A-Z A-Z
www.idsplc.com
UK
10 Didcot Way
Boldon Business Park
Boldon
Tyne & Wear
NE35 9PD
Tel: +44 (0) 191 519 0660
Fax: +44 (0) 191 519 0760
Email: info.uk@idsplc.com
Belgium
101, rue Ernest Solvay
B 4000 Liège-Belgium
Tel: +32 (0) 4 252 26 36
Fax: +32 (0) 4 252 51 96
France
153 Avenue D’Italie,  
75013 Paris, France
Tel: (0)1 40 77 04 50
Fax: (0)1 40 77 04 55
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Germany
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60329 Frankfurt am Main
Germany
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Fax: +49 (0) 69 3085 5125
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Email: info.nordic@idsplc.com
USA
8425 N. 90th Street, Suite 8
Scottsdale, AZ 85258
Tel: 480.278.8333
Fax: 480.836.7437
Email: info.us@idsplc.com
Immunodiagnostic Systems Holdings plc Annual Report and Accounts for the year ended 31 March 2010
Immunodiagnostic Systems Holdings plc 
Annual Report and Accounts 
for the year ended 31 March 2010
Sustained growth  
at IDS  A-Z
Who we are and what we do Directors and advisers
Financial Highlights
Revenue up 49% to 
£37.16m (2009: £24.94m)
Pre-tax profit up 130% to 
£10.99m (2009: £4.78m)
Diluted earnings per share up 
79% to 28.93p (2009: 16. 17p)
Operational Highlights
Gross margin increased  
to 74% (2009: 66%)
Launch of 5 fully-automated 
assays on the IDS-iSYS
Reagent kit production up 
by 72%
Understanding IDS
IDS is deliberately positioned as a specialist in immunoassay. 
This philosophy drives our strategic imperative to identify and 
exploit poorly addressed clinical ‘niches’ of socio-economic 
importance in an aging population. Our original focus on bone 
and osteoporosis now accommodates cartilage and growth. 
As we broaden our offering still further and step up to fully-
automated immunoassay, we reaffirm our position as 
Specialists in Immunoassay.
Contents
01 Highlights
02  The Vitamin D story 
04  Augmenting growth
06  Our products
10  Geographic infrastructure
12  Chairman’s statement
14 Chief Executive Officer’s review
16  Financial review
18  Board of Directors
20  Senior Management
 
21 Directors’ report
25 Corporate governance report
28  Directors’ responsibilities in the preparation  
of financial statements
29  Independent auditor’s report to the members  
of Immunodiagnostic Systems Holdings plc
30 Consolidated balance sheet
31 Consolidated income statement
32  Consolidated statement of other comprehensive 
income
33 Consolidated statement of cash flows
34 Consolidated statement of changes in equity
35 Notes to the consolidated financial statements
65 Company balance sheet
66 Notes to the company financial statements
73 Glossary
IBC Directors and  advisers 
Directors and advisers
Directors
Mr D E Evans Non-Executive Chairman
Dr R T Duggan Chief Executive Officer
Mr C I Cookson Chief Operating Officer
Mr P Hailes Finance Director
Mr A Rousseau Engineering Director
Dr M L Garrity Technical Director
Mr A Wilks Sales & Marketing Director
Dr E D Blair Non-Executive Director
Dr B Wittek Non-Executive Director
Dr P Dahlen Non-Executive Director
Secretary
Mr P Hailes
Registered Office
10 Didcot Way
Boldon Business Park
Boldon
Tyne & Wear
NE35 9PD
Auditors
Baker Tilly UK Audit LLP
Registered Auditor
Chartered Accountants
1 St James’ Gate
Newcastle upon Tyne
NE1 4AD
Bankers
Barclays Bank plc
PO Box 378
71 Grey Street
Newcastle upon Tyne
NE99 7JP
Solicitors
Watson Burton LLP
1 St James’ Gate
Newcastle upon Tyne
NE99 1YQ
Shepherd + Wedderburn
155 St Vincent Street
Glasgow
G2 5NR
Registrars
Computershare Investor Services plc
Corporate Actions PO Box 859
The Pavilions
Bridgwater Road
Bristol
BS99 1XZ
Nominated Advisors and Broker
Brewin Dolphin Ltd
34 Lisbon Street
Leeds
LS1 4LX
Ward Hadaway
Sandgate House
102 Quayside
Newcastle upon Tyne
NE1 3DX
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Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 1
Highlights
Record levels of growth  
and profitability
Diluted earnings per share
Revenue up 49% to £37 .16m (2009: £24.94m ) • 
Gross profit up 66% to £27.52m (2009: £16.58m) • 
Gross margin increased to 74% (2009: 66%) • 
EBITDA up 110% to £14.69m (2009: £6.99m) • 
Pre-tax profit up 130% to £10.99m (2009: £4.78m) • 
Diluted earnings per share up 79% to 28.93p (2009: 16.17p) • 
Improved cash at bank by 18% to £5.28m (2009: £4.46m) • 
Launch of 5 fully-automated assays on the IDS-iSYS, giving  • 
customers 6 products to choose from, with more to follow
This year, 70 IDS-iSYS analysers have been sold or  • 
placed on a reagent rental basis
Average revenues per IDS-iSYS are 28% above  • 
management expectations
New facilities in both Phoenix, Arizona and Paris, France • 
Revenue of £11.5m for the first three months of the year,  • 
up 35% from £8.5m for the comparative period 2009
Highlights since year end; US FDA 510(k) clearances  • 
for IDS-iSYS and automated Vitamin D kit
2010
2009
2008
2007
2006 5.98p
28.93p
16.17p
13.33p
10.96p
Revenue £37 .16m 
+49%
2010 37. 16m
24.94m 2009
16.47m 2008
9.92m 2007
8.13m 2006 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 2
The Vitamin D story
A-Z
New clinical indications/
research
The growing body of published 
clinical research indicates that 
deficiency in Vitamin D contributes 
significantly to the development of a 
growing number of serious and debilitating 
chronic diseases and the list continues to grow. 
Alarmingly, Vitamin D deficiency (very low levels) and 
insufficiency (moderately low levels) are found in a large 
proportion of adults and the majority of the elderly. 
Recent studies have reported that increased Vitamin D 
intake and higher 25-hydroxyvitamin D levels are 
associated with reductions in cancer risk. One five-year 
study of more than 120,000 people found that men with 
the highest Vitamin D intake had a 29% reduction in risk 
of colorectal cancer than those with the lowest Vitamin D 
intake. Another group of researchers found that women 
with sufficient 25-hydroxyvitamin D levels experienced  
a 50% lower risk in developing breast cancer compared 
to women with insufficient Vitamin D. Epidemiological 
studies indicate that the incidence of prostate cancer  
in African American men is higher than in white  
American men since the high melanin content  
of dark skin is known to reduce the efficiency  
of Vitamin D synthesis. 
Abundant evidence points to the numerous 
cardio-protective functions of Vitamin D. Restoration  
of Vitamin D to normal levels has been found to help 
reduce inflammation, normalise blood pressure and 
improve insulin sensitivity – all factors that reduce  
heart disease risk. 
Insulin-dependent diabetes mellitus (Type 1),  
multiple sclerosis (MS), and rheumatoid arthritis (RA) 
are examples of autoimmune diseases. The results of 
numerous studies suggest that adequate Vitamin D 
may decrease the risk of autoimmune disease. And 
infants receiving Vitamin D supplements during the  
first year of life are less likely to develop type 1 diabetes 
than infants receiving less Vitamin D. In two large 
cohorts of US women followed for at least ten years, 
Vitamin D supplementation was associated with a 
significant reduction in risk of developing MS. Similarly, 
postmenopausal women with the highest Vitamin D 
intakes were at significantly lower risk of developing RA. 
after 11 years of follow up than those with lower intakes.
The full story of the beneficial effects of this remarkable 
molecule, the ‘Sunshine Hormone’, continues to unfold.  
In the interim, many more tests will be performed.
The Vitamin D story 
Vitamin D testing is growing as a result of increased 
awareness and an increasing body of evidence 
supported by clinical studies.
Why is Vitamin D testing increasing?
The demand for Vitamin D testing has been increasing 
dramatically year-on-year over recent times. Many 
clinical laboratories have seen increases of more than 
50% in physician-requested 25-hydroxyvitamin D tests, 
and in some instances in France and the USA increases 
are still higher at 80 to 90%.
The reasons for this unprecedented increase in 
demand are twofold. First is the abundance of  
new evidence from clinical studies that associate 
25-hydroxyvitamin D as an important factor in a  
wide range of diseases. It has been long-known  
that inadequate Vitamin D levels in children result in 
poor bone and tooth formation and can lead to rickets,  
but it is now appreciated that Vitamin D sufficiency in 
adulthood is also vital to good health, with low levels 
resulting in an increased predisposition to a growing 
number of serious maladies. In bone, inadequate 
Vitamin D contributes to and exacerbates osteoporosis 
and osteomalacia. However, a multitude of studies have 
now shown that Vitamin D can help prevent the onset  
of many diseases such as type 1 and type 2 diabetes, 
hypertension, and some common cancers. Depression, 
autoimmune disease, cardiovascular disease and falls 
in the elderly have all been associated with inadequate 
or insufficient Vitamin D levels, and the list of 
associations continues to grow. 
The second market driver is the growing awareness that 
Vitamin D deficiency is more common than previously 
thought. A high prevalence of Vitamin D deficiency 
among children, the elderly and osteoporotic patients 
has been reported across many populations. In the USA, 
an estimated 36% of otherwise healthy adults are Vitamin 
D deficient, and this figure is even higher in Europe and 
northern populations. Reduced exposure to the sun, 
resulting from increased use of sunscreens with high 
protection factors, may have reduced the incidence of 
skin cancers, but is contributing to the rise in Vitamin D 
deficiency. Cultural, dietary and lifestyle changes also 
play an important role in overall Vitamin D status.
As more clinical studies are published and the links 
between Vitamin D status and disease conditions 
become stronger, it is anticipated that Vitamin D testing 
will continue to grow. Vitamin D supplementation and 
therapy is becoming more common, and monitoring 
efficacy of treatment will also create further demand for 
testing. The market is therefore likely to remain buoyant 
for the foreseeable future. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 3
http://www.drbriffa.com/blog/2010/06/28/higher-
vitamin-d-level-linked-with-reduced-risk-of-infection/
Clinical awareness of the value of special 
endocrinology tests, in particular, 25-hydroxy 
vitamin D and Intact PTH, is developing.  
Increases in the incidence of diseases, plus  
greater clinical knowledge of the problems 
associated with ‘abnormal’ levels requiring  
testing is also an important factor promoting  
testing growth.
“25-Hydroxy Vitamin D and Intact PTH have 
increased globally by 15-20%* and are likely  
to continue next year. Both have entered the 
reimbursement list a while ago. Regarding 
25-hydroxyvitamin D, prescription habits have  
been modified by the last consensus about 
osteoporosis screening in menopausal women.”
* Source: EAC report Dec. 2009
Global market growth
Sustained Growth in Vitamin D 
testing in all major markets.
What is driving the Vitamin D market ?
An abundance of scientific research and growing 
awareness by clinicians and scientists of links 
between Vitamin D and an expanding list of clinical 
conditions lies at the root of the continued increase  
in Vitamin D testing. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 4
Sustainability and potential
Augmenting growth
Our distinctiveness
From modest beginnings in 1977 , IDS has 
graduated into a multi-national Group quoted on 
the Alternative Investment Market (AIM) on the 
London Stock Exchange, addressing the most 
demanding clinical and research requirements 
worldwide, and now delivering a sophisticated 
automated immunoanalyser to a highly critical 
audience. And yet we retain the enthusiasm and 
free-thinking ability to approach old problems 
with new solutions. Our ability to engage with 
global experts and key opinion leaders and their 
enthusiasm to engage with IDS provides immense 
strength to tackle future challenges and meet one 
of our primary goals – to be the best in those areas 
in which we choose to specialise.
IDS-iSYS: specialty immunoassay automation
The sophisticated IDS-iSYS immunoassay analyser 
automates our panels of specialty assays. Designed 
with the flexibility needed to accommodate unique 
and challenging assay requirements, the IDS-iSYS 
combines automated efficiency and uncompromised 
quality in specialty immunoassay testing for 
laboratories of all sizes.
* Ostase
®
 is a registered trademark of 
Hybritech Incorporated, a subsidiary  
of Beckman Coulter. Inc
Product Pipeline
1,25-Dihydroxy  
Vitamin D
ACTH
Aldosterone
Bioactive PTH (1-84)
Calcitonin 
Cortisol
CTX-I (CrossLaps
®
)
CTX-II (CartiLaps
®
)
IGFBP-3
*Ostase
®
 BAP
PTH (1-34)
Renin 
TRAcP 5b 
(BoneTRAP
®
) Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 5
2011
2010
Cartilage
Bone
Growth
Hypertension
Kidney Disease
(CKD – BMD; ESRD)
Vascular
Calciﬁcation
2012
Focused diversification
Having established the IDS Group as a leading 
immunoassay company in bone and calcium,  
we determined to broaden our interests into  
the adjacent and related areas of cartilage and 
growth factors. We have done so to great effect. 
Our acquisition of Nordic Bioscience Diagnostics 
provided a firm foundation in the complex discipline 
of collagen and cartilage biology, one in which IDS 
continues to invest and one in which we will excel. 
New biomarkers will appear from the IDS Group, 
addressing the needs of the researcher and clinician 
in both osteoarthritis and rheumatoid arthritis. 
Our decision to collaborate with Dr Martin Bidlingmaier 
of München, a leading authority in growth factors, was 
driven by the desire to produce better products rather 
than ‘me too’ products. In our IDS-iSYS human Growth 
Hormone (hGH) and Insulin-like Growth Factor-I 
(IGF-I) kits, we have done so. 
We will continue to diversify into related areas of 
analytical need to provide the tools needed by 
researcher and physician alike.
Advancing into the future
Going forward, the Group recognises the need to 
balance its activities to maximise the prodigious 
potential before us. We must nurture and expand  
our existing manual assays, a highly profitable 
business that has sustained the Company’s  
growth for decades. We must drive forward with  
the IDS-iSYS and our automated immunoassays,  
an avenue of immense future value and almost virgin 
market territory for our expanding panels of analytes.  
And we must continue to identify and invest wisely  
in tomorrow’s technology, tomorrow’s biomarkers,  
in order to stay at the forefront of our selected 
specialisms. The plans are afoot, a solid start  
has been made, and this sets our course for the 
forthcoming years.
Bone and cartilage in skeletal 
health; joints and arthritis in aging
Growth factors in skeletal 
development; healthy aging
Vitamin D in mineral 
metabolism, hypertension
Obesity, diabetes and 
hypertension epidemics  
driving kidney disease
Chronic kidney disease –  
bone and mineral disorders  
(CKD – BMD);  
end-stage renal disease 
(ESRD); renal osteodystrophy
R&D in the IDS Group
The IDS-iSYS analyser was developed (and is 
manufactured) in Burgundy, and will further evolve in 
the capable hands of its creators. Increased capacity, 
speed, precision and reliability will ensue as customer 
feedback continues and the system matures.
Immunoassay development thrives in Boldon  
and Liège within the Group, and in collaborators’ 
laboratories in Germany and the USA, with additional 
labs to join in the forthcoming year. The pipeline  
is satisfactorily full of scientifically and clinically 
interesting assays. We enter the adjacent and 
specialist worlds of hypertension and kidney disease, 
and address the sequelae of these disorders – 
disrupted calcium metabolism, renal osteodystrophy 
and vascular calcification. Almost full circle – IDS 
revisiting calcium metabolism but from a wholly 
different perspective – playing to our strengths.
Business Development Group 
The challenge confronting us as immunoassay 
specialists is the identification of ‘future winners’ 
among the plethora of newly-discovered biomarkers 
appearing in the learned scientific journals.  
The closer to ‘discovery’, to the cutting edge of 
science, the greater the risk that any particular 
biomarker may ultimately prove to be clinically 
irrelevant or insufficiently disease-specific.  
The closer to Proof of Concept or clinical 
acceptance, the greater the commercial  
competition and the more demanding the 
acquisition or licensing terms. We have now  
created a powerful international resource within  
IDS, the Business Development Group, which is 
charged with the identification and selection of 
tomorrow’s more specific, more sensitive, more 
efficient biomarkers of disease. Only by the early 
and accurate identification of such candidates  
can the Group continue to re-invent itself as  
a true innovator in immunoassay. A-Z A-Z
Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 6
Our products
Our product range: 
Innovation in automation
Introducing the IDS-iSYS
In the first full year of its  
release, the IDS-iSYS has made 
a confident entrance to the 
specialist laboratory. Vitamin D  
is one of the most demanding 
analytes to measure, and still  
more to automate. 
The IDS Group’s flagship technology has made  
the transfer to an automated microparticle 
chemiluminescent format with remarkable aplomb,  
and enabled us to launch a brand new analyser  
with just a single analyte. Many customers are  
now running Vitamin D routinely on the IDS-iSYS  
and have adopted some or all of the five further 
products that have since launched.
Going forward, the IDS-iSYS will fully automate  
our unique portfolio of clinically-relevant bone,  
growth, hypertension and cartilage markers.  
Whilst small and sleek, the bench-top analyser 
accommodates proprietary technology for up  
to 15 different biomarkers at one time – all with 
hands-off ease of operation and superior  
day-to-day, lab-to-lab reproducibility. 
IDS-iSYS users appreciate the many novel 
convenience features such as on-board storage  
of reagents, scheduled hands-free start-up and 
shut-down modes, pre-packaged reaction cuvettes 
and automatic daily maintenance, all contributing to 
optimizing assay performance, laboratory efficiency 
and result turnaround times. Supported by highly-
experienced technical support and field service 
organisations in each territory, the IDS-iSYS brings 
unique value to discriminating customers wanting 
automation but who are unwilling to sacrifice quality. 
The ongoing development of new specialty  
markers remains a critical factor in the continued 
success of the IDS-iSYS. 
Products for 2010/11 
As a result of global trends towards 
centralisation of laboratory 
testing, and a rise in test volumes, 
automation plays an important 
role in the marketplace in order to 
provide consistent, fast, efficient  
and accurate testing. 
To meet this need, IDS continues to increase the  
menu of tests available on the IDS-iSYS automated 
testing platform. During the fiscal year 2009/10, IDS 
launched five new automated assays on the IDS-iSYS 
system in addition to 25-Hydroxy Vitamin D: Intact 
PINP , hGH, N-MID
®
 Osteocalcin, Intact PTH, IGF-I. 
The Group will continue its campaign of menu 
expansion on the IDS-iSYS, with six new automated 
assays being launched during the fiscal year 2010/11: 
Ostase
®
 BAP , CTX-I, PTH (1-34), Bioactive PTH (1-84), 
IGFBP-3 and Renin.
Menu expansion is of key importance to the future 
success of the IDS automation strategy, positioning  
IDS to fully exploit our specialist biomarker assays  
in a convenient push-button format to meet the most 
demanding of analytical situations.
New product 
development  
will continue 
throughout 2010  
and 2011, and will  
add still more 
complementary  
IDS-iSYS products  
from a robust  
R&D pipeline. A-Z A-Z
Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 7
Bone Panel
According to the International Osteoporosis Foundation, osteoporosis 
affects approximately 75 million people in Europe, USA and Japan. 
Osteoporosis is a global public health problem which affects approximately one in three women and one in  
five men, and is increasing in significance as people live longer and the world’s population grows. The current 
method of assessing the status of bone is the measurement of bone mineral density. A consensus group from  
the International Osteoporosis Foundation (IOF) recommends the use of bone turnover markers for monitoring  
of antiresorptive agents and prediction of fracture risk in postmenopausal osteoporosis. Canadian Consensus 
Conference on Osteoporosis, 2006 Update indicates bone turnover markers can be used to rapidly assess 
adherence and effectiveness of pharmacological interventions, and bone mineral density (BMD) should not  
be viewed as the only indicator for management success because therapy may or may not be associated  
with significant increases in BMD.
With the increasing number of drugs now available for the treatment of osteoporosis, a more rapid method to 
evaluate the efficacy of therapy is needed (months vs. years for bone mineral density).  The biochemical markers  
of bone turnover offer the advantage of short time frame (months) for non-invasive and inexpensive assessment  
of changes in the rate of bone turnover following therapeutic intervention, changes in bone markers predict 
improvement in bone density and strength. 
The following bone markers are/will be available on the IDS-iSYS specialty analyser.
IDS-iSYS 25-Hydroxy Vitamin D
25-hydroxyvitamin D measurement is considered the most relevant method for overall Vitamin D status.  
The IDS-iSYS 25-Hydroxy Vitamin D detects both dietary (D
2
) and ‘natural’ (D
3
) forms and has a growing  
number of users on the DEQAS quality assessment scheme.
IDS-iSYS 1,25-Dihydroxy Vitamin D
1,25-dihydroxyvitamin D is one of the major regulators of calcium (and phosphate) metabolism, stimulating 
intestinal calcium absorption and increasing bone resorption. It also inhibits parathyroid hormone (PTH) 
production. In late stage renal failure, low 1,25-dihydroxyvitamin D levels result. The launch of the IDS-iSYS 
1,25-Dihydroxy Vitamin D will simplify a normally technically demanding assay and become an important link 
between the bone and renal disease panels.
IDS-iSYS Intact PINP 
Intact Procollagen type I N-terminal Propeptide (PINP) is the most sensitive marker of bone formation and is 
particularly useful for monitoring bone formation therapies and anti-resorptive therapies. 
IDS-iSYS N-MID
®
 Osteocalcin 
Detecting both intact and N-mid fragment of the osteocalcin protein, this assay is considered a specific marker  
of bone formation function.
IDS-iSYS Bone Specific Alkaline Phosphatase (Ostase
®
 BAP) 
Ostase
®
 BAP is a well-established marker of bone formation and turnover, and is used extensively in the  
monitoring of patients on anti-resorptive therapies.
IDS-iSYS CTX-I (CrossLaps
®
) 
In addition to its usefulness as a bone resorption marker monitoring therapy efficacy, CTX-I has the specificity  
and sensitivity that makes it a useful screening parameter in the risk assessment of post-menopausal osteoporosis 
and Paget’s disease.
IDS-iSYS TRAcP 5b (BoneTRAP
®
)
TRAcP 5b is a reliable, highly specific and sensitive marker of bone resorption since it does not accumulate in 
circulation during renal and hepatic failure.
IDS-iSYS Intact PTH and IDS-iSYS Bioactive PTH (1-84)
PTH is an important modulator of serum calcium. Along with Vitamin D, it controls the balance of calcium between 
bones and serum, and the absorption, loss and retention of calcium by the body.
The preferred form of PTH to be measured is somewhat controversial. To meet the market demands, IDS will offer 
two products, one the established third generation type offered by our competitors and a second more specific 
format which measures only bioactive PTH in all patient groups, including chronic renal failure patients.
IDS-iSYS PTH (1-34) 
The measurement of PTH (1-34) is useful in monitoring the efficacy of teriparatide treatment. This new anabolic 
drug is for people with osteoporosis at high risk of fracture.
IDS-iSYS Calcitonin 
IDS-iSYS Calcitonin assay is primarily used to assist in the diagnosis of C-cell hyperplasia and medullary thyroid 
cancer, to evaluate the effectiveness of treatment and to monitor for recurrence. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 8
Our products
Hypertension Panel
It is estimated that nearly one billion people are affected  
by hypertension worldwide and this figure is predicted  
to increase to 1.5 billion by 2025. 
IDS-iSYS Direct Renin
Renin forms an integral part of the Renin-Angiotensin-Aldosterone System (RAAS) which regulates blood  
pressure and fluid balance. Measurement of direct renin is therefore necessary in hypertensive patients  
and in the therapeutic follow-up of high blood pressure. 
IDS-iSYS Aldosterone 
The ratio between renin and aldosterone is important in the investigation of hypertension. Measurement of 
aldosterone along with direct renin on the IDS-iSYS will allow clinical evaluation of the ratio between these  
two hormones and will strengthen IDS’s position in the investigation of hypertension. 
Cartilage Panel
Osteoarthritis and rheumatoid arthritis are both common diseases 
characterised by the gradual destruction of cartilage cushioning the 
joints. The IDS-iSYS CTX-II ( CartiLaps
®
) assay and ensuing products  
will be valuable in diagnosing and monitoring long-term efficacy of 
treatment for these conditions.
IDS-iSYS CTX-II (CartiLaps
®
)
Type II collagen is the major organic constituent of cartilage and fragments of type II collagen (CTX-II) are released 
into circulation following degradation of cartilage. 
Growth Panel
In the diagnosis and monitoring of conditions associated with an excess 
or deficiency of human Growth Hormone, accurate and consistent 
assays are required. The IDS-iSYS Growth panel meets these needs.
IDS-iSYS human Growth Hormone (hGH)
This assay is superbly suited to clinical evaluation of endogenous hGH levels as there is no cross-reactivity with 
growth hormone antagonists and is specific for the major isoform of hGH.
IDS-iSYS Insulin-like Growth Factor (IGF-I)
As IGF-I is the primary mediator of hGH and exhibits less diurnal variation than hGH, it is considered an important 
molecule in the diagnosis of growth disorders.
IDS-iSYS Insulin-like Growth Factor Binding Protein-3 (IGFBP-3)
The forthcoming IGFBP-3 assay will complete the IDS-iSYS growth panel and provide for a full and accurate 
analysis of samples in the management of growth disorders.
IDS continues to increase the menu of tests available on the  
IDS-iSYS automated testing platform, thereby enhancing  
panels of complementary tests used for the diagnosis and  
management of an increasing range of disease states.  Title
A-Z
Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0 9 A-Z
Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
10
Geographic infrastructure 
Direct and indirect sales coverage
The Group has direct sales coverage in the USA, 
France, Germany, Austria, Switzerland, Scandinavia 
and the UK. The year saw us increase the size of our 
sales, marketing and support teams by 47% to 85 
people to effectively promote our manual assays  
and as importantly to ensure a successful roll-out  
of the IDS-iSYS. We have also continued to improve  
our distributor network, and key distribution territories 
such as Australia, Canada and Spain have successfully 
launched the IDS-iSYS.
New IDS facilities
During the year the Group continued to invest in  
its facilities to meet the needs of our enlarged customer 
base. Reagent manufacturing operations in the UK 
|and Belgium have been scaled-up to accommodate 
continued growth, and Lean Manufacturing techniques 
have been introduced in our instrument operation in 
France to increase throughput and reduce costs. Both 
our internal and external distribution routes have been 
streamlined to optimize the delivery of customer orders.
 
