IDH.L Regulatory News (IDH)

6 Nov 2006 07:01

Immunodiagnostic Systems Hldgs PLC06 November 2006 IMMUNODIAGNOSTIC SYSTEMS HOLDINGS PLC Unaudited Interim Results for the Six-Month Period to 30 September 2006 Immunodiagnostic Systems Holdings plc ("IDS" or the "Company"), a leadingproducer of diagnostic testing kits for the clinical and research markets,announces its interim results for the six month period to 30th September 2006. IDS operates in the in-vitro diagnostics ("IVD") market. The Company designs,manufactures and sells immunoassay kits which are used to measure or detectparticular substances within a sample, thus aiding the diagnosis or monitoringof a disease or providing information for research studies. In 2002 theimmunoassay sector of the IVD market was estimated to be worth US$ 3.9bn. Financial Highlights • Turnover up 22% to £4.53m (2005: £3.72m).• EBITA up 58% to £811,000 (2005: £514,000).• Operating Profit up 78% to £777,000 (2005: £436,000).• Pre-tax profit up 90% to £737,000 (2005: £387,000). Operational Highlights • IDS benefiting from direct distribution networks established in US, Germany and France.• Establishment of an Austrian operation in September of this year.• Successful automation of IDS products onto semi-automated platforms.• IDS received the Queens Award for Export in April of this year. In his statement to shareholders, David Evans, Chairman, said:"The outlook for the Group for the second half remains very positive and trading continues to exceed expectations. "I see continued growth being achieved across all aspects of the Group's business and the challenges for the Group at this moment in time are positive ones. "I look forward to updating you further as we make further progress and inparticular in relation to the Group's plans for automation and the strengtheningof the management team." Contacts: IDS Parkgreen Communications Ltd Roger Duggan, Paul Hailes, Paul McManusManaging Director Finance Director Tel: 020 7493 3713Tel: 0191 519 0660 Tel: 0191 519 0660 Mob: 07980 541 893http://www.ids-direct.com CHAIRMAN'S STATEMENT Dear Shareholder I have pleasure in reporting to you the interim results of ImmunodiagnosticSystems Holdings plc for the six month period ended 30th September 2006. It hasbeen a period of considerable progress for the Group and I have outlined belowthe highlights of the period. Results Turnover for the Group amounted to £4.53m, which when compared to same periodlast year represents a 21.9% increase. Our core products continue to see salesgrowth, both domestically and abroad. The gross margin percentage declined by 1%as a result of a different product mix year on year. Other costs rose 10% whichwere in line with expectation. This has resulted in an EBITA of £811,000 (2005: £514,000) an Operating Profitof £777,000 (2005: £436,000) with a profit before tax of £737,000 (2005:£387,000) and after tax of £600,000 (2005: £324,000.) The Company paid its firstdividend during the period amounting to £133,000 (2005: £nil) resulting in anoverall net profit for the period of £467,000(2005: £324,000). Business Overview The Group has continued to grow and is benefiting from its direct sales intoboth the USA and our key European territories of Germany, France and the UnitedKingdom. This ability to access key markets represents a sound foundation andthis access was extended in September with the establishment of our Austrianoperation, which can be directly supported infrastructurally from Germany. Theoverall successful growth of turnover in markets beyond the UK was recognised inApril with the Queen's Award for Export. The success of the establishment of our French subsidiary in a short space oftime is particularly pleasing as has been the Group's determined approach toensuring that major accounts in the UK have the option to have the IDS productson an automated platform. The challenge of automating our tests is one that represents a major opportunityfor the company to ensure the valuable know-how and patented products can beexploited globally without revenue and margin erosion. Management has workedhard at seeking a global cost effective solution and we shall update you whencontracts are finalised. This will require modest additional investment in R&Dand this will be achieved internally without impacting future profitability. The move to greater automation has major potential but it will occupy ourexisting R&D commitment going forward and