9 Jun 2016 07:00
Update re Royalty Revenues
Immunodiagnostic Systems Holdings PLC 9 June 2016
9 June 2016
Immunodiagnostic Systems Holdings plc Update re Royalty Revenues
Immunodiagnostic Systems Holdings plc ("IDS"), a specialist solution provider to the clinical laboratory diagnostic market, today provides an update relating to its royalty revenues.
During the year ended 31 March 2015, IDS generated royalty revenues of £4.8m, which were included within Other Income in the Annual Report and Accounts. This income arises from a small number of customers. The largest of these customers, a major global healthcare group, recently notified IDS that during the first calendar quarter of 2016 they commenced the transition of their business from the assay on which IDS received royalty income to a new proprietary assay. Furthermore, they stated that the royalties payable to IDS for the quarter ended 31 March 2016 would be lower than they had originally indicated.
As a result, while total royalty revenue is in line with the prior year, IDS has seen an unexpected reduction in royalty revenue for the last quarter of the year ended 31 March 2016. Therefore reported revenue for the year will be closer to £38m than the £39m which was previously announced. Additionally IDS now expects this royalty revenue stream to reduce significantly going forwards.
Preliminary results for the year ended 31 March 2016 will be announced on 22 June 2016.
For further information:
Immunodiagnostic Systems Holdings plc Tel : +44 (0)191 5190660
Patricio Lacalle, Chief Executive Officer
Paul Martin, Group Finance Director
Peel Hunt LLP Tel : +44 (0)207 418 8900
James Steel
Oliver Jackson