IDH.L Regulatory News (IDH)

7 Nov 2005 07:00

Immunodiagnostic Systems Hldgs PLC07 November 2005 For release07.00am 7 November 2005 IMMUNODIAGNOSTIC SYSTEMS HOLDINGS PLC Unaudited Interim Results for the Six-Month Period to 30 September 2005 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 2005. 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 49% to £3.72m (2004: £2.50m).• EBITA up 257% to £514,000 (2004: £144,000).• Operating Profit up 354% to £436,000 (2004: £96,000).• Pre-tax profit up 579% to £387,000 (2004: £57,000). Operational Highlights • IDS benefiting from direct distribution networks established in US and Germany.• IDS France established in October for direct distribution into France.• Successful launch of flagship Vitamin D product in US following receipt of FDA approval.• New MRSA product expected to be on the market by the end of Q1 2006.• Appointment of Chief Scientific Officer In his statement to shareholders, David Evans, Chairman, said: "The Directors believe that the Group is making good progress with the executionof its strategic plan. We see good opportunities for continued development ofour business both domestically and abroad. We believe that our flexible andexperienced workforce will continue to allow us to develop and sell products(both manufactured internally and those acquired from third parties) through oursales and distribution channels and will positively impact upon sales andmargins." Contacts: IDS Binns & Co PR LtdDavid Evans, Roger Duggan, Paul McManusChairman Managing Director Tel: 020 7153 1485Tel: 07740 084 452 Mob: 07775 845 511 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 2005. 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 £3.72m, which when compared to same periodlast year represents a 49% increase. Our core products continue to see salesgrowth, both domestically and abroad. Gross margin continues to improve as totalsales consist of more internally manufactured product. Other costs containedwithin the business are inline with our strategic plan. This has resulted in anEBITA of £514,000, an Operating Profit of £436,000 with a Profit before Tax of£387,000 and after tax of £324,000. Business Overview The Group has continued to grow and is benefiting from its direct sales into theUS and German markets through our subsidiary companies. The Group's US subsidiary has seen substantial sales growth, with sales revenuesfor the six months ending September being greater than for the previous twelvemonths. The acquisition of SBA (Finland) in February 2005 has contributedtowards this growth. IDS Germany has seen significant sales for the six months to September, whichagain have contributed towards our overall growth. Sales and costs for Germanyare broadly inline with management expectations. IDS France was established in October and we look forward to repeating oursuccess in both the US and German markets by selling directly to end usercustomers. With regards to product development we have successfully launched our 1,25Vitamin D EIA assay into the US Market following approval form the US FDA (Foodand Drugs Administration). We continue to work with other partners to place ourvitamin D product onto major Diagnostic Company's automated instrumentation, andwe expect to beta site test our MRSA shortly. Board Management and Team On the 26th September the board appointed Dr. Phillip D.K. Lee as ChiefScientific Officer for the company. The board believes that Phil can drive ourpush into new areas of technology and achieve the accelerated biomarkerdiscovery and new product development that will further enhance our business. Outlook The outlook for the Group remains very positive as we continue to build upon theachievements of the Group in the first half of this year. In general we seegrowth being achieved across all aspects of the Group's business and inparticular from: - • the continued integration of the products emanating from the successful SBA acquisition including the transfer of manufacturing of these products to Boldon, the Group's principle manufacturing site;• the winning of new customer accounts in Germany and the successful establishment of our French subsidiary;• the continuation of the very significant growth achieved in the USA in the first half of this year;• the continued growth in our UK market as well as those countries served by our extensive distributor network. The appointment of Dr Phil Lee as our new Chief Scientific Officer will see acombination of project development rationalisation and an acceleration