consequentially there is a greatermotivation to source new products externally. Board Management and Team It was with regret that Dr Philip Lee our Technical Director left to return tothe USA. We have been searching for a suitable replacement and anticipate makingan announcement shortly. We are also hoping to strengthen our executivemanagement team further to cope with the anticipated increased throughput as theGroup moves to its next stage of development. Outlook The outlook for the Group for the second half remains very positive and tradingcontinues to exceed expectations. I see continued growth being achieved across all aspects of the Group's businessand the challenges for the Group at this moment in time are positive ones. I look forward to updating you further as we make further progress and inparticular in relation to the Group's plans for automation and the strengtheningof the management team. David Evans6 November 2006 Unaudited consolidated Profit and Loss AccountFor the six month period to 30 September 2006 6 Months 6 Months Year ended ended ended 31 March Note 30 Sept 2006 30 Sept 05 2006 £'000 £'000 £'000 Turnover 2 4,533 3,717 8,133 Cost of Sales (1,613) (1,282) (2,885) Gross Profit 2,920 2,435 5,248 Administrative expenses (2,143) (1,999) (3,993) Operating Profit 777 436 1,255 Share of operating profit / (loss) inassociates 0 (16) (12) Net interest (payable) / receivable (40) (33) (69) Profit on ordinary activities before taxation 2 737 387 1,174 Tax on profit on ordinary activities 6 (137) (63) (257) Profit for the period 600 324 917 Earnings per share - basic (per share pence) 5 4.496 2.428 6.871 - diluted (per share pence) 5 4.496 2.428 6.871 No separate Statement of Total recognised Gains and Losses has been presented asall such gains and losses have been dealt with in the Profit and Loss account. Unaudited consolidated Balance SheetAs at 30 September 2006 6 Months 6 Months Year ended ended ended 31 March Note 30 Sept 2006 30 Sept 2005 2006 £'000 £'000 £'000 Fixed Assets Intangible Assets 1,058 1,016 1,094Tangible Assets 964 764 746Investments 2 1 2 2,024 1,781 1,842 Current Assets Stocks 935 837 805Debtors 1,478 1,210 1,563Cash at bank and in hand 840 603 885 3,253 2,650 3,253 Creditors - Amounts falling due within one year 1,438 1,593 1,664 Net current assets 1,815 1,057 1,589 Total assets less current liabilities 3,839 2,838 3,431 Creditors - Amounts falling due after one year 351 496 441 Provisions for liabilities and charges 122 287 122 Net assets 3,366 2,055 2,868 Capital and reserves Called up share capital 8 267 267 267Profit and loss account 1,582 497 1,084Other Reserve 9 1,519 1,523 1,519Own Shares (2) (232) (2) Shareholders' funds 7 3,366 2,055 2,868 Unaudited consolidated Cash Flow StatementFor the six month period to 30 September 2006 6 Months 6 Months Year ended ended ended 31 March Note 30 Sept 2006 30 Sept 2005 2006 £'000 £'000 £'000 Net cash inflow / (outflow) from operating activities 10 708 534 1,216 Returns on investments and servicing offinance (40) (33) (69) Interest paid Taxation (138) 0 (128) Capital expenditure Purchase of tangible fixed assets (310) (147) (133)Purchase of intangible fixed assets 0 (69) (158) Dividends Paid (133) 0 0 Net cash inflow / (outflow) before use of 87 285 728liquid resources and financing Financing Net increase / (decrease) in Bank loans (132) (88) (226)Capital element of hire purchase 0 (12) (61)Funds from Share Issue 0 (26) 0Net cash inflow from financing (132) (126) (287) Increase / (Decrease) in cash (45) 159 441 Reconciliation of net cash flow to movementin net debt (Decrease) / Increase in Cash in the period (45) 159 441Net Cash inflow / (outflow) from bank loans 132 88 195Net cash outflow in respect of hire purchase 0 (69) 61 New hire purchase 0 0 (170) Increase / (decrease) in net funds risingfrom cash flows 87 178 527 Notes to the Interim Financial StatementsFor the period to 30 September 2006 1 This interim statement for the six month period to 30 September 2006 is unaudited and was approved by the Directors on 3rd November 2006. The information set out does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. 2 Turnover and profit before taxation were all derived from the Group's principal activities. 3 The Group's accounting policies are consistent with those of the subsidiaries for the previous financial year and with the exception of the basis of consolidation (see Note 4). 