USA
In August 2009, IDS Inc, our US subsidiary, moved into 
much larger facilities (892 sq metres) in the Scottsdale 
area. Staff numbers in the US increased significantly 
from 8 to 25. Unsurprisingly, the recruitment of additional 
sales staff has resulted in higher sales of our existing 
products, and additional service and support staff  
have been put in place ahead of the US launch of  
the IDS-iSYS.
France 
In September we brought our Paris-based staff together 
into one new central location for sales and customer 
demonstrations. This allowed us to close both the office 
we acquired with Biocode Hycel and the original IDS 
sales office. In March 2010 we completed the integration 
of Biocode Hycel into the IDS Group with the creation  
of a single merged company, IDS France. This was an 
important step in consolidating the enlarged Group,  
and we are already seeing the benefits of this change.
Geographic infrastructure 
The year saw significant investment by the Group in 
both sales & distribution, manufacturing capacity 
and capability. Headcount increased from 206 to 241 
to meet the increased activity during the year and to 
prepare for future demand. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
11
United Kingdom
Boldon in Tyne & Wear is our head office.  
As well as its corporate role it houses manual and
automated reagent development, manufacturing
and sales operations with a team of 84 people
Development 
and  
Manufacturing
Belgium 
Our 50 employees in 
Liège are responsible  
for the development  
and manufacture of the 
IDS-iSYS test reagents
France
Our sales and support
team of 26 people operate
out of our office in Paris 
and in the field
USA
A team of 25 people sell 
to and support all of the 
USA, our fastest growing 
market, from our facility  
in Scottsdale, Arizona
Denmark
A small but enthusiastic team  
of 6 people in Copenhagen  
provides sales and support to all of
Scandinavia and the Baltic States
Germany
The team of 10 people based in our 
Frankfurt office provides excellent  
sales and support for Germany, Austria, 
Switzerland and Eastern Europe
France 
All of the IDS-iSYS 
analysers are developed 
and made in Pouilly-en-
Auxois in Burgundy by  
a group of 40 dedicated 
people 
Sales  
and  
Support Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
12
Chairman’s statement
Continued growth
“ Once again I am pleased to report that the IDS Group 
has stood up to the plate and delivered another very 
good set of results. Management and employees 
alike have worked well together and are creating  
a unique culture here at IDS, a culture that has 
contributed to our growth in both turnover and 
profitability and whilst I have no doubt that there  
will be many challenges ahead of us I am sure that 
our “Esprit de corps” will enable us to overcome 
them and continue to flourish!”
Dear Shareholder,
I am delighted to report on another year of continued 
growth at Immunodiagnostic Systems.
Increased sales and profitability have resulted from the 
continuing demand for our manual products, especially 
Vitamin D, as well as the successful roll-out of the 
IDS-iSYS and the launch of five more automated products 
that sit alongside our automated 25-Hydroxy Vitamin D.
Highlights
The continued worldwide demand for Vitamin D testing 
has seen our manual Vitamin D sales increase by 72% 
to £22,000,000 up from £12,820,000 in 2009.
All subsidiary companies within the IDS Group have 
experienced a growth in sales and profitability this year.
Our Group companies have been able to accommodate 
a significant increase in demand for our products, 
especially the automated analyser the IDS-iSYS. Our 
French subsidiary based in Pouilly has been able to 
match demand and incorporate system upgrades to 
reflect market feedback from our customer base. In 
addition to the instruments themselves, our Belgian 
subsidiary based in Liège which manufactures the 
automated reagents has been able to meet customer 
demand for a rapidly expanding product portfolio.
Average revenue per instrument from reagent rental 
accounts at a constant exchange rate was £77,000, 
slightly higher than management expectations.
We have also seen a very pleasant growth in our share 
price which has increased by circa 285% from 198.5p  
at 31 March 2009 to 765p as at 31 March 2010.
Lowlights
The longer-than-anticipated clearance from the US Food 
& Drug Administration (FDA) obviously caused some 
angst amongst shareholders and employees alike. 
However, now that we have 510(k) clearance under  
our belt, we are confident that we can successfully  
take a share of the automated market within the USA.
Having by year end sold or placed 74 IDS-iSYS 
instruments post launch, the Directors believe they are 
slightly behind where they had hoped to be at year-end 
and this is due in no small part to the delay in getting a 
positive FDA decision. We hope to rectify this in the 
fullness of time.
Results
Turnover has increased by 49% to £37,158,000 (2009: 
£24,937,000) with increased automated revenues from 
the IDS-iSYS accounting for a little more than 18% of 
this growth.
Gross profit has increased substantially during the period 
from £16,580,000 in 2009 to £27,516,000 in 2010, an 
increase of 66% as we benefited from a favorable product 
mix and certain economies of scale associated with 
increased demand for our main products.
Overall profits from operations increased by 110% from 
£5,367,000 to £11,283,000.
Financing
Our financing costs have decreased from £703,000 to 
£555,000 reflecting the reducing amount of debt we 
have in the business and an enhanced foreign currency 
exchange gain compared to last year.
David Evans 
Non-Executive Chairman Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
13
Taxation
The charge to taxation is £2,911,000 compared to 
£585,000 in the previous year and represents an 
effective rate of 26.5%. The effective rate reflects the 
varying taxation rate applicable per country where IDS 
has a subsidiary as well as favorable allowances for 
R&D tax credits.
Profit after Taxation
Overall profit after tax has increased from £4,196,000  
to £8,075,000 reflecting an increase of 92%.
EPS
The Earnings per Ordinary Share has increased from 
16.918p to 30.017p an increase of 77%. Fully diluted the 
total increase is 79% (28.926p vs 16.166p).
Balance sheet
Current Assets
Cash at bank was up 18.4% to £5,276,000  •	
(2009: £4,456,000);
Trade and other receivables increased from •	
£8,598,000 to £10,806,000 and reflects our 
increased turnover whilst also containing the monies 
due to us from Escalon Drew in relation to the 
disposal of the Haematolgy business in December 
2008 as deferred consideration;
Inventories have increased from £5,737,000 to •	
£6,427,000 reflecting our increased turnover and 
stock of automated instruments and components.
Liabilities
Bank borrowings have decreased from £13,729,000 to 
£11,230,000 due in part to the weakening of the Euro 
and capital repayments.
Provisions
The main reduction in provision has been to reduce the 
earn-out liability to the former shareholders of Biocode 
Hycel reflecting revised assumptions and the first 
earn-out payment.
Direction and growth
I am very pleased with the progress made by the Company 
at integrating the businesses units within the Group and the 
steps taken to create the concept of ‘One IDS’. This can 
only strengthen our attitudes towards working well with 
each other and help increase our efficiencies within the 
business.
The strategic direction remains the same: New Product 
Development, Geographic Growth and Acquisition and our 
goal is execution. So far I believe we are on track and are 
accelerating in the direction set out in the CEO’s report.
I am pleased to reflect upon the two new non-executive 
Directors we have appointed recently, both Burkhard Wittek 
and Patrik Dahlen bring individual strengths and experience 
to our Board of Directors and I am sure the company will 
benefit going forward. In addition to the two new non-
executive Directors, we have added to our headcount with 
additional staffing in almost all areas of the business from 
middle and senior management to production, operations, 
technical and engineering support, so much so that our 
headcount has increased from 206 last year to 241 and 
remains in line with management expectations.
Management
Going forward, we announce a changing of the guard 
as from 1 October, with Ian Cookson, now the Chief 
Operating Officer, succeeding Roger Duggan as Chief 
Executive Officer. I would like to pay tribute to Roger’s 
knowledge, drive and leadership in ensuring that IDS 
has become the leading independent IVD company in 
the UK. I am glad to say that Roger will continue on at 
Board level in a business development role. 
A-Z
“ Turnover for the year ending  
31 March 2010 was £37.2m,  
49% ahead of last year’s 
performance (fy/e 31 March  
2009: £24.9m) and trading in all  
of the Group’s main territories  
has increased year on year.  
Sales into the USA, France, 
Germany and the UK have  
grown significantly this year.”
David Evans, Non-Executive Chairman
As Ian takes the baton on I am sure that his own drive, 
operational experience and attention to process and 
detail will ensure that IDS moves to becoming a still 
more significant and established IVD Company.
Outlook
The trading for the first three months of the year is in line 
with management expectations. Revenues for the first 
three months of the year have been £11.5m compared 
to £8.5m for the comparative period last year and the 
Directors believe the increased market acceptance of 
the IDS-iSYS with its expanding menu will continue and 
bodes well for the future particularly given the recent 
clearance to market in the USA.
Post launch we have now placed or sold more than 
100 instruments and the Directors believe that this 
number can be substantially improved upon as our 
product menu continues to develop and grow, as does 
the infrastructure we have developed to support the 
customer during their decision-making process and 
thereafter post-installation and routine use.
The opportunities laid at our feet as a result of having 
the IDS-iSYS are truly remarkable and I look forward to 
updating you throughout the year on:
Additional product launches on the IDS-iSYS •	
Regulatory submission and approval on our new •	
automated products
Expansion of our IP portfolio •	
Leveraging our automated technology •	
Finally, the growth we have experienced over the last 
twelve months could not have been achieved without  
the total commitment of our global workforce and the 
continued support of our Shareholder base. I would 
formally like to record my thanks to both groups.
David Evans
Non-Executive Chairman
9 July 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
14
Chief Executive Officer’s review
The IDS Group has had another gruelling but very 
successful year. We have grown in size, turnover, 
profitability and prospects, reflecting the underlying 
maturation of an expanding global workforce with  
a more eclectic range of specialist products.
This year we faced the most prodigious growth 
challenge ever experienced by IDS, namely breaking 
into the daunting automated immunoassay market 
whilst continuing to nurture and grow our longstanding 
manual assay business. 
The launch of the fully-automated immunoanalyser,  
the IDS-iSYS, in February 2009 set the stage for 
FY 2009/10, with the prime focus being the realisation 
of the enormous potential that the marriage of the 
all-new instrument and our proven immunoassay 
expertise represented. 
The requirements for success were well-known to  
us – the instrument itself has to be constructed to a 
very high quality, achieve the capacity, speed and 
precision requirements of the most demanding of 
laboratories and offer a high degree of reliability.  
The assays automated thereupon similarly have  
to be of the highest quality, with sensitivities and 
specificities to meet or exceed the most demanding 
specifications and must be manufactured to the 
highest possible consistency. And these two essential 
components, the IDS-iSYS and its assays, “the razor 
and the razor blades”, have to work exquisitely in 
concert, day in and day out.
I’m tempted to say it was a close shave, but instead am 
pleased to report that with a fair wind and hard work we 
appear to have ticked all the required boxes.
Investors will know that the roll-out of the IDS-iSYS,  
the speed and frequency of realizing placements and 
“time to go live” in revenue generating accounts, was 
slower in the early stages than anticipated. An unknown 
machine from a company not known for automation 
provoked caution in an otherwise enthusiastic audience.
Fortunately this has changed with experience  
gained in the field and the invaluable “word of mouth” 
passing among a highly communicative customer 
base. Evaluations throughout Europe have accelerated  
as our operations in the UK, Germany, France and 
Scandinavia have gained confidence and competence. 
These Group subsidiaries have excelled this year, 
increasing sales of all of our manual products even  
as they tackle the new challenges of automation.  
Our distributors in Canada, Australia and Spain  
have been particularly bullish, and other territories  
are now shaping up to follow suit with the IDS-iSYS. 
A gruelling but  
successful year
“ We have grown in size, turnover,  
profitability and prospects.”
Roger Duggan, PhD
Chief Executive Officer Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
15
System launch in the USA was frustrated by a 
protracted delay in receipt of pre-market approval from 
the US FDA, who have “upped their game” in what is 
known as 510(k) submissions. The IVD industry as a 
whole now appreciates that approval timescales have 
lengthened over the past 18 months with most recent 
examples, including our own, taking 6-12 months  
from time of submission. However, our clearance,  
dated 25th, was received on 28 June and we have 
unleashed an eager US sales force. In the interim, we 
did not waste the time the delay presented – IDS Inc is 
today still better prepared for launching the iSYS into 
the single largest, most automated IVD market in the 
world. We have further improved our new premises  
in Scottsdale, and the enlarged sales team has lifted 
manual product sales impressively. And our US field 
engineers have broadened their knowledge of the 
European way of life by honing their new skills 
alongside other IDS engineers busy in France,  
Belgium and the UK. It has been a pleasure to see  
the interest and enjoyment of personnel throughout  
the Group that this cultural mix has generated.
This year we have launched more new immunoassay 
products than in any previous year in our history. The 
teams in Boldon and Liège have delivered human 
Growth Hormone (hGH) and Insulin-like Growth Factor 
I (IGF-I), both developed in association with Dr Martin 
Bidlingmaier of Munich, Intact PINP, Osteocalcin and 
Intact PTH to the IDS-iSYS product range. We continue 
to embody our policy of “raising the bar” with every 
product development to challenge and dispirit our 
competitors. Thus our Bone Panel and our Growth 
Panel take on shape and content, with more analytes  
to be added to each later this year. A Hypertension 
Panel will follow before the year-end. The ability to 
‘up-sell” increases with every new product launch,  
and can only add to the revenues received per  
machine placed, already above early expectations.
The continued buoyancy in the sales of our manual 
products has been an excellent contributor to the year’s 
Group performance, with little cannibalisation by the 
automated IDS-iSYS alternatives at this juncture. Given 
that new biomarker assays to be released will almost 
invariably appear first in a manual Research Use Only 
format, our further investment in expanding production 
capacity in our Boldon plant is both necessary and 
timely. And as the range of products available on the 
IDS-iSYS grows, so cannibalisation of manual accounts 
becomes evermore a desirable outcome, enabling 
up-selling on each and every machine out there.
In a fast-moving and competitive environment, we must 
keep our eyes open for both threat and opportunity.  
We are very aware that competition will become much 
more severe in the Vitamin D market in the relatively 
near future. Whilst the market will continue to grow at 
impressive rates for the next few years, some major 
players will enter and the dynamics will change. The 
broadening of our product range and the access to 
larger specialist accounts afforded by the IDS-iSYS will 
certainly ameliorate the inevitable pressure on Vitamin 
D sales, and the quest for new biomarkers, new 
applications and new technologies will play a part  
in our readiness for the future.
The present year will be seminal in the history of IDS as 
we are able to fully exploit our manual and automated 
products worldwide. As the business continues to  
grow at an exhilarating rate, we are attuned to the 
changing demands on the ‘Senior Team’ and I am 
happy to hand the reins of the IDS Group to a very 
capable successor in Ian Cookson. Ian has the skill 
sets to take the Company to greater heights, and I look 
forward to exercising my more entrepreneurial talents 
elsewhere in the Group. I am looking forward to leading 
some talented younger colleagues in the newly-formed 
Business Development Group. IDS has identified a 
number of highly-attractive avenues to pursue with a 
number of prestigious research institutes and innovative 
companies in Europe and the USA, and potential 
additions to the IDS family. In the forthcoming months 
and years, I am confident that we will secure rights, by 
licence or acquisition, to some very exciting products, 
markets and technologies.
How is the IDS Group in July 2010?
We are in excellent shape financially and intellectually 
and poised for more steady and directed growth. Our 
mantra remains “to be the best in our chosen fields of 
application”, and by striving to achieve this I am sure that 
we will continue to add significantly to shareholder value.
Roger Duggan, PhD
Chief Executive Officer
9 July 2010
A-Z
“ We are in excellent shape 
financially and intellectually  
and poised for more steady  
and directed growth. Our mantra 
remains “to be the best in our 
chosen fields of application”,  
and by striving to achieve this  
I am sure that we will continue  
to add significantly to  
shareholder value.”
Roger Duggan, PhD, Chief Executive Officer Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
16
Paul Hailes
Finance Director
Financial review
Financial highlights 
The increase in demand for our Vitamin D range of 
products, as well as the launch of additional analytes 
onto the IDS-iSYS have, significantly contributed to  
this year’s increase in both sales and profitability.  
All subsidiary companies have benefited from this  
and all have seen their sales increase from between 
15% and 94%.
Additional product launches will help generate more 
instrument placements and increase average revenue 
per machine. 
Turnover
Turnover increased by 49% to £37,158,000 (2009: 
£24,937,000). Direct sales through all of our subsidiary 
companies experienced significant growth.
Gross margin
Our gross margin increased for the twelve month 
period to 74.05% (gross profit £27,516,000) from 
66.50% in 2009 (gross profit £16,580,000). Increased 
volumes, enhanced product sales mix and exchange 
rate movements were the three principal reasons for 
this growth.
Operating costs and profits
Our R&D expenditure for the year was in line with 
management expectations at £3,695,000, down slightly 
from £3,805,000 in 2009.
Distribution and Administrative expenses increased by 
£5,020,000 to £16,234,000 compared to £11,214,000 in 
2009. This increase was expected, as we continue to 
strengthen the Group’s infrastructure to support the 
increased demand for our manual products as well as 
the automation program supporting the IDS-iSYS roll-out 
and increased amortisation and depreciation charges.
The charge for depreciation and amortisation of 
intangibles was £3,351,000 compared to £1,428,000  
in 2009 and is in line with management expectations  
as we amortise previously capitalised development 
costs associated with the IDS-iSYS programme.
EBITDA
The Group reports an increase in earnings before 
interest, tax, depreciation and amortisation (EBITDA) 
from £6,991,000 in 2009 to £14,985,000, an increase  
of 114%.
Improved margins
“ Overall the prospects for the Group remain  
bright and we continue to forge ahead  
with our plans for growth both organically  
and where we deem it appropriate  
by acquisition.” Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
17
Turnover by product area
Year ending 31 March 2010 2009 Change 
 £’000 £’000 %
Vitamin D 22,000 12,820 72%
Octeia 2,053 1,971 4%
Gamma B 167 211 (21%)
Other 1,048 657 60%
Automation 2,714 475 471%
Total of IDS products 27,982 16,134 73%
Distribution of third-party sales 2,040 2,119 (4%)
Nordic Bioscience Diagnostics 4,003 3,431 17%
Biocode Hycel 3,133 3,253 (4%)
Total Turnover  37,158 24,937 49%
Dividend policy and dividend
The Board is proposing a dividend for the year of 2.00p (2009: 1.65p) subject to the approval of shareholders at the 
Annual General Meeting. The dividend per share will be paid on 15 September 2010 to shareholders on the register 
at the close of business on 20 August 2010.
Balance sheet
The Group’s non current assets at 31 March 2010 were £61,146,000 (2009: £60,768,000) which consisted of 
property, plant and equipment of £5,198,000, intangible assets of £55,732,000 and investments of £216,000. 
Intangible assets principally relate to the patents and goodwill acquired on acquisitions.
Stocks have increased to £6,427,000 (2009: £5,737,000) and debtors have increased to £11,381,000 (2009: 
£9,158,000) while current creditors have decreased to £9,951,000 (2009: £10,124,000). Creditors due after one  
year have decreased to £13,422,000 (2009: £19,282,000).
Financial performance
This report shows that the Group has had another very good year with record sales and profitability. A major contributor 
to this success has been the increase in both the number of orders received and the number of active customers who 
purchase product. As we develop and introduce new products we expect this growth to continue.
There are of course always risks associated with a business and as the in vitro diagnostic market develops there  
is the possibility that increasing competition from larger companies with greater financial and other resources than 
those directly available to the Group will appear. The Directors are aware of this and are looking to work closely with 
these larger companies in an attempt to make them customers for the Group’s products rather than direct 
competitors.
Our progress on our strategic objectives is monitored by the Board of Directors by reference to six key performance 
indicators applied on a Group-wide basis. The Group’s performance for 2010 and 2009 is shown below:
Financial KPI 2010 2009 Variance
Annual increase in sales 49.00% 51.00% (2.00%)
Number of net invoices issued 19,886 17,180 2,706
Gross margin 74.05% 66.50% 7.55%
Profit after tax 21.73% 19.33% 2.40%
Basic earnings per share 30.017p 19.433p 13.099p
Diluted earnings per share 28.926p 18.569p 12.760p
Paul Hailes
Finance Director
9 July 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
18
Board of Directors
Board of Directors
David Evans BCom., CA, MBA (aged 50) 
Non-Executive Chairman 
David has considerable expertise within the 
diagnostic industry. As Financial Director, he 
was a key member of the team that floated 
Shield Diagnostics Group plc with Axis 
Biochemicals ASA of Norway in 1999 to 
create Axis-Shield plc. He is currently 
involved in a non-executive capacity  
with several other companies.
Paul Hailes FCCA (aged 47) 
Finance Director 
Paul gained experience with Bowater plc  
and Courtaulds plc before joining IDS in 
February 1993. Paul is also a Director and/or 
Company Secretary in PeriNatal Diagnostics 
Limited, PalindromX Limited, and 
Pyrronostics Limited.
Roger Duggan PhD (aged 61)
Chief Executive Officer 
Roger joined RIA (UK), the forerunner of IDS,  
in 1981. Within IDS, he has held the positions 
of Development Scientist, Laboratory Manager 
and Scientific Director, becoming Managing 
Director following the management buy-out  
in 1996. Roger also sits on the boards of 
PeriNatal Diagnostics Limited, PalindromX 
Limited, and Pyrronostics Limited.
Ian Cookson (aged 56)
Chief Operating Officer
Ian has over twenty years of experience  
in senior appointments within the in vitro 
diagnostics (IVD) industry, both in the UK and 
overseas. Joining IDS from Axis-Shield plc, 
where he was Managing Director of their 
Dundee-based Laboratory Division. Ian 
brings valuable experience in automated 
immunoassay systems.
Martha Garrity PhD (aged 49)
Technical Director 
Martha joined IDS after eleven years in 
Research and Development at Nichols 
Institute Diagnostics as Senior Scientist, 
Manager and Director, responsible for 
development and launch of automated 
speciality assays in the areas of bone,  
growth and hypertension. She has a  
wealth of experience in the assay 
technologies employed by IDS. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
19
Antony ‘Tony’ Wilks (aged 49)
Sales and Marketing Director 
Living for twenty years in Germany and with 
eighteen years experience in European sales 
and marketing of diagnostic products, Tony 
brings a wealth of experience in international 
sales to IDS. Tony joined IDS in February 
2005 from Nichols Institute Diagnostics 
GmbH, where he served as Managing 
Director of European Operations.
Alain Rousseau (aged 59)
Engineering Director
Alain joined IDS following the Biocode Hycel 
acquisition, where he served as CEO, and 
developed the automated platform which is 
now the IDS-iSYS. Previously, as Head of 
Instrumentation for Diagnostica Stago, he 
developed their entire instrument product  
line. He has filed for over thirty patents  
during his career.
Edward ‘Eddie’ Blair PhD, MBA (aged 51)
Non-Executive Director
Following a research career in virology  
at the MRC, UK, and University of  
California, Eddie spent fifteen years in  
the pharmaceutical industry, including  
the position of Therapeutic Adviser to the 
GlaxoWellcome Predictive Medicine Group, 
before becoming a director of clinical 
diagnostics at GlaxoSmithKline plc. He is  
a director of Integrated Medicines Limited.
Burkhard Wittek PhD (aged 58)
Non-Executive Director
Burkhard holds an MBA from Harvard 
Business School. After working for Dresdner 
Bank AG he spent thirteen years with The 
Boston Consulting Group where he was a 
senior partner. In 1990 he founded FORUM 
Family Office making long-term investments 
in German Private Equity and European  
Small and Midcap situations.
Patrik Olof Dahlen PhD (aged 48)
Non-Executive Director
Patrik became CEO of Chempaq A/S,  
the Denmark-based Point of Care diagnostics 
company in November 2009 having been 
CEO of Dako A/S since 2005. Previously  
he was CEO of BioImage, Senior VP  
of Perkin-Elmer Inc and President of 
Perkin-Elmer Life Sciences. He is Chairman  
of OLink Biosciences and Proxeon. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
20
Senior Management
Senior Management
Barry Hextall BSc ACMA, MBA (aged 42)
IDS Ltd Country Manager & IDS Group 
Deputy Finance Director
Barry joined IDS in April 2009 as Deputy 
Finance Director with Country Management 
responsibility for the UK. Barry gained 
experience with ICI, Zeneca and Ernst & 
Young. He has considerable senior 
management and executive experience, 
including the management of major 
investment projects.
Jean-Marc Valentin (aged 58)
Site Manager, Pouilly – France
Jean-Marc has a long experience in 
Automation, servicing and manufacturing.  
He joined IDS following the IDS acquisition  
of Biocode Hycel, at which time he served  
as Site Manager. His previous management 
roles include responsibilities for manufacturing, 
customer service, and production methods.
Kenneth Gibbs (aged 65)
CEO and Managing Director – USA
Kenneth is a senior executive with more than 
thirty-five years’ professional experience in 
pharmaceutical and medical devices sales, 
marketing, business development and 
management. He has U.S. and international 
experience with multi-national corporations 
as well as emerging technology companies. 
Kenneth joined IDS in January 2003 and 
created IDS Inc.
Ed Coombes BSc (aged 39)
Country Manager – France
Ed graduated in International Management 
Science and Modern Languages at the 
University of Bath. After a year with Price 
Waterhouse in Paris, he settled in France 
permanently where he worked in new 
technology companies. Ed was behind the 
creation of Netlink in 1998 and Oxford 
Biosystems France in 2002. He established 
IDS Eurl in 2005.
Dennis Djan (aged 48)
Group Marketing Manager
Dennis joined IDS in October 2009. Prior to  
4 years spent in the medical devices arena 
mainly as EMEA Product Director, Dennis 
spent 14 years at Abbott Diagnostics serving 
international assignments in Germany as 
EMEA Business Development Manager,  
and prior to this was in Southern Africa 
responsible for establishing new markets.
Rudolf Schemer PhD (aged 49)
Country Manager – Germany
Dr Schemer gained his doctorate (PhD)  
from the University of Hohenheim, Germany, 
before joining Nichols Institute Diagnostics  
in technical sales. He progressed in Sales 
and Marketing, then European Marketing 
Management, before becoming Country 
Manager (Germany, UK, Ireland, Netherlands, 
Austria and Switzerland) following 
successfully placing over 150 fully-automated 
immunoassay systems.
Dagmar Kasper PhD (aged 44)
Country Manager – Northern Europe
Dr Kasper undertook doctoral studies in 
biochemistry at Georg-August University, 
Germany. Following post-doctoral research  
at the University of Hamburg, she joined 
Nordic Bioscience Diagnostics (NBD) as 
International Product Manager, becoming 
head of sales and marketing in 2004.  
She later moved to USA spearheading  
direct sales operations, and developing 
strategic alliances for NBD.
Guy Pirens (aged 60)
Site Manager – Belgium
Guy started his career developing 
immunoassays for the Liège University 
Clinical laboratory. He was involved in clinical 
and hormone reference validation studies. 
Guy participated in the establishment of 
spin-off companies from Liège University.  
He is now the Liège Site Manager responsible 
for the development and production of 
immunoassays for the IDS-iSYS analyser. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
21
Governance
Directors’ report
The Directors submit their report and audited financial statements of the Company and of the Group for the year ended 31 March 2010.
Immunodiagnostic Systems Holdings PLC is a public listed parent company, incorporated and domiciled in England and quoted on AIM.
Principal activities
The principal activity of the Group during the year under review was that of manufacturing and distributing medical diagnostic products.  
The Group is also actively involved in research and development projects.
Review of the business and future developments
These are dealt with in the Non-executive Chairman’s Statement, the Financial Review and the Chief Executive Officer’s Review.
Results and dividend
The Group’s profit on ordinary activities after tax for the year is £8,075,000. The Directors have recommended a dividend of 2.00p per ordinary share.
Research and development
Research and development projects continue to concentrate in areas of bone and growth and the Group has increased the number of 
employees working within this area.
The Directors and their interests in the shares of the company
The Directors who served the Company during the year together with their beneficial interests in the shares of the Company were as follows:
     At At 
     31 March 2010 31 March 2009  
 Position Class of share   No. No.
Dr R T Duggan Chief Executive Officer £0.02 Ordinary shares   2,276,187 2,222,927
Mr P Hailes Finance Director £0.02 Ordinary shares   1,111,378 928,046
Dr M L Garrity Technical Director £0.02 Ordinary shares   – –
Mr A Wilks Sales and Marketing Director £0.02 Ordinary shares   58,820 58,820
Mr A Rousseau Engineering Director £0.02 Ordinary shares   50,584 85,584
Mr C I Cookson Chief Operating Officer £0.02 Ordinary shares   11,538 11,538
Mr D E Evans Non-Executive Chairman £0.02 Ordinary shares   522,458 343,127
Mr W Dracup Non-Executive Director £0.02 Ordinary shares   – –
Dr E D Blair Non-Executive Director £0.02 Ordinary shares   – –
Dr B Wittek Non-Executive Director £0.02 Ordinary shares   – –
Dr P Dahlen Non-Executive Director £0.02 Ordinary shares   8,250 –
All directors served throughout the year with the exception of Mr W Dracup who resigned on 4 September 2009 and Dr B Wittek and Dr P Dahlen 
who were appointed on 20 October 2009 and 11 December 2009 respectively.
The executive Directors and the Chairman have options granted to them under share option schemes; details are included within Note 37 of the 
attached financial statements.
Directors indemnity
Every Director shall be indemnified by the company out of its own funds.
Substantial shareholdings
The Directors have been notified or are aware that the following are interested in 3% or more of the issued ordinary share capital of the Company 
as at 18 June 2010.
     Number of Percentage 
     ordinary shares of issued 
     of 2p each share capital
Forum Venture Capital     6,504,364 23.35%
Dr R T Duggan     2,276,187 8.17%
New Star Asset Management     1,282,200 4.60%
Mr P Hailes     1,111,378 3.99%
Brewin Dolphin     1,003,954 3.60%
Mr D Laurie     984,200 3.53%
AXA Investment Managers     883,300 3.17%
Policy on the payment of creditors
It is the Company’s policy to ensure all creditors are paid in full within the agreed terms of business. Trade creditors of the Group at 31 March 
2010 were equivalent to 50 days purchases, based on the average daily amount invoiced by suppliers to the Group during the year. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
2 2
Governance
Directors’ report
Disabled persons policy
The Company and the Group recognise and accept their responsibility to ensure that full and fair consideration is given to the employment of 
disabled persons. Where an individual’s abilities and aptitude are recognised as suitable, appropriate training will be arranged to develop the 
skills of the individual and further their career within the Company and the Group.
Employee involvement
An open forum within the Company and the Group is encouraged where staff may come forward with ideas, concerns and suggestions and 
where the Company and the Group can discuss matters concerning employees.
The Company has been credited with the Investors in People award.
Environmental policy
Our environmental policy is summarised as follows:
The Group’s main objective is to provide customers with products that meet their requirements with respect to fitness for use, reliability, delivery and 
value for money and ensuring that we comply with the pertinent regulatory standards associated with our industry. In particular:
• 	 t h e 	 G r o u p 	 i s 	 c o m m i t t e d 	 t o 	 t h e 	 d e v e l o p m e n t 	 a n d 	 s u s t a i n a b i l i t y 	 o f 	 i t s 	 b u s i n e s s , 	 w hi l s t 	 m i ni m i s i n g 	 a n y 	 ad v e r se 	 i m p ac t 	 o n 	 t h e 	 e n v i r o n m e n t	
caused by its operations
•	 the 	 G r oup 	 w ill 	 p r o m ot e 	 g o o d 	 p r actic es 	 t o 	 ensur e 	 that 	 the 	 or ga nisatio n 	 w ill 	 c o mpl y 	 w ith 	 all 	 r e gulat o r y 	 a nd 	 le gislati v e 	 r e quir e m e nt s 	 a nd 	 at 	 the 	
same time look to continually improve on how we can reduce any adverse impact on the environment
•	 the 	 G r oup 	 w ill 	 c o ntinue 	 t o 	 m oti v at e 	 sta f f 	 t o 	 b e 	 env ir onm entall y 	 awa r e .
The Group’s main operation is within the in vitro diagnostic (IVD) testing industry, supplying test kits to hospital and research laboratories.  
Most of our tests are carried out on blood or urine samples and are based upon immunoassays involving an antibody-antigen reaction,  
and use antibodies and other well-established common reagents that can be readily acquired. Materials are sourced from the highest quality 
manufacturers and are handled according to their relevant instruction or legislation. All human, biological and radioactive materials used at our 
premises are treated as hazardous waste which is collected and disposed of by specialist contractors.
We have a recognised Health and Safety Officer who undertakes regular audits of our compliance and chairs a health and safety committee 
which meets regularly throughout the year. We also produce products to the highest levels of Good Manufacturing Practice (GMP) as demanded 
by the FDA and European IVD Directive.
Impact of Euro
The Company recognises that to be competitive within the Euro-zone it must be able to offer for sale products priced in Euro as well as Sterling. 
Where possible the Company looks to offset foreign currency liabilities.
Charitable contributions
Contributions to charitable organisations amounted to £4,596 (2009: £13,982), and can be analysed as follows:
Gift of products to colleges and universities      £4,138
Other      £458
Financial instruments
As sales through our subsidiary companies continue to positively impact on turnover, profitability and cash flow, we continue to monitor and 
manage our exposure to external pressures that may affect our performance by monitoring our customer and key supplier contracts as well  
as looking to offset any exchange risk through matching liabilities with corresponding assets. Pricing and credit issues do not appear to be a 
significant problem as the majority of sales income is generated through subsidiaries who deal directly with end users and are able to maintain 
very good relationships with respect to pricing and credit control. Note 38 gives information on foreign currency exposures.
Related party transactions
Transactions occurring with associated undertakings are detailed in Note 30 of the financial statements.
Annual General Meeting
The Company’s Annual General Meeting will be held on Wednesday 25 August at 3pm at the offices of Brewin Dolphin, 12 Smithfield Street, 
London, EC1A 9BD.
A special resolution will be proposed to adopt new Articles of Association of the Company (the ‘New Articles’). A new set of Articles of Association 
has been drafted to take into account changes brought in by the implementation of the Companies Act 2006, which changes came into full force  
on 1 October 2009. References to the Companies Act 1985 have been amended and updated to references to the appropriate corresponding 
provision of the Companies Act 2006. Additionally, the following substantive changes have been made: Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
23
The Company’s objects
The Companies Act 2006 significantly reduces the constitutional significance of a company’s memorandum of association. The Companies  
Act 2006 provides that a memorandum will record only the names of subscribers and the number of shares each subscriber has agreed to take 
in the company. Under the Companies Act 2006, with effect from 1 October 2009, a company’s objects clause and all other provisions which 
were contained in a company’s memorandum are deemed to be contained in a company’s Articles of Association, but a company can remove 
these provisions by special resolution.
Furthermore, the Companies Act 2006 states that unless a company’s articles provide otherwise, a company’s objects are unrestricted.  
This abolishes the need for companies to have objects clauses. For this reason, the Company is proposing to remove its objects clause together 
with all other provisions of its memorandum which, by virtue of the Companies Act 2006, are to be treated as forming part of the Company’s Articles 
of Association as of 1 October 2009. Resolution 12 confirms the removal of these provisions for the Company. As the effect of this resolution will  
be to remove the statement, currently in the Company’s Memorandum of Association, regarding limited liability, the New Articles also contain an 
express statement regarding the limited liability of the shareholders.
Authorised share capital and unissued shares
The Companies Act 2006 abolishes the requirement for a company to have an authorised share capital and the New Articles reflect this  
(Article 6 of the current Articles of Association of the Company (‘the Current Articles’) has been removed). The Directors will still be limited  
as to the number of shares they can at any time allot because an allotment authority from the shareholders continues to be required under  
the Companies Act 2006, save in respect of employee share schemes.
Closing of the register of share transfers
The Current Articles permit the directors to suspend the registration of share transfers. Under the Companies Act 2006 share transfers must be 
registered as soon as practicable and the previous statutory provisions allowing a company to close its register of members for any time or times 
not exceeding 30 days have been repealed. Accordingly, the power in the Current Articles to suspend the registration of transfers (Article 46) has 
been removed and is not provided for in the New Articles.
Reasons for refusal to register transfers
The Companies Act 2006 states that a company can only refuse to register a transfer of shares in certain circumstances and must give reasons 
when refusing to register a share transfer. The New Articles have been updated to reflect this position. 
Change of name
Previously, under the Companies Act 1985, a company could only change its name by special resolution. Under the Companies Act 2006  
a company will be able to change its name by other means provided for by its articles. To take advantage of this provision, the New Articles 
enable the directors to pass a resolution to change the Company’s name.
Authority to consolidate and sub-divide shares and reduce share capital
Under the previous law a company required specific enabling provisions in its articles to consolidate or sub-divide its shares and to reduce its 
share capital or other undistributable reserves as well as shareholder authority to undertake the relevant action. Under the Companies Act 2006 
a company only requires shareholder authority to do any of these things and it is no longer necessary for articles to contain enabling provisions. 
Accordingly the relevant enabling provisions have been removed in the New Articles.
Written resolutions
The Companies Act 2006 sets out that a resolution of the members (or a class of members) of a public company must be passed at a meeting 
of the members. Therefore the provisions in the Current Articles (Article 50.2) that purported to allow the Company’s members to pass written 
resolutions have been removed. 
Directors’ interests
The provisions of the New Articles relating to the declaration of a Director’s interests have been updated to encompass changes made to the 
over-riding statutory regime.
Retirement by rotation
The provisions which govern director’s retirement by rotation have been updated to reflect the provisions contained in the model articles for 
public companies, as introduced under the Companies Act 2006.
Time for deposit of Proxy Forms
The Current Articles set out that forms of proxy in relation to any general meeting of the Company must be deposited no less than two days before 
the time appointed for that meeting. In accordance with new provisions introduced by the Companies Act 2006, the New Articles change this by 
adding the qualification that non-working days do not count in calculating the two day time period. 
Board authorisation of conflicts of interests 
The Companies Act 2006 introduced a statutory duty for directors to avoid conflicts of interest. Section 175 of the Companies Act 2006 provides 
that a public company may authorise conflicts of interest by resolution of the board of directors only where there is an express provision in the 
Articles enabling them to do so. Such a provision has been included in the New Articles so that the directors may have that power.  Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
24
Governance
Use of seals
A company previously required authority in its articles of association to have an official seal for use abroad. After 1 October 2009 such authority 
is no longer required. Accordingly the relevant authorisation has been removed in the New Articles.
The New Articles provide an alternative option for execution of documents (other than share certificates). Under the New Articles, when the seal 
is affixed to a document it may be signed by one authorised person in the presence of a witness, whereas previously the requirement was for 
signature by either a Director and the Secretary or two Directors. An ‘authorised person’ is any Director, Secretary or any other person authorised 
to by the Directors to sign.
Voting by proxies on a show of hands
The Companies (Shareholders’ Rights) Regulations 2009 have amended the Companies Act 2006 so that it now provides that each proxy 
appointed by a member has one vote on a show of hands unless the proxy is appointed by more than one member, in which case the proxy  
has one vote for and one vote against if the proxy has been instructed by one or more members to vote for the resolution and by one or more 
members to vote against the resolution.
Extraordinary General Meetings and Extraordinary resolutions
The Companies Act 2006 does not have any reference to Extraordinary General Meetings or Extraordinary Resolutions, therefore such 
references have been removed from the New Articles. 
Members’ rights to requisition meetings, resolutions and polls
The rights of members to require resolutions to be circulated, meetings to be called or polls to demand polls are now contained in the Companies 
Act 2006. Those provisions of the Current Articles that are inconsistent with the new statutory regime have been amended or removed. 
Indemnity provisions 
The Companies Act 2006 has expanded the pool of individuals whom a Company may indemnify in the event that they incur any liability arising 
out of their role with the Company. Therefore, provisions have been included in the New Articles which allow the directors, to indemnify directors, 
alternate directors, officers or employees of the Company and companies in which it is interested.
Disqualification of Directors
The provisions in the New Articles dealing with the circumstances in which a director may be removed from office have been updated to reflect 
the provisions of the model articles for public companies, as introduced under the Companies Act 2006.
Age limit for Directors 
The Companies Act 2006 does not contain any provision requiring directors to retire when they reach a certain age. The corresponding 
provisions in the Current Articles have therefore been removed.
Auditors
A resolution to re-appoint Baker Tilly UK Audit LLP as auditors for the ensuing year will be proposed at the Annual General Meeting.
Statement as to disclosure of information to auditors
The Directors who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no 
relevant audit information of which the auditors are unaware. Each of the Directors has confirmed that they have taken all requisite steps to make 
themselves and their auditors aware of relevant audit information. This includes information which the Directors are aware, but which the auditors 
have not specifically requested, or may indeed have no knowledge of.
By order of the Board
David Evans
Non-Executive Chairman
9 July 2010 
Directors’ report Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
25
The Combined Code is intended to promote the principles of openness, integrity and accountability. The Company fully supports these 
principles and although not required to do so, the Directors have decided to provide Corporate Governance disclosures.
The Board formally adopted the principles of good governance set out in the Code. However, in view of the size and nature of the Group, the 
directors have taken into consideration the Guidance for Smaller Quoted Companies on the Code, produced by the Quoted Companies Alliance. 
The Company’s governance policies already in place matched closely the position set out in the Combined Code. 
Narrative statement
Directors
As at the Group’s year end 31 March 2010, the Board comprised of six executive, a non-executive Chairman and three other non-executive 
Directors. Details of the current Directors are set out on page 18. The composition of the Board is designed to provide an appropriate balance  
of executive, financial, technical and commercial experience and skills, and will be reviewed regularly. The Board looks to meet in a formal 
manner on a monthly basis at the head office in Boldon, Tyne and Wear, with additional meetings held as required.
Summary of board meetings attended in the 12 months to 31 March 2010
Twelve board meetings were held in the year to 31 March 2010.
     Meetings Meetings 
Director     attended eligible
Dr Roger Duggan     12 12
Mr Paul Hailes     11 12
Mr David Evans     11 12
Mr Antony Wilks     10 12
Dr Martha Garrity     11 12
Mr Ian Cookson     12 12
Mr Alain Rousseau     12 12
Mr William Dracup     3 4
Dr Eddie Blair     11 12
Dr Burkhard Wittek     5 6
Dr Patrik Dahlen     3 4
  
