2 Jan 2009 07:00
Immunodiagnostic systems Holdings plc
Disposal of the Haematology Business
Immunodiagnostic Systems Holdings plc ("IDS" or the "Company"), a leader in niche bone and skeletal biomarkers, announces the conclusion of the sale of IDS Biocode Hycel's haematology business to Escalon Medical Corporation ("EMC"), the NASDAQ quoted healthcare company.
IDS's haematology business is being acquired by EMC for 4.2m Euro which is being remitted over a period of 48 months from the completion date of 31st December 2008:
| Payment upon completion | 25,000 |
| After 18 months | 800,000 |
| After 30 months | 1,000,000 |
| After 36 months | 1,000,000 |
| After 48 months | 1,375,000 |
7% interest is receivable by IDS on all of the 4.2m Euro consideration that is outstanding.
The assets of the haematology business on the balance sheet of Biocode Hycel (a division of IDS) as at 30 November 2008 are valued at circa 2.6m Euro and are included in the disposal. For the 12 months to 31 March 2009 the Haematology business was expected to have sales of 4.17m Euro and register a loss before tax of 247k Euro.
The directors believe that the disposal of this business will allow the group to focus on its main activities of manual immunoassay production and the launch of the new automated analyser, the IDS iSYS. This disposal will also lead to increased profits of the Company as the haematology business is loss making.
The funds, as and when received, will be used to reduce the Company's net debt and/or improve working capital.
Contacts:
| IDS | Oriel Securities Ltd | Parkgreen Communications |
| (Nominated Advisor and broker) | ||
| Roger Duggan, CEO | Andrew Edwards | Paul McManus |
| Paul Hailes, Finance Director | ||
| Tel: 0191 519 0660 | Tel: 020 7710 7600 | Tel: 020 7933 8787 |
| Mob: 07980 541 893 | ||
| www.idsplc.com | paul.mcmanus@parkgreenmedia.com |