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2 Jan 2009 07:00
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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.Ā
IDS's haematology business is being acquiredĀ by EMCĀ for 4.2m Euro which is being remitted over a period of 48 monthsĀ from the completion date ofĀ 31stĀ 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 receivableĀ by IDSĀ on allĀ of the 4.2m Euro consideration that is outstanding.
The assets of the haematology businessĀ on the balance sheet of Biocode HycelĀ (a division of IDS)Ā as atĀ 30Ā November 2008Ā are valued atĀ circa 2.6m EuroĀ and are included in the disposal.Ā 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 IDSĀ iSYS. This disposalĀ will also lead to increased profitsĀ of the Company as the haematology business isĀ loss making.
The funds,Ā as and when received,Ā will be used to reduce theĀ Company's net debt and/or improve working capital.
Ā
Contacts:
|
IDS |
Oriel Securities Ltd |
Parkgreen Communications |
|
(Nominated Advisor and broker) |
||
|
Roger Duggan, CEO |
Andrew Edwards |
Paul McManus |
|
Paul Hailes, Finance Director |
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Tel: 0191 519 0660 |
Tel: 020 7710 7600 |
Tel: 020 7933 8787 |
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Mob: 07980 541 893 |
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|
www.idsplc.com |
paul.mcmanus@parkgreenmedia.com |
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