It is the responsibility of the Company Secretary to ensure that the Directors receive all of the information necessary for the effective performance of 
their duties. In the furtherance of their duties, the Directors have access to the advice and service of the Company Secretary and are permitted to 
take independent professional advice where necessary and to undertake any training considered appropriate, both at the Company’s expense.
The Chairman, David Evans, does not meet the independence criteria required by paragraph A.3.1 of the Combined Code on appointment.  
The Chairman also has eight other Non-Executive Directorships, details of which are shown below. The Chairman is responsible for the running 
of the Board.
The Executive Directors are Paul Hailes, Antony Wilks, Martha Garrity, Ian Cookson, Alain Rousseau and Roger Duggan, who is also the  
Chief Executive Officer. The Board considers Burkhard Wittek, Patrik Dahlen and Edward Blair to be independent.
The Board has overall responsibility for determining and directing the Group’s corporate strategy. This is achieved through consideration  
and approval of the annual business plan and financial strategy and through the monitoring and discussion of financial results and corporate 
matters, including the exposure to key business risks and the results of individual trading subsidiaries, their annual budgets and financial 
strategy, at regular board meetings.
Patrik Dahlen has been identified as the Senior Independent Director as required by the Code.
Chairman’s commitments
The Chairman has the following Non-Executive Directorships:
Omega Diagnostics Group plc 
Quotient Diagnostics Limited 
Epistem Holdings plc 
Bgenuine Tech KK (succeeds Secure Design KK) 
Onyx Scientific Limited
Scancell Limited
IBL plc – appointed November 2009
Marine Biotech Ltd – appointed March 2010
Corporate governance report Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
26
Governance
During the year the Chairman ceased to be a Non-Executive Director of:
Microtest Matrices Limited – left office November 2009
Vindon Healthcare plc – left office March 2010
All other Non-Executive Directorships were held throughout the year.
Board committees
In addition to the Audit Committee (see below) the following Board committees were established in December 2004 under specific terms  
of reference: 
1. The Remuneration Committee
The Remuneration Committee comprises Edward Blair (Chairman), Patrik Dahlen and Burkhard Wittek. It reviews the performance of Executive 
Directors and sets the scale and structure of their remuneration and reviews the basis of their service agreements with due regard to the interests 
of shareholders. The Board itself determines the remuneration of the Non-Executive Directors. The Remuneration Committee also makes 
recommendations to the Directors concerning the allocation of share options to employees. No Director is permitted to participate in discussions 
or decisions concerning his own remuneration. The details of Directors’ remuneration are set out under Note 6 and share options under Note 37.
2. The Nominations Committee
The Nominations Committee comprises David Evans (Chairman), Patrik Dahlen and Edward Blair. The Nominations Committee is responsible  
for reviewing the size, structure and composition of the Board, establishing appropriate succession plans for the Executive Directors and other 
senior executives in the Group and for the nomination of candidates to fill Board vacancies where required. The Committee will normally meet 
twice every year.
Relations with shareholders
The Board recognises the importance of maintaining good communications with its shareholders. The Group engages a firm of financial  
PR consultants to provide another channel of communication to shareholders, potential investors and analysts.
Accountability and audit
The Board believes that the Annual Report and Financial Statements play an important part in presenting all shareholders with an assessment  
of the Group’s position and prospects.
The Chairman’s Statement contains a detailed consideration of the Group’s position and prospects.
Internal controls
The Board has designed the Group’s systems of internal control in order to provide the Directors with reasonable assurance that its assets are 
safeguarded, that transactions are authorised and properly recorded and that material errors and irregularities are either prevented or would be 
detected within a timely period. However, no system of internal control can eliminate the risk of failure to achieve business objectives or provide 
absolute assurance against misstatement or loss.
The Board has overall responsibility for the Group’s systems of internal control and for reviewing its effectiveness. The Audit Committee which 
was established on flotation has been delegated responsibility for conducting this review.
The Group’s systems of internal control include regular meetings of management to discuss operational, strategic and risk issues, designed to 
ensure that the possibility of misstatement is kept to a minimum. 
The Board has not undertaken a formal review in the current period but shall endeavour do so in the next reporting period.
The system in place for financial reporting ensures the Board receives management accounts, forecast variance analysis and other ad hoc 
reports on a timely basis.
The Group has not implemented an internal audit function because the Directors believe that the controls in place are appropriate for the size 
and complexity of the Group’s activities.
There are no significant issues disclosed in the report and financial statements for the year ended 31 March 2010 and up to the date of approval 
of the report and financial statements that have required the Board to deal with any related material internal control issues.
Corporate governance report Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
27
Audit committee
The Audit Committee is chaired by David Evans, a qualified chartered accountant, and the Board feels that this committee is independent,  
all members being non-executive Directors. The Audit Committee is responsible for the relationship with the Group’s external auditors and the 
review of the Group’s financial reporting and the Group’s internal controls.
The Committee also comprises Burkhard Wittek and Edward Blair, both independent non-executive Directors. The Committee will normally meet 
twice a year and is responsible for monitoring the quality of internal control, ensuring that the financial performance of the Company is properly 
measured and reported on, meeting with the auditors and reviewing reports from the auditors. It meets with the auditors at least once a year.
The Audit Committee has undertaken an assessment of the auditor’s independence, including:
a review of non-audit services provided to the Group and related fees •	
discussion with the auditors of a written report detailing all relationships with the Company and any other parties that could affect •	
independence or the perception of independence
a review of the auditor’s own procedures for ensuring the independence of the audit firm and partners and staff involved in the audit, •	
including regular rotation of the audit partner, and 
obtaining written confirmation from the auditors that in their professional judgement, they are independent. •	
An analysis of fees payable to the external audit firm in respect of both audit and non-audit services during the year is set out in Note 3 to the 
financial statements.
The Company is satisfied that the external auditors remain independent in the discharge of their audit responsibilities.
Going concern
The Board has considered the applicability of the going concern basis in the preparation of these financial statements. This included the  
review of internal budgets and financial results. The Directors have a reasonable expectation that the Company and the Group have adequate 
resources to continue in operation for the foreseeable future. For this reason they have adopted the going concern basis in the preparation of  
the financial statements.
Compliance statement
The Board has reviewed compliance with the Combined Code. 
Throughout the year ended 31 March 2010 the Group has substantially complied with the provisions set out in Section 1 of the Combined Code.
By order of the Board
Paul Hailes
Company Secretary
9 July 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
28
Governance
Directors’ responsibilities in the preparation  
of financial statements
Directors’ responsibilities
The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.
UK Company law requires the Directors to prepare Group and Company Financial Statements for each financial year. Under that law the Directors 
are required to prepare Group financial statements in accordance with International Financial Reporting Standards (‘IFRS’) as adopted by the EU 
and have elected to prepare the company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards and applicable law).
The group financial statements are required by law and IFRS adopted by the EU to present fairly the financial position and performance of the 
group; the Companies Act 1985 provides in relation to such financial statements that references in the relevant part of that Act to financial 
statements giving a true and fair view are references to their achieving a fair presentation.
The company financial statements are required by law to give a true and fair view of the state of affairs of the company. 
In preparing each of the group and company financial statements, the Directors are required to:
a. select suitable accounting policies and then apply them consistently.
b. make judgements and estimates that are reasonable and prudent.
c. for the group financial statements, state whether they have been prepared in accordance with IFRSs adopted by the EU; and for the company 
financial statements state whether applicable UK accounting standards have been followed, subject to any material departures disclosed 
and explained in the company financial statements.
d. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and the company will 
continue in business.
The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position 
of the company and to enable them to ensure that the financial statements comply with the requirements of the Companies Act 1985. They are 
also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and 
other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company’s  
website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation  
in other jurisdictions. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
29
Independent auditor’s report to the members  
of Immunodiagnostic Systems Holdings plc
We have audited the group and parent company financial statements (‘the financial statements’) which comprise the consolidated and company 
balance sheet, consolidated income statement, consolidated statement of cash flows, consolidated statement of comprehensive income, 
consolidated statement of changes in equity and the related notes. The financial reporting framework that has been applied in the preparation  
of the group financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union. 
The financial reporting framework that has been applied in the preparation of the parent company financial statements is applicable law and 
United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit 
work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report 
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and 
the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
As more fully explained in the Directors’ Responsibilities Statement set out on page 26, the directors are responsible for the preparation of the 
financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit the financial statements in accordance 
with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices 
Board’s (APB’s) Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/UKNP.
Opinion on the financial statements
In our opinion:
the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 March 2010 and of the •	
group’s profit for the year then ended;
the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union; •	
the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting •	
Practice; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. •	
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with 
the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from •	
branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or •	
certain disclosures of directors’ remuneration specified by law are not made; or •	
we have not received all the information and explanations we require for our audit. •	
W MICHAEL BLYTH (Senior Statutory Auditor)
For and on behalf of BAKER TILLY UK AUDIT LLP, Statutory Auditor 
Chartered Accountants
1 St James’ Gate
Newcastle upon Tyne
NE1 4AD
9 July 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
30
Financial accounts
     2010 2009 
   Notes  £ £ 
Assets
Non-current assets
Property, plant and equipment   13  5,198,284 4,161,154
Goodwill   14  17,680,418 19,463,756
Other intangible assets   15  38,051,032 37,139,180
Investments   17  3,696 3,696
Other non-current assets   18  212,496 –
     61,145,926 60,767,786
Current assets
Inventories   19  6,427,301 5,737,202
Trade and other receivables   20  10,805,648 8,598,131
Income tax assets     575,422 559,740
Cash and cash equivalents   20  5,276,489 4,455,920
     23,084,860 19,350,993
Total assets     84,230,786 80,118,779
Liabilities
Current liabilities
Short-term portion of long-term borrowings   21  2,680,830 2,634,240
Trade and other payables   24  6,202,608 6,240,156
Income tax liabilities     913,782 1,249,663
Deferred income   28  153,432 –
     9,950,652 10,124,059
Net current assets     13,134,208 9,226,934
Non-current liabilities
Long-term borrowings   21  8,642,895 11,291,523
Provisions   27  1,901,447 3,165,425
Deferred tax liabilities   26  2,724,691 4,446,964
Deferred income   28  – 377,866
     13,269,033 19,281,778
Total liabilities     23,219,685 29,405,837
Net assets     61,011,101 50,712,942
Total equity
Called up share capital   31  557,091 528,316
Share premium account   32  29,280,672 28,499,692
Other reserves   33  11,780,834 12,165,927
Retained earnings   34  19,392,504 9,525,542
     61,011,101 50,719,477
Treasury shares     – (6,535)
Equity attributable to owners of the parent     61,011,101 50,712,942
The financial statements on pages 30 to 64 were approved by the Board of Directors and authorised for issue on 9 July 2010 and are signed on 
its behalf by:
Mr D E Evans Mr P Hailes
Non-Executive Chairman Finance Director
Consolidated balance sheet
as at 3 1 March 2010 Company Registration No. 051 46193 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
31
Consolidated income statement
for the year ended 3 1 March 2010
     2010 2009 
   Notes  £ £ 
Revenue   2  37,158,260 24,936,906
Cost of sales     (9,641,781) (8,356,580)
Gross profit     27,516,479 16,580,326
Distribution costs     (5,922,713) (4,600,918)
Administrative expenses     (10,311,132) (6,612,592)
Profit from operations   3  11,282,634 5,366,816
Finance income   7  258,781 117,553
     11,541,415 5,484,369
Finance costs   8  (554,998) (702,849)
Profit before tax     10,986,417 4,781,520
Income tax expense   9  (2,911,303) (585,343)
Profit for the year from continuing activities     8,075,114 4,196,177
Profit for the year from discontinued activities   4  – 623,780
Profit for the year attributable to owners of the parent     8,075,114 4,819,957
Earnings per share  
From continuing operations  
Basic   11  30.017p 16.918p 
Diluted   11  28.926p 16.166p 
Had the share options not been exercised in the year ended 31 March 2010,  
 basic earnings per share would have been   11  30.569p
  
