IDH Growth Overshadowed by Dividend Freeze and Takeover

Integrated Diagnostics Holdings (LON: IDHC), the Egypt-based medical testing group, reported 37% revenue growth and 47% net profit growth for the first half of the year, but the numbers are being read against a shrinking free float and a Board decision to withhold extra cash from shareholders.

Shares were changing hands at $0.548 in early London trade, up 5.4% from yesterday’s close of $0.52, though the move came on only 14 shares traded and cannot be read as a clear market verdict on the results. The stock remains well below its 52-week high of $0.8222, having fallen from more than $0.70 in January.

The half-year results, published via RNS earlier today, showed revenue rising to EGP 4,856 million from EGP 3,543 million, with net profit up to EGP 839 million and margin expanding to 17.3% from 16.1%. Egypt, which supplies 85.9% of group revenue, grew 41%, remaining the primary driver of the group’s performance. Group CEO Dr Hend El-Sherbini said: “We are pleased to report a strong first-half performance, reflecting the continued resilience of demand across our markets, the strength of IDH’s brands, and the scalability of our operating platform.”

Management flagged continued investment as an ongoing drain on cash, with net cash falling to EGP 239 million at the end of June from EGP 472 million at the start of the year. Against that backdrop, the Board opted to preserve cash rather than pay a further dividend, citing capital requirements and regional geopolitical uncertainty.

The decision follows Hena Holdings, the vehicle through which the founding family controls IDH, completing a mandatory takeover offer in August that lifted its stake from 49.62% to 56.67%, leaving just 43.33% of shares in public hands. With the free float reduced and the Board favouring cash preservation over payouts, capital allocation rather than the underlying growth story is now the key swing factor for minority shareholders.