Profits at Axis-Shield Diagnostics were marginally lower last year as the Dundee medical testing firm struggled to make headway in the potentially lucrative Chinese market.
The Dundee Technology Park outfit, which has been part of healthcare technology giant Alere since a £248 million deal in 2011, said “relatively flat sales” of £20.26m in the year to December 31 was “principally due to difficult marketing
conditions” in the Far Eastern country.
“The principal activities of the company are to develop, manufacture and market in-vitro diagnostic products worldwide,” the firm said in a statement to its newly published accounts.
“In conjunction with our OEM (original equipment manufacturer) partners and distributors, the company continues to exploit its main value drivers of patented assays for homocysteine, anti-CCP and Active-B12 and grow our markets, principally in China.”
It added: “The company’s turnover was relatively flat at £20.26m. This was principally due to difficult marketing conditions in China.”
The firm produces a range of healthcare diagnostics including a homocysteine kit which indicates a patient’s overall state, a blood glucose indicator assay and a test for rheumatoid arthritis.
It is also trialling a Heparin Binding Protein test which can give an early indication of whether a patient is likely to go into septic shock, a condition that is responsible for some 37,000 deaths in the UK each year.
The accounts show that overall pre-tax profits dropped from £6.71m in 2012 to £6.53m last year.
However, the 2012 bottom line was boosted by a one-off receipt of £1.81m in relation to the transfer of Axis-Shield’s UK distribution business and associated assets to Alere UK Ltd.
Last year’s return shows a significant boost in sales in Europe from £11.99m in 2012 to £14.4m but there was a £760,000 drawback in income from North America and a £1.35m fall in sales from the rest of the world.
The firm’s research and development budget fell from £2.59m to £1.75m during the year, while administrative and general overhead costs increased by just over £1m to £4.87m.
Employee numbers at the company, which was also hit with a £151,000 bad debt write-off charge, were stable during the year at 134 while total director and employee costs increased marginally from £4.87m to £4.92m.
The highest-paid director Colin King received a total package of £197,388 for the year, up from £183,791 in 2012.
Investment holding company Axis-Shield Limited, the immediate parent company of Axis-Shield Diagnostics, also reported its accounts for the year.
The purpose of the firm is to provide funding to other group companies and hold investments in those subsidiaries.
Documents published at Companies House show a profit on ordinary activities after tax of £5.26m, a turnaround from the £501,000 loss it booked in 2012.
The return included a £5.81m dividend received from Axis-Shield Diagnostics.
Director David Bond said the company had operated in line with expectations in the year with investments having “performed satisfactorily” and overall group strategy “executed successfully.”
The ultimate parent of both companies is Alere Inc based in Waltham, Massachusetts.