From continuing and discontinued operations  
Basic   11  30.017p 19.433p 
Diluted   11  28.926p 18.569p 
No separate income statement is included for Immunodiagnostic Systems Holdings PLC as permitted by section 408 (3) of the Companies 
Act 2006. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
3 2
Financial accounts
Consolidated statement of other comprehensive income
for the year ended 3 1 March 2010
     2010 2009  
     £ £ 
Profit for the year     8,075,114 4,819,957
     
Currency translation differences     (1,906,281) 5,573,258
Other comprehensive income, before tax     (1,906,281) 5,573,258
Income tax relating to items credited/charged to equity     (97,598) 465,922
Other comprehensive income, net of tax     (2,003,879) 6,039,180
Total comprehensive income for the year attributable to owners of the parent   6,071,235 10,859,137 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
33
Consolidated statement of cash flows
for the year ended 3 1 March 2010
     2010 2009 
   Notes  £ £ 
Operating activities
Cash generated from operations   35  11,730,641 6,367,085
Income taxes paid     (1,343,977) (302,478)
Interest paid     (692,794) (754,220)
Net cash from operating activities     9,693,870 5,310,387
    
Investing activities  
Acquisition of subsidiaries, net of cash acquired     (213,359) (52,305)
Purchases of other intangible assets     (4,544,443) (4,326,248)
Purchases of property, plant and equipment     (2,429,366) (1,423,450)
Interest received     258,781 117,553
Net cash used by investing activities     (6,928,387) (5,684,450)
  
Financing activities  
Proceeds from issue of shares for cash     816,290 3,004,813
Proceeds of new borrowings     – 1,404,720
Repayments of borrowings     (2,446,869) (2,613,241)
Repayments of hire-purchase obligations     (102,493) (85,351)
Dividends paid     (436,273) (360,278)
Net cash (used by)/from financing activities     (2,169,345) 1,350,663
  
