Immunodiagnostic ups dividend and unveils bullish five-year plan

Final results from Immunodiagnostic Systems (IDS) were broadly in line with expectations, as the company outlined a new five-year strategy to double revenues by increasing the installed base of its IDS-iSYS instruments and its menu of tests. The AIM-listed company confirmed, as per its update in April, that revenue returned to growth, rising 5.0% to £52.3m and helping adjusted earnings before interest and tax rise 3.1% to £10.1m. Adjusted basic earnings were down from 24p from 27.5p. Strong cash generation has led to the dividend being increased ahead of expectations to 8.5p for the full year, from 3.0p last year, and a revised dividend policy of 25-30% ratio on a discretionary rather than progressive basis.Chief Executive Patrik Dahlen said the new strategy for IDS will allow it to "fully unlock the potential in the business and offers a real opportunity to deliver significant and sustainable shareholder value creation in the medium term and beyond". Dahlen and his team aim to increase the installed base of IDS-iSYS instruments by more than 1,000 and increase the automated menu by over 80 assays.The recently strengthened management team plans more bolt-on acquisitions of assays, increased investment in its manufacturing and research and development focused on endocrine diagnostics, growing its panel through partnerships, and pushing for greater market penetration in fast-growing market segments in Brazil and China.Broker N+1Singer said: "None of these are a surprise: doubling of revenues is ambitious but if the Mark II is really good and the panels are good then this is possibly doable."Shares in IDS were up 2.5p, or 0.47%, to 537.50p by 11:30 on Tuesday.OH