Immunodiagnostic Systems

Diagnostic test kit manufacturer Immunodiagnostic Systems (IDS) has seen pre-tax profits more than double to £11m amidst growth in sales of its Vitamin D detection kits.

The AIM-quoted company saw pre-tax profits rise 130% to £11m in the year to March, on turnover up 49% to £37.2m, driven by an increase in demand for its products that detect levels of Vitamin D in the blood.

Chief executive officer Roger Duggan told Growth Company Investor he was delighted with the ‘extraordinary results', adding 'We have seen sales increase across our range of products, but particularly in the area of Vitamin D detection’ and noting that media coverage regarding the possible health consequences of Vitamin D deficiency lead to ‘a substantial increase’ in sales last year.

IDS manufactures a number of immunoassay kits, products that help determine the concentration of a particular substance in a liquid. For the last few years, the group has been specialising in Vitamin D detection, developing products such as IDS-iSYS, which measure the level of the vitamin in the blood. Low Vitamin D levels can cause the bone softening disease rickets and has also been linked to conditions including muscle pain and depression, as well as general cognitive decline in older people.

House broker Brewin Dolphin is forecasting a 45% rise in pre-tax profits to £16m this year, on sales rising 24% to £46.6m, with earnings set to grow from 28.9p to 42.5p. Growth Company Investor first tipped IDS in 2005 at 100p, and the shares have rocketed to 800p since, where they trade on just under nineteen times earnings. Although we expect further growth from IDS, now could be a good time to lock in profits for investors that got in on the story early.