In-vitro diagnostic testing kits maker Immunodiagnostic Systems Holdings plc (IDH.L) Monday reported a substantial increase in profit for fiscal year 2010, mainly reflecting continued strong demand for its manual products, especially Vitamin D, as well as the successful roll out of the IDS-iSYS instruments. In addition, the company announced the resignation of its chief executive officer, as part of succession plan.For fiscal 2010, profit before tax jumped 130% to GBP 10.99 million from GBP 4.78 million a year ago. Profit from continuing operations surged to GBP 8.08 million from GBP 4.20 million last year. On a per share basis, earnings from continuing operations was 28.93 pence, up 79% from 16.17 pence last year.
Immunodiagnostic Systems’ annual revenue increased 49% to GBP 37.16 million from GBP 24.94 million last year, mainly driven by strong demand for Vitamin D range of products as well as the launch of additional analytes onto the IDS-iSYS.
Manual Vitamin D sales increased by 72% to GBP 22 million from GBP 12.82 million a year ago. Increased revenues from the automated analyser IDS-iSYS accounted for over 18% of the total sales growth.
The IDS-iSYS, a fully-automated closed system analyser and the company’s flagship product, was launched in February 2009. By the end of fiscal 2010, the company has sold or placed 74 of the IDS-iSYS instruments. Immunodiagnostic Systems added that it believes to be slightly behind its target for IDS-iSYS for the year-end, due in no small part to the delay in getting a positive FDA decision.
The company received US FDA 510(k) clearance for the IDS-iSYS, in May 2010. The clearance enables Immunodiagnostic to market IDS-iSYS, in the U.S. laboratories undertaking analyses for human diagnostic purposes. It also clears the way to market automated assays for human growth hormone and insulin-like growth factor I, or IGF-I, as these are not required to be subjected to pre-market 510(k) process.
Gross margin improved to 74.05% from 66.50% a year ago and gross profit increased 66% to GBP 27.52 million. According to the company gross margin benefited from a favourable product mix and certain economies of scale associated with increased demand for its main products. Overall operating income soared 110% to GBP 11.28 million.
The Board has proposed a dividend for the year of 2 pence, to be paid on September 15, to shareholders on the register at the close of business on August, 20. The proposed full-year dividend represents a 21% increase over 1.65 pence dividend paid last year.
Going forward, the company expects that the increased market acceptance of the IDS-iSYS with its expanding menu will continue and bodes well for the future, particularly given the recent clearance to market in the U.S.
Separately, the company announced that Roger Duggan would step down as Chief Executive Officer, effective October 1, as part of its succession plan. Duggan will continue on at Board level as Deputy Chairman and Head of the Business Development Group. At the same time, the current Chief Operating Officer, Ian Cookson, will succeed as the new Chief Executive Officer. The company will search for a new Operations Director to take up the role previously fulfilled by Cookson.IDH.L is currently trading at 760 pence, up 10 pence or 1.33% on the London Stock Exchange. In the last 52-weeks, the stock traded in a range between 300 pence and 820 pence.
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