REG - EKF Diagnostics Hldg - Full year results
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RNS Number : 7807X EKF Diagnostics Holdings PLC 24 March 2026
This announcement contains inside information
for the purposes of UK Market Abuse Regulation.
EKF Diagnostics Holdings plc
("EKF", the "Company" or the "Group")
Full year results
9.3% growth in adjusted EBITDA with continued strong cash generation
Establishment of five-year strategic development plan for accelerated growth
EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed global diagnostics
business, announces its audited results for the year ended 31 December 2025
("FY 2025").
The 2025 full-year results demonstrate the establishment of EKF's five-year
strategic development plan, with a continued focus on simplification of the
business, building a strong base for strategically important product groups
and services, while moving away from non-core, low margin products.
Financial highlights
· Revenues of £51.6m (2024: £50.2m) - reflecting growth in both point-of-care
and Life Sciences
· Gross profit (before exceptionals in 2024) of £26.5m (2024: £24.4m)
· Gross margins further improvement to 51% (2024: 48%)
· Adjusted EBITDA* up 9.3% to £12.4m (2024: £11.3m)
· Profit before tax of £7.1m (2024: £6.3m)
· Net cash generation from operations of £11.6m (2024: £12.2m)
· Net Cash and cash equivalents as at 31 December 2025 of £15.8m (31 December
2024: £14.3m)
- £5m returned to shareholders through share buy-backs, continuing into 2026
- £2.1m held by EKF's Russian subsidiary and subject to regulatory
restrictions (31 December 2024: £1.3m)
*Earnings before interest, tax, depreciation and amortisation adjusted for
exceptional items and share based payments
Operational highlights
· Business division revenues:
- Point-of-Care: £33.0m (2024: £31.4m) reflecting improvements in
both Hematology and Diabetes
- Life Sciences: £17.9m (2024: £16.7m) including a 10% rise in β-HB
sales
- Other: (including Discontinued and non-core products*) £0.7m (2024:
£2.1m)
· Key strategic goals met:
- Commercial teams restructured for greater focus
- Marketing team expanded
- High delivery of Hematology instruments should drive future
consumable consumption
- Cuvette production capacity increase project underway
*Discontinued and non-core products include remaining sales of clinical
chemistry
Gavin Jones, Chief Executive Officer of EKF, commented: "The 2025 results
establish a strong foundation for the Five-Year Strategic Development plan,
providing EKF a positive base from which to push further into new markets with
a simplified product offering and greater commercial focus on the areas of
strategic importance.
The trajectory for EKF has been clearly mapped to deliver further improvements
in margin, revenue and EBITDA. Operational cash generation remains at a high
level, and this shall be utilised to thoughtfully invest in those areas that
will further build on the requirements of the strategy, and deliver long term
shareholder value.
We remain committed to establishing EKF as a true leader in Hemoglobin POC
testing and Life Sciences, further developing the business through organic
growth with a strong focus on profitability improvement and sustainable
investment."
Investor Presentation
A copy of the investor presentation is available here:
https://www.ekfdiagnostics.com/documents-reports.html
(https://www.ekfdiagnostics.com/documents-reports.html)
EKF Diagnostics will be hosting a live online presentation open to all
investors today at 11.00am (GMT), via the Investor Meet Company
platform. Investors can sign up to Investor Meet Company for free and add to
meet EKF Diagnostics via:
https://www.investormeetcompany.com/ekf-diagnostics-holdings-plc/register-investor
(https://www.investormeetcompany.com/ekf-diagnostics-holdings-plc/register-investor)
Investors who already follow EKF on the Investor Meet Company platform will
automatically be invited.
A recording of the presentation, a PDF of the slides used, and responses to
the Q&A session will be available on the Investor Meet Company platform
afterwards.
The Company will make a further announcement upon the publication of its
audited Annual Report and Accounts for the year ended 31 December 2025, and
its availability online.
EKF Diagnostics Holdings plc www.ekfdiagnostics.com (http://www.ekfdiagnostics.com)
Gavin Jones, Chief Executive Officer via Walbrook PR
Julian Baines, Executive Chair / Stephen Young, CFO
Singer Capital Markets (Nominated Adviser & Broker) Tel: +44 (0)20 7496 3000
Phil Davies / Oliver Platts
Walbrook PR (Media & Investor Relations) Tel: +44 (0)20 7933 8780 or ekf@walbrookpr.com
Paul McManus / Alice Woodings Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654
The persons responsible for arranging the release of this announcement
on behalf of the Company are Gavin Jones, CEO, and Stephen Young, CFO.
