Trinity Biotech's first-quarter profits rise 27%

First-quarter profits rose by 27 per cent at Trinity Biotech, the developer and maker of diagnostic tests.

The Dublin-based company posted pretax profits of $1.4 million (€1.11 million) for the first three months of 2006, up from $1.1 million a year earlier.

The increase came as revenues climbed by 16 per cent to $24.7 million, with the greatest jump recorded in clinical chemistry, where sales rose by 175 per cent to €1.5 million.

Sales in Asia and Africa, where Trinity Biotech holds almost one third of the HIV testing market, were up by 25 per cent at €4.4 million.

Rory Nealon, chief financial officer at the company, said that the firm was confident of achieving its organic growth target of 12 per cent for the year.

The results included upbeat guidance on Trinity Biotech's plans to sell its HIV testing kits into the $100 million home, or over the counter market in the US. Ronán O'Caoimh, chief executive, said the company had presented its position on the matter to the Food and Drug Administration (FDA) and would discuss clinical trials with it in mid-May.

"It is our intention to commence clinical trials following this meeting once protocols have been agreed with the FDA," Mr O'Caoimh said.

Trinity Biotech already sells its tests into US hospitals and public health clinics, which are collectively worth about $40 million.

Research and development expenses at the firm were more or less flat at $1.4 million in the first quarter, but other expenses grew from $7.6 million to $9.3 million. The firm blamed the impact of acquisitions for the increase.

The company continues to seek acquisitions and, in the wake of a recent $25 million share offering, has a war chest of at least $70 million for new deals.

Shares in Trinity Biotech fell by 18 cent to close at €1.75 in Dublin last night.