Immunodiagnostic Systems Hldgs PLC H1 Trading Update (2508U)
October 20 2017 - 11:30AM
UK Regulatory
TIDMIDH
RNS Number : 2508U
Immunodiagnostic Systems Hldgs PLC
20 October 2017
H1 Trading Update
Immunodiagnostic Systems Holdings PLC
20 October 2017
Immunodiagnostic Systems Holdings plc
H1 Trading Update
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 six months ended 30 September 2017 ("H1 FY18").
Unaudited group revenues for H1 FY18 are GBP18.7m, 4% lower than
the same period last year. On a like for like basis ("LFL"), that
is at constant exchange rate and constant scope, Group revenues
declined by 11% year on year. Nearly all of this decrease was due
to the decrease in antibody license income from a large customer
which had been expected. Without this decrease the decline amounted
to 1% on a LFL basis.
Revenue Performance in H1 FY18
The table below summarises the unaudited revenue performance of
the core segments of the Group:
Revenue Revenue Growth LFL
-------------------------- ---------- ------------------------
H1 FY18 H1 FY18 H1 FY17
v H1 FY17 v H1 FY16
-------------------------- ---------- ----------- -----------
Group GBP18.7m -11% -9%
-------------------------- ---------- ----------- -----------
Group (excluding
antibody license
income) GBP18.6m -1% -5%
-------------------------- ---------- ----------- -----------
Automated business(1) GBP11.6m 8% -2%
-------------------------- ---------- ----------- -----------
Automated 25-OH
Vitamin D GBP3.3m -3% -25%
-------------------------- ---------- ----------- -----------
Speciality automated
business GBP7.4m 10% 16%
-------------------------- ---------- ----------- -----------
Manual business GBP6.0m -10% -11%
-------------------------- ---------- ----------- -----------
Licensing & Technology
business GBP1.0m -71% -23%
-------------------------- ---------- ----------- -----------
(1) the balance of the automated business not analysed relates
to sales of instruments and support services.
During H1 FY18, we saw an overall progression in some revenue
metrics, but also experienced disappointment in others:
-- Our Automated business returned to LFL growth, returning 8%
growth in the period. The rate of decline in 25-OH Vitamin D slowed
significantly, mainly because during the previous year there was a
significant reduction in the instruments running only this assay,
thus the remaining 25-OH revenue is proving more resilient to the
competitive pressures we face. The LFL growth of 10% in our
Speciality Automated business was lower than the same period in the
prior year as a result of slower sales of our 1,25 Vitamin D assay;
this is a disappointing result as we expect future growth to be
driven by this set of tests. Management is working with sales and
marketing to identify and eliminate the causes for this
development. The key focus is on product improvement and
improvements in the sales process;
-- Our Manual business continued to decline at the rate of 10%
year on year. During the period the new position of Manager Manual
Business Unit was recruited. The Board expects that with new
resources committed to this business unit we should be able to
reduce the rate of decline going forwards. Several action items
have been already identified;
-- The decline in the Licensing & Technology business is
accounted for mainly by the loss of antibody royalty income from
one major customer. This contributed GBP2m of revenue in H1 FY17,
however negligible revenue was recorded in H1 FY18 as expected. As
noted in the AGM statement, with this now accounting for less than
1% of group revenues, this source of drag on Group revenue growth
will not continue after the end of this financial year.
Other KPIs
The other KPIs we are using to monitor the automated business
are set out below:
-- The average number of assays run on our installed base of
iSYS analysers: This KPI has remained consistent at 4.3 assays per
machine. (H1 FY17: 3.9, FY16/17: 4.3). Again, the review of our
sales process is looking to address the causes of this
stagnation.
-- Gross placements of analysers in markets with direct sales
organisation: This KPI stood at 18 (H1 FY17: 15, FY16/17: 40)
during the period. Net new placements, after returns, stood at 9
(H1 FY17: 5, FY16/17: 16).
-- In H1 FY18 we launched one new test with a CE-mark, the
IDS-iSYS Free Testosterone assay in our Fertility panel. We still
target four product launches with CE mark in the current financial
year.
Closing unaudited cash and cash equivalents were GBP29.7m as at
30 September 2017 (30 September 2016: GBP28.7m, 31 March 2017:
GBP31.5m). Of this decrease the payment of dividends accounted for
GBP1.2m.
At 30 September 2017 the Group employed 284 people on a full
time equivalent basis (30 September 2016: 294 persons, 31 March
2017: 275 persons).
This time last year we announced the goal of stabilising
revenues on a LFL basis. In our core laboratory business we came
close to this with a LFL decrease of 1% year on year; overall
numbers are dragged down from the loss of our large antibody
client. At the operational level we continue to strive to expand
and optimise our sales team to align our resources to the market
requirements, particularly in Western Europe. We have confidence
that the strategy we have adopted will allow us to return to growth
in the medium term through continued focus on our Speciality
automated business, coupled with a renewed focus on our manual
business.
The Group expects to announce its unaudited interim results on
24 November 2017.
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
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