Effect of exchange rate differences     224,431 505,868
  
Net increase in cash and cash equivalents     820,569 1,482,468
  
Cash and cash equivalents at beginning of year     4,455,920 2,973,452
Cash and cash equivalents at end of year     5,276,489 4,455,920 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
34
Financial accounts
Consolidated statement of changes in equity
for the year ended 3 1 March 2010
   Called up Share  Share-based  
   share premium Merger payments  
   capital account reserve reserve  
   £ £ £ £ 
At 1 April 2008   479,453 25,543,742 582,999 300,766
Profit for the year   – – – –
Other comprehensive income   – – – –
Foreign exchange translation differences on foreign currency net  
investment in subsidiaries   – – – –
Tax effect of treatment of foreign currency translation differences  – – – –
Total comprehensive income   – – – –
Transactions with owners   – – – –
Share-based payments   – – – 217,677
Dividends paid
Shares issued in the period (net of expenses)   48,863 2,955,950 – –
At 31 March/1 April 2009   528,316 28,499,692 582,999 518,443
Profit for the year   – – – –
Other comprehensive income   – – – –
Foreign exchange translation differences on foreign currency 
net investment in subsidiaries   – – – –
Tax effect of treatment of foreign currency translation differences  – – – –
Total comprehensive income   – – – –
Transactions with owners   – – – –
Deferred tax recognised on share-based payments   – – – 1,549,201
Tax benefit on exercise of share options   – – – –
Share-based payments   – – – 354,585
Transfer on exercise of share options   – – – (285,000)
Dividends paid   – – – –
Shares issued in the period (net of expenses)   28,775 780,980 – –
At 31 March 2010   557,091 29,280,672 582,999 2,137,229
   Currency  
   translation Retained Treasury  
   reserve earnings shares Total  
   £ £ £ £ 
At 1 April 2008   5,025,305 5,065,863 (6,535) 36,991,593
Profit for the year   – 4,819,957 – 4,819,957
Other comprehensive income   – – – –
Foreign exchange translation differences on foreign currency net  
investment in subsidiaries   5,573,258 – – 5,573,258
Tax effect of treatment of foreign currency translation differences  465,922 – – 465,922
Total comprehensive income   6,039,180 4,819,957 – 10,859,137
Transactions with owners   – – – –
Share-based payments   – – – 217,677
Dividends paid   – (360,278) – (360,278)
Shares issued in the period (net of expenses)   – – – 3,004,813
At 31 March/1 April 2009   11,064,485 9,525,542 (6,535) 50,712,942
Profit for the year   – 8,075,114 – 8,075,114
Other comprehensive income   – – – –
Foreign exchange translation differences on foreign currency  
net investment in subsidiaries   (1,906,281) – – (1,906,281)
Tax effect of treatment of foreign currency translation differences  (97,598) – – (97,598)
Total comprehensive income   (2,003,879) 8,075,114 – 6,071,235
Transactions with owners   – – – –
Deferred tax recognised on share-based payments   – – – 1,549,201
Tax benefit on exercise of share options   – 1,943,121 – 1,943,121
Share-based payments   – – – 354,585
Transfer on exercise of share options   – 285,000 – –
Dividends paid   – (436,273) – (436,273)
Shares issued in the period (net of expenses)   – – 6,535 816,290
At 31 March 2010   9,060,606 19,392,504 – 61,011,101 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
35
1. ACCOuNTING POLICIES 
a) Basis of accounting
The consolidated financial statements are prepared under the historical cost convention in accordance with applicable International Financial 
Reporting Standards (IFRS) as adopted by the European Union and issued by the International Accounting Standards Board (IASB). IFRS 
includes all IFRS, IAS, ISCs and IFRICs and the financial statements have been prepared in accordance with those parts of the Companies  
Act 2006 applicable to companies reporting under IFRS. The measurement basis and principal accounting policies are unchanged from the 
previous year and are set out below.
b) Basis of preparation
The financial statements are prepared on the historical cost basis except for certain financial assets which are stated at their fair values.
The preparation of financial statements in conformity with IFRS requires the Directors to make judgements, estimates and assumptions that 
affect the application of policies and reported amounts of assets and liabilities, income and expense. The estimates and judgements are based 
on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis 
of making judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ 
from these estimates. The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in 
these financial statements.
c) Foreign currencies
The results and financial position of the Group are expressed in pounds sterling, its functional currency. Transactions in currencies other than 
pounds sterling are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign 
currencies at the balance sheet date are translated to sterling at the foreign exchange rate ruling at that date. Exchange differences arising on 
translation are recognised in the consolidated income statement for the period.
Non-monetary assets and liabilities that are measured at historical cost in a foreign currency (e.g. property, plant and equipment purchased in a 
foreign currency) are translated using the exchange rate prevailing at the date of the transaction. Exchange differences arising on the retranslation  
of net assets of foreign subsidiaries are effected through equity and reported in the statement of comprehensive income. 
Where a non-monetary foreign currency loan forms part of the net investment in a foreign subsidiary, on consolidation the exchange differences 
are recognised directly in equity to the extent the loan qualifies as an effective hedge.
d) Business combinations
The financial statements incorporate the financial statements of the Company and all its subsidiaries. Unrealised gains on transactions between 
the Group and its subsidiaries are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment 
of the asset transferred.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group since date of transition. The cost  
of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date  
of exchange, plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values 
at the acquisition date. The excess of the cost of the acquisition over the fair value of assets and liabilities is recorded as goodwill. If the cost of 
the acquisition is less than the fair value of the net assets of the subsidiary acquired the difference is recognised directly in the income statement.
Subsidiaries
Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly (but normally through 
voting rights granted through the Company’s shareholdings), to govern the financial and operating policies of an entity to obtain benefits from its 
activities. The financial statements of subsidiaries are included in the consolidated financial statements.
Acquisitions
On acquisition, the assets and liabilities of a subsidiary, including identifiable intangible assets, are measured at their fair value at the date of 
acquisition. Any excess of the cost of acquisition over the fair value of the identifiable net assets acquired is recorded as goodwill. Goodwill  
is reviewed for impairment annually and any impairment is recognised immediately in the income statement. Any excess of fair value of the 
identifiable net assets acquired over the cost of acquisition is credited to the income statement on acquisition. Goodwill recorded on business 
combinations prior to IFRS transition has not been restated and has either been written off to reserves or capitalised according to the UK GAAP 
accounting standards then in force. On disposal or closure of a previously acquired business, the attributable goodwill previously written off to 
reserves is not included in determining the profit or loss on disposal.
The results and cash flows relating to the business are included in the consolidated accounts from the date of combination.
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
36
Financial accounts
Notes to the consolidated financial statements
for the year ended 3 1 March 2010
1. ACCOuNTING POLICIES CONTINUED
e) Revenue recognition
Revenue is measured by reference to the fair value of consideration received or receivable for goods and services provided in the normal  
course of business, excluding VAT. Revenue is recognised upon the performance of services or the sales of goods when risk is transferred  
to the customer. Where services are based on performance or specific deliverables the income is accounted for as the right to consideration  
for performance is earned.
f) Operating segments
The Group has adopted IFRS 8 ‘Operating Segments’ during the year. The standard supersedes IAS 14 ‘Segment Reporting’ and is effective  
for the year ended 31 March 2010. IFRS 8 provides segmental information for the Group on the basis of information reported internally to the 
chief operating decision-maker for decision-making purposes. The Group considers that the role of chief operating decision-maker is performed 
by the Board of Directors. IAS 14 required segmental information to be reported for business segments and geographical segments based on 
assets and operations that provided products or services subject to different risks and returns. The adoption of IFRS 8 has not had any impact 
on the segmental reporting disclosures, as those geographical segments previously identified are identical to those reported to and reviewed  
by the Board. The Group has identified The United Kingdom, Europe and the USA as operating segments. The Group has only one business 
segment, being the manufacture and distribution of diagnostic test kits and the related instruments.
g) Goodwill and other intangible assets
Goodwill is measured at cost less any accumulated impairment losses. Goodwill is reviewed for impairment annually.
All research costs, which consist predominantly of salaries, are charged to the income statement as incurred.
Development costs, which consist predominantly of salaries and third party direct costs, are capitalised as an intangible asset when recognition 
criteria are met and, in particular, it is clear that the development expenditure will generate future economic benefit. Otherwise development 
costs are charged to the income statement as incurred. Capitalised costs are amortised over five years from the date the product commences 
commercial production.
All development expenditure incurred on automation of IDS products on the IDS-iSYS is capitalised and amortised over 18 years from the date 
the product commences commercial production. Development expenditure on research use only products will be expensed as incurred as there 
is uncertainty as to the magnitude of future revenues being sufficient to cover the development costs.
Research and development of clinical products – all expenditure incurred up to feasibility stage is expensed – all expenditure post feasibility is 
capitalised and amortised post product launch over five years.
Other intangible assets, including product technology, acquired as part of a business acquisition are capitalised at fair value at the date of 
acquisition. Purchased intangible assets acquired separately are capitalised at cost. After initial recognition, all intangible fixed assets are 
measured at cost less accumulated amortisation and any accumulated impairment losses. 
The TRAP patent was recognised at fair value on the acquisition of a subsidiary. The amount capitalised is the consideration in excess of the 
book values of the assets and liabilities at the date of acquisition. The Directors consider 20 years as a reasonable period of estimated useful life.
Intangible assets which have been assigned a finite life are amortised on a straight line basis over the assets’ useful life of up to 20 years and are 
tested for impairment if events or changes in circumstances indicate that the carrying value may have declined. Useful lives are examined every 
year and adjustments are made, where applicable, on a prospective basis. Amortisation of intangible assets is charged in the income statement 
under administrative expenses.
h) Property, plant and equipment
Property, plant and equipment is shown at cost, net of depreciation and any provision for impairment. Depreciation is provided on all property, 
plant and equipment at varying rates calculated to write off cost to the expected current residual value by equal annual instalments over their 
estimated useful economic lives. The principal rates employed are:
Property    – over the life of the lease
Fixtures, Fittings and Equipment – over 5-7 years
Motor Vehicles   – over 4 years
Disposal of assets 
The gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying amount  
of the asset and is recognised in the income statement. The gain or loss arising from the sale is included in administrative expense in the  
income statement.
i) Investments
Fixed asset investments are stated at cost after making provision for any impairment in their value. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
37
1. ACCOuNTING POLICIES CONTINUED
j) Impairment
Impairment is determined by comparing the recoverable amount of the cash-generating unit or Group of cash-generating units (‘CGU’) which 
are expected to benefit from the asset to its carrying value. The recoverable amount is the greater of an asset’s value in use and its fair value less 
costs to sell. Value in use is calculated by discounting the future cash flows expected to be derived from the asset or Group of assets in a CGU  
at an appropriate pre tax discount rate. Where the recoverable amount is less than the carrying value, the asset is considered impaired and is 
written down through the income statement to its recoverable amount.
k) Inventories
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items.  
For inventories that are ordinarily interchangeable, cost is calculated using the weighted average method. Net realisable value is based  
on estimated selling price less estimated cost of disposal.
Work in progress is valued on the basis of direct costs plus attributable overheads based on a normal level of activity. Provision is made for any 
foreseeable losses where appropriate. No element of profit is included in the valuation of the work in progress.
l) Lease and hire purchase commitments
Assets held under hire purchase agreements are capitalised in the balance sheet at the fair value of the assets and are depreciated over their 
useful lives. The capital element of future obligations under the contract is included in liabilities in the balance sheet.
The interest element of the rental obligations is charged to the income statement over the period of the lease and represents a constant 
proportion of the balance of capital repayments outstanding.
All other leases are classified as operating leases and rentals are charged to the income statement on a straight line basis over the lease term.
m) Pensions
Trading companies operate defined contribution pension schemes for employees. The assets of the schemes are held separately from those of 
the Company. The annual contributions payable are charged to the income statement.
n) Financial assets
Trade receivables 
Trade receivables are initially recognised at fair value and thereafter at amortised cost using the effective interest rate. A provision for impairment 
of trade receivables is established when there is objective evidence that the Company will not be able to collect all amounts due according to the 
original terms of these receivables. The amount of the provision is recognised in the income statement. Trade receivables do not carry any 
interest charge.
Cash 
Cash includes cash in hand and deposits held at call with banks.
o) Financial liabilities
Trade payables
Trade payables are non-interest-bearing and are initially measured at fair value and thereafter at amortised cost using the effective interest rate. 
Borrowings
Interest-bearing loans and bank overdrafts are initially carried at the fair value. Finance charges, including premia payable on settlement or 
redemption and direct issue costs, are accounted for on an accruals basis to the income statement using the effective interest method and  
are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.
p) Government grants
Government grants in respect of capital expenditure are treated as deferred income and are credited to the income statement over the estimated 
useful life of the assets to which they relate. Revenue grants are credited to the income statement in the period to which they relate.
q) Provisions
Provisions for liabilities are recognised where the Group has a present commitment at the balance sheet date arising from a past event and 
where the extent of the commitment can be estimated reliably.
r) Share-based payments
All goods and services received in exchange for the grant of any share-based payment are measured at their fair values. The Group issues 
equity-settled share-based payments to certain employees. Equity-settled share-based payments are measured at fair value at the date of grant. 
The fair value determined at the grant date of equity-settled share-based payments is expensed on a straight-line basis over the vesting period, 
based on the Group’s estimate of shares that will eventually vest.
The fair value is measured by the use of the Black-Scholes option pricing model. The expected life used in the model has been adjusted, based 
on management’s best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
38
Financial accounts
Notes to the consolidated financial statements
for the year ended 3 1 March 2010
1. ACCOuNTING POLICIES CONTINUED
r) Share-based payments continued
A liability equal to the portion of the goods or services received is recognised at the current fair value determined at each balance sheet date  
for cash-settled share-based payments. Changes in fair value are recognised through the profit and loss account.
All equity-settled share-based payments are ultimately recognised as an expense in the income statement with a corresponding credit 
to reserves. 
If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available 
estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share 
options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period. No 
adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting.
Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital and, where appropriate, 
share premium.
s) Taxation
Current tax is the tax currently payable based on taxable results for the year.
Deferred income taxes are calculated using the liability method on temporary differences. However, deferred tax is not provided on the initial 
recognition of an asset or a liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax is 
generally provided on the difference between the carrying amounts of assets and liabilities and their tax bases. In addition, tax losses available  
to be carried forward as well as other income tax credits to the Group are assessed for recognition as deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred tax assets are recognised to the extent that it is probable that the underlying 
deductible temporary differences will be able to be offset against future taxable income. Current and deferred tax assets and liabilities are calculated 
at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted at the balance 
sheet date.
t) Financial instruments
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual 
provisions of that instrument.
The Group uses foreign currency loans to hedge its overseas exposure and fixed rate interest swaps to hedge its term loan interest rate 
exposure. The Group does not use derivative financial instruments for speculative purposes. 
Interest rate swaps are initially recognised at cost and are subsequently re-measured to fair value at each balance sheet date. Changes in  
the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the income statement as they arise. 
These valuations are provided by the issuing financial institution. 
Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when their risks and characteristics 
are not closely related to those of the host contracts and the host contracts are not carried at fair value with unrealised gains or losses reported in 
the income statement.
u) Equity
Equity comprises the following:
share capital represents the nominal value of equity shares. •	
share premium represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses  •	
of the share issue.
retained earnings include all current and prior period results as disclosed in the income statement. •	
merger reserve represents the share premium and capital redemption reserve in existence in the subsidiary at the date of merger. •	
share-based payment reserve is the corresponding entry to the expense arising from equity-settled share-based payments. •	
v) Critical judgements in applying the group’s accounting policies
In the process of applying the Group’s accounting policies, management has made the following judgements that have the most significant 
effect on the amounts recognised in the financial statements.
Development costs
Development expenditure is capitalised as an intangible asset when recognition criteria are met and, in particular, it is clear that the 
development expenditure will generate future economic benefit. The development of the IDS-iSYS instrument and a range of tests to be  
run on it are seen as development expenditure so relevant costs are capitalised and amortised over 18 years from the date the product 
commences commercial production.
Identification and valuation of intangible assets on acquisition
The Directors use their judgement to identify the separate intangible assets and then determine a fair value for each based upon the 
consideration paid, the nature of the asset, industry statistics, future potential and other relevant factors. These fair values will be reviewed  
for impairment annually. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
39
1. ACCOuNTING POLICIES CONTINUED
Segmental analysis 
The Group’s principal activity consists of manufacturing and distributing medical diagnostic products. The Directors believe that these activities 
comprise one business unit and consequently segmental analysis by business segment is not considered necessary.
Contingent consideration 
The acquisition of Biocode Hycel SA included a contingent consideration clause in the form of a commitment to pay the former shareholders of 
the acquired company for each IDS-iSYS instrument placed by the group as per the Sales and Purchase Agreement. In determining the fair value 
attributable to this commitment, the Directors considered current sales forecasts and discounted, applying a discount factor of 8.9%, being the 
Group’s weighted average cost of capital.
Share-based payments 
In calculating the fair value of equity-settled share-based payments using the Black-Scholes option pricing model, the Directors are required  
to exercise their judgement in determining input parameters which may have a material effect on the fair value calculated.
w) Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk  
of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.
Useful lives
The Group uses forecast cash flow information and estimates of future growth to assess whether goodwill and other intangible fixed assets  
are impaired, and to determine the useful economic lives of its goodwill and intangible assets. If the results of operations in a future period are 
adverse to the estimates used a reduction in useful economic life may be required.
x) Standards not yet effective
The directors do not expect any of the standards below which are issued but not yet effective to have a material impact on the financial 
information.
IAS 32 (amended) Financial Instruments: Presentation (effective for periods commencing on or after 1 February 2010). The amendment to IAS 32 
concerns the classification of rights issues.
IFRS 5 (amended) Non-current Assets Held for Sale and Discontinued Operations (effective for periods commencing on or after 1 July 2009, further 
amendments effective for periods commencing on or after 1 January 2010). The amendment to IFRS 5 concerns plans to sell the controlling interest 
in a subsidiary, the further amendment concerns disclosure of non-current assets classified as held for sale or discontinued operations.
IFRS 8 (amended) Operating Segments (effective for periods commencing on or after 1 January 2010). The amendment to IFRS 8 concerns 
disclosure of information about segment assets.
IAS 1 (amended) Presentation of Financial Statements (effective for periods commencing on or after 1 January 2010). The amendment to IAS 1 
concerns the current/non-current classification of convertible instruments.
IAS 7 (amended) Statement of Cash Flows (effective for periods commencing on or after 1 January 2010). The amendment to IAS 7 concerns the 
classification of expenditures on unrecognised assets.
IAS 17 (amended) Leases (effective for periods commencing on or after 1 January 2010). The amendment to IAS 17 concerns the classification 
of leases of land and buildings.
IAS 36 (amended) Impairment of Assets (effective for periods commencing on or after 1 January 2010). The amendment to IAS 36 concerns the 
unit of accounting for the goodwill impairment test.
IAS 38 (amended) Intangible Assets (effective for periods commencing on or after 1 July 2009). The amendment to IAS 38 concerns the 
measurement of the fair value of an intangible asset acquired in a business combination.
IAS 39 (amended) Financial Instruments: recognition and Measurement (effective for periods commencing on or after 1 January 2010). The 
amendments to IAS 39 concern the treatment of loan prepayment penalties as closely related embedded derivatives, scope exemptions for 
business combination contracts and cash flow hedge accounting. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
40
Financial accounts
2. SEGMENTAL INFORMATION
For management purposes, the Group is currently organised into three geographical operating regions, UK, Europe and USA.  
These regions are the basis on which the Group reports, by origin, its segment information.
The main activity of the Group is the manufacturing and distributing of medical diagnostic products. No separate business segments have been 
identified for management purposes.
Inter-segment sales are priced based on the market selling price for the individual item obtainable by the purchasing segment, reduced by a margin 
equivalent to the gross margin that would be expected to have been achieved by purchasing the item on the local wholesale market.
 Year ended 31 March 2010
  uK Europe uSA Adjustments Consolidated 
  £000 £000 £000 £000 £000
Revenue
External sales  10,055 15,098 12,005 – 37,158
Inter-segment sales  14,531 8,920 – (23,451) –
Total revenue  24,586 24,018 12,005 (23,451) 37,158
Profit from operations  9,219 335 2,091 (363) 11,282 
Finance income  – 445 1 (187) 259
Finance costs  (174) (220) – (161) (555)
Profit before tax  9,045 560 2,092 (711) 10,986
Income tax expense  (2,357) 237 (861) 70 (2,911)
Profit after tax  6,688 797 1,231 (641) 8,075
Segment assets  78,884 49,898 3,431 (47,982) 84,231
Segment liabilities  (31,644) (23,416) (850) 32,690 (23,220)
  47,240 26,482 2,581 (15,292) 61,011
Non-current assets  31,628 28,581 721 – 60,930
Capital additions  3,120 3,210 639 – 6,969
Depreciation and amortisation  791 2,519 41 – 3,351
 Year ended 31 March 2009
  uK Europe uSA Adjustments Consolidated 
  £000 £000 £000 £000 £000
Revenue
External sales  7,789 13,421 6,176 – 27,386
Inter-segment sales  8,136 5,105 – (13,241) –
Total revenue  15,925 18,526 6,176 (13,241) 27,386
Discontinued operations  – 2,449 – – 2,449
Revenue from continuing operations  15,925 16,077 6,176 (13,241) 24,937
Profit from operations  4,984 432 1,062 (95) 6,383
Finance income  88 375 2 (347) 118
Finance costs  (2,511) (234) – 1,991 (754)
Profit before tax  2,561 573 1,064 1,549 5,747
Income tax expense  (567) 525 (425) (460) (927)
Profit after tax  1,994 1,098 639 1,089 4,820
Discontinued operations  – (18) – – (18)
Profit after tax from continuing operations  1,994 1,116 639 1,089 4,838
Segment assets  62,728 48,329 1,859 (32,797) 80,119
Segment liabilities  (26,839) (22,735) (494) 20,662 (29,406)
  35,889 25,594 1,365 (12,135) 50,713
Non-current assets  21,535 39,163 66 – 60,764
Capital additions  3,183 2,620 34 – 5,837
Depreciation and amortisation  362 1,055 11 – 1,428
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
41
3. PROFIT FROM OPERATIONS
Profit from operations is stated after charging/(crediting):
     2010 2009 
     £ £
Amortisation of government grants refixed assets     (209,174) (284,733)
Amortisation of other intangible assets     2,346,606 693,034
Depreciation of owned plant, property and equipment     948,853 678,157
Depreciation of assets held under hire purchase agreements    55,480 56,678
Operating lease costs     629,708 441,692
Share-based payments     354,585 217,677
Other staff costs     12,749,464 10,734,303
Net (gain) on foreign currency translation of trading items     (78,053) (602,368)
(Gain)/loss on foreign currency translation of contingent consideration    (77,909) 546,770
Costs relating to an abortive acquisition     – 427,741
Research and development     121,867 243,995
Auditor’s remuneration (see below)     134,053 243,682
Expenses charged in arriving at profit from operations can be analysed by nature as follows:
     2010 2009 
     £ £
Staff costs (see Note 5)     13,104,049 10,951,980
Material costs     6,415,645 5,215,651
Research and development costs     121,867 243,995
Depreciation of property plant and equipment     1,004,333 734,835
Amortisation of intangible assets     2,346,606 693,034
Foreign currency translation differences     (155,962) (55,598)
One-off and exceptional items     – 427,741
Other operating expenses     3,039,088 1,358,452
     25,875,626 19,570,090
Amounts payable to Baker Tilly UK Audit LLP and their associates in respect of both audit and non-audit services:
     2010 2009 
     £ £
Audit services   
– statutory audit of parent and consolidated accounts     81,300 113,850
   
Other services relating to taxation   
– compliance services     19,600 14,550
   
Work performed by associates of Baker Tilly in respect of consolidation returns or  
 local legislative requirements     33,153 16,257
   
Services relating to corporate finance transactions entered into or proposed to be  
 entered into by or on behalf of the company     – 99,025
     134,053 243,682 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
42
Financial accounts
Notes to the consolidated financial statements
for the year ended 3 1 March 2010
4. DISCONTINuED OPERATIONS
Discontinued operations refer to the disposal of the Haematology Division of Biocode Hycel. IDS determined that this was not a core interest  
of the Group, employing as it does different technology and servicing a market unaddressed by IDS. The sale was completed on 31 December 
2008. The disposal of this division on acceptable terms has significantly reduced the complexity of the business and reduced demands on 
management resources.
The profit after tax from discontinued operations is made up as follows:
     2010 2009 
     £ £
Gain on disposal     – 641,588
Trading result     – (17,808)
     – 623,780
The results of the haematology business for the period from 1 April to 31 December 2008, which have been included in the consolidated 
financial statements, are as follows:
     2010 2009 
     £ £
Revenue     – 2,449,192
Cost of sales     – (1,138,852)
Gross profit     – 1,310,340
Distribution costs     – (735,075)
Administrative expenses     – (541,702)
Profit from operations     – 33,563
Finance costs     – (51,371)
Loss/profit after tax     – (17,808)
Cash flows from discontinued operations are as follows:
     2010 2009 
     £ £
Operating cash flows     – 33,563
Investing cash flows     – –
Financing cash flows     – (51,371)
     – (17,808)
The gain on disposal is calculated as follows:
     2010 2009 
     £ £
Net proceeds     – 3,741,549
Net assets disposed of     – (2,758,633)
Gain on disposal before tax     – 982,916
Tax on gain on disposal     – (341,328)
     – 641,588 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
43
4. DISCONTINuED OPERATIONS CONTINUED
The net proceeds of the disposal are calculated as follows: 
     2010 2009 
     £ £
Gross consideration     – 4,088,785
Transaction costs incurred     – (347,236)
     – 3,741,549
The net assets disposed of are as follows: 
     2010 2009 
     £ £
Property, plant and equipment     – 42,571
Other intangible assets     – 244,415
Inventories     – 1,530,423
Trade and other receivables     – 941,224
     – 2,758,633
5. PARTICuLARS OF EMPLOYEES
The average number of staff employed by the Group during the financial year amounted to:
     2010 2009 
     No. No. 
Number of production staff     76 78
Number of distribution staff     85 59
Number of administrative staff     80 79
     241 216
The aggregate payroll costs of the above were:
     2010 2009 
     £ £
Wages and salaries     9,840,225 8,053,983
Social security costs     2,815,332 2,612,132
Other pension costs     93,907 68,188
Share-based payments     354,585 217,677
     13,104,049 10,951,980
For the year ended 31 March 2010, of staff costs, £2,748,179 (2009: £2,276,773) has been included in cost of sales, £4,288,356 (2009: £3,765,620) 
in distribution costs and £6,067,514 (2009: £4,909,587) in administrative expenses. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
44
Financial accounts
6. DIRECTORS’ EMOLuMENTS
The Directors’ aggregate emoluments in respect of qualifying services were:
  
     2010 2009 
     £ £
Emoluments receivable     1,207,624 977,525
Value of Company pension contributions to money purchase schemes    39,062 36,611
     1,246,686 1,014,136
Emoluments of highest paid Director:
  
     2010 2009 
     £ £
Total emoluments (excluding pension contributions)     212,743 176,475
Value of Company pension contributions to money purchase schemes    – –
     212,743 176,475
The number of Directors who accrued benefits under Company pension schemes was as follows:
     2010 2009 
     No. No.
Money purchase schemes     4 5
2010
  