About EKF Diagnostics Holdings plc (www.ekfdiagnostics.com
(http://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
● Life Sciences services provide specialist manufacture of enzymes and custom
products for use in diagnostic, food and industrial applications.
EKF has headquarters in Penarth (near Cardiff) and operates five manufacturing
sites across the US and Germany, selling into over 120 countries world-wide.
CHIEF Executive OFFICER'S Statement
The 2025 full-year results demonstrate the establishment of our five-year
strategic development plan, with a continued focus on simplification of the
business, building a strong base for strategically important product groups
and services, while moving away from non-core, low margin products.
This resetting of the base has delivered moderately higher revenues of £51.6m
(FY 2024: £50.2m), with a significant improvement in gross margins due to the
completion of the removal of low margin product groups. This is also reflected
in a 9.3% increase in adjusted EBITDA to £12.4m (FY 2024: £11.3m)
demonstrating that whilst the lower margin product groups were making a
contribution to revenue, they were not supporting the overall profitability of
the business. Cash generation has remained positive, enabling an extension to
our share buy-back scheme throughout the year delivering additional value to
shareholders, at a time where the valuation of the business does not appear to
track with the improved performance.
In my first year as CEO, I have made the strategy of the business going
forward very clear, both externally and internally. This has been effective in
providing clarity of vision and focus to key priorities, and has allowed a
greater level of understanding than we have seen previously. We have seen
gains in the areas of strategic development; whilst these will take time to
develop over the remaining years of the plan, we have made good progress in
establishing the foundations of business which we know will deliver
significant growth, cash generation, and profitability over time.
Review of 2025 business and products performance
We continue to report our results across our two business categories, with a
focus on core products and services. A geographic summary of the results is
shown in the CFO's report. Discontinued and non-core revenue lines have been
moved into the "Other" category as part of our product portfolio
rationalisation strategy as we aim to deliver further margin improvement
across the Group.
The two categories can be summarised as:
• Point-of-Care - supplying analysers and consumable products in the key areas
of Hematology and Diabetes
• Life Sciences - offering contract fermentation services for clinically
important enzymes and proteins, and the manufacture of Beta-Hydroxybutyrate
(β-HB), used as a quantitative ketone test to identify patients suffering
from diabetic ketoacidosis, as well as in many other clinical applications.
Divisional revenues for the 12 months ended 31 December
£ millions 2025 2024
Point-of-Care (POC) 33.0 31.4
POC: Hematology 16.6 15.8
POC: Diabetes 12.1 10.9
POC: Other 4.3 4.7
Life Sciences 17.9 16.7
Life Sciences: β-HB 13.8 12.5
Life Sciences: Fermentation sales 2.6 2.7
Life Sciences: Contract Manufacturing 1.5 1.5
Other * 0.5 1.0
Discontinued Product Lines 0.2 1.1
Total Revenues 51.6 50.2
Total Revenues excluding discontinued product 51.4 49.1
* Other revenue relating to non-core products and freight. Discontinued
product lines includes clinical chemistry
Note:
POC: including discontinued 33.2 32.5
Life Sciences: 17.9 16.7
Other: 0.5 1.0
Total 51.6 50.2
(1) Point-of-Care
EKF continues to hold a strong position in the Point-of-Care ("POC") market.
In 2025, we sold over 16,000 Point-of-Care analysers, resulting in sales of
almost 90 million individual test consumables.
A key element of our strategic development plan is to grow the existing
Hematology business. In order to achieve this, it is imperative that we seed
the market with analysers, which is exactly what we achieved in FY 2025, with
over 16,000 Hematology analysers sold (2024: over 9,000). It is this level of
commitment and investment from our distribution partners that has led to a 5%
increase in the Hematology business in 2025 and should drive further
consumable consumption in years to come. Whilst in previous years the Diabetes
market seemed to contract and then stabilize, we are now starting to see green
shoots of growth in glycated Hemoglobin (HbA1c) testing.
(2) Life Sciences
Revenues from our Life Sciences division grew by 7%, driven heavily by a 10%
increase in β-HB sales, key to which has been the growth in our white label
product contracts with Thermo Fisher Scientific and Cardinal Healthcare for
β-HB LiquiColor®.
