The AIM quoted producer of diagnostic testing kits for the clinical and research markets, announced high flying interim results for the six month period to 30 September 2010. Immunodiagnostic Systems Hldgs (LON:IDH) operate in the in-vitro diagnostics (“IVD”) market and designs, manufactures and sells immunoassay kits. These are used to measure or detect particular substances within a sample, thus aiding the diagnosis or monitoring of a disease or providing information for research studies. In 2008 the company commented that the immunoassay sector of the IVD market was estimated to be worth US$14bn, a staggering number!
Revenue for the half year was up 34% to £22.6m, pre-tax profit up 44% to £6.6m and earnings per share (diluted) up 54% to 18.8p. With full year forecast earnings per share 44.74p at the current share price of 990p the shares are on quite a racy 22x multiple, however, the growth prospects look excellent. IDS-iSYS sales were up 450% year on year and sales of manual Vitamin D products up 33% year on year. IDS-iSYS revenues represented 14% of the total up from 4% previously. Management commented that traditionally revenues are weighted to the second-half of the financial year and the Board sees the current year as no exception. The Directors believe that as at the end of November 2010 total placements year to date will be 170 units, of which 14 will be in the USA. Sales in the US represented 38% of total sales in the first half compared with 31% in the comparable period last year. Management commented that recent economic events have had no significant impact on revenues to date although there is some early evidence of healthcare spend reductions in the UK. The Vitamin D market continues to expand with the French market up 83% in the first half of 2010 compared with the comparable period in 2009.While all the excitement has focused on the automated side manual immunoassay has also continued to show sterling growth up +26% over previous first half.