  Salary Bonuses Fees Benefits Total 
  £ £ £ £ £
Dr R T Duggan  147,000 36,750 – 17,639 201,389
Mr P Hailes  115,500 28,875 – 22,199 166,574
Mr C I Cookson  131,250 36,375 – 13,275 180,900
Mr A Wilks  132,420 31,793 – 10,898 175,111
Dr M Garrity  115,500 28,875 – 17,976 162,351
Mr A Rousseau  177,276 33,519 – 1,948 212,743
Mr D E Evans (Non-Exec)  – – 25,000 – 25,000
Mr W Dracup (Non-Exec)  – – 38,092 – 38,092
Dr B Wittek (Non-Exec)  – – 13,468 – 13,468
Dr P Dahlen (Non-Exec)  – – 10,000 – 10,000
Dr E D Blair (Non-Exec)  – – 21,996 – 21,996
Total  818,946 196,987 108,556 83,935 1,207,624
2009
  
  Salary Bonuses Fees Benefits Total 
  £ £ £ £ £
Dr R T Duggan  141,167 14,340 – 17,639 173,146
Mr P Hailes  110,917 17,925 – 9,362 138,204
Mr C I Cookson  126,042 10,000 – 31,021 167,063
Mr A Wilks  124,960 40,135 – 11,380 176,475
Dr M Garrity  110,917 – – 18,090 129,007
Mr A Rousseau  115,271 9,444 – 2,252 126,967
Mr D E Evans (Non-Exec)  – – 25,000 – 25,000
Mr W Dracup (Non-Exec)  – – 20,833 – 20,833
Dr E D Blair (Non-Exec)  – – 20,830 – 20,830
Total  729,274 91,844 66,663 89,744 977,525
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
45
6. DIRECTORS’ EMOLuMENTS CONTINUED
The services of the non-executive Directors are provided by third parties as follows: 
Mr D E Evans (Non-Exec) MBA Consultancy, an unincorporated business where Mr D E Evans is sole proprietor
Mr W Dracup (Non-Exec)  Nonlinear Dynamics Limited, a Company in which Mr W Dracup is a Director and has a significant shareholding
Dr E D Blair (Non-Exec) Integrated Medicines Limited, a Company in which Dr E D Blair is a Director and majority shareholder
7. FINANCE INCOME
  
     2010 2009 
     £ £ 
Bank interest receivable     1,045 50,837
Interest receivable on disposal of business     257,736 66,716
     258,781 117,553
8. FINANCE COSTS
  
     2010 2009 
     £ £ 
Interest payable on bank borrowing     647,344 781,426
Finance charges     14,206 16,177
Exchange (gain) on foreign currency borrowings     (137,796) (44,311)
Other similar charges payable     31,244 928
     554,998 754,220
Finance costs from discontinued operations     – 51,371
     554,998 702,849
9. TAx ATION ON ORDINARY ACTIvITIES
a) Analysis of charge in the year
  
     2010 2009 
     £ £
Current tax:
UK Corporation tax based on the results for the year at 28% (2009: 28%)    1,943,121 564,310
(Over)/under provision in prior year     (16,906) 31,612
Foreign tax on income     1,037,111 386,417
Total current tax     2,963,326 982,339
Deferred tax:  
Capital allowances     389,092 848,122
Other     24,876 (716)
Tax losses carried forward     (442,494) (847,435)
Deferred tax on share-based payments charge     (23,497) (55,639)
Total deferred tax (Note 26)     (52,023) (55,668)
Deferred tax from discontinued activities     – (341,328)
Deferred tax from continuing activities     (52,023) (396,996)
Tax on profit on ordinary activities     2,911,303 585,343 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
46
Financial accounts
9. TAx ATION ON ORDINARY ACTIvITIES CONTINUED
b) Factors affecting tax charge
The tax assessed for the period is lower than the standard rate of corporation tax in the UK (28%). The differences are explained below:
  
     2010 2009 
     £ £ 
Profit on ordinary activities before taxation     10,986,417 4,781,520
Profit on ordinary activities by rate of tax in the UK of 28% (2009: 28%)    3,076,196 1,388,824
Expenses not deductible for tax purposes     33,712 39,936
Income not taxable for tax purposes     (1,103) (2,865)
Additional relief for R & D expenditure     (842,593) (730,834)
Foreign profits taxable at different rates     722,049 (80,765)
Losses carried forward     78,760 –
Losses brought forward utilised     (44,782) (60,565)
Relief for employee share award     (94,030) –
Tax in respect of prior periods     16,906 31,612
Total tax charge at an effective rate of 26.5% (2009: 12.2%)     2,911,303 585,343
10. DIvIDENDS
On 21 August 2009, a dividend of 1.65p (2008: 1.5p) per share was paid to shareholders. In respect of the current year, the Directors propose 
that a dividend of 2p per share will be paid to the shareholders on 27 August 2010. This dividend is subject to approval by shareholders at the 
Annual General Meeting and has not been included as a liability in these financial statements. 
The proposed dividend for 2010 is payable to all shareholders on the Register of Members on 20 August 2010. The total estimated dividend 
is £557,144.
11. EARNINGS PER ORDINARY SHARE
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number  
of ordinary shares outstanding during the year.
For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential 
ordinary shares. The Group has two classes of dilutive potential ordinary shares: those share options granted to employees where the exercise 
price is less than the average market price of the Company’s ordinary shares during the year and the contingently issuable shares under the 
Group’s share option scheme. At 31 March 2010, the performance criteria for the vesting of the awards under the option scheme had been met 
and consequently the shares in question are included in the diluted EPS calculation. 
The calculations of earnings per share are based on the following profits and numbers of shares.
From continuing and discontinued operations:
  
     2010 2009 
     £ £
Profit on ordinary activities after tax     8,075,114 4,819,957
Weighted average no. of shares:     No. No.
For basic earnings per share     26,901,896 24,802,348
Effect of dilutive potential ordinary shares:
– Share Options     1,014,451 1,154,875
For diluted earnings per share     27,916,347 25,957,223
Basic earnings per share     30.017p 19.433p
Diluted earnings per share     28.926p 18.569p
Had the share options not been exercised in the year ended 31 March 2010, basic earnings per  
share would have been     30.569p –
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
47
11. EARNINGS PER ORDINARY SHARE CONTINUED
From continuing operations:
  
     2010 2009 
     £ £
Profit on ordinary activities after tax     8,075,114 4,196,177
Weighted average no of shares as above:
Basic earnings per share     30.017p 16.918p
Diluted earnings per share     28.926p 16.166p
From discontinued operations:
Basic earnings per share     0.000p 2.515p
Diluted earnings per share     0.000p 2.403p
12. FINANCIAL INSTRuMENTS RECOGNISED IN THE BALANCE SHEET
  
 Year ended 31 March 2010
    Other Loans and 
    investments receivables Total 
    £ £ £
Non-current financial assets
Financial asset investments    3,696 212,496 216,192
Current financial assets
Trade and other receivables    – 10,000,074 10,000,074
Cash and cash equivalents    – 5,276,489 5,276,489
    – 15,276,563 15,276,563
Total    3,696 15,489,059 15,492,755
      Other 
      financial 
      liabilities  
      £
Current financial liabilities   
Trade and other payables      5,371,059
Bank loans and overdrafts      2,623,727
Obligations under hire purchase agreements      57,103
      8,051,889
Non-current financial liabilities
Bank loans and overdrafts      8,606,078
Obligations under hire purchase agreements      36,817
      8,642,895
Total      16,694,784 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
48
Financial accounts
12. FINANCIAL INSTRuMENTS RECOGNISED IN THE BALANCE SHEET CONTINUED
 Year ended 31 March 2010
    Other Loans and 
    investments receivables Total 
    £ £ £
Non-current financial assets
Financial asset investments    3,696 – 3,696
Current financial assets
Trade and other receivables    – 8,042,212 8,042,212
Cash and cash equivalents    – 4,455,920 4,455,920
    – 12,498,132 12,498,132
Total    3,696 12,498,132 12,501,828
      Other 
      financial 
      liabilities 
      £
Current financial liabilities
Trade and other payables      5,389,382
Bank loans and overdrafts      2,535,197
Obligations under hire purchase agreements      99,043
      8,023,622
Non-current financial liabilities
Bank loans and overdrafts      11,194,153
Obligations under hire purchase agreements      97,370
      11,291,523
Total      19,315,145
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
49
13. PROPERTY, PLANT AND Equ IPMENT
    Fixtures, 
    fittings and Motor  
   Property equipment vehicles Total 
   £ £ £ £ 
Cost
At 1 April 2008   1,239,754 2,963,364 47,369 4,250,487
Exchange differences   286,185 802,860 8,893 1,097,938
Additions   239,088 1,271,796 – 1,510,884
Disposals   – (1,067,286) (1,934) (1,069,220)
At 31 March/1 April 2009   1,765,027 3,970,734 54,328 5,790,089
Exchange differences   (68,468) (179,913) (2,204) (250,585)
Additions   40,057 2,374,666 9,981 2,424,704
Disposals   – (312,372) (40,160) (352,532)
Transfer   – (207,834) – (207,834)
At 31 March 2010   1,736,616 5,645,281 21,945 7,403,842
Depreciation   
At 1 April 2008   213,918 938,111 32,048 1,184,077
Exchange differences   163,902 555,406 8,555 727,863
Charge for the year   152,911 571,095 10,829 734,835
On disposals   – (1,015,906) (1,934) (1,017,840)
At 31 March/1 April 2009   530,731 1,048,706 49,498 1,628,935
Exchange differences   (34,558) (116,932) (2,154) (153,644)
Charge for the year   179,156 818,589 6,588 1,004,333
On disposals   – (233,906) (40,160) (274,066)
At 31 March 2010   675,329 1,516,457 13,772 2,205,558
Net book value 
At 31 March 2010   1,061,287 4,128,824 8,173 5,198,284
At 31 March 2009   1,234,296 2,922,028 4,830 4,161,154
At 1 April 2008   1,025,836 2,025,253 15,321 3,066,410
Hire purchase agreements
Included within the net book value of fixtures, fittings and equipment £4,128,824 is £201,555 (2009: £256,976) relating to assets held under hire 
purchase agreements. The depreciation charged in the year in respect of such assets amounted to £55,480 (2009: £56,678). Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
5 0
Financial accounts
14. GOODWILL
      £
Cost
At 1 April 2008      19,804,264
Exchange differences      3,082,801
Additions      52,305
Reassessment of earn-out liability      (2,509,168)
At 31 March/1 April 2009      20,430,202
Exchange differences      (837,768)
Additions      4,662
Reassessment of earn-out liability      (950,232)
At 31 March 2010      18,646,864
Amortisation
At 1 April 2008      966,446
Charge for the year      –
At 31 March/1 April 2009      966,446
Charge for the year      –
At 31 March 2010      966,446
Net book value
At 31 March 2010      17,680,418
At 31 March 2009      19,463,756
At 1 April 2008      18,837,818
Goodwill is allocated to cash-generating units (CGU’s) identified on the basis of product sub-groups within the single business segment.  
A summary of the goodwill allocated to each CGU’s given below:
  
     2010 2009 
     £ £
IDS Nordic products     15,646,104 16,243,008
IDS-iSYS products     2,034,315 3,220,748
     17,680,419 19,463,756
The Directors have carried out an impairment review of goodwill carried forward on the balance sheet for the acquisitions of Nordic Bioscience 
Diagnostics and Biocode Hycel. The Directors believe that the future revenues and profitability expected from sales of both manual assays and 
those products sold on the automated platform the IDS-iSYS are such that no impairment is necessary. The calculations used cash flow projections 
over the next five year period based on the internal budgets and market forecasts for the next two years. Cash flows beyond this two-year period are 
extrapolated using a constant gross margin and applying the estimated growth rates below.
The Directors have used a growth rate per product type, however believe that the business will continue to grow above this rate and this remains 
the case after applying a 8.9% discount on future revenues and profits.
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
51
15. OTHER INTANGIBLE ASSETS
     Patents and 
    Development product 
    costs technology Total 
    £ £ £ 
Cost
At 1 April 2008    9,213,158 19,938,387 29,151,545
Exchange differences    2,373,046 3,709,799 6,082,845
Additions    3,560,954 765,294 4,326,248
Disposals    (810,709) (139,528) (950,237)
At 31 March/1 April 2009    14,336,449 24,273,952 38,610,401
Exchange differences    (609,570) (932,535) (1,542,105)
Additions    3,572,679 971,764 4,544,443
Disposals    – (7,198) (7,198)
At 31 March 2010    17,299,558 24,305,983 41,605,541
Amortisation  
At 1 April 2008    148,030 393,630 541,660
Exchange differences    728,902 213,043 941,945
Charge for the year    187,662 505,372 693,034
Disposals    (567,746) (137,672) (705,418)
At 31 March/1 April 2009    496,848 974,373 1,471,221
Exchange differences    (163,653) (92,467) (256,120)
Charge for the year    855,122 1,491,484 2,346,606
Disposals    – (7,198) (7,198)
At 31 March 2010    1,188,317 2,366,192 3,554,509
Net book value
At 31 March 2010    16,111,241 21,939,791 38,051,032
At 31 March 2009    13,839,601 23,299,579 37,139,180
At 1 April 2008    9,065,128 19,544,757 28,609,885 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
52
Financial accounts
16. SuBSIDIARIES
Details of the Company’s subsidiaries at 31 March 2010 are as follows:
  Proportion Proportion 
 Place of of ownership of voting 
 incorporation interest power held  
Name of subsidiary and operation % % Principal activity
Immunodiagnostic Systems Limited England 100 100 manufacturing and distributing medical 
     diagnostic products
Immunodiagnostic Systems Inc
(1)
 USA 100 100 distribution of Group products
Immunodiagnostic Systems  
Deutschland GmbH
(1) 
Germany 100 100 distribution of Group products
Suomen Bioanalytiikka Oy  
(SBA Sciences Ltd)
(1)(2)
 Finland 100 100 research and development
Briefvision Limited
(1)
 England 100 100 non-trading
Immunodiagnostic Systems Nordic A/S Denmark 100 100 distribution of Group products
Immunodiagnostic Systems SA Belgium 100 100 manufacturing and distributing diagnostic 
     test kits 
Immunodiagnostic Systems France SA France 100 100 manufacturing and distributing 
     automated instruments and distributing 
     diagnostic test kits 
(1) 100% subsidiary of Immunodiagnostic Systems Limited.
(2)  The purchase agreement included contingent consideration of €600,000, payment of which will become due following the outcome of certain future events.  
At present the Directors believe the outcome cannot be reliably estimated.
1. € e300,000 following approval of 510k status from the US Federal Drug Administration for TRAP products.
2. € e300,000 following receipt of reimbursement status from US Medicare for the TRAP products.
During the year Immunodiagnostic Systems Eurl was merged with Immunodiagnostic Systems France SA (see Note 2 to the company 
financial statements).
The figures for net profit/loss and net assets/liabilities for the subsidiaries are as stated under the local accounting principles (local GAAP) 
applicable to each entity before adjusting for inclusion in these consolidated financial statements.
The net profit and assets of the subsidiaries for the year ended 31 March 2010 were as follows:
     Net profit/ Net assets/ 
     (loss) (liabilities) 
Name of subsidiary     £ £
Immunodiagnostic Systems Limited     6,708,166 10,972,803
Immunodiagnostic Systems Inc     1,294,678 2,644,090
Immunodiagnostic Systems Deutschland GmbH     281,189 256,076
Suomen Bioanalytiikka Oy (SBA Sciences Ltd)     (30,387) 285,691
Briefvision Limited     – 10,000
Immunodiagnostic Systems Nordic A/S     842,450 5,673,136
Immunodiagnostic Systems SA     2,107,114 10,996,906
Immunodiagnostic Systems France SA     (249,718) 2,602,863
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
53
16. SuBSIDIARIES CONTINUED
The net profit and assets of the subsidiaries for the year ended 31 March 2009 were as follows:
     Net profit/ Net assets/ 
     (loss) (liabilities) 
Name of subsidiary     £ £
Immunodiagnostic Systems Limited     2,295,527 4,672,720
Immunodiagnostic Systems Inc     638,528 1,364,700
Immunodiagnostic Systems Deutschland GmbH     216,304 (28,891)
IDS Eurl     331,753 385,524
Suomen Bioanalytiikka Oy (SBA Sciences Ltd)     55,221 324,448
Briefvision Limited     – 10,000
Immunodiagnostic Systems Nordic A/S     623,269 4,932,393
Immunodiagnostic Systems SA     (370,435) 9,296,995
Immunodiagnostic Systems France SA     (1,232,841) 2,580,579
The figures for net profit/loss and net assets/liabilities for the subsidiaries are as stated under the local accounting principles (local GAAP) 
applicable to each entity before adjusting for inclusion in these consolidated financial statements.
17. INvESTMENTS
     2010 2009 
     £ £
At 1 April and 31 March     3,696 3,696
The subsidiary Immunodiagnostic Systems Limited owns 41% of the issued share capital of Perinatal Diagnostics Limited, a company 
incorporated in England. The company has not traded during the period. The company’s loss for the period was £25,792, relating to patent  
and other non-trading expenses, with the deficiency in capital and reserves of Perinatal Diagnostics Limited at £31,687 as at 31 March 2010.
The subsidiary Immunodiagnostic Systems Limited also owns 33% of the issued share capital of Pyrronostics Limited, a company incorporated 
in England. The principal activity of Pyrronostics Limited is that of a biomarker discovery company. The profit for the year ended 31 March 2010 
was £889. The deficiency in capital and reserves of Pyrronostics Limited is £10,370 as at 31 March 2010.
The subsidiary Immunodiagnostic Systems Limited also owns a 18.75% shareholding in Palindromx Limited, a company incorporated in 
England. The principal activity of Palindromx Limited is that of research and development. The loss for the year ended 31 March 2010 was  
£935. The deficiency in capital and reserves of Palindromx Limited is £41,005 as at 31 March 2010.
The above investments are not treated as associated undertakings as they are not considered to be material to the Group.
18. OTHER NON-CuRRENT ASSETS
     2010 2009 
     £ £
Other loans and receivables
At 1 April     – –
Transfer from property, plant and equipment     207,834 –
Additions     9,816 –
Repaid     (5,154) –
At 1 April and 31 March     212,496 – Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
54
Financial accounts
19. INvENTORIES
     2010 2009 
     £ £ 
Raw materials     3,797,664 2,911,432
Work in progress     1,552,778 2,042,244
Finished goods     1,076,859 783,526
     6,427,301 5,737,202
Inventories are stated after releasing provisions of £136,964 (2009: release of £163,347) previously held for impairment of inventories held by 
subsidiary companies. Of the total release a charge of £61,532 relates to finished goods whereas the provision for raw materials has decreased 
by £198,496 in the year.
The Directors consider that the carrying amount of inventories approximates to their fair value.
20. OTHER FINANCIAL ASSETS
Other financial assets are made up of trade and other receivables and cash and cash equivalents.
Trade and other receivables are as follows:
     2010 2009 
     £ £ 
Trade receivables     6,357,631 4,374,066
VAT recoverable     293,904 316,334
Other receivables     3,756,454 3,756,195
Prepayments and accrued income     511,670 239,585
     10,919,659 8,686,180
Allowance accounts for trade receivables     (114,011) (88,049)
     10,805,648 8,598,131
Included in other receivables is an amount of £3,012,317 (2009: £3,384,373) due more than one year after the balance sheet date.
The average credit period taken on sale of goods is 62 days (2009: 58 days). An allowance has been made for estimated irrecoverable amounts 
from sale of goods of £114,011 (2009: £88,049). This allowance has been based on the knowledge of the financial circumstances of individual 
receivables at the balance sheet date. Credit terms are negotiated individually for major customers; at the balance sheet date there are no 
material receivables which can be classified as overdue, other than those for which an allowance has been made.
There are no significant credit risks arising from financial assets that are neither past due nor impaired.
The movements on the allowance account were as follows:
     2010 2009 
     £ £ 
Balance at 1 April     88,049 107,267
Increase in allowance     57,628 –
Amounts received previously provided     (31,666) (19,218)
Balance at 31 March     114,011 88,049
The following table provides analysis of trade receivables that were overdue at 31 March, but not impaired. The Group believes that the balances 
are ultimately recoverable based on a review of past payment history and the current financial status of the customers.
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
55
20. OTHER FINANCIAL ASSETS CONTINUED
     2010 2009 
     £ £ 
Up to three months     682,706 717,360
Over three months     29,783 14,087
     712,489 731,447
At 31 March 2010 £1,371,388 (2009: £1,230,344) of receivables were denominated in Sterling, £7,477,715 (2009: £6,680,225) in Euros, £1,757,490 
(2009: £1,088,500) in US Dollars and £199,055 (2009: £158,802) in Danish Kroner.
The Directors consider that the carrying amount of trade and other receivables approximates to their fair value.
Cash and cash equivalents of £5,276,489 (2009: £4,455,920) comprise cash and short-term deposits held by the group treasury function.  
The carrying amount of these assets approximates to their fair value.
21. BORROWINGS
     Current Non-current  
2010     £ £ 
Bank loans     2,623,727 8,606,078
Obligations under hire purchase agreements     57,103 36,817
     2,680,830 8,642,895
     Current Non-current  
2009     £ £ 
Bank loans     2,535,197 11,194,153
Obligations under hire purchase agreements     99,043 97,370
     2,634,240 11,291,523
22. BANK LOANS
This relates entirely to bank loans denominated in Euros. 
Bank loans are arranged at floating rates, thus exposing the Group to cash flow interest rate risk, which has been partially hedged by use of and 
interest rate swap. The weighted average period until maturity was three years.
The Directors estimate that the fair value of the Group’s borrowings is not significantly different to the carrying value.
The bank holds an unlimited multilateral guarantee in respect of all Group companies, together with a debenture and fixed and floating charges 
over all tangible and intangible assets and uncalled share capital of the Company, both present and future.
23. OBLIGATIONS uNDER HIRE PuRCHASE AGREEMENTS
Amounts payable under hire purchase agreements:
     2010 2009 
     £ £ 
Within one year     57,103 99,043
In the second to fifth year inclusive     36,817 97,370
     93,920 196,413 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
56
Financial accounts
23. OBLIGATIONS uNDER HIRE PuRCHASE AGREEMENTS CONTINUED
It is the Group’s policy to finance certain of its fixtures and equipment under hire purchase agreements. The average contract term is 3-4 years. 
For the year ended 31 March 2010 the average effective borrowing rate was approximately 10%. Interest rates are fixed at the contract date.  
All contracts are on a fixed repayment basis, amounts totalling £29,096 (2009: £98,930) are denominated in Sterling and amounts totalling 
£64,824 (2009: £97,483) are denominated in Euros.
Amounts due under hire purchase agreements are secured over the assets financed.
The Directors estimate that the fair value of the Group’s obligations under hire purchase agreements is not significantly different to the  
carrying value.
24. OTHER FINANCIAL LIABILITIES
Trade and other payables are as follows:
     2010 2009 
     £ £ 
Trade payables     3,157,960 2,803,247
Other taxation and social security     831,549 850,774
Other payables     56,137 202,234
Accruals and deferred income     2,156,962 2,383,901
     6,202,608 6,240,156
Trade and other payables principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for 
trade purchases is 50 days (2009: 55 days).
At 31 March 2010 £2,070,583 (2009: £1,665,449) of payables were denominated in Sterling, £3,642,965 (2009: £4,208,042) in Euros, £403,124 
(2009: £236,316) in US Dollars and £85,936 (2009: £130,349) in Danish Kroner.
The Directors consider that the carrying amount of trade payables approximates to their fair value.
25. PENSIONS
Two subsidiary companies operate defined contribution schemes. The assets of the schemes are held separately from those of the companies 
in independently administered funds. The pension cost charge represents contributions payable by the companies to the funds and amounted 
to £93,907 (2009: £68,188).
26. DEFERRED TAx ATION
     2010 2009 
     £ £ 
The movement in the deferred taxation provision during the year was:
Provision brought forward     4,446,964 3,115,531
Income statement movement arising during the year     (52,023) (55,668)
     4,394,941 3,059,863
Deferred tax recognised on employee share options in excess of charge to the income
statement charged directly to equity     (1,549,201) –
Effect of exchange rate movements     (121,049) 1,387,101
Provision carried forward     2,724,691 4,446,964
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
57
26. DEFERRED TAx ATION CONTINUED
The elements of deferred taxation are as follows:
    2010 2009 2008 
    £ £ £
Excess of taxation allowances over depreciation on fixed assets   9,249,143 9,174,235 6,313,456
Other timing differences    (1,765,221) (217,399) (93,102)
Tax losses carried forward    (4,759,231) (4,509,872) (3,104,823)
    2,724,691 4,446,964 3,115,531
27. PROvISIONS
    Earn-out Other  
    liability provisions Total 
    £ £ £ 
At 1 April 2008    5,100,683 27,140 5,127,823
Movement in the year    (1,962,398) – (1,962,398)
At 31 March/1 April 2009    3,138,285 27,140 3,165,425
Payments made in the year    (208,697) (27,140) (235,837)
Reassessment of liability    (1,028,141) – (1,028,141)
At 31 March 2010    1,901,447 – 1,901,447
The earn-out liability relates to a commitment to the former shareholders of Immunodiagnostic Systems SA for each IDS-iSYS instrument  
placed by the Group as per the Sale and Purchase Agreement. The provision is calculated using current sales forecasts and discounted  
using a discount rate of 8.9%. The cash outflows are expected to occur annually until 2013.
28. DEFERRED INCOME
Government grants
     2010 2009 
     £ £ 
Received and receivable:   
At 1 April     949,839 804,339
Exchange differences     (35,355) 145,500
At 31 March     914,484 949,839
   
