LONDON (Alliance News) - Immunodiagnostic Systems Holdings PLC Tuesday posted a decline in pretax profit in what it called "not a successful year", mostly due to a decline in revenue, and reiterated expectations for a further fall in revenue in its current year.
Immunodiagnostic produces manual and automated diagnostic testing kits and instruments for the clinical and research markets.
The company posted a pretax profit of GBP4.1 million for the year to end-March, halving from GBP8.3 million a year before, as revenue fell to GBP45.4 million from GBP52.3 million, hit by its instruments being returned and continued pricing pressure on its 25OH vitamin D test.
The total number of instruments placed, directly or through distributors, and sold to original equipment manufacturing partners was 63, down from 92 a year before. In the US and Europe, 40 instruments were returned in the year, compared to 25 the year before.
Average revenue per direct instrument fell to GBP55,000 per year, compared to GBP71,000 a year before, due to a higher number of 250H vitamin D only instruments being returned in the period.
Manual test revenue fell to GBP16.4 million from GBP20.8 million, as increased availability of 25OH vitamin D tests on automated platforms led to customers switching away from manual kits.
The company continues to expect revenue to fall in its current year to between GBP39 million and GBP42 million, and said it hopes it will be able to show an improvement in momentum between the first half and second half of the year.
Immunodiagnostic proposed a dividend of 3.0 pence, down from 8.5 pence a year before. At its upcoming annual general meeting, the company will put forward resolutions that would allow it to buy back up to 2.25 million shares in the company.
"We are committed to implementing our strategic priorities, namely; increased automated assay menu; increased net new placements; cost management and mergers and acquisitions. The current financial year will be one of transition for IDS as we look to build a solid sustainable platform for the future," said newly appointed Chief Executive Officer Patricio Lacalle in a statement.
Shares in Immunodiagnostic are untraded Tuesday morning, it last closed at 287.00 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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