Immunodiagnostic Systems Hldgs : Update on current trading

15 September 2014

Immunodiagnostic Systems Holdings PLC

Update on current trading

Immunodiagnostic Systems Holdings PLC ("IDS" or "the Company" or "the Group") today provides an update on current trading.

Further to the strategic update presented at the preliminary results to improve IDS' long term prospects, on 4 August the Group announced at its AGM that it was experiencing a low level of placements and an acceleration in the decline in manual revenues. In addition, we reported that unfavourable exchange rate movements were creating a "headwind" for reported numbers.

These unfavourable short-term trends are continuing and specifically we have not seen, nor do we anticipate in the near term, our placement rates to pick up materially. Therefore, it is anticipated that revenues for the year ending 31 March 2015 will be below current expectations and in the range of £45m - £47m, which includes an anticipated adverse currency impact of circa £1.5m compared to 2013/14. We continue to work on a number of significant commercial opportunities that would provide upside to the revenue range indicated above. However, due to the uncertainty around success and/or timing, the impact of these opportunities has not been factored into our current expectations.

We remain committed to implementing our five year strategy announced at our preliminary results in June 2014 and we strongly believe that this is the best way of generating shareholder value in the medium-term and beyond.

Specifically, we continue to make good progress in expanding our presence into Brazil and China, and the Board remains focused on improving the Group's competitiveness.  In particular, we see the need to broaden the IDS-iSYS assay menu, increase output from the Group's investment in R&D and improve the scalability and efficiency of the Group's manufacturing operations. These improvements will be generated through increased investment in the Group's operational infrastructure whilst also increasing the Group's focus on acquisition-led growth to (i) provide immediate access to endocrinology manual assays, that can be converted to automated assays, and/or (ii) strengthen our operational capabilities. The acquisition of Dia.Metra S.r.l., announced last week, is an acquisition which meets these criteria providing access to a range of steroid hormone manual assays which the Group intends to convert onto the IDS-iSYS instrument as well as a modern, well invested manufacturing and development facility.

The Board is conscious of the need to maintain a level of cost control and drive efficiencies and the Board is actively considering a number of opportunities to streamline and simplify the Group's operations. A further update will be provided at the time of the interim results.

Patrik Dahlen, CEO of IDS plc, commented: "We are committed to the delivery of our strategic plan and believe that we have put in place a number of the key building blocks in order to execute it.  We can accelerate our strategy through the acquisition of complementary diagnostic groups and intellectual property which will introduce new growth areas and ultimately return IDS to long-term sustainable growth."

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About Immunodiagnostic Systems Holdings PLC

The Group's vision is to be a leading solution provider to the clinical laboratory diagnostic market. IDS's strategy is focused on developing, internally and through partnership, its automated assay menu for its proprietary automated immunoassay analyser, the IDS-iSYS system. Internally the Group is focused on developing an endocrinology excellence menu and externally IDS works with partners to develop assay panels in complementary indication fields. The Group sells its products primarily in the clinical laboratory market across a range of customers from reference laboratories to physician office laboratories. IDS has field sales forces in certain European countries, including France and Germany, the United States and Brazil and works with distributors in other markets including China, Italy and Spain.