A leading producer of specialist diagnostic testing kits has turned over £52.3m – a rise of 5% – in figures released today for the financial year to the end of March.
The total for Boldon-based Immunodiagnostic Systems Holdings is up from £49.8m for the same period last year.
The figure was released alongside the announcement of the launch of a five-year strategic plan which aims to see the firm, best-known for its vitamin D tests, double revenues and push into emerging markets in Brazil and China.
Chief executive Patrik Dahlen said: “We are pleased with the progress made during the last financial year as well as trading in the first couple of months of the current period, both of which were in line with management’s expectations.
“We believe the reported results highlight the continuing potential of our automated assays run on our proprietary instrument platform, the IDS-iSYS system, to be the core driver of growth.
“We are confident that the strategic plan for the group outlined today will allow us to fully unlock the potential in the business and offers a real opportunity to deliver significant and sustainable shareholder value creation in the medium term and beyond.”
Financial highlights for IDS include a return to top-line growth with revenues up 5% to £52.3m (2013: £49.8m); automated revenues (IDS-iSYS), 42.8% of overall revenues, increased by 21.0% to £22.4m (2013: £18.5m); revenues from manual tests, 39.8% of overall revenues, decreased by 18.0% to £20.8m (2013: £25.3m); and gross margin increased to 74.5% (2013: 73.1%), reflecting changing product mix.
With the launch of its five-year plan, IDS hopes to become a leading solution provider to the clinical laboratory diagnostic market, doubling revenues from current levels by increasing IDS-iSYS installations by more than instruments by more than 1,000, as well as in-house development of an “endocrinology excellence” menu.
Additionally there will be greater market penetration of core markets in Europe and the US, with geographic expansion targeted at the fast-growing markets of China and Brazil, Dahlen said.
He added: “There remains a great deal of work to do to further improve our performance including enhancing the scalability of our operations and increasing our rate of internal assay development.
“We strongly believe that the key to success is to substantially improve the utilisation of the IDS-iSYS and that this can be achieved through a significant increase in assay menu, both through internal development and partnership.
“With the right team now in place we have begun to execute on this ambitious strategy and we look forward to keeping shareholders updated as to progress.”
IDS proposes an increased dividend of 8.5p (2013 3p).