TIDMIDH
RNS Number : 9207C
Immunodiagnostic Systems Hldgs PLC
21 April 2017
Trading Update
Immunodiagnostic Systems Holdings PLC
21 April 2017
Immunodiagnostic Systems Holdings plc
Trading Update for the year ended 31 March 2017
Immunodiagnostic Systems Holdings PLC ("the Group"), a
specialist producer of manual and automated diagnostic testing kits
and instruments for the clinical market, today provides a trading
update for the financial year ended 31 March 2017.
Total Group revenue is expected to be approximately GBP40m, an
increase of around 4% compared to the previous year. This reported
revenue number has been favorably impacted by the weakening of the
pound against the Euro and US Dollar. At constant exchange rates
("CER") the revenue decreased by around 8%. There were no changes
in scope during the last financial year, thus these numbers are
like for like.
Automated Business
Revenues in our automated CLIA business are expected to be
approximately GBP21.4m, approximately 3% higher than the prior year
at CER.
-- Automated 25OH Vitamin D revenue of approximately GBP6.8m
represents a decline of around 17% at CER compared to the prior
year. While this business continues to decline, the rate of decline
is lower than we have seen in previous years. This decrease is
mainly a result of our main laboratory customers continuing to
transfer this assay to workhorse analysers after termination of
their contractual obligations with the Group.
-- Automated specialty business (automated business excluding
25OH Vitamin D) revenue of approximately GBP13.3m represents a
growth of around 16% at CER compared to the prior year. This growth
was generated by multiple products, and hence the business is
developing a more diversified product base, which should lay the
foundations for future growth.
During the year we were pleased to launch four new CLIA
automated assays for the IDS iSYS analyser. This brings the total
assay menu with a CE-mark up to nineteen assays, and represents a
25% expansion of the assay menu during the year. The rate of four
new CE-marked product launches is up from one in the previous
financial year, but we missed our internal goal of six new
launches.
In the USA we were able to get clearance for one new assay,
bringing the number of assays up to ten. In China the number of
CFDA-cleared assays stayed unchanged at four.
Annual gross placements of analyzers in markets with direct
sales organizations were 40 (Prior Year: 31). Just as importantly,
we were able to reduce the number of returns to 24 (Prior year:
43). Thus net placements after returns - the core KPI signaling our
potential for resumed growth - stood at 16 (Prior Year: minus
12).
Another KPI we are monitoring is the average number of assays
run on an iSYS analyzer as a larger number increases our revenues
per instrument and increases customer retention. This KPI increased
from 3.9 to 4.3 over the year, reflecting the ability of our sales
organization for upselling.
We believe the positive progression of the KPIs outlined above
reflects the progress made during the course of the year. Our
roadmaps for R&D, sales and marketing are clearly outlined and
our management team is working on getting better on the respective
processes each month. We are therefore optimistic that this
progress will continue into the next year.
Manual Business
Manual assay revenues are expected to be approximately GBP12.7m,
11% lower at CER than the prior year. The majority of the decline
is caused by lower 25OH Vitamin D revenues - which declined by
around 36% at CER. Revenue in the remainder of the business
declined by around 4% at CER.
During the year our actions taken to stem the decline resulted
in a slowdown in the downward trend. During the coming year we aim
to place more emphasis on building the sales processes and
distribution channels related to our manual business. Our goal is
to halt the decline at CER.
Licensing and Technology Business
Licensing and Technology revenues are expected to be
approximately GBP5.9m, a decline of around 30% at CER compared to
the prior year. Within this business, royalty income - based on
monetizing our know-how and IP in biologics - is expected to be
GBP2.8m, equating to a 53% decline at CER. However income from
technology partners - based on monetizing our instrument technology
- increased to GBP3.1m, which is a 23% increase at CER.
Royalty income is accrued based on preliminary estimates
provided by our customers, and is thus subject to revision. We do
not expect to see significant royalty income during the next
financial year, thus expect to see a continued decline in the
license and technology revenues in the next year, in accordance
with guidance provided by the Group since June 2016.
As of 31 March 2017 the Group employed 275 people on a full time
employment basis (31 March 2016: 315).
Closing cash and cash equivalents are expected to be around
GBP31.5m (31 March 2016: GBP26.6m).
The management team is encouraged by these results, which are
above our expectations for the year. They reflect the hard work
which has been undertaken to stabilize the performance of the Group
after deteriorating financial and operational performance in
previous years. We would therefore like to thank all our staff for
the extraordinary effort they put in to effect this
turn-around.
Preliminary results for the year ended 31 March 2017 will be
announced on 21 June 2017.
This announcement includes inside information.
For further information:
Immunodiagnostic Systems Holdings plc Tel : +44 (0)191 5190660
Regis Duval, Chief Executive Officer
Paul Martin, Group Finance Director
Peel Hunt LLP Tel : +44 (0)207 418 8900
James Steel
Oliver Jackson
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLLFFDSSIIFID
(END) Dow Jones Newswires
April 21, 2017 02:00 ET (06:00 GMT)
Immunodiagnostic Systems (LSE:IDH)
Historical Stock Chart
From Apr 2024 to May 2024
Immunodiagnostic Systems (LSE:IDH)
Historical Stock Chart
From May 2023 to May 2024