LONDON (Alliance News) - Immunodiagnostic Systems Holdings PLC on Wednesday reported a decline in profit in its most recent year, as royalty income was hit after a big customer slashed its spending with the company.
Immunodiagnostic Systems, which makes in-vitro testing kits, recorded pretax profit of GBP935,000 for its financial year ended March 31. This was a 21% reduction from GBP1.2 million in profit the year before, as revenue fell to GBP37.9 million from GBP40.0 million.
The company said the revenue decrease was the result of a reduction in royalty income after a major customer developed an in-house equivalent to Immunodiagnostic Systems' 25-OH Vitamin D technology. Revenue from the unnamed customer plunged to GBP200,000 from GBP2.6 million, taking total royalty income down 94% to GBP200,000 from GBP2.8 million.
Immunodiagnostic Systems proposed a 1.7 pence dividend, less than half its 4.0p dividend the previous year.
Chief Executive Officer Jaap Stuut said that the company had been "treading water" but he expected things to improve.
"I believe we have made good progress in both the restructuring of the commercial operations of the group...and whilst there is more work to be done, I look forward to returning the group to modest revenue growth in the next financial year," said Stuut.
Shares in Immunodiagnostic Systems Holdings were untraded on Wednesday at 250.00 pence.