Immunodiagnostic Systems Holdings PLC (IDH)

ImageHalf year results out yesterday and share price goes up. 

As well as other applications, IDS kits are used in many home pregnancy tests. IDS went through a big management change which is now fully in place.  They have their eye on developing markets and have set up already in Brazil. Sales have increased nicely but profit reduced. It will be 2015, however, before they consider that they will report an increase in profit. The ‘market’ probably sees the potential and therefore the reason for the increase in share price. IDS report that the market in Brazil alone is worth over $1 billion. The company has a strong cash flow of £24 million, up from £19 million last year. 

Before this half year report, their last couple of years were a bit wobbly in terms of growth in earnings and sales. And some ratios indicate that they had not invested their cash as well as they might have done – but a new management team is now in place.

Certainly one to consider for the longer term. 

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