There’s more woe for Immunodiagnostic Systems (IDH:AIM) as it posts first half figures, but chief executive Patricio Lacalle unveils a strategy he hopes will revive the medical testing kit-maker’s fortunes.
Shares plummet 16.6% to 225p as rising competition among manual and automated diagnostic kit-makers forces the North East-based company’s pre-tax profits 70.1% lower to £827,000 in the six months to 30 September, year-on-year. The company generated 35.4% less cash from its operations at £3.1 million, over the same period.
There’s worse to come as Lacalle, who took-over in April, went on to warn that second half revenues are expected to be lower than the £19.4 million recorded in the opening six months of its financial year.
Immunodiagnostic has been no stranger to profit warnings in recent years, while previous attempts to halt the decline, such as a five-year plan to boost sales, have suffered early set-backs.
The company will continue to develop new tests to be used on its machines, of which a vitamin D diagnostic is its leading product, but Lacalle now intends to focus on being a partner for universities and specialist laboratories. The sales teams are already working on this new direction for the business and the first evidence of Lacalle’s plan working will be in the preliminary results announcement in 2016.