Trinity Biotech has posted a 42 per cent jump in after-tax profit to $7.5 million (€5.72 million) for 2006. The announcement coincided with news that the clinical diagnostics group has clinched a significant contract for its rapid HIV test kits.
The $7.5 million profit figure does not take into account a once-off inventory write-off of $5.8 million. Trinity attributed this to the discontinuation of several product lines following its acquisition of bioMerieux's haemostasis division last June.
Chief financial officer Rory Nealon expects the bioMerieux acquisition will have a significant impact on the company's profitability and scale in the future.
"This acquisition has increased Trinity's share of the global haemostasis market from 4 per cent to 13 per cent, and will provide us with the scale necessary to compete in this market segment," he said.
In particular the bioMerieux acquisition - the largest to date for Trinity Biotech - will strengthen its position in direct markets such as the USA, Britain and Germany, Mr Nealon added.
Group revenue for the year rose by 20.4 per cent to $118.7 million.
Mr Nealon said profitability was affected by the decision to defer revenue of $1.7 million, due to a delay in the collection of cash from one large contract.
Trinity also announced yesterday that its has won a two-year contract to supply its Uni-Gold and Capillus rapid HIV test kits to 15 countries under President Bush's Emergency Plan for AIDS Relief programme.
