Medical testing kit company Immunodiagnostic Systems (IDS) has released an upbeat trading statement saying full-year results are anticipated to be in line with the board’s expectations.
The South Tyneside business said total revenues for the year are expected to be around £52.3m, a 5% lift on the previous 12 months’ £49.8m,
The company, which employs 100 people, has previously said its clients in clinics and laboratories have been gradually moving away from using manual testing kits to buy the automated variety, which in turn has led them to focus efforts on the IDS-iSYS, an automated tester which can diagnose a range of diseases within hours.
This has driven the continued growth in automated diagnostics revenue, which has risen by around 21%, compared to the prior year. Sales for its manual products, however, declined by around 18% over the same period.
The firm said it was pleased by a modest pick-up in direct instrument placements – where their products are sold or placed with rental customers in the group’s core markets of the US and Europe – in the second half of the financial year.
It said the net figure of 35 was disappointing but that a marked improvement was noted in the fourth quarter, thanks to a restructuring of the US sales operation to lift placement performance.
Over the year the total number of instruments placed or sold, either directly or through distributors, and sold to OEM partners was 92, down from the previous period’s 138.
The company said it is progressing well on all three of its strategic initiatives – to increase the menu of assays, or tests, available on the IDS-iSYS, develop a Mark II IDS-iSYS and build presence in growth markets. Its Chinese research and development and distribution partner Beijing Leadman Biochemistry Technology Co, Ltd is also close to completing the adaptation of 30 of its assays for use on the IDS-iSYS instrument, which will be sold in China and other core markets.
The Mark II automated testing kit is also proceeding well, and the company said it expects it be launched in Europe in the first half of 2015, and it is also estimated that manufacturing costs will come in much cheaper than the first.
Last November the firm, which makes testing kits for the research and clinical markets, announced expansion plans into Brazil.
The firm has now recruited a sales and support team to staff the operation in Sao Paolo, which will act as a sales and distribution hub for the BRIC nation as well as a hub for the South American market in general.
Patrik Dahlen, chief executive of the business, which employs 100 people, said: “We are pleased with our trading performance during the year which was in line with guidance, saw a return to top line growth and was ahead of the previous year.
“With further new product launches later this year, our next generation system development on track and near-term expansion into growth markets we have made solid progress in executing our three key strategic initiatives and we look forward to capitalising on the opportunities ahead of us.”