13 Oct 2015 07:00
13 October 2015
Immunodiagnostic Systems Holdings plc
Trading Update
Immunodiagnostic Systems Holdings plc ("IDS" or "the Company" or "the Group"), a specialist solution provider to the clinical laboratory diagnostic market, today provides a trading update for the six months ended 30 September 2015 in accordance with its usual financial reporting cycle.
Financial update
Total revenues in the first six months of the financial year are expected to be c. £19 million (H1 2014/15: £22.1 million) implying a decline of c. 13%. Using a constant exchange rate from the first six months of last financial year, revenue would be c. £20 million, a decline of c. 9%.
Automated revenues declined by c. 12% compared to the prior year period. This is the result of ongoing pressure on our automated vitamin D 25 OH product which faces continuing pressure from the large workhorse suppliers; revenues for this product decreased by c. 27% compared to the first six months of the prior year. Revenues of the automated specialty assay menu - also referred to as our endocrinology excellence menu - decreased by c.5% for the same comparative period. Average Revenue per Instrument has reduced to approximately £50,000, calculated on a rolling 12-month basis.
Manual revenues declined by c. 16% compared to the first six months of last financial year. Excluding the effect of the Diametra acquisition the decline amounted to c.33%. This compares with year on year decreases of 21% in FY 2015 and 18% in FY 2014 (on a reported basis).
Closing net funds was c. £22 million as at 30 September 2015 (31 March 2015: £22 million) following payment of the final dividend in August 2015.
IDS-iSYS instrument placements
Net new instrument placements in direct sales territories (mainly the USA and Europe excluding Italy and Spain) were minus 10 (H1 2014/15: plus 8). The total number of instruments placed (directly or through distributors) and sold to OEM partners in the period was 11 (H1 2014/15: 9).
As previously communicated, for a structural improvement in the number of net new placements the Company must enlarge its menu to a critical size. The Company is targeting a total of six to eight new assay additions in Europe by the end of this financial year; implying a significant acceleration above the average of 1.6 new assays launches per annum in the last five years. In addition we are working on corporate development activities for partnership deals.
Other Aspects of the Strategic Plan
The Company is presently reviewing its cost base to react to the lower revenues generated. It expects the first effects to be visible in the second half of the current financial year. In addition, the IDS-iSYS Mark II instrument obtained CE Mark in the second quarter with launch in the EU expected in the first half of calendar year 2016.
In terms of corporate development, the Company is having discussions with several industry participants to explore ways to accelerate the build-up of its menu, to find complementary sales channels for its manual business and to monetize its instrumentation know-how.
Patricio Lacalle, CEO of IDS, commented:
"The near-term trading environment for IDS remains challenging with the Company's forecasts now indicating revenues for the second half of the current year slightly below those achieved in the first half. We have defined a clear path to get back to growth based on the expansion of our assay menu, the expansion into additional geographic markets and improving sales excellence. It has been less than a year since the Company embarked on this clear path, and we are confident that we will have the first tangible results before the end of the current financial year."
The Company expects to announce its Interim results on 24 November 2015.
For further information:
Immunodiagnostic Systems Holdings plc Tel : +44 (0)191 5190660
Patricio Lacalle, Chief Executive Officer
Peel Hunt LLP Tel : +44 (0)207 418 8900
James Steel
Tom Burt
About Immunodiagnostic Systems Holdings PLC
The Group's vision is to be a leading solution provider to the clinical laboratory diagnostic market. IDS's strategy is focused on developing, internally and through partnership, its automated assay menu for its proprietary automated immunoassay analyser, the IDS-iSYS system. Internally the Group is focused on developing an endocrinology excellence menu and externally IDS works with partners to develop assay panels in complementary indication fields. The Group sells its products primarily in the clinical laboratory market across a range of customers from reference laboratories to physician office laboratories. IDS has field sales forces in certain European countries, including France and Germany, the United States and Brazil and works with distributors in other markets including China, Italy and Spain.