Fermentation and Contract Manufacturing have remained broadly flat in 2025,
but this does not truly represent the progress that has been made with
onboarding new clients and developing the business with existing clients. One
of the key elements of the strategic development plan is to transform our Life
Sciences operation into a truly world class Contract Development and
Manufacturing Organisation (CDMO). Whilst we are not there yet, we do now have
a path to achieving this, including structuring our offering to be more
attractive to significant players in Pharma, Biotech and Diagnostics.
Cash
Cash generation continued to be strong. Cash as at 31 December 2025 was
£15.8m (31 December 2024: £14.3m), after the deployment in 2025 of £5.0m of
on-market purchases in the share buy-back programme and investment for growth
that is part of the five-year strategic development plan.
Russia
We continue to supply tests to Russia through our 60% owned subsidiary. Whilst
sanctions are still in place, we have been able to reach agreement to ship a
wider range of our medical use products, enhancing our sales within the
region. This agreement, as well as an improved currency rate has led to an
increase in restricted cash balances of £2.1m as at 31 December 2025 (£1.3m
as at 31 December 2024). During the year £0.5m (2024: £0.5m) cash has been
received by our German subsidiary through dividends from Russia.
Middle East
We have customers across the Middle East and North Africa (but not Iran), as
well as an employee based in the area. At present we are not aware of any
issues affecting us caused by the current conflict, either from military
action or economic effects, however we are watching the unfurling situation
closely.
Five-year strategic development plan
Commercial focus delivers on accelerated organic growth
One of the first pillars identified of the five-year strategic development
plan was the need to restructure the commercial teams to deliver greater focus
in those product areas of strategic importance. I am pleased to confirm this
process is now mostly complete, with a clear separation between the Life
Sciences and Point-of-Care commercial teams, principally in the US, already
delivering growth as demonstrated by the 10% increase in β-HB sales in 2025.
In addition to the sales teams, we have expanded our Marketing functions both
centrally and at each of our main facilities allowing us to drive further
engagement in each of our strategic areas of growth.
Investment in Operational Excellence to increase capacity
Whilst we significantly increased our POC Hemoglobin analyser output in 2025,
achieved through a combination of efficiency improvements and sub-assembly
outsourcing, investment in our POC Hemoglobin production capacity is also
required. The project to increase capacity was kicked off in 2025, this
continuous programme will run through 2026 and into 2027, with the aim of
increasing our Hemo Control consumable production by 30%. Not all our CapEx
projects in 2025 ran to the planned timeline, meaning there will be some
carryover into 2026, but we are confident that we can accelerate these
projects, keeping up with demand.
Product Development to build for the future
Significant progress was made in product development programmes in 2025,
focused on updating our class-leading β-HB LiquiColor® chemistry reagent,
and in the exciting area of handheld multi-analyte POC testing. We recognise
that to take full advantage of our strong market position in both areas, we
have to invest further in product development, ensuring we maintain and grow
that market position. As part of this we switched analyte focus on our
handheld multi-analyte POC testing product , and as a result chose to
accelerate amortisation of the capitalised cost of earlier work on it. We
expect to see significant product launches through 2027 and 2028, adding to
our product portfolio with clear consideration for our core strengths and
strategic direction.
Growth Strategy
POC Hematology
Key to accelerating the organic growth of the business is to capture more of
the global POC Hematology market. To achieve this it is imperative that we
build and place more analysers than we have in previous years. We are pleased
to report that in 2025 we have seen a significant increase versus 2024 in our
Hemo Control and DiaSpect Tm analyser placement with key partners around the
world. Whilst it does take time for these analysers to be operating at their
full capacity, it's this seeding of the market that will deliver an uplift in
high margin consumable usage in the coming years. Solid progress has been made
in the US POC Hemoglobin market, with a dedicated sales team focused entirely
on delivering in the strategically important growth areas of blood banks,
plasma centres and Women Infants & Children (WIC) centers and other Public
Health settings. Whilst 2025 was focused on establishing a good foundation in
this area through relationship building and product evaluations, we will see
this bear fruit in 2026.
Outside of the US, we have focused on growing access to anemia testing
programmes in EMEA, and LATAM, signing extended and new contracts in Peru,
Uganda and Kenya. This expansion will continue as we build the team to further
support anemia prevention programmes across Africa, where the African Union
has launched the Strategic Framework for Anemia Prevention in Africa which
aims to halve anaemia rates by 2035. A key element to this framework is to
focus on targeted interventions through prevention, diagnosis, and management
of anemia in women, adolescent girls, and children, a strategy that aligns
with the World Health Organization (WHO) global approach to anemia prevention.
