Trinity Biotech profits increase

TRINITY BIOTECH, the Wicklow-based developer of tests for infectious and sexually transmitted diseases, saw pre-tax profits rise to $8 million (€6.25 million) last year, up from $5.7 million in 2002.

Revenues went up 26% to $65.7 million, driven by a combination of organic growth and acquisitions during the year.

Chief executive Ronan Ó Caoimh said the results met expectations and its two main business units performed strongly. He also flagged further acquisitions and said Trinity’s combination of strong operating profits and cash reserves left it well-placed to add to its portfolio.

The company increased its direct sales force in the crucial American market and also recruited a telesales team to handle the marketing of its new test for the HIV virus, which was granted approval by the American authorities in December. The test delivers results in 10 minutes, which is considered a key selling point in the US, where it is believed that up to 40% of people who take the test fail to return to pick up the results.

Chief financial officer Rory Nealon said Trinity’s revenues had grown for six years in a row at an average rate of 25% each year. “Our operating profit at 14.8% of revenues is well ahead of industry standards and the company is in a strong financial position, with cash balances of $43 million following the recent fundraising,” he said.

Trinity suffered a write-off of $1.1 million in respect of its investment in HiberGen, an American subsidiary. The group spent over $5 million on research and development activity, which translated to approximately 8% of revenues. Selling, general and administrative expenses jumped 30% to $16.6 million in line with increased sales forces in America and Germany.

It develops and manufactures over 500 diagnostic products that are used in patient care and clinical laboratory tests. Trinity was set up in 1992 and is quoted on the Irish Stock Exchange and New York’s Nasdaq. It sells its products in over 80 countries. It has manufacturing facilities in Bray as well as the American states of New York and California. Shares were unchanged at $4.49 following yesterday's announcement, valuing the company at approximately $200 million.