of thoseremaining projects to market as a greater focus is given to this area. I look forward to updating you on our progress as we seek to continue to executeour strategic plan for the growth of the Group and to deliver value to you as ashareholder. David Evans6 November 2005 Unaudited consolidated Profit and Loss AccountFor the six month period to 30 September 2005 6 Months 6 Months Year ended ended ended 31 March Note 30 Sept 2005 30 Sept 04 2005 £'000 £'000 £'000 Turnover 2 3,717 2,501 5,435Cost of Sales (1,282) (1,031) (2,043) Gross Profit 2,435 1,470 3,392Administrative expenses (1,999) (1,374) (3,066) Operating Profit 436 96 326 Share of operating profit / (loss) inassociates (16) 11 (16)Net interest payable (33) (50) (16)Amounts written of Investments (24) Profit on ordinary activities before 2 387 57 270taxation Tax on profit on ordinary activities 6 (63) (14) (58) Profit for the period 324 43 212 Earnings per share - basic (per share pence) 5 2.512 35.8 2.611 - diluted (per share pence) 5 2.512 35.8 2.611 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 2005 6 Months 6 Months Year ended ended ended 31 March Note 30 Sept 2005 30 Sept 2004 2005 £'000 £'000 £'000 Fixed AssetsIntangible Assets 1,016 180 1,065Tangible Assets 764 605 603Investments 1 261 16 1,781 1,046 1,684 Current AssetsStocks 837 490 763Debtors 1,210 887 1,271Cash at bank and in hand 603 94 447 2,650 1,471 2,481 Creditors - Amounts falling due 1,593 1,352 1,508within one year Net current assets 1,057 119 973 Total assets less current 2,838 1,165 2,657liabilities Creditors - Amounts falling due 496 107 582after one year Provisions for liabilities and 287 272 314charges Net assets 2,055 786 1,761 Capital and reservesCalled up share capital 8 267 197 267Profit and loss account 497 5 177Other Reserve 9 1,523 584 1,549Own Shares (232) 0 (232) Shareholders' funds 7 2,055 786 1,761 Unaudited consolidated Cash Flow StatementFor the six month period to 30 September 2005 6 Months 6 Months Year ended ended ended 31 March Note 30 Sept 2005 30 Sept 2004 2005 £'000 £'000 £'000 Net cash inflow / (outflow) from 10 534 122 (248)operating activities Returns on investments and servicingof finance (33) (50) (17)Interest paid Taxation 0 (58) (68) Capital expenditurePurchase of tangible fixed assets (147) (31) (51)Purchase of intangible fixed assets (69) (2) (31)Acquisitions 0 0 (760) Net cash inflow / (outflow) before 285 (19) (1,175)use of liquid resources andfinancing FinancingNet increase / (decrease) in Bank (88) 25 537Loans (12) (21) (41)Capital element of hire purchase (26) 0 1,036Funds from Share IssueNet cash inflow from financing (126) 4 1,532 Increase / (Decrease) in cash 159 (15) 357Reconciliation of net cash flow tomovement in net debt(Decrease) / Increase in Cash in theperiod 159 (15) 357Net Cash inflow / (outflow) frombank loans 88 25 (537)Net cash outflow in respect of hirepurchase (69) (21) 41 Increase / (decrease) in net fundsrising from cash flows 178 (11) (139) Notes to the Interim Financial StatementsFor the period to 30 September 2005 1 This interim statement for the six month period to 30 September 2005 is unaudited and was approved by the Directors on 6th November 2005. 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 those set out in the Prospectus 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 2005 has been calculated using the average number of ordinary shares in issue since 1 April 2005 of 13,344,667, less own shares held by the IDS Employee Benefit Trust. 6 Taxation Taxation for the 6 months ended 30 September 2005 is based on the effective rate of taxation which is estimated to apply to the year ended 31 March 2006. 7 Reconciliation of Movement in Group Shareholder's Funds 6 Months to 6 months to Year ended 30 Sept 2005 30 Sept 2004 31 Mar 2005 £'000 £'000 £'000 Profit for the period 324 43 212 Foreign exchange translation differences (4) 0 1 on foreign currency net investment in subsidiaries. Movement in other reserve (26) 0 1,036 Net change in shareholders' funds 294 43 1,249 Shareholders' funds at the beginning of 1,761 743 512 the period Shareholders' funds at the end of the 2,055 786 1,761 period 8 Share Capital 6 Months 6 months to Year ended 30 Sept 2005 30 Sept 2005 31 Mar 2005 £ £ £ Authorised: 50,000,000 ordinary 2p shares 50,000,000 0 50,000,000 120,000 ordinary shares of £1 each 0 120,000 0 57,000 'A' ordinary shares of £1 each 0 57,000 0 19,666 non voting ordinary shares of £1 0 19,666 0 each 50,000,000 196,666 50,000,000 Allotted, called up and fully paid: 