Life Sciences
We have demonstrated that the decision to build a commercial team focused
entirely on β-HB sales in the US has delivered the growth predicted,
achieving £13.8m in 2025 (FY 2024: £12.5m), supported in no small part by
our key distributors in the region with their own white labelled version of
our product. We are confident in this trend continuing as we build on the
strong foundations in 2025 with even more focus on those hospital groups that
have yet to convert to our product, still using outdated technology.
Whilst remaining broadly flat, our Contract Manufacturing and Fermentation
services have developed new opportunities, and although some partners dropped
off due to business decisions outside of EKF's control, we have seen
significant growth in long-term partners, as well as new business from
significant players in the field. We still have capacity to fill in our
fermentation facility but this is one of the strengths of our offering. Other
facilities are not able to offer this same level of focus and support, this is
now starting to show real benefits as we bring in new partners with a view to
onshore their enzyme production in the US.
Achievements of the Five-Year Strategy for Sustainable Growth
· Transform EKF Life Sciences into a world class Contract
Development and Manufacturing Organization (CDMO) - Strategy and service
offering refocused to clearly align with Pharma and Biotech client
requirements, in addition to an expanded diagnostic enzyme offering
· Product improvement - Capacity increase planning in
Hematology implemented, in addition to product updates in β-HB to deliver
best-in-class and enhance our ability to compete at the highest level by 2027
· New product development - Positive progress in
development of new products and technologies in multianalyte Point-of-Care
testing by 2028
· Focus on Hematology - Increased commercial support and
access to the US blood bank market, whilst expanding new territory
opportunities in Asia Pacific, Africa & Latin America leading to a
significant uplift in analyser installation
Outlook
The 2025 results establish a strong foundation for the Five-Year Strategic
Development plan, providing EKF a positive base from which to push further
into new markets with a simplified product offering and greater commercial
focus on the areas of strategic importance.
The trajectory for EKF has been clearly mapped to deliver further improvements
in margin, revenue and EBITDA. Operational cash generation remains at a high
level, and this shall be utilised to thoughtfully invest in those areas that
will further build on the requirements of the strategy, and deliver long term
shareholder value.
We remain committed to establishing EKF as a true leader in Hemoglobin POC
testing and Life Sciences, further developing the business through organic
growth with a strong focus on profitability improvement and sustainable
investment.
Gavin Jones
Chief Executive Officer
24 March 2026
Chief Financial Officer's Review
Revenue
In 2025 Revenue was £51.6m (FY 2024: £50.2m), an increase of 2.8% on the
prior year. The increase is largely driven by Point-of-Care (POC) revenue
outside the USA and β-HB sales inside the USA. At constant 2024 exchange
rates, revenue for the year would have been £51.7m.
Revenue and adjusted EBITDA by geographical segment based on the legal entity
locations from which sales are made, is as follows:
2025 2024
Adjusted Adjusted
Revenue EBITDA* Revenue EBITDA*
£'000 £'000 £'000 £'000
Germany 22,147 6,223 20,671 5,588
USA 25,155 8,839 26,166 8,748
UK - (3,891) - (3,925)
Russia 4,262 1,217 3,357 925
Total 51,564 12,388 50,194 11,336
* Adjusted EBITDA excludes exceptional items and share-based payments.
Commentary by geographical segment:
Germany - Increase in revenue primarily due to higher revenues for Hemo
Control and Quo-Lab. This improvement in revenue enhanced the adjusted EBITDA
generating £6.2m in 2025 (2024: £5.6m).
USA -A further increase in β-HB sales offset by reduced revenues following
the discontinuation of clinical chemistry products. The higher margins driven
by this product mix shift led to an increase in adjusted EBITDA generating
£8.8m in 2025 (2024: £8.7m).
Russia - A strong result driven by increases in sales of Biosen, Quo-Lab and
Hemo Control, largely as a result of more favourable exchange rates, and
leading to an increase in adjusted EBITDA. EKF's Russian entity is 60% owned
by the Group with 100% of its results consolidated, with the non-controlling
interest shown separately in the income statement and statement of financial
position.
Russia Update
During 2025, EKF continued to supply essential medical products to its
60%-owned Russian subsidiary, in compliance with current international
sanctions guidance and following regular management review. The effect of
sanctions and Russian Government retaliation has stabilised during the year,
and it has been possible to continue the distribution of limited cash
dividends. It remains unclear how long this will be able to continue. As at 31
December 2025, cash held in Russia totalled £2.1m (31 December 2024: £1.3m).
