year as a result of a later launch of its 1,25 Vitamin D test than competing products.
The company said that its 1,25 Vitamin D product "has not fully met the expectations of customers, resulting in resulting in the loss of some market share. However we are working with existing customers to launch an improved version in the first quarter of 2016."
During the first half, the number of instruments Immunodiagnostic placed, either directly or through distributors, and sold to original equipment manufacturer partners was 1, compared to 15 a year before. Although it placed 9 machines in its direct territories, 19 machines were returned.
Immunodiagnostic said the last six months had been challenging, and underlined the company's need to execute on its strategic plan. It outlined "four pillars" of its strategic plan, which include broadening its automated test menu, increasing net placements of its instruments, expanding its geographical reach, and managing costs.
"We are about to change our approach in the market. Having been used to convenient sales inflow during the earlier days of 25 OH VitD, the business environment has toughened significantly. We will adjust to strong competition from the big 5 competitors by being the specialty partner for universities, reference laboratories and physician office laboratories," said Chief Executive Officer Patricio Lacalle in a statement.
Shares in Immunodiagnostic were down 17% at 225.00 pence Tuesday morning, one of the worst performers on AIM.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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