Immunodiagnostic Systems Holdings Plc (IDH) – A Company to Watch

Immunodiagnostic Systems Holdings Plc (IDH) – A Company to Watch

IDS is a leading and profitable producer of diagnostic testing kits for the clinical and research markets. IDS’s flagship products are kits for the determination of Vitamin D levels in human serum. A deficiency of Vitamin D leads to bones becoming soft, brittle or mis-shapen and so it adversely helps to prevent skeletal defects that weaken bones such as osteoporosis, a growing problem across the world. The Company further expanded its activities into automated test systems with 3x3, a platform that came with a major acquisition in September 2007.

Since IDS floated on AIM at 50p in December 2004 with a market cap of £5m it has continued to grow its profits considerably year on year and has always met and/or exceeded the market’s expectations to the point where its share price and market cap today stand at £2.00 and £48m respectively.

Last summer IDS made two significant acquisitions which have provided further opportunities for growth. Nordic Bioscience Diagnostics will bolster the company’s core product offering in bone/skeletal markers and Biocode Hycel delivers a longer-term opportunity by bringing to the group the automated diagnostic platform 3X3, which has now been re-named IDSiSYS.

On 13 October 2008 IDS issued a pre close trading update in which it stated turnover for the first six months of the year was in line with management expectations, sales were up 84.5% compared to the same period last year and on a pro-forma basis the comparative was 21%. The Company added that development of assays for the IDSiSYS was continuing apace and it anticipates the first commercial shipments of both the IDSiSYS instrument and the Company’s flagship Vitamin D product to commence in January 2009. The Board stated that trading continues to be in line with expectations and it remains confident for the financial year as a whole to 31 March 2009.

IDS has an experienced Board and management team. The chairman is David Evans, a well known face in the healthcare sector he is also Chairman of AIM listed Epistem and Omega Diagnostics, and was Chairman of BBI holdings up to its sale in 2007 to US listed IMI for 195p per share, having floated in 2004 at 47p. Roger Dugan, CEO, has been with the Company since its inception in 1981, and the Operations Director, Ian Cookson has more than 20 years of experience within the In Vitro Diagnostics (IVD) industry.

IDS will announce Interim Results for the six months ended 30 September 2008 in the forthcoming weeks.

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