Earnings suffer in year of change for Immunodiagnostic Systems

Immunodiagnostic Systems reported a 5% fall in revenue for the year to 31 March in its final results on Wednesday, to £37.9m.

The AIM-traded firm did see a 7% improvement in its automated business revenue to £22.9m, though that was more than offset by declines in manual business revenue, which was off 3% to £12.4m, and in revenue from its licensing and technology business, which plunged 54% to £2.7m.

Adjusted EBITDA was down 22% at £6m, with adjusted earnings per share plummeting 61% to 5.7p.

Immunodiagnostic said its free cash outflow was £1.4m, swinging from an inflow of £4.8m last year, while its closing cash was 10% below where it was at the end of the prior year, at £28.5m.

“Group revenues declined 5% year on year, though they showed a decline of 8% on a like for like basis,” said CEO Jaap Stuut.

“This decline was mainly driven by the expected reduction in antibody royalty income.”

Stuut said its core laboratory business, comprising its automated and manual business units, generated consistent revenues with the prior year on a like-for-like basis.

“I believe we have made good progress in both the restructuring of the commercial operations of the group, as well as adding new assay fields during the year, and whilst there is more work to be done, I look forward to returning the group to modest revenue growth in the next financial year.”