IDH.L Regulatory News (IDH)

 14 October 2014

Immunodiagnostic Systems Holdings plc

Trading Update

Immunodiagnostic Systems Holdings plc ("IDS" or "the Company" or "the Group"), a leading solution provider to the clinical laboratory diagnostic market, today provides a trading update for the six months ended 30 September 2014 in accordance with its usual financial reporting cycle. This statement follows the trading update on 15 September and our expectations remains consistent with that update.

Financial update

As disclosed in August and September, IDS is experiencing a low level of placements and an acceleration in the decline in manual revenues. As a consequence, total revenues in the first six months of the financial year are expected to be c. £22 million (H1 2013/14: £27 million). Automated revenues declined by c. 9% compared to the prior year period due to a number of instrument returns and continued pricing pressure on the automated 25OH Vitamin D assay. Manual revenues declined by c. 30% predominantly the result of a c. 39% decline in manual 25OH Vitamin D revenues.

Closing net funds was c. £22 million as at 30 September 2014 (31 March 2014: £27 million) following payment of the final dividend in August 2014 and the acquisition of Diametra in September 2014.

IDS-iSYS instrument placements

Direct instruments are those sold or placed with reagent rental IDS end-user customers in the Group's core markets of the USA and Europe (excluding distributor territories of Spain and Italy). Direct instrument placements were 8 (net of returns) (H1 2013/14: 16).  The total number of instruments placed (directly or through distributors) and sold to OEM partners was 15 (H1 2013/14: 45).

We continue to make good progress in Brazil and China. We are in the process of placing 2 instruments with a large reference laboratory customer in Brazil and in China we have received our first instrument order for the delivery, by the end of December 2014, of 25 IDS-iSYS instruments.

Strategic Plan

We continue to execute on our strategic plan with the key objective of increasing the breadth and depth of the assay menu available on the IDS-iSYS instrument through both internal R&D and partnership. In addition, the development of the Mark II instrument continues according to plan with launch of the new instrument anticipated in the first half of 2015. In September 2014 we were pleased to announce the acquisition of Italian diagnostic company Diametra and we will continue to pursue acquisition opportunities which we believe will accelerate the execution of the strategic plan.

Patrik Dahlen, CEO of IDS, commented:

"The near-term trading environment for IDS remains challenging. However, the path to sustainable growth will be based on the expansion of our assay menu and the launch of our new automated instrument and we continue to work hard to deliver on both of these strategic initiatives."

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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.