13,344,667 ordinary 2p shares 266,913 0 266,913 120,000 ordinary shares of £1 each 0 120,000 0 57,000 'A' ordinary shares of £1 each 0 57,000 0 19,666 non voting ordinary shares of £1 0 19,666 0 each 266,913 196,666 266,913 On incorporation the authorised share capital of the company was £120,000 divided into 120,000 ordinary shares of £1 each ("Ordinary £1 Shares). On incorporation, 2 Ordinary £1 shares were allocated nil paid to the subscribers of the memorandum of association of the Company (the "Memorandum of Association"). On 13th July 2004 the Company's authorised share capital was increased to £196,666 by the creation of an additional 57,0000 A ordinary shares of £1 each ("A Ordinaries") and 19,666 non voting ordinary shares of £1.00 each ("Non-Voting Ordinaries"); On 13th July 2004 119,998 Ordinary £1 Shares were allotted and issued (and the two Ordinary £1 Shares in issue as subscriber shares were credited as fully paid), the 57,000 A Ordinaries were allotted and issued and the 19,666 Non-Voting Ordinaries were allotted and issued all in consideration for the transfer to the Company of the entire issued share capital of Immunodiagnostic Systems Limited ("the Subsidiary") pursuant to an agreement between the Company and the shareholders of the Subsidiary dated 13th July 2004. A certificate to do business and borrow pursuant to section 117 of the Act was issued to the Company on 16th July 2004; At an extraordinary general meeting of the Company held 22nd December 2004 special resolutions were passed, with effect from immediately prior to Admission, in terms of which, inter alia: 1. The Company's authorised share capital was increased to £1,000,000 by the creation of an additional 803,334 Ordinary £1 Shares; 2. Each A Ordinary was converted into one Ordinary £1 Share; 3. Each Non-Voting Ordinary was converted into one Ordinary £1 Share; 4. Each Ordinary £1 Share was subdivided into 50 ordinary shares of 2p each; At Admission the authorised share capital of the Company was £1,000,000 divided into 50,000,000 Ordinary Shares. 13,237,703 Ordinary Shares were in issue and fully paid at Admission. On 22 December 2004, 3,471,420 ordinary shares were placed at a price of 51p per share, creating total proceedings of £1,770,424. No Ordinary shares are in issue partly paid. Share options have since been exercised amounting to 106,964 shares at a price of 51p, with total proceeds of £54,551. 9 Other reserve The other reserve arises on consolidation of the results of Immunodiagnostic Holdings PLC and the consolidated results of Immunodiagnostic Systems Limited. The reserve represents the difference arising on consolidation between the nominal value of shares issued by Immunodiagnostic Holdings PLC in consideration for 100% of the share capital of Immunodiagnostic Systems Limited and the nominal value of the shares acquired, plus the share premium account relating to those shares. 10 Reconciliation of Operating Profit to Net Cash Flow from Operating Activities 6 Months to 6 months to Year ended Sept 2005 Sept 2005 31 March £'000 £'000 2005 £'000 Reconciliation of operating profit to net cash outflow from operating activities Operating profit 436 96 326 Depreciation and amortisation 168 113 222 Increase in stock (74) (55) (286) (Increase) / Decrease in debtors 61 9 (146) Decrease in creditors (30) (36) (359) Decrease in provisions (27) (5) (5) Net cash inflow from operating activities 534 122 (248) 11 Report and Financial Statements The comparative figures for the financial year ended 31 March 2005 have been extracted from the Group's statutory financial statements for that financial year. Those financial statements have been reported on by the Group's auditors and delivered to the Registrar of Companies. The report of the auditors was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. Copies of the Annual Report for 2005 are available from the Company's registered office by applying to the Company Secretary. The interim results for the six months ended 30th September 2005 and 30th September 2004 have not been audited. The financial information set out above does not constitute full financial statements as defined by section 240 of the Companies 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 Dr. Phillip DK Lee Chief Scientific Officer William Michael Dracup Non- Executive Director Dr Edward Duncan Blair Non- Executive Director Company Secretary: Paul Hailes Nominated Advisor and Broker: Teather and Greenwood Beufort 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