Immunodiagnostic Systems

TICKER: IDH     EXCHANGE: AIM

Immunodiagnostic Systems intends to be a leading solution provider across the broader immunoassay testing market. The current business in US and Europe markets forms a growing base whilst starting to penetrate new emerging testing markets, like Brazil and China.

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Testing times, but real turnaround potential
Published: Oct 15 2014

Immunodiagnostic Systems (IDH)  intends to be a leading solution provider across the broader immunoassay testing market. The current business in US and European markets forms a growing base whilst starting to penetrate new emerging testing markets, like Brazil and China.
The company has recruited a new but highly experienced management team. Priorities focus on re-building customer confidence to gain traction on analyser placements which is key to test/consumables throughput and delivering a new cycle of revenue growth. 
Our analysis of IDH's 5-year plan suggests it looks achievable (+1,000 analysers placed, +80 auto assays launched, new market penetration achieved); however, the results are not a given and implementation must be aggressive.
We estimate 5YR CAGRs of 10% and 27% in revenues and PBT, respectively (FY14-'19). A DCF valuation matrix suggests a fair valuation range of £130m-£180m, versus current market cap of £86m.

ARCHIVE

Foreign buyers gorging on UK stocks

Document can be downloaded here: UK plc ‘going for a song’

Being a shareholder in a company that receives a juicy takeover offer is a marvellous feeling. Something that many fortunate investors have experienced over the past 3 years. Thanks to a spate of M&A bids by deep pocketed overseas buyers – partly triggered by the June 2016 Brexit result, which sent the £ tumbling and adversely affected the FTSE.

Consequently today, given this trend is unlikely to end anytime soon, we’ve highlighted 30 possible acquisition ideas in the attached research paper. Spilt equally between large and smallcap stocks – covering a broad selection of industries.

What’s more we believe most of these businesses are underpinned by strong fundamentals and substantial upside in the event of predatory interest.

According to Factset Mergerstat/BVR, the average bid premium paid for such deals between 2004-14 was 30% – with the figure trending upwards since the global financial crisis.

Happy investing. Published 27th August 2019