REG - EKF Diagnostics Hldg - Trading update

EKF Diagnostics HoldingsAnnouncement

25/01/2022 07:05

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220125:nRSY4524Za&default-theme=true

RNS Number : 4524Z  EKF Diagnostics Holdings PLC  25 January 2022

 This announcement contains inside information

for the purposes of UK Market Abuse Regulation.

 

EKF Diagnostics Holdings plc

("EKF", the "Company" or the "Group")

 

Trading update

 

EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care,
central lab devices and chemistry reagents business, confirms that continued
strong trading will result in its performance for the financial year ended 31
December 2021, including adjusted EBITDA, being ahead of already upgraded
market expectations.

 

Trading in EKF's core business in the final quarter continued to be robust and
ongoing demand for sample collection kits and testing remained strong through
to the end of the year. The Group announces that core business revenues grew
over 13% compared with the previous financial year. The Group's cash, net of
borrowings, at 31 December 2021 was £19.6m (31 December 2020: £21.4m),
reflecting further strong operational cash generation offset by substantial
investment in the business, some working capital expansion to support
anticipated growth, and the payment of the 1.1p per ordinary share cash
dividend in December 2021 in line with the Company's progressive dividend
policy.

 

During the year, and as part of the Group's strategy, significant investment
was made to expand fermentation capabilities and contract manufacturing to
drive further organic growth. Further investment in enzyme fermentation is
scheduled for FY22 in this key strategic growth area. Growth and investment in
the core business is complemented by a strategy to exploit expanded
capabilities to meet the demand for contract manufacturing services. Advanced
Diagnostic Laboratory LLC, the CLIA-certified lab testing business acquired in
October 2021 is integrating well and has begun diversifying into non-COVID
testing, as evidenced by the recent partnership relating to the provision of a
non-invasive prenatal testing service.

 

EKF will give further guidance on current trading and the outlook for FY22 and
beyond when it reports its audited full year results.

 

The persons responsible for arranging the release of this announcement

on behalf of the Company are Mike Salter, CEO, and Marc Davies, CFO
respectively.

 

 EKF Diagnostics Holdings plc                                  www.ekfdiagnostics.com (http://www.ekfdiagnostics.com)
 Christopher Mills, Non-executive Chairman                      Tel: +44 (0)29 2071 0570
 Mike Salter, CEO
 Marc Davies, CFO

 Singer Capital Markets (Nominated Adviser & Joint Broker)                                   Tel: +44 (0)20 7496 3000
 Aubrey Powell / George Tzimas / Tom Salvesen

 Investec Bank plc (Joint Broker)                              Tel: +44 (0)20 7597 4000
 Gary Clarence / Daniel Adams / Ben Farrow

 Walbrook PR Limited               Tel: +44 (0)20 7933 8780 or ekf@walbrookpr.com (mailto:ekf@walbrookpr.com)
 Paul McManus / Lianne Applegarth  Mob: +44 (0)7980 541 893 / +44 (0)7584 391 303

 

 

About EKF Diagnostics Holdings plc (www.ekfdiagnostics.com
(http://www.ekfdiagnostics.com) )

EKF is a leading point-of-care diagnostics, central lab devices and chemistry
reagents business, with an estimated 80,000 hemoglobin, hematocrit, HbA1c,
glucose and lactate analysers in regular use across more than 100 countries.
EKF specialises in developing tests for use in anemia and diabetes diagnosis
and management, as well as providing a portfolio of reagents for use in
clinical chemistry analysers.

 

EKF specialises in the development, production and worldwide distribution of
point-of-care analyzers and clinical chemistry reagents for use in hospital
and research laboratories, doctor's offices, blood banks and for in-field
anaemia screening programmes. EKF is also a bulk manufacturer of enzymes and
has custom manufacturing facilities across sites in the US, UK and Europe for
a variety of life science products. Driven by customer demand EKF has invested
significantly in increasing the Company's fermentation capacity. The Company's
capabilities and capacity in contract manufacturing for sample collection,
tests and test kits have seen dramatic growth following strong demand for
during the COVID-19 pandemic, and these income streams are now being
diversified for application to other non-COVID areas of diagnostic testing,
molecular disease and forensic test manufacture.

 

In May 2021, EKF outlined its strategy through to 2024 for delivering
additional growth. As well as the growth expected in Contract Manufacturing
across Life Sciences, molecular diagnostics and other applications, the
Company expects to leverage existing distribution channels for organic growth,
both in the core business and from additional products to expand the core
range, but also through executing earnings enhancing acquisitions and
delivering further value creating investments associated with the preferred
partnership agreement with Mount Sinai Innovation Partners.

 

In October 2021, EKF completed the acquisition of Advanced Diagnostic
Laboratory LLC, a Texas based testing laboratory certified under the Clinical
Laboratory Improvement Amendments ("CLIA") for high complexity testing. The
laboratory provides testing for a variety of clinical, forensic and
microbiological sample types using a range of analytical techniques. This
acquisition positions EKF as a leading 'one stop' provider of diagnostic
products and services from sample collection to results.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFSALRISFIF