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Boldon’s Immunodiagnostic Systems Holdings pursuing expansion plan to combat revenue decline

Boldon-based drug testing company Immunodiagnostic Systems Holdings plc has confirmed a reported decline of almost £5 million in revenue although the company has revealed it remains committed to pursuing a longer term expansion plan, announcing its half yearly (for the six month period ended 30 September 2014) results today.

Results showed group revenues were down £22.1 million (H1 2014: £26.9 million) with a declining gross profit of £16.4 million (H1 2014: £19.9 million).

Adjusted EBIT was £3.2 million (H1 2014: £5.2 million) before exceptional costs of £0.5 million (H1 2014: £1.1 million). Statutory EBIT was £2.7 million (H1 2014: £4.1 million). The Group achieved £3.2 million of adjusted profit before tax (H1 2014: £5.2 million) and statutory profit before tax of £2.8 million (H1 2014: £4.1 million).

Cash generated from operations was £5.0 million (H1 2014: £6.6 million). Cash and cash equivalents were £22.7 million as at 30 September 2014.

Automated revenues accounted for 46.4% of overall revenues (H1 2014: 41.8%), manual revenues 35.9% (H1 2014: 42.2%), instrument revenues 4.0% (H1 2014: 5.9%) and other income (including royalties) 13.7% (H1 2014: 10.1%).

The group are to continue executing a strategic plan to expand endocrinology and their generalist assay menu,whilst the development of the next generation of IDS-iSYS instruments is said to be proceeding according to plan.

Further instrument development milestones were achieved in the period with a crystallising €1 million license payment in May 2014.

The company announced the acquisition of Italian diagnostic company Diametra and are set to continue to pursue acquisition opportunities which will accelerate the execution of the strategic plan.

The company is also expanding its geographic reach, working in China and Brazil.

The statement also revealed that cost control and management streamlining initiatives are reportedly underway.

Meanwhile Chief Executive Officer Patrik Dahlen has resigned for “professional reasons”.

The company said that Dahlen will remain in his post for a period of up to one year or until another date agreed.

CEO, Dr Patrik Dahlen, said: “Good progress continues to be made on the execution of our strategic plan launched earlier this year in response to a challenging trading environment that looks set to continue in the near term.

“Our strong operational cash flow and solid cash position means we are well placed to continue to execute on our Plan.

“As previously communicated, the Plan entails the expansion of our automated assay menu and the launch of our new automated instrument and we remain confident that these will be the catalysts for sustainable revenue growth going forwards.”

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