4 Basis of consolidation The consolidated financial information incorporates the financial information relating to the Company and the consolidated results of its subsidiary undertaking, Immunodiagnostic Systems Limited, using the merger method of accounting. The consolidated financial information relating to Immunodiagnostic Systems limited and its subsidiary undertakings was prepared using the acquisition method of accounting and includes Immunodiagnostic Systems Limited's share of the results and net assets of its associates. 5 Earnings per share Earnings per share for the period ended 30 September 2006 has been calculated using the average number of ordinary shares in issue since 1 April 2006 of 13,344,667, less own shares held by the IDS Employee Benefit Trust. 6 Taxation Taxation for the 6 months ended 30 September 2006 is based on the effective rate of taxation which is estimated to apply to the year ended 31 March 2007. 7 Reconciliation of Movement in Group Shareholder's Funds 6 Months to 6 months to Year ended 30 Sept 2006 30 Sept 2005 31 Mar 2006 £'000 £'000 £'000 Profit for the period 600 324 917Foreign exchange translation differences on foreign currency net investment in subsidiaries. 31 (4) (10)Movement in other reserve 0 (26) 200Dividend Paid (133) 0 0 Net change in shareholders' funds 498 294 1,107 Shareholders' funds at the beginning of the period 2,868 1,761 1,761 Shareholders' funds at the end of the period 3,366 2,055 2,868 8 Share Capital 6 Months 6 months to Year ended 30 Sept 2006 30 Sept 2005 31 Mar 2006 £ £ £Authorised:50,000,000 ordinary 2p shares 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Allotted, called up and fully paid:13,344,667 ordinary 2p shares 266,913 266,913 266,913 266,913 266,913 266,913 9 Other reserve The other reserve arises on consolidation of the results of ImmunodiagnosticHoldings PLC and the consolidated results of Immunodiagnostic Systems Limited.The reserve represents the difference arising on consolidation between thenominal value of shares issued by Immunodiagnostic Holdings PLC in considerationfor 100% of the share capital of Immunodiagnostic Systems Limited and thenominal value of the shares acquired, plus the share premium account relating tothose shares. 10 Reconciliation of Operating Profit to Net Cash Flow from OperatingActivities 6 Months to 6 months to Year ended Sept 2006 Sept 2005 31 March £'000 £'000 2006 £'000 Reconciliation of operating profit to net cash outflowfrom operating activities Operating profit 777 436 1,255Depreciation and amortisation 128 168 286Increase in stock (130) (74) (43)(Increase) / Decrease in debtors 85 61 (291)Decrease in creditors (152) (30) 9Decrease in provisions __ (27) __ Net cash inflow from operating activities 708 534 1,216 11 Report and Financial Statements The comparative figures for the financial year ended 31 March 2006 have beenextracted from the Group's statutory financial statements for that financialyear. Those financial statements have been reported on by the Group's auditorsand delivered to the Registrar of Companies. The report of the auditors wasunqualified and did not contain a statement under section 237 (2) or (3) of theCompanies Act 1985. Copies of the Annual Report for 2005 are available from theCompany's registered office by applying to the Company Secretary. The interim results for the six months ended 30th September 2006 and 30thSeptember 2005 have not been audited. The financial information set out abovedoes not constitute full financial statements as defined by section 240 of theCompanies Act 1985. Company: Name: Immunodiagnostic Systems Holdings PLC Address: 10 Didcot Way Boldon Business Park Boldon Tyne &Wear NE35 9PD Board of Directors: David Eric Evans Non-Executive Chairman Dr Roger Thomas Duggan Managing Director Paul Hailes Finance Director William Michael Dracup Non- Executive Director Dr Edward Duncan Blair Non- Executive Director Company Secretary: Paul Hailes Nominated Advisor and Broker: Teather and Greenwood Beaufort House 15 Botolph Street London EC3A 7QR Auditors: Baker Tilly 1 St James' Gate Newcastle Upon Tyne NE1 4AD Registrars: Computershare Investor Services Plc Corporate Actions PO Box 859 The Pavilions Bridgewater Road Bristol BS99 1XZ Solicitors: Shepherd and Wedderburn 155 St Vincent Street Glasgow G2 5NR Bankers: HSBC Bank Plc 110 Grey Street Newcastle Upon Tyne NE1 6JG This information is provided by RNS The company news service from the London Stock Exchange