Immunodiagnostic Systems (IDH) is seeing its medium-sized laboratory customers - which comprise most of its market - increasingly switch from manual vitamin D tests to using machines provided in bulk by the sector's biggest companies. This manual testing is a mainstay for the group and has meant that the rate of sales contraction at its manual tests business is still being outstripped by the take-up of Immunodiagnostic's own automated machine - IDS-iSYS. Accordingly, underlying full-year pre-tax profit fell 21 per cent to £9.8m.
Still, the trends are encouraging. Revenue generated by automated tests grew 24 per cent in the year to £18.5m, which reflected the addition of new hypertension, bone and growth tests to its IDS-iSYS machine. That performance helped the overall sales mix, with automated tests now generating 37.1 per cent of total sales - compared with 27.8 per cent in 2012. New chief executive Patrik Dahlen reckons the company must change its basic strategy in order to compete, however. That shifting focus saw the group sign agreements with Omega Diagnostics for new tests, along with a recent development deal with Diagnostica Stago for the rollout of the next generation IDS-iSYS machine.
Broker Investec Securities expects pre-tax profit for 2014 of £11m, giving EPS of 30.8p (2013: £9.8m/27.2p).
IMMUNODIAGNOSTIC SYSTEMS HOLDINGS (IDH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 443p | MARKET VALUE: | £126m | |
| TOUCH: | 440-445p | 12-MONTH HIGH: | 455p | LOW: 235p |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 281p* | NET CASH: | £19.6m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 24.9 | 4.78 | 16.9 | 1.65 |
| 2010 | 37.2 | 11.0 | 30.0 | 2.00 |
| 2011 | 50.2 | 16.6 | 46.5 | 2.50 |
| 2012 | 53.7 | 7.25 | 16.7 | 2.75 |
| 2013 | 49.8 | 10.0 | 27.5 | 3.00 |
| % change | -7 | +38 | +65 | +9 |
Ex-div: 24 Jul Payment: 23 Aug *Includes intangible assets of £50.2m, or 177p a share | ||||
