Companies: ASD   

Diagnostics group Axis-Shield sees a ‘very positive outlook’ after lifting first-half profits 45 per cent to £1.5 million pre-tax.

Fully listed in London and Oslo, the company increased turnover 29 per cent to £42.7 million in the six months to June, with its point-of-care division chipping in a 37 per cent gain to £17.4 million. Both figures reflect beneficial movements in the Norwegian krone, with 38 per cent of revenues generated from Dundee-based Axis-Shield’s new Oslo plant.

Marketing of the company’s award-winning flagship Afinion test, with particular application for diabetes, achieved 2,500 placements by the end of June and last month Axis-Shield agreed exclusive US marketing arrangements for Afinion with the Abbott and PSS groups, to last until 2011. Afinion’s current tests include one for monitoring the effectiveness of glucose control in diabetics and one for differentiating between bacterial and viral infections and chief executive officer Ian Gilham expresses high hopes for the development of a ’lipid’ test panel for Afinion, to extend its testing of cholesterol, which the company says it expects to launch in 2011-12.

Even NycoCard, Axis-Shield’s older test, increased sales 17 per cent, helped by strong demand from emerging markets, where diabetes is also on the rampage. The company’s spending on research and development was an unchanged £4.1 million and it ended the first half year with cash down by £3 million to £5 million, after interest payments up nearly tenfold to £313,000.

Chairman Nigel Keen says directors ‘look forward to a continuation of our upward sales trend in the second half of the year’. Analysts reckon Axis-Shield, which made £2.8 million pre-tax (including exceptional items) last year, would make around £5 million for all of 2008, but fear exchange rate movements could cut that to below £4 million.

The shares, which peaked at 393.5p in 2006, fell to 215.75p last year and were highlighted by Growth Company Investor at 270p last March. Now 315p, down 6p today, they value the company at £154.5 million and could still fare better than some others in the sector.