Immunodiagnostic Systems Hldgs PLC AGM Statement (8036T)
July 23 2020 - 2:00AM
UK Regulatory
TIDMIDH
RNS Number : 8036T
Immunodiagnostic Systems Hldgs PLC
23 July 2020
AGM Statement
Immunodiagnosti c Systems Holdings PLC
23 July 2020
Immunodiagnosti c Systems Holdings plc
AGM Statement
Immunodiagnostic Systems Holdings PLC ("IDS"), a specialist
producer of manual and automated diagnostic testing kits and
instruments for the clinical and research markets, will today hold
its Annual General Meeting at 2pm at its registered office at 10
Didcot Way, Boldon Business Park, Boldon, Tyne & Wear, NE35
9PD. The Chairman of the meeting will make the following statement
to shareholders:
Revenue Update
As set out in our Annual Report & Accounts 2020, revenue was
expected to decrease in Q1 FY21 due to the impact of the COVID-19
pandemic. Testing in our core endocrinology franchise is not acute
in nature, thus there is the possibility to postpone diagnostic
testing. As a result, routine testing was significantly reduced in
most laboratories and hospitals due to the pandemic. This situation
led to a decrease in demand for IDS testing kits, impacting all our
business units.
Overall, revenues in the month of April suffered the most
significant impact, but then improved as we moved through the
quarter to June. Our European direct markets are leading the
recovery, with revenues in June 2020 being similar to June 2019.
Revenue recovery in the US direct market and many of our
distribution markets has been slower, as these markets are
relatively more strongly affected by the COVID-19 pandemic. We
expect revenues in these markets to swiftly return to normal once
routine hospital testing recovers, as we have already seen in
Europe. During the first two weeks trading in July, group revenues
were at over 80% of the levels seen in the same period in the prior
year.
Unaudited group revenues for the 3 months to 30 June 2020 ("Q1
FY21") are GBP5.7m (Q1 FY20: GBP9.1m). On a LFL basis (i.e. at
constant exchange rates) revenues decreased by 39%.
Revenue LFL Change
Q1 FY21 Q1 FY21 v FY20 v FY19
Q1 FY20
--------- ---------- ------------
Group GBP5.7m (39%) 2%
--------- ---------- ------------
Automated business GBP3.3m (36%) 4%
--------- ---------- ------------
Manual business GBP1.6m (47%) (8%)
--------- ---------- ------------
Technology business GBP0.8m (32%) 30%
--------- ---------- ------------
Other Automated KPIs
During the quarter we placed or sold 6 machines (Q1 FY20: 9) in
our direct markets, and 12 (Q1 FY20: 10) via our distributors,
bringing the total to 18 (Q1 FY20: 19). Returns in the quarter in
our direct sales territories were 2 (Q1 FY20: 9) meaning that in
our direct sales markets net placements were 4 (Q1 FY20: nil). We
consider this a satisfactory outcome when taking into account the
restrictions the pandemic imposed on sales activities.
COVID-19 Testing Range
As announced on 30 June, we released our automated SARS-Cov2-IgG
test in countries that accept the CE mark. Interest from our direct
and distribution customers has been strong and initial feedback
from their validation
processes positive. The first sales of this test were made during July. We are hoping to launch a complimentary SARS-Cov2-IgM automated test in the coming months. Furthermore, we are also providing contract manufacturing services to a developer of an ELISA based test, and produced the first prototype batches in June and July.
These products have great potential, though it is too early to
estimate the revenue levels which they will generate. We are
confident IDS have enough capacity for analyser instruments and
assay manufacturing to meet likely demand.
Impact of COVID-19 on Operations
As noted in our Annual Report & Accounts 2020, we have been
able to maintain manufacturing operations throughout the pandemic.
We have not suffered any significant stock outages during the
pandemic, and shipping activities are back to normal.
Other KPIs
Unaudited closing cash and cash equivalents were GBP26.8m as at
30 June 2020 (31 March 2020: GBP27.6m). In the period there were no
dividends paid or share buybacks.
At 30 June 2020 the Group employed 297 people on a full-time
employment basis (31 March 2020: 295 people).
Outlook
While the outlook for IDS will very much depend upon the
progress the world makes in supressing the COVID-19 virus, we
expect to see continued improvement in the revenue trajectory of
the business during FY21 Q2. We remain confident, that once the
global situation improves, IDS is well positioned to return to
growth, leveraging our increasing installed base and assay menu as
well as our strong balance sheet position.
For further information:
Immunodiagnosti c Systems Holdings plc Tel : +44 (0)191 5190660
Jaap Stuut, Chief Executive Officer
Paul Martin, Group Finance Director
Pee l Hunt LLP Tel : +44 (0)207 418 8900
James Steel
Oliver Jackson
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END
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