This announcement contains
inside information
for the purposes of UK Market Abuse Regulation.
EKF Diagnostics Holdings
plc
("EKF" or
the "Company")
Trading
Update
Substantial improvement in
earnings and cash generation
EKF Diagnostics Holdings
plc (AIM: EKF), the AIM-listed global
diagnostics business, provides an unaudited
trading update for the six months ended 30 June 2024 ("H1 2024"), a
period showing strong improvement in gross margins, earnings growth
and cash generation, in-line with management
expectations.
As announced at the Final Results in
March this year, in 2023 EKF focussed on simplifying its business
around key product lines within its two divisions, Point-of-Care
and Life Sciences, as well as reducing and stabilising its cost
base. The first half has seen the results of these efforts as the
Company successfully grew and developed its higher margin product
ranges.
As a result, Gross Margins are
continuing to improve and the Company expects to report
adjusted EBITDA1 growth of at least 20%
year-on-year (H1 2023: £4.4m) in-line with
management expectations. Cash generation in
the first half of the year was also strong with £5.1m generated.
Cash, net of bank borrowings, as at 30 June 2024 was £9.8m (31
December 2023: £4.7m).
Revenues remain in-line with
management expectations and, as expected, will show a lower
performance year-on-year due to the termination of operations and
non-core, low margin products (which are being removed from the
portfolio) contributing to H1 2023 comparators. The
Life Sciences division's fermentation business
performed particularly well in the first half, recording sales
growth of 41% year-on-year.
The Company expects this improvement
in performance to continue in H2 2024 and remains confident that
full year results will be in-line with market
expectations.
EKF expects to announce its
unaudited results for H1 2024 on 17 September 2024.
1Earnings before interest,
tax, depreciation and amortisation, excluding exceptional items and
share based payments.
The person responsible for
arranging the release of this Announcement
on behalf of the Company is Julian Baines, Executive
Chair.
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EKF
Diagnostics Holdings plc
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www.ekfdiagnostics.com
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Julian Baines, Executive Chair /
Stephen Young, CFO
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via Walbrook
PR
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Singer Capital Markets (Nominated
Adviser & Broker)
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Tel: +44
(0)20 7496 3000
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Phil Davies / Oliver
Platts
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Walbrook PR Limited
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Tel: +44 (0)20 7933 8780
or ekf@walbrookpr.com
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Paul McManus / Lianne
Applegarth
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Mob: +44
(0)7980 541 893 / +44 (0)7584 391 303
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About EKF Diagnostics Holdings plc (www.ekfdiagnostics.com)
EKF is an AIM-listed global
diagnostics business focussed on:
·
Point-of-Care analysers in the
key areas of Hematology and Diabetes, as well as Central Laboratory
products including clinical chemistry reagents, analysers and
centrifuges
·
Life
Sciences services provide specialist
manufacture of enzymes and custom products for use in diagnostic,
food and industrial applications, as well as other higher value
Contract Manufacturing services
EKF has headquarters in Penarth
(near Cardiff) and operates five manufacturing sites across the US
and Germany, selling into over 120 countries world-wide.