Member Article

IDS predicts lower-than-expected revenues

Boldon-based drug testing company, Immunodiagnostic Systems Holdings PLC, are anticipating revenues to be lower-than-expected for the year ending 31 March 2015.

Due to reported unfavourable and unseen short term trends, namely a low level of placements and an an acceleration in the decline of manual revenues, IDS predict revenues will be in the range of £45 million to £47 million, an anticipated adverse currency impact of around £1.5 million compared to 2013/14.

In an attempt to combat the predicted revenue downturn, IDS are reportedly working on new commercial opportunities although, due to uncertainty around success and timing, the company have not factored the impact of these opportunities into current expectations.

Despite this, IDS remain committed to a five year strategy, specifically in expanding their presence to Brazil and China as well as increasing output from investment in research and development.

The company will also focus on acquisition-led growth, as evident by recent acquisitions such as that of Italian company Diametra.

Furthermore, the IDS Board are actively considering opportunities to streamline and simplify the company’s operations to maintain a level of cost control.

Patrik Dahlen, CEO of IDS, said: “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.”