IDS hoping turnover will soar in line with forecast
Jan 8 2009 by Chris Knox, The Journal
A MEDICAL testing company is looking forward to a strong 2009 after selling off its loss making haematology business and investing in new bone analysis technology.
Immunodiagnostic Systems (IDS), based in Boldon, South Tyneside, believes it can significantly increase its sales this year when it launches the IDS iSYS device in February, which allows doctors to monitor bone growth and deterioration during therapy. The AIM listed company, set up in 1981, has already managed to raise £3.1m following a share issue in December and will use the £4m it received from the sale of its haematology business to US firm Escalon Medical Corporation to invest in the new technology.
IDS acquired the haematology unit as part of its acquisition of French firm Biocode Hycel in 2007 and had struggled to sell it on as a consequence of the economic downturn and expected losses of £238,000 by March this year.
The firm, which employs 75 staff between its sites in the UK, Germany, the US and Scandinavia, is now hoping to see its turnover rocket in line with analysts Oriel Securities projected leap from £19m to £26m this year.
Despite the current economic climate, IDS chief executive Dr Roger Duggan is looking forward to working within new markets opened up by the bone technology and believes the business has a bright future.
He said: “We are expecting a lot of growth this year as we begin to work within new global markets.
“Although the process of selling the haematology business proved difficult at times, it has allowed us to focus on our core strengths as well as push forward with our expansion.”
The firm, which is predicted to boost its annual revenue to £46.9m by 2011 and employs around 60 people in South Tyneside, is now looking to add at least six staff to its workforce in order to support the new technology.
“Unlike many businesses at the moment, we seem to have escaped much of the downturn,” Dr Duggan said.
“The fact is that people won’t simply stop being sick, so we are involved in one of the few remaining growth markets. Our renewed involvement in the bone and skeletal health markets will allow us to continue this growth throughout this year.”