Amortisation:   
At 1 April     571,973 210,971
Credit to income statement     209,174 284,733
Exchange differences     (20,095) 76,269
At 31 March     761,052 571,973
Net balance at 31 March     153,432 377,866 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
58
Financial accounts
29. COMMITMENTS uNDER OPERATING LEASES
At 31 March 2010 the Group had commitments under non-cancellable operating leases as set out below.
   2010 
|
 2009
   Land and  Land and 
   buildings Other buildings Other 
   £ £ £ £ 
Amounts payable:
Within 1 year   374,375 216,668 139,831 201,343
Within 2 to 5 years   598,588 195,672 299,717 141,536
   972,963 412,340 439,548 342,879
30. RELATED PARTY TRANSACTIONS
Trading transactions
Transactions between the Group and its associated undertakings are as follows:
     2010 2009 
     £ £
Purchases of goods in year     13,000 36,000
Amounts owed by related parties at year end     43,334 49,189
As explained in Note 17, equity accounting is not used for the associates as they are not considered to be material to the Group as a whole.
Remuneration of key management personnel
The remuneration of the directors, who are the key management personnel of the Group, is set out in Note 6. The total employers’ national 
insurance contributions paid on behalf of directors was £93,510 (2009: £88,949) and the income statement charge in respect of share-based 
payments to directors was £314,102 (2009: £198,709) In addition, royalties of £10,656 (2009: £nil) were paid to a director, Mr A Rousseau.
During the year four directors exercised share options. The total gain on the exercise of these options was £6,284,005.
31. SHARE CAPITAL
     2010 2009 
     £ £
Equity Shares
Authorised:
75,000,000 (2008: 75,000,000) Ordinary shares of £0.02 each    1,500,000 1,500,000
     1,500,000 1,500,000
     2010 2009 
     £ £ 
Allotted, called up and fully paid:  
Ordinary shares of £0.02 each  
26,415,813 (2009: 23,972,686) in issue at 1 April     528,316 479,453
2,397,268 were issued for cash at 130p     – 47,946
45,859 were issued at 64.5p on the exercise of share options    – 917
1,367,827 were issued at 51p on the exercise of share options    27,357 –
40,000 were issued at 116.5p on the exercise of share options    800 –
30,926 were issued at 212.5p on the exercise of share options    618 –
27,854,566 (2009: 26,415,813) in issue at 31 March     557,091 528,316
The total premium received on the issue of shares during the year was £780,980; no expenses were incurred in relation to the issue of the shares.
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
59
32. SHARE PREMIuM
     2010 2009 
     £ £ 
Balance brought forward     28,499,692 25,543,742
Premium on shares issued during the year (net of expenses)    780,980 2,955,950
At 31 March     29,280,672 28,499,692
33. OTHER RESERvES
     2010 2009 
     £ £ 
Merger reserve     582,999 582,999
Share-based payments reserve:   
Balance brought forward     518,443 300,766
Charge for the year     354,585 217,677
Deferred tax recognised in excess of charge to income statement    1,549,201 –
Transfer to retained earnings on exercise of options     (285,000) –
At 31 March     2,137,229 518,443
Currency translation reserve   
Balance brought forward     11,064,485 5,025,305
Movement in the year     (2,003,879) 6,039,180
At 31 March     9,060,606 11,064,485
     11,780,834 12,165,927
The merger reserve represents the share premium and capital redemption reserve in existence in Immunodiagnostic Systems Limited at the date 
of merger. 
The Black-Scholes method was used to calculate the profit and loss charge relating to Share Options (Note 37).
The currency translation reserve relates to exchange differences arising from restating the Group’s net investment in its overseas subsidiaries 
using the closing rate method.
34. RETAINED EARNINGS
     2010 2009 
     £ £
Balance brought forward     9,525,542 5,065,863
Profit for the financial year     8,075,114 4,819,957
Transfer from other reserves on exercise of share options     285,000 –
Tax benefit on exercise of share options     1,943,121 –
Dividends paid     (436,273) (360,278)
At 31 March     19,392,504 9,525,542 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
6 0
Financial accounts
35. RECONCILIATION OF PROFIT BEFORE TAx TO NET CASH GENERATED FROM OPERATIONS
     2010 2009 
     £ £ 
Profit before tax from continuing operations     10,986,417 4,781,520
Profit before tax from discontinued operations     – 965,108
Profit before tax     10,986,417 5,746,628
Adjustments for:   
Depreciation of property, plant and equipment     1,004,333 734,835
Amortisation of intangible assets     2,346,606 693,034
Loss on disposal of property, plant and equipment     78,466 –
Share-based payment charge     354,585 217,677
Release of deferred grants     (209,174) (284,733)
Finance income     (258,781) (117,553)
Finance costs     692,794 754,220
Operating cash flows before movements in working capital     14,995,246 7,744,108
Decrease/increase in inventories     (868,691) 1,415,901
Increase in receivables     (2,499,360) (2,781,950)
Increase in payables     103,446 (10,974)
Cash generated by operations     11,730,641 6,367,085
36. CAPITAL COMMITMENTS
Amounts contracted for but not provided in the financial statements amounted to £nil (2009: £nil).
37. SHARE-BASED PAYMENTS
The Group has granted options, which remain exercisable, to subscribe for ordinary shares of £0.02 each, as follows:
   Period within which  Number of shares 
 Grant Exercise options are  for which rights are 
 Date Price exercisable 
| |
 exercisable
   From To 2010 2009
Share Options Agreements 2005 51p 22.12.07 22.12.14 8,345 341,962
Unapproved Scheme 2005 51p 22.12.07 22.12.14 – 541,970
 2007 241.5p 03.09.10 03.09.17 90,970 90,970
 2008 189.5p 25.03.11 25.03.18 814,631 814,631
 2009 236.5p 22.06.12 22.06.19 607,259 –
EMI Share Scheme 2005 51p 22.12.07 22.12.14 66,722 558,962
 2007 116.5p 29.09.09 29.09.16 – 40,000
 2007 241.5p 03.09.10 03.09.17 41,407 41,407
 2008 189.5p 25.03.11 25.03.18 52,770 52,770
 2009 236.5p 22.06.12 22.06.19 42,283 –
SAYE 2006 65p 01.07.10 01.01.11 79,422 79,422
 2007 212p 01.02.10 01.08.10 2,674 33,600
Total     1,806,483 2,595,694
The market price of the shares at 31 March 2010 was 765p and the range during the year was 173p to 820p.
Options may normally be exercised in whole or part within the period of three to ten years after the date of the grant, and then only if the 
performance conditions attached to the options have been satisfied.
The share options granted will only be exercisable upon the achievement of the performance criteria.
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
61
37. SHARE-BASED PAYMENTS CONTINUED
Share option agreements
The following share options are held by Directors of the Company:
  Options  Exercise Date from 
 Options at exercised Options at price which 
 01.04.09 in year 31.03.10 (pence) exercisable Expiry date
D Evans 333,617 333,617 – 51p 22.12.07 22.12.14
Enterprise Management Initiative scheme
The Company operates a share option scheme under the Enterprise Management Initiative Scheme (‘EMI’). The following share options are held 
by Directors of the Company:
   Options  Exercise Date from 
  Options at exercised Options at price which 
  01.04.09 in year 31.03.10 (pence) exercisable Expiry date
R Duggan 196,078 196,078 – 51p 22.12.07 22.12.14
P Hailes 196,078 196,078 – 51p 22.12.07 22.12.14
M Garrity 41,407 – 41,407 241.5p 03.09.10 03.09.17
I Cookson 52,770 – 52,770 189.5p 25.03.11 25.03.18
Approved share option scheme
Options are granted at the discretion of the Board to employees and full time Directors of the Group, save that options will not be granted to 
individuals due to retire within six months or those individuals who have a material interest in a Company within the Group. No share options  
were granted under this scheme during the year.
unapproved share option scheme
  Options Options  Exercise Date from 
 Options at granted in exercised Options at price which 
 01.04.09 year in year 31.03.10 (pence) exercisable Expiry date
R Duggan 137,539 – 137,539 – 51p 22.12.07 22.12.14
 – 66,383 – 66,383 236.5p 22.06.12 22.06.19
P Hailes 137,539 – 137,539 – 51p 22.12.07 22.12.14
 – 66,383 – 66,383 236.5p 22.06.12 22.06.19
A Wilks 133,446 – 133,446 – 51p 22.12.07 22.12.14
 – 66,554 – 66,554 236.5p 22.06.12 22.06.19
M Garrity 90,970 – – 90,970 241.5p 03.09.10 03.09.17
 – 67,623 – 67,623 236.5p 22.06.12 22.06.19
I Cookson 280,847 – – 280,847 189.5p 25.03.11 25.03.18
 – 66,383 – 66,383 236.5p 22.06.12 22.06.19
A Rousseau 133,446 – – 133,446 189.5p 25.03.11 25.03.18
 – 66,554 – 66,554 236.5p 22.06.12 22.06.19
Performance conditions in relation to the Share Option Agreements, the EMI scheme, the Approved Share Option Scheme and the Unapproved 
Share Option Scheme are:
Exercise of an option will be dependent upon the achievement by the Company of a specified threshold of earnings per share (‘EPS’) growth 
(calculated after excluding amortisation of goodwill, gains and losses on the disposal of assets, changes resulting from the expensing of options 
through the profit and loss account and any extraordinary or exceptional items at the discretion of the Remuneration Committee) in excess of  
the growth in Retail Price Index over a three or more years performance period (the ‘Performance Period’). For an option to become exercisable 
in full, the growth in EPS of the Company over the Performance Period must exceed the growth in Retail Price Index over the same period by  
a specified percentage. If the excess is 15 percent or greater in respect of the first three years of the Performance Period then the performance 
condition is met. Where the performance condition is not met then the Performance Period is extended one financial year at a time and the 
growth in EPS is increased by five percent for each financial year while the options remain in existence until the performance condition as so 
increased has been met. As soon as the performance condition is met the options vest in their entirety and become exercisable in whole or  
in part at any time, subject to the rules of the IDS Approved Share Option Scheme.
SAYE share option scheme
The SAYE Share Option Scheme is an all employee share scheme; no share options were granted under this scheme during the year.
All UK employees or full-time UK Directors of the Group who have worked for a minimum period as the Board determines are eligible to participate 
in the IDS SAYE Share Option Scheme, as long as they do not have a material interest in the Company or a participating Company. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
62
Financial accounts
37. SHARE-BASED PAYMENTS CONTINUED
Share-based payments
The number of share options in existence during the year was as follows:
 2010 2009
   Number Weighted Number Weighted 
   of average of average 
   share exercise share exercise 
   options price options price
At 1 April   2,595,694 110p 2,678,836 109p
Granted during the year   649,542 236.5p – 0p
Forfeited during the year   – – 37,283 79p
Exercised during the year   1,438,753 56p 45,859 65p
Outstanding at 31 March   1,806,483 199p 2,595,694 110p
Exercisable at 31 March   77,741 56.5p 1,442,894 51p
Options were valued using the Black-Scholes option pricing model. The fair value per option granted and the assumptions used in the 
calculation were as follows:
      2010
Risk-free interest rate      4% 
Expected volatility      54.1%
Expected option life in years      3 years
Expected dividend yield      3%
Weighted average share price      237p
Weighted average exercise price      237p
Weighted average fair value of options granted      80p
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous three years. The expected 
life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and 
behavioural considerations.
The weighted average fair value of options granted in the year was £519,634 (2009: £nil).
The options outstanding at 31 March 2009 had an exercise price between 51p and 241.5p (2009: between 51p and 241.5p), and a weighted 
average remaining contractual life of 7.9 years (2009: 6.8 years).
During 2010, the Group recognised total share-based payment expenses of £354,585 (2009: £217,677) of which £354,585 (2009: £217,677) 
related to equity-settled share-based payment transactions. After deferred tax the charge was £255,301 (2008: £156,727).
38. FINANCIAL RISK MANAGEMENT
The Group’s financial instruments comprise bank loans, bank overdraft facility, cash and short-term deposits. The Group has various  
other financial instruments, such as trade debtors and creditors that arise directly from its operations, which have been excluded from  
the disclosures, other than the currency disclosures.
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk and foreign currency risk. The policies  
for managing these are regularly reviewed and agreed by the Board.
It is, and has been throughout the year under review, the Group’s policy that no trading in financial instruments shall be undertaken. 
Interest rate risk
The Group finances its operations by a mixture of retained profits and bank borrowings. The Group’s policy on interest rate management is 
agreed at Board level and is reviewed on an ongoing basis. The Group’s exposure to interest rate volatility is reduced by means of interest rate 
swaps. The interest rates applying to the existing hire purchase commitments of £93,290 is fixed at between 8% and 13%.
Interest rate profile
The Group has no financial assets, excluding short-term debtors, other than Sterling cash deposits of £1,402,537 (2009: £1,888,254), Euro cash 
deposits of £2,061,410 (2009: £258,127), US Dollar cash deposits of £1,542,082 (2009: £846,308) and Danish Kroner cash deposits of £270,460 
(2009: £nil) which are part of the financing arrangements of the Group.
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
63
38. FINANCIAL RISK MANAGEMENT CONTINUED
The interest rate profile of the Group’s financial liabilities at 31 March 2010 was as follows:
  2010 
| |
  2009
 Total Floating Fixed Total Floating Fixed 
Currency £000 £000 £000 £000 £000 £000
Sterling
– Borrowings 29 – 29 99 – 99
Euro
– Borrowings 11,295 – 11,295 13,827 – 13,827
 11,324 – 11,324 13,926 – 13,926
Liquidity risk
As regards liquidity, the Group’s policy throughout the year has been to ensure continuity of funding by means of generated funds supported by 
the Group’s bankers and raising capital. The Group is cash positive in its operations and is expected to be so for the foreseeable future. Facilities 
are reviewed regularly by the Board, which will consider carefully liquidity risk for any future acquisitions.
Short-term flexibility is achieved by overdraft facilities.
Foreign currency risk
The Group has subsidiaries, which operate in the USA and continental Europe. Their revenues and expenses are denominated substantially in US 
Dollars and Euros. In order to protect the Group’s Sterling balance sheet from the movements in these currencies and the Sterling exchange rate,  
the Group finances its net investment in these subsidiaries by means of borrowings in their respective functional currencies. The foreign currency 
risk inherent in anticipated short-term currency requirements is reduced by means of forward exchange contracts.
At the balance sheet date the Group had a loan denominated in Euros of £10,447,932 (2009: £10,929,256) outstanding which has been designated 
as a hedge against the net investment in a subsidiary company. An exchange gain arising from the hedge during the year amounting to £348,563 
(2009: exchange loss of £1,664,008) has been deferred in equity and will be recognised in the income statement as and when the loan is repaid.
The table below shows the Group’s currency exposure, being those transactional exposures that give rise to the net currency gains and losses 
recognised in the profit and loss account. Such exposures comprise the monetary assets and monetary liabilities of the Group that are not 
denominated in the operating (or ‘functional’) currency of the operating unit involved. At 31 March 2010 these exposures are as follows:
  Net foreign currency monetary assets/(liabilities)
   Sterling uS Dollar Euro Total 
Functional currency of Group operation   £000 £000 £000 £000
Sterling   – 66 500 566
   – 66 500 566
      
The exposures at 31 March 2009 for comparison purposes were as follows: 
      
