MEDICAL testing kit manufacturer IDS reported a 49% surge in turnover in the first half of the year and said it expects further growth next year as it steps up its presence in the Asia Pacific region.
The Aim-listed South Tyneside firm saw turnover jump to £6.77m in the six months to September 30, up from £4.53m the previous year while pre-tax profit soared 81% to £1.34m from £740,000 in 2006.
The company, based on Boldon Business Park, said the second half outlook remains very positive and trading continues to meet expectations.
The firm said it is targeting strong growth in the Chinese, Japanese and Australian markets as the firm looks to extend its global reach. Finance director Paul Hailes said the group expects to triple its sales in Japan – where its partners include multi-faceted corporation Sumitomo – to £900,000 in 12 to 18 months.
In Australia, where IDS has a partnership with distributor Abacus Diagnostics, the company believes it can grow its annual revenue from £350,000 to between £1.5m and £2m within 18 months.
Meanwhile, the company is lining up an assault on the Chinese market. Managing director Roger Duggan said: “Asia is definitely on the horizon. We’ve just had six products registered in China, we’ve beefed up our business relationship in Japan and our partner in Australia is extremely bullish.”
Chairman David Evans told shareholders, who saw their earnings per share climb 33% to 5.6p from 4.2p last year: “The outlook for the group for the second half remains very positive and trading continues to meet expectations. I see continued growth being achieved across all aspects of the group’s business and the outlook going forward remains positive, however, the short term challenge is to fully complete the integration of our newly acquired businesses into our organisation.”
This year IDS – Immunodiagnostic Systems Holdings – has made two major acquisitions – French firm Biocode Hycel for £15.5m and Scandinavian group Nordic Bioscience Diagnostics (NBD) for £17m.
The company plans to create up to 30 jobs at its Boldon headquarters as it transfers production of NBD’s bone-deterioration testing products from Denmark to the North-East.
IDS: In figures
£6.77m: Turnover in the six months to September 30, up 49% on the previous year.
£4.32m: Gross profit, up 48% on 2006.
81%: Climb in pre-tax profit to £1.34m, from £740,000 the previous year.
5.6p: Earnings per share, up 33% on 2006.