IMMUNODIAGNOSTIC SYSTEMS HOLDINGS

RNS Number:9016G
Immunodiagnostic Systems Hldgs PLC
30 December 2004

30 December 2004

Immunodiagnostic Systems Holdings PLC

Unaudited Interim Results
for the Six-Month Period to 30 September 2004

"Immunodiagnostic Systems Holdings plc manufactures and distributes medical
diagnostic products in the immunoassay segment of the in-vitro diagnostics
market."

CHAIRMAN'S STATEMENT

As this is the first interim statement of the Group it is necessary to detail
the historical background to the establishment of the Company and the Group in
order that you have a fuller understanding of the accompanying accounts.

The Company was incorporated on 4 June 2004 with the name Immunodiagnostic
Systems Holdings plc and with an authorised share capital of #120,000 divided
into 120,000 ordinary shares of #1 each ("Ordinary #1 shares"), of which 2
shares were issued, unpaid, on incorporation.

On 13 July 2004 the Company's authorised share capital was increased to #196,666
by the creation of an additional 57,000 A ordinary shares of #1 each ("A
Ordinaries") and 19,666 non-voting ordinary shares of #1.00 each ("Non-Voting
Ordinaries").

On 13 July 2004 119,998 Ordinary #1 Shares were allotted and issued, the 57,000
A Ordinaries were allotted and issued and the 19,666 Non -Voting Ordinaries were
allotted and issued all in consideration for the transfer to the Company of the
entire issued share capital of Immunodiagnostic Systems Limited ("the
Subsidiary") pursuant to an agreement between the Company and the shareholders
of the Subsidiary dated 13 July 2004.

On 22 December the Company's authorised share capital was increased to
#1,000,000 by the creation of an additional 803,334 Ordinary #1 Shares, each A
Ordinary was converted into one Ordinary #1 Share, each Non-Voting Ordinary was
converted into one Ordinary #1 Share and each Ordinary #1 Share was subdivided
into 50 Ordinary shares of 2p each.

On 24 December 2004, the Company's shares were admitted to AIM in a successful
placing raising #1.12m, net of costs.

The Company has not traded, incurred neither profit nor loss and neither
declared nor paid dividends or made any distributions since the date of
incorporation. Accordingly, the results presented in this report reflect the
consolidated trading results of the Subsidiary and its subsidiaries and
associates.

Results:

Turnover for the Group amounted to #2.5m reflecting underlying growth in our
core products, which on a comparator basis was a 16.9% increase.
As expected the Group made a profit this period benefiting from an increased
margin on increasing sales which more than offset the increase in other costs
incurred within the business which is inline with our strategic plan. This
resulted in an EBITA of #144,000 and an Operating Profit of #96,000 with a
Profit Before Tax of #57,000 and after tax of #43,000.

Business Overview

The Group has continued to grow and despite the distraction of achieving a
flotation on AIM in December the operational management team have remained
focussed thus allowing us to remain on plan with regard to profitability.

The Group's US subsidiary has seen continued growth from a low base and the
clearance to market for our Flagship Vitamin D product this month will ensure
further growth in this key market.

This month has also seen the establishment of IDS GmbH and as of the beginning
of February we will be able to sell our flagship product into this key territory
and looking forward we are looking to establish a French direct sales outlet in
late 2005.

In terms of product development we have successfully launched in September our
BAP assay, an assay acquired under licence from a major diagnostics company.
Additionally during the summer we signed an agreement to work with another
company to place our Vitamin D product onto a major Diagnostic company's
automated instrumentation. This is a major project lasting over two years.

During the summer we also acquired under licence the rights to an isothermal
nucleic acid technology for laboratory use. This included the rights to a
prototype MRSA test which had already been subject to clinical trial and the
results published in the Journal of Clinical Microbiology. Until we received the
funding through our AIM flotation we have not been able to progress this
opportunity. We believe that this technology will offer significant upside as
the Group pursues the opportunity of building a panel of tests to combat the
almost endemic problem of Hospital Acquired Infection.

Board Management and Team

On 22nd December the Board appointed two additional Non-Executive Directors in
Will Dracup of Nonlinear Dynamics and Dr Eddie Blair of Integrated Medicines.
The Management has been strengthened with the appointment of Tony Wilks as CEO
of IDS GmbH.

Outlook

The Directors believe that the Group is making good progress with the execution
of its strategic plan. We see good opportunities for continued development of
our business both domestically and abroad. With the flexibility and breadth of
experience of our people we believe that new product development along with our
ability to sell new and existing products (both manufactured internally and
those acquired from third parties) through our sales and distribution channel
will positively impact upon sales and margins.

David Evans
30th December 2004