  Net foreign currency monetary assets/(liabilities)
   Sterling uS Dollar Euro Total 
Functional currency of Group operation   £000 £000 £000 £000
Sterling   – (57) 100 43
Danish Kroner   – – 43 43
Euro   – (16) – (16)
   – (73) 143 70 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
64
Financial accounts
38. FINANCIAL RISK MANAGEMENT CONTINUED
The maturity profile of the Group’s financial liabilities at 31 March was as follows:
     2010 2009 
     £ £ 
In one year or less     2,680,830 2,634,240
In more than one year but not more than five years     8,642,895 11,291,523
     11,323,725 13,925,763
Borrowing facilities
The Group had no undrawn committed borrowing facilities at 31 March 2010.
Fair values
There are no material differences between the fair value of financial instruments and the amount at which they are stated in the financial 
statements.
39. CONTINGENT LIABILITIES
Immunodiagnostic Systems SA has received a grant from the Walloon Regional Government, which may become repayable in the future.  
The amount and timing of any repayment is dependent on the Company’s future revenues and, at present, can not be reliably determined.  
The grant will become repayable if and when the product which is being developed and for which the grant was received enters commercial 
production, and will be repaid as a percentage of the revenue generated from the project. The maximum potential repayment is approximately 
£3.0m. Included in the net book value of deferred income of £153,432 (see Note 28) is an amount of £114,676 (2009: £228,908) relating to the 
portion of this grant which has not yet been released to the income statement.
The subsidiary Immunodiagnostic Systems France SA is party to a collective agreement under which employees leaving the Company to  
enter retirement are entitled to a payment equivalent to one-tenth of a month’s salary for each year of service with the Company. No payment is 
made to employees leaving the Company’s employment for other reasons. The present value of the potential liability to current employees as at 
31 March 2010 is approximately £257,500. No provision has been made for this amount in these financial statements as the Directors consider 
retirement, a future event, to be the event giving rise to the obligation.
40. POST BALANCE SHEET EvENTS
There are no material events after the balance sheet date which are required to be disclosed in the financial statements.
Notes to the consolidated financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
65
Company balance sheet
as at 3 1 March 2010 Company Registration No. 051 46193
     2010 2009 
    Notes £ £ 
Fixed assets
Investments    2 47,735,569 36,344,555
     47,735,569 36,344,555
Current assets
Debtors due within one year    3 636,682 1,635,001
Cash at bank and in hand    4 – 8,025
     636,682 1,643,026
Creditors    
Amounts falling due within one year    5 14,874,383 5,186,779
Net current liabilities     (14,237,701) (3,543,753)
Total assets less current liabilities     33,497,868 32,800,802
Provisions for liabilities    
Other provisions    7 1,901,447 3,165,425
     31,596,421 29,635,377
Capital and reserves
Called up share capital    8 557,091 528,316
Share premium account    9 29,280,672 28,499,692
Other reserves    10 588,028 518,443
Profit and loss account    11 1,170,630 95,461
     31,596,421 29,641,912
Own shares     – (6,535)
Shareholders’ funds    12 31,596,421 29,635,377
The financial statements on pages 65 to 72 were approved by the Board of Directors and authorised for issue on 9 July 2010 and are signed on 
its behalf by:
Mr D E Evans      Mr P Hailes
Non-Executive Chairman     Finance Director Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
66
Financial accounts
Notes to the company financial statements
for the year ended 3 1 March 2010
1. ACCOuNTING POLICIES 
a) Basis of accounting
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards 
generally accepted in the United Kingdom (UK GAAP). The Company financial statements are presented separately to the consolidated financial 
statements which have been prepared under International Financial Reporting Standards (IFRS) as adopted by the European Union.
b) Investments
Fixed asset investments are stated at cost after making provision for any impairment in the value.
c) Pension costs
A subsidiary operates a defined contribution pension scheme of which employees of the Companies are members. The assets of the scheme 
are held separately from those of the subsidiary. The annual contributions payable are charged to the profit and loss account.
d) Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions 
or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. 
Timing differences are differences between the Company’s taxable profits and its results as stated in the financial statements that arise from the 
inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which timing differences are expected to reverse, 
based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a 
non-discounted basis.
e) Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in 
foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into 
account in arriving at the operating profit.
f) Share-based payments
The Company has applied the requirements of FRS 20 Share-based Payments. In accordance with the transitional provisions, FRS 20 has been 
applied to all grants of equity instruments after 7 November 2002 that were unvested at 1 April 2006.
The Company issues equity-settled and cash-settled share-based payments to certain employees. Equity-settled share-based payments are 
measured at fair value at the date of grant. The fair value determined at the grant date of equity-settled share-based payments is expensed on  
a straight-line basis over the vested period, based on the Group’s estimate of shares that will eventually vest.
The fair value is measured by the use of the Black-Scholes option price model. The expected life used in the model has been adjusted, based on 
management’s best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations.
A liability equal to the portion of the goods or services received is recognised at the current fair value determined at each balance sheet date for 
cash-settled share-based payments. Changes in fair value are recognised through the profit and loss account.
2. INvESTMENTS
      Investment in 
      subsidiary 
      undertakings 
      £ 
Cost
At 1 April 2009      36,344,555
Acquisition of subsidiary undertakings      12,299,329
Reduction in contingent consideration      (950,232)
Share options to subsidiaries’ employees      41,917
At 31 March 2010      47,735,569
Net book value
At 31 March 2010      47,735,569
At 31 March 2009      36,344,555 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
67
2. INvESTMENTS CONTINUED
The Company owns 100% of the issued ordinary share capital and voting rights of Immunodiagnostic Systems Limited, an unlisted company 
incorporated in England. The results of the subsidiary and its subsidiaries have been consolidated within the Group accounts. Their principal 
activity during the year was that of manufacturing and distributing medical diagnostic products. That Company is also actively involved in 
research and development projects.
The Company owns 100% of the share capital of Immunodiagnostic Systems Nordic A/S, formerly Nordic Bioscience Diagnostics A/S,  
an unlisted company incorporated in Denmark. The results of the subsidiary have been consolidated within the Group accounts. It’s principal 
activity of the Company during the year was that of manufacturing and distributing bone and arthritic diagnostic test kits. The manufacturing 
activities were transferred to Immunodiagnostic Systems Limited during the year.
The Company owns 100% of the share capital of Immunodiagnostic Systems SA, an unlisted company incorporated in Belgium. The results 
of the subsidiary have been consolidated within the Group accounts. It’s principle activity during the year was that of manufacturing and 
distributing diagnostic test kits in particular for use on the Group’s automated platform. That Company is also actively involved in research 
and development projects.
During the year, the Company acquired 100% of the share capital of Immunodiagnostic Systems France SA, an unlisted company incorporated  
in France and previously a 100% subsidiary of Immunodiagnostic Systems SA. It’s principle activity during the year was that of manufacturing and 
distributing automated instruments. The Company is also actively involved in research and development projects. During the year the Company 
also acquired 100% of the share capital of Immunodiagnostic Systems Eurl, from Immunodiagnostic Systems Limited. The principal activity of  
the Company during the year was that of distribution of the Group’s products in France. On 31 March 2010, Immunodiagnostic Systems Eurl was 
merged into Immunodiagnostic Systems France SA and ceased to exist. For fiscal and statutory reporting purposes, the merger was deemed to 
have taken place on 1 April 2009. The results of the merged subsidiary have been consolidated within the Group accounts. 
3. DEBTORS
     2010 2009 
     £ £ 
Amounts owed by Group undertakings     485,606 1,509,802
Other debtors     – 500
Prepayments and accrued income     2,662 6,667
Deferred tax asset (see Note 6)     148,414 118,032
     636,682 1,635,001
4. CASH AT BANK AND IN HAND
     2010 2009 
     £ £ 
Bank deposit account     – 8,025
5. CREDITORS: AMOuNTS FALLING DuE WITHIN ONE YEAR
 
     2010 2009 
     £ £ 
Trade creditors     14,649 11,069
Amounts due to Group undertakings     14,772,165 4,961,254
Other creditors     – 877
Accruals and deferred income     87,569 213,579
     14,874,383 5,186,779 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
68
Financial accounts
6. DEFERRED TAx ATION
 
     2010 2009 
     £ £ 
The movement in deferred tax during the year was:   
Asset brought forward     118,032 62,393
  
Profit and loss account movement arising during the year     30,382 55,639
Total deferred tax     30,382 55,639
Asset carried forward     148,414 118,032
The deferred taxation relates to timing differences between the accounting and tax treatment of share options.
7. OTHER PROvISIONS
 
    Earn-out Other  
    liability provisions Total 
    £ £ £ 
At 1 April 2008    5,100,683 27,140 5,127,823
Movement in the year    (1,962,398) – (1,962,398)
At 31 March/1 April 2009    3,138,285 27,140 3,165,425
Payments made in the year    (208,697) (27,140) (235,837)
Reassessment of liability    (1,028,141) – (1,028,141)
At 31 March 2010    1,901,447 – 1,901,447
The earn-out liability relates to a commitment to pay the former shareholders of Biocode Hycel SA for each IDS-iSYS instrument placed by the 
group by 31 December 2010. The provision is calculated using current sales forecasts and discounted using a discount rate of 8.9%.
Other provisions of £27,140 related to the expenditure committed by the Employee Benefit Trust, relating to past service. 
8. SHARE CAPITAL
 
     2010 2009 
     £ £
Equity Shares   
   
Authorised:   
75,000,000 Ordinary shares of £0.02 each     1,500,000 1,500,000
     1,500,000 1,500,000
  
 
     2010 2009 
     £ £ 
Allotted, called up and fully paid:   
27,854,566 (2009: 26,415,813) Ordinary shares of £0.02 each    557,091 528,316
     557,091 528,316
During the year the Company issued a total of 1,438,753 ordinary shares of 2p each, of which 1,367,827 were issued at 51p, 40,000 were issued 
at 116.5p and 30,926 were issued at 212.5p, all on the exercise of share options. The total premium received on the issue of shares during the 
year was £780,980.
Notes to the company financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
69
9. SHARE PREMIuM
 
     2010 2009 
     £ £ 
Balance brought forward     28,499,692 25,543,742
Premium on shares issued during the year     780,980 2,955,950
At 31 March     29,280,672 28,499,692
10. OTHER RESERvES
 
     2010 2009 
     £ £ 
Share options reserve   
Balance brought forward     518,443 300,766
Charge for the year     354,585 217,677
Transfer for options exercised in the year     (285,000) –
At 31 March     588,028 518,443
The Black Scholes method was used to calculate the profit and loss charge relating to Share Options.
11. PROFIT AND LOSS ACCOuNT
 
     2010 2009 
     £ £
Balance brought forward     95,461 65,556
Profit for the financial year     1,226,442 390,183
Transfer from share options reserve     285,000 –
Dividends paid     (436,273) (360,278)
At 31 March     1,170,630 95,461
12. RECONCILIATION OF MOvEMENTS IN SHAREHOLDERS’ FuNDS
 
     2010 2009 
     £ £ 
   
Profit for the financial period     1,226,442 390,183
Dividends paid     (436,273) (360,278)
Share-based payments charged to equity reserve     354,585 217,677
     1,144,754 247,582
Issue of shares     816,290 3,004,813
Net addition to shareholders’ funds     1,961,044 3,252,395
Opening shareholders’ equity funds     29,635,377 26,382,982
Closing shareholders’ equity funds     31,596,421 29,635,377
  
Total shareholders’ funds     31,596,421 29,635,377 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
70
Financial accounts
13. SHARE-BASED PAYMENTS
The Company has granted options, which remain exercisable, to subscribe for ordinary shares of £0.02 each, as follows:
   Period within which  Number of shares for
 
Grant Exercise
 options are exercisable 
||||||||||||||||||||||
 which rights are exercisable
 Date Price From To 2010 2009
Share Options Agreements 2005 51p 22.12.07 22.12.14 8,345 341,962
Unapproved Scheme 2005 51p 22.12.07 22.12.14 – 541,970
 2007 241.5p 03.09.10 03.09.17 90,970 90,970
 2008 189.5p 25.03.11 25.03.18 814,631 814,631
 2009 236.5p 22.06.12 22.06.19 516,096 –
EMI Share Scheme 2005 51p 22.12.07 22.12.14 – 392,156
 2007 241.5p 03.09.10 03.09.17 41,407 41,407
 2008 189.5p 25.03.11 25.03.18 52,770 52,770
Total     1,524,219 2,275,866
The market price of the shares at 31 March 2010 was 765p and the range during the year was 173p to 820p.
Options may normally be exercised in whole or part within the period of three to ten years after the date of the grant, and then only if the 
performance conditions attached to the options have been satisfied.
The share options granted will only be exercisable upon the achievement of the performance criteria.
Share option agreements
The following share options are held by Directors of the Company:
  Options  Exercise Date from 
 Options at exercised Options at price which 
 01.04.09 in year 31.03.10 (pence) exercisable Expiry date
D Evans 333,617 333,617 – 51p 22.12.07 22.12.14
Enterprise Management Initiative scheme
The Company operated a share option scheme under the Enterprise Management Initiative Scheme (‘EMI’). The following share options are held 
by Directors of the Company:
  Options  Exercise Date from 
 Options at exercised Options at price which 
 01.04.09 in year 31.03.10 (pence) exercisable Expiry date
R Duggan 196,078 196,078 – 51p 22.12.07 22.12.14
P Hailes 196,078 196,078 – 51p 22.12.07 22.12.14
M Garrity 41,407 – 41,407 241.5p 03.09.10 03.09.17
I Cookson 52,770 – 52,770 189.5p 25.03.11 25.03.18
Approved share option scheme
Options are granted at the discretion of the Board to employees and full time Directors of the Group, save that options will not be granted to 
individuals due to retire within six months or those individuals who have a material interest in a Company within the Group. No share options 
were granted under this scheme during the year.
Notes to the company financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
71
13. SHARE-BASED PAYMENTS CONTINUED
unapproved share option scheme
  Options Options  Exercise Date from 
 Options at granted in exercised Options at price which 
 01.04.09 year in year 31.03.10 (pence) exercisable Expiry date
R Duggan 137,539 – 137,539 – 51p 22.12.07 22.12.14
 – 66,383 – 66,383 236.5p 22.06.12 22.06.19
P Hailes 137,539 – 137,539 – 51p 22.12.07 22.12.14
 – 66,383 – 66,383 236.5p 22.06.12 22.06.19
A Wilks 133,446 – 133,446 – 51p 22.12.07 22.12.14
 – 66,554 – 66,554 236.5p 22.06.12 22.06.19
M Garrity 90,970 – – 90,970 241.5p 03.09.10 03.09.17
 – 67,623 – 67,623 236.5p 22.06.12 22.06.19
I Cookson 280,847 – – 280,847 189.5p 25.03.11 25.03.18
 – 66,383 – 66,383 236.5p 22.06.12 22.06.19
A Rousseau 133,446 – – 133,446 189.5p 25.03.11 25.03.18
 – 66,554 – 66,554 236.5p 22.06.12 22.06.19
Performance conditions in relation to the share option agreements, the EMI scheme, the approved share option scheme and the unapproved 
share option scheme are:
Exercise of an option will be dependent upon the achievement by the Company of a specified threshold of earnings per share (‘EPS’) growth 
(calculated after excluding amortisation of goodwill, gains and losses on the disposal of assets, changes resulting from the expensing of options 
through the profit and loss account and any extraordinary or exceptional items at the discretion of the Remuneration Committee) in excess of the 
growth in Retail Price Index over a three or more years performance period (the ‘Performance Period’). For an option to become exercisable in 
full, the growth in EPS of the Company over the Performance Period must exceed the growth in Retail Price Index over the same period by a 
specified percentage. If the excess is 15 percent or greater in respect of the first three years of the Performance Period then the performance 
condition is met. Where the performance condition is not met then the Performance Period is extended one financial year at a time and the 
growth in EPS is increased by five percent for each financial year while the options remain in existence until the performance condition as so 
increased has been met. As soon as the performance condition is met the options vest in their entirety and become exercisable in whole or in 
part at any time, subject to the rules of the IDS Approved Share Option Scheme.
SAYE Share option scheme
The SAYE Share Option Scheme is an all employee share scheme.
All UK employees or full time UK Directors of the Company who have worked for a minimum period as the Board determines are eligible 
to participate in the IDS SAYE Share Option Scheme, as long as they do not have a material interest in the Company or a participating Company.
The number of share options in existence during the year was as follows:
 2010 
| | | | | | | | | | | | | | |
 2009
    Weighted  Weighted 
   Number of average Number of average 
   share options exercise price share options exercise price
At 1 April   2,275,866 115p 2,302,306 109p
Granted during the year   516,096 236.5p – –
Forfeited during the year   – – 26,440 65p
Exercised during the year   1,267,743 51p – –
Outstanding at 31 March   1,524,219 209p 2,275,866 115p
Exercisable at 31 March   – – 1,276,088 51p
The weighted average fair value of options granted in the year was £411,845 (2009: £nil). The options outstanding at 31 March 2010 had  
an exercise price between 51p and 241.5p (2009: between 51p and 241.5p), and a weighted average remaining contractual life of 8.3 years 
(2009: 5.7 years).
During 2010, the Company recognised total share-based payment expenses of £312,668 (2009: £198,709) of which £312,668 (2009: £198,709) 
related to equity-settled share-based payment transactions. After deferred tax the charge was £225,121 (2009: £143,070).  Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
72
Financial accounts
13. SHARE-BASED PAYMENTS CONTINUED
Options were valued using the Black-Scholes option pricing model. The fair value per option granted and the assumptions used in the 
calculation were as follows:
      2010
  
Risk free interest rate      4% 
Expected volatility      54.1%
Expected option life in years      3 years
Expected dividend yield      3%
Weighted average share price      237p
Weighted average exercise price      237p
Weighted average fair value of options granted      80p
 
Expected volatility was determined by calculating the historical volatility of the Group’s share price over the previous 3 years. The expected life 
used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, exercise restrictions and 
behavioural considerations.
Notes to the company financial statements
for the year ended 3 1 March 2010 Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
73
Glossary
Glossary
Analyte
The substance for which an assay is designed to measure.  
In the present context this will be in a sample taken from a patient  
or animal (such as blood) and its measurement will aid the diagnosis 
or monitoring of a disease or its treatment, or provide information for 
research studies.
Antibodies
Any of a large variety of immunoglobulins (or fragments thereof) 
which are part of the immune system, and are produced to help  
fight against infection. Antibodies are made by a type of blood cell 
called a lymphocyte, and are tailor-made in response to foreign 
material (antigen) entering the body. Antibodies are highly specific for 
their particular antigen, and will bind strongly to it. In immunoassays, 
antibodies are raised against the analyte and used as a receptor to 
bind the analyte.
Antigen
A protein or part of a protein which provokes an immune response  
and will bind to the antibodies generated.
Assay
A test to detect and/or quantitate a specific analyte in a sample.
Biochemistry
As used here, assays not employing immunoassay or antibodies,  
but (relatively) simple colorimetric chemical or amperometric ionic 
reactions to determine e.g. calcium ions, urinary creatinine, etc. 
Biomarker
An analyte present in a biological sample whose presence or 
concentration is indicative of a disease state.
Coagulation
A complex process by which blood forms clots. It is an important part 
of haemostasis (the cessation of blood loss from a damaged vessel) 
whereby a damaged blood vessel wall is covered by a platelet and 
fibrin containing clot to stop bleeding and begin repair of the damaged 
vessel. Disorders of coagulation can lead to an increased risk of 
bleeding (haemorrhage) and/or clotting (thrombosis).
Closed System 
An analyser that is designed to use only reagents specifically 
designed, manufactured and formatted for use on such analyser 
according to pre-set programmes not amenable to end-user variation.
Conjugate
An entity formed by coupling two substances together. In
immunoassays the term generally refers to the labelled entity  
in the assay (e.g. enzyme-labelled antibody).
CTx-I
An abbreviation for C-terminal telopeptides of Type l collagen. Type I 
collagen accounts for more than 90% of the organic matrix of bone  
and is synthesised primarily in bone. During renewal of the skeleton, 
Type I collagen is degraded, and small peptide fragments are excreted 
into the bloodstream. These CTX-I fragments can be measured and 
are useful for follow up of anti-resorptive treatment of patients with 
metabolic bone diseases.
CTx-II
An abbreviation for C-terminal telopeptides of type II collagen. Type II 
collagen is the major organic constituent of cartilage and fragments  
of type II collagen (CTX-II) are being released into circulation and 
subsequently secreted into urine following degradation of cartilage.  
In urine, the CTX-II fragments can be measured and has been 
reported to be useful in prediction and progression of osteoarthritis 
and in other clinical and pre-clinical investigations.
Enzyme
A catalytic protein which is necessary for a particular chemical 
process to take place in a living cell. In immunoassays, enzymes are 
frequently conjugated to antibodies as part of the signal generation 
system.
Haematology 
The branch of biology that is concerned with the study of blood, the 
blood-forming organs and blood diseases. Haematology includes  
the study of etiology, diagnosis, treatment, prognosis and prevention 
of blood diseases.
IDS-iSYS
The name of IDS’ closed system for automated platform for testing 
blood samples. This instrument can run Immunology, Biochemistry 
and Coagulation tests.
Immunoassay
An assay which uses the specificity of the antibody-antigen binding  
to measure or detect an analyte.
In vitro
Literally ‘in glass’. It refers to a process or biological reaction taking 
place outside a living system.
In vitro Diagnostics (IvD)
Reagents, instruments and systems intended for use in the diagnosis 
of disease or other conditions, including a determination of the state  
of health, in order to cure, mitigate, treat or prevent disease. Tests are 
performed on samples removed from the body.
Marker
In the present context, a synonym for Biomarker.
Monoclonal antibodies
Made by producing a single antibody cell line so that it will secrete 
large amounts of a specific antibody indefinitely. The antibodies 
produced are therefore all the same. Monoclonal antibodies are  
used in diagnostics and in purifying useful proteins from mixtures.
Open System 
An analyser that is designed to accept generic as opposed to 
instrument-specific reagents enabling end-users to use products  
from one or more manufacturers of similarly formatted products  
and where the end-user can determine analytical programmes. Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
74
Glossary
Pharma
In the present context, an abbreviation for Pharmaceutical company(s) 
or the Pharmaceutical Industry.
Proteins
Proteins are one of the products that genes code for. They are made 
of chains of amino acids folded into complex three dimensional 
structures. It is this structure that helps determine their function.
Research-use Only (RuO)
In the present context, an immunoassay that does not have regulatory 
approval for use as an IVD and can only be used for research purposes.
Specificity
In this context the ability of an immunoassay to measure one 
biomarker in the presence of others without that determination  
being interfered with, positively or negatively, by such a presence.
Sensitivity 
The least amount of substance, such as a biomarker, that can be 
determined with sufficient accuracy and precision.
TRAcP
Tartrate-resistant acid phosphatases. This enzyme when measured 
effectively helps to find out the rate at which bone is broken down.
Glossary Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
75
Notes Immunodiagnostic Systems Holdings plc  A n n u a l R e p o r t 2 0 1 0
76
Notes A-Z
Who we are and what we do Directors and advisers
Financial Highlights
Revenue up 49% to 
£37.16m (2009: £24.94m)
Pre-tax profit up 130% to 
£10.99m (2009: £4.78m)
Diluted earnings per share up 
79% to 28.93p (2009: 16. 17p)
Operational Highlights
Gross margin increased  
to 74% (2009: 66%)
Launch of 5 fully-automated 
assays on the IDS-iSYS
Reagent kit production up 
by 72%
Understanding IDS
IDS is deliberately positioned as a specialist in immunoassay. 
This philosophy drives our strategic imperative to identify and 
exploit poorly addressed clinical ‘niches’ of socio-economic 
importance in an aging population. Our original focus on bone 
and osteoporosis now accommodates cartilage and growth. 
As we broaden our offering still further and step up to fully-
automated immunoassay, we reaffirm our position as 
Specialists in Immunoassay.
Contents
01 Highlights
02  The Vitamin D story 
04  Augmenting growth
06  Our products
10  Geographic infrastructure
12  Chairman’s statement
14 Chief Executive Officer’s review
16  Financial review
18  Board of Directors
20  Senior Management
 
21 Directors’ report
25 Corporate governance report
28  Directors’ responsibilities in the preparation  
of financial statements
29  Independent auditor’s report to the members  
of Immunodiagnostic Systems Holdings plc
30 Consolidated balance sheet
31 Consolidated income statement
32  Consolidated statement of other comprehensive 
income
33 Consolidated statement of cash flows
34 Consolidated statement of changes in equity
35 Notes to the consolidated financial statements
65 Company balance sheet
66 Notes to the company financial statements
73 Glossary
IBC Directors and  advisers 
Directors and advisers
Directors
Mr D E Evans Non-Executive Chairman
Dr R T Duggan Chief Executive Officer
Mr C I Cookson Chief Operating Officer
Mr P Hailes Finance Director
Mr A Rousseau Engineering Director
Dr M L Garrity Technical Director
Mr A Wilks Sales & Marketing Director
Dr E D Blair Non-Executive Director
Dr B Wittek Non-Executive Director
Dr P Dahlen Non-Executive Director
Secretary
Mr P Hailes
Registered Office
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Immunodiagnostic Systems Holdings plc Annual Report and Accounts for the year ended 31 March 2010
Immunodiagnostic Systems Holdings plc 
Annual Report and Accounts 
for the year ended 31 March 2010
Sustained growth  
at IDS