VITAMIN testing specialist Immunodiagnostic Systems Holdings (IDS) is expecting to report full year sales of around £53.4m, ahead of analysts’ expectations.
The forecast 6% increase for the year to the end of March comes despite two recent profits warnings from the Boldon-based business, which said in January that it expects to axe jobs as part of a cost-cutting plan to cope with increased competition in its core vitamin D testing market.
But in a trading update yesterday, IDS said it is investing in measures to boost sales and improve its overall profitability.
IDS added: “ The group has prioritised investment to further strengthen its sales execution.
“While increasing its investment in product development and in sales and marketing, the group is making progress in implementing steps to enhance the overall profitability of the business.”
IDS has just launched extra unique tests, which are not yet available from its key rivals, for its flagship IDS-iSYS automatic vitamin testing machines.
It added: “The group continues to pursue its strategy of developing and marketing a range of specialist tests in areas not well served by existing providers to form a strong proposition that differentiates IDS from its competitors.”
Overall sales of vitamin D testing kits rose by 9% to £36.5m and now account for nearly 70% of revenues. Manual test sales were down by 10% at £25.3m but there was a 63% leap in automated sales to almost £17m. IDS said there would be a one-off £1.3m charge for the year, as part of its restructuring of the business.
Stockbroker Brewin Dolphin in Newcastle said that the expected revenues were ahead of its forecast of £52.5m, while operating costs were set to be in line with previous guidance, standing at £24.6m.