Health firm predicts 40% rise in earnings

Mar 26 2009 by Andrew Mernin, The Journal

MEDICAL test kit maker IDS has shrugged off the recession by predicting a 40% surge in annual revenue this year after strong growth in the US and Europe.

However, the company said plans to extend its network of overseas offices to Canada and other parts of Europe had been a casualty of the downturn and would be shelved for the foreseeable future.

In a trading update yesterday the company, of Boldon, South Tyneside, said it expected to generate turnover in excess of £26m in the year to March 31, compared with £18.66m the previous year.

It also said its costs remained under control while trading in all its main global territories had increased year on year as well as across key products.

Chief executive Dr Roger Duggan said the company’s strong growth was largely due to the fact its products were related to curing diseases prominent in an ageing population – although he also warned that the firm was not immune to the recession.

“The economic downturn has made doing business a little bit more difficult and we are looking after our costs and being more careful in our capital expenditure.

“Plans for a roll-out in Canada and the Benelux countries haven’t progressed particularly far and in fact that’s one of the casualties of the downturn.”