25 Jul 2019 07:00
AGM Statement
Immunodiagnostic Systems Holdings PLC
25 July 2019
Immunodiagnostic Systems Holdings plcAGM Statement
Immunodiagnostic Systems Holdings PLC ("IDS" or "the Group"), a specialist producer of manual and automated diagnostic testing kits and instruments for the clinical and research markets, will today hold its Annual General Meeting at 2pm at its registered office at 10 Didcot Way, Boldon Business Park, Boldon, Tyne & Wear, NE35 9PD. At the meeting the Chairman, Dr. Burkhard Wittek, will make the following statement to shareholders:
"Unaudited group revenues for Q1 FY2020 are £9.1m, £0.2m lower than the same period in FY2019. Foreign exchange movements versus Q1 FY2019 are minimal, thus on a like for like basis ("LFL") revenues declined by 2%.
Revenue Performance in Q1 FY2020
The table below summarizes the unaudited revenue performance of the core segments of our business in GBP and changes on a LFL basis:
Revenue | LFL Change | ||
Q1 FY2020 | Q1 FY2020 v Q1 FY2019 | FY2019 v FY2018 | |
Group | £9.1m | -2% | 1% |
Automated business | £5.0m | -7% | -1% |
25-OH Vitamin D | £1.1m | -23% | -13% |
Speciality IDS | £3.5m | -2% | 1% |
Speciality partners | £0.4m | 53% | 31% |
Instrument sales and service | £0.4m | -1% | 2% |
Manual business | £2.9m | -2% | -1% |
Technology business | £1.1m | 27% | 32% |
Automated business
Automated revenue declined 7% versus Q1 FY2019, driven by lower 25-OH Vitamin D revenues which declined by 23% versus Q1 FY2019. This decline is mainly a result of the high level of instrument returns in the US market during FY2019, as discussed in our 2019 Annual Report and Accounts.
Speciality IDS assay revenue declined 2% versus Q1 FY2019. We believe the change can be attributed to ordering patterns of a few large customers and is not therefore structural in nature. Declines in our US and Brazilian businesses were offset by growth in our European and Distribution markets. We anticipate the performance of this business stream will improve as we move through the year.
Speciality Partner assay revenue, which comprises mainly our Autoimmune panel, grew 53% versus Q1 FY2019 following last year's regulatory approval of our Autoimmune product range in key markets. IDS is gradually growing in prominence in the Autoimmunity market and we are becoming more successful in convincing existing and potential customers of the benefits of the combined IDS Endocrinology and Autoimmune panel offering.
During the quarter we placed or sold 9 machines (Q1 FY2019: 8) in our direct markets, and 10 (Q1 FY2019: 8) via our distributors bringing the total to 19 (Q1 FY2019: 16). Returns in the quarter in our direct sales territories were 9 (Q1 FY2019: 8) meaning that in our direct sales markets the number of machines remained constant (Q1 FY2019: net placements of nil). A large number of these returns related to the loss of one specific customer contract.
The average number of assays run on an instrument continues to increase, reaching 5.3 in the quarter (Q1 FY2019: 4.8), with the growth being driven by successful upselling of the Autoimmune assay range.
Manual business
The manual business declined by 2%, a comparable trajectory to the prior year. As noted previously, this business will be impacted by the loss of some low margin revenue related to the distribution of third-party products, however despite this we target delivering a similar full year revenue result as we achieved in FY2019.
Technology business
Growth in the technology business was 27% LFL versus Q1 FY2019. The growth was driven mainly by sales of consumables and spare parts to technology partners.
Other KPIs
Unaudited closing cash and cash equivalents were £28.4m as at 30 June 2019 (31 March 2019: £27.7m). In the period there were no share buybacks.
At 30 June 2019 the Group employed 276 people on a full-time employment basis (31 March 2019: 283 people).
Outlook
Q1 FY2020 was relatively soft from a revenue perspective. However, placement numbers remained strong versus Q1 FY2019, and we are optimistic this trend will continue and lead to improving revenue numbers in our automated business for the remainder of the financial year. We are encouraged by the growth in our Autoimmune business, and our guidance remains unchanged to deliver LFL full year revenue growth versus FY2019."
For further information:
Immunodiagnostic Systems Holdings plc Tel : +44 (0)191 5190660
Jaap Stuut, Chief Executive Officer
Paul Martin, Group Finance Director
Peel Hunt LLP Tel : +44 (0)207 418 8900
James Steel
Oliver Jackson