Medical kit maker unveils prescription for growth

Jul 15 2008 by Andrew Mernin, The Journal

MEDICAL testing kit maker IDS has revealed plans to open subsidiaries in Canada, Spain and the Benelux countries after recording the fastest period of growth in its 27-year history.

The firm, which employs around 60 people at its South Tyneside headquarters, yesterday said its turnover had soared 81% to £18.66m in the year ended March 31.

The company saw pre-tax profits climb by around 73% to £3.79m in a year defined by the acquisitions of Nordic Bioscience Diagnostics of Norway and French firm Biocode Hycel, which contributed £6.98m to the group’s annual turnover.

On the back of rapid growth, the business – which expects to become a £40m-a-year enterprise by 2010 – is set to widen its international reach.

Managing director Dr Roger Duggan said the company was researching the possibility of opening direct sales subsidiaries in Canada, Spain and the Benelux countries.

The firm currently has direct sales offices in the US, Germany, France and Denmark alongside distribution deals across the globe.

Meanwhile, IDS is gearing up for further growth this year as it prepares to launch 3X3 – an automated system which will allow the company to process medical tests at a faster rate, helping it access larger markets.

Dr Duggan said: “We are, collectively, in excellent shape to meet the demands of the marketplace, and will pursue the same overall strategy of the last two years, but with larger weapons and more ammunition. I have little doubt that this time next year I will be regaling you with further accounts of opportunities identified, grasped, and converted to increased shareholder value.”

IDS is also set to be boosted in the next 12 months by a string of recent reports highlighting the medical importance of vitamin D, with which IDS is heavily involved.

Chairman David Evans said: “The trading in the current year is in line with management expectations and our core business continues to prosper due to the growing recognition of Vitamin D as a valuable marker of well-being.”

Shares in AIM-listed IDS climbed two points to 247 yesterday.

IN FIGURES

Turnover up 88.1% to £18.66m

Gross profit up 75.8% to £11.43m

Profit from operations up 93.7% to £4.28m

Pre-tax profit up 73.1% to £3.79m

Earnings per share up 23.1% to 13.49p

Balance sheet: £3m in cash.

Share dividend up 20% to 1.5p.

PAGE TWO: Brokers note from Oriel Securities.