Biochemical test technology developer Immunodiagnostic Systems Holdings has said it expects revenues for the first half of the financial year to fall £5m behind the first six months of last year’s £27m.
The AIM-listed firm, which develops medical testing kits for use in clinical and research laboratories, issued a final trading update ahead of announcing results for the six months ended September 30 2014, saying it is experiencing low level of placements and an acceleration in the decline in manual revenues.
The Boldon-based business said total revenues in the first six months of the financial year are expected to be around £22m, down on the comparable period’s £27m.
Automated revenues declined by 9% compared to the previous year’s period, due to a number of instrument returns and continued pricing pressure on the firm’s automated 25OH Vitamin D assay.
Manual revenues declined by 30%, mainly because of a circa 39% decline in sales of its manual Vitamin D test kit.
Closing net funds were £22m as of September 30 2014 following payment of the final dividend in August and the acquisition of Diametra in September.
The firm said it is making good progress in Brazil and China with its automated iSYS instrument and that it is in the process of placing two instruments with a large reference laboratory customer in Brazil.
It has also received and order to deliver 25 iSYS instruments to a customer in China by the end of December.
Following last month’s acquisition of Italian diagnostic company Diametra the company said it will continue to pursue further buyout opportunities to help it drive forward its five-year strategic plan.
Patrik Dahlen, chief executive, said: “The near-term trading environment for IDS remains challenging. “However, the path to sustainable growth will be based on the expansion of our assay menu and the launch of our new automated instrument and we continue to work hard to deliver on both of these strategic initiatives.”