IDS update proves resilience and cash generation

Revenues from medical diagnostics group Immunodiagnostic Systems to the end of March will be marginally reduced on the previous year but in line with expectations.

Revenues from medical diagnostics group Immunodiagnostic Systems to the end of March will be marginally reduced on the previous year but in line with expectations.

In a year-end trading update, the Newcastle-upon-Tyne based company said total revenues would hit £49.8m for the year to March 31st, down from £53.7m previously.

The group delivered particularly strong cashflow in the year, generating £13.6m of cash compared to a pre-exceptional £6.7m in 2012, to leave year-end net funds at £20.5m.

The company claimed the performance was encouraging in light of the tough trading environment, where its historically strong market of manual vitamin D testing is declining "rapidly", while competition increasing in automated vitamin D market too, all against a backdrop of a shrinking number of laboratory customers due to consolidation.

The average revenue per direct instrument placed with customers was £72,000 per year, falling from £84,000 in the previous period.

Looking forward, IDH declared it would continue to pursue its threefold strategy of developing new specialist assays, entering into new geographies with attractive growth opportunities and developing the next-generation IDS-iSYS system, having made progress in all three of these areas during 2012/13.

Management anticipates a number of further product launches in 2013/14, with US regulatory clearance sought for five automated assays which have already achieved European CE marking.

Patrik Dahlen, Chief Executive Officer of IDS, said: "We are pleased to report trading has been in line with Company guidance following a strong second half of the financial year, with robust growth in our range of recently launched bone, growth and hypertension panels.

"Our focus remains on the development of our IDS-iSYS automated platform through broadening the assay menu, improved instrumentation and greater geographic penetration. We believe that IDS is now well positioned to execute this strategy and drive continued change within the business."

Analyst Savvas Neophytou at broker Panmure Gordon attributed the "impressive" cash generation to the group's "better working capital management and reduced investment".

"Nonetheless, it underlies the cash generative nature of the business," he said. "With that sort of cash, it can turn itself to self-help if future acquisitions need to be funded, thus removing the risk of dilution [from potential acquisitions].

OH

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023