Management continues to assess the situation in Russia and is mindful of the
continuing financial and operational challenges.
Gross profit
Gross profit was £26.5m (2024: £24.1m), which represents a gross margin of
51% (2024: 48%). The further margin improvement was largely the result of
higher BHB sales and the discontinuation of the low margin clinical chemistry
business. Our US point-of-care business is predominantly based on goods
imported from Germany, and the introduction of higher tariff levels from May
2025 on such goods has reduced margins in 2025 by £0.3m, as our customer
pricing is generally set by long term contracts. It is difficult to assess the
likely effects of this in future periods because of the uncertainty of ongoing
tariff levels.
Administration costs and research and development
Administration costs excluding exceptional items have increased to £19.7m
(2024: £18.1m), which includes an increase in R & D costs driven by
higher investment and accelerated amortisation on some projects.
Research and development costs included in administration expenses were £3.3m
(2024: £1.5m) which includes the effect of accelerating amortisation on
certain R & D assets totalling £1.4m. This mainly arose because of a
change of strategy. In addition £0.7m (2024: £0.5m) was capitalised as an
intangible asset, resulting from our development work to broaden and improve
our product portfolio (including our EKF Link data management platform),
bringing gross R & D expenditure for the year to £4.0m (2024: £1.9m).
The charge for depreciation of fixed assets and amortisation of intangible
assets increased to £5.4m (2024: £4.7m). The increase was mainly the result
of the accelerated amortisation of R & D projects, offset by lower
depreciation on land and buildings.
Operating profit and adjusted earnings before interest, tax, depreciation and
amortisation
The Group generated an operating profit of £7.0m (2024: £6.3m). This was
mostly due to the effect of the improved margins. We continue to consider that
adjusted earnings before interest, tax, depreciation and amortisation,
share-based payments and exceptional items (adjusted EBITDA) is a better
measure of the Group's progress as the Board believes it provides a clearer
comparison of the underlying operating performance between periods. In 2025 we
achieved adjusted EBITDA of £12.4m (2024: £11.3m), an increase of 9.3%, due
to higher gross margins. The calculation of this non-GAAP measure is shown on
the face of the income statement. In 2024 it excluded the effect of
exceptional costs of £0.4m from the write down of inventory relating to our
clinical chemistry product line. There were no exceptional costs in 2025.
Finance costs
Net finance income rose to £0.1m (2024: £nil). Despite achievable financial
returns on the Group's cash balances remaining very low, interest received on
cash balances held outside Russia has improved, while finance costs have
reduced following the repayment of all bank borrowing in 2024.
Tax
There is an income tax charge of £4.6m (2024: credit of £0.3m). The
effective tax rate is 64% (2024: credit of 5%). In recent years we have
benefited from the tax effect of accelerated depreciation on fixed assets in
the USA leading to a substantial refund and tax losses which have now largely
been utilised. Going forwards despite ongoing tax management we expect to see
higher effective tax rates in both Germany and the USA than in 2024, as the
opportunities for further tax planning have reduced, in addition to the effect
of systematic unutilised tax losses in the UK. We do however expect the
ongoing group tax rate to be lower than in 2025. This year we have provided
for £1.3m of tax in Germany relating to transfer pricing and licence payments
in current and previous years. Discussions with the German tax authorities on
both the applicability and quantum of these continue.
Dividend and share buy back
Based on the potential need for continued modest investment in the growth of
our core areas the Board has previously decided that it would be prudent to
pause dividend payments and to enhance shareholder value mainly through
growth. The Board will consider restarting dividends if this makes commercial
and economic sense.
The Group has returned £5.0m to shareholders during 2025, acquiring
19,903,452 of its ordinary shares during the year, representing 4.4% of the
issued share capital at 31 December 2024.
Balance sheet
Property plant and equipment and right-of-use assets
Additions to fixed assets were £1.6m (2024: £3.1m). The expenditure was
split between our German and USA facilities. As part of the Group's five year
strategic plan, planned capital expenditure over the next three years is
expected to increase.
Intangible assets
The carrying value of intangible assets has decreased, from £28.9m at the end
of 2024 to £27.9m as at 31 December 2025. This is largely due to the
accelerated amortisation of certain R & D projects as a result of a change
in strategy.
Investments
We continue to hold small investments in Verici Dx plc, Epinex, LLC, and
Llusern Scientific Limited. The investment in Epinex has been impaired in full
during the year. As a result the combined carrying value as at 31 December
2025 has reduced to £0.1m (2024: £0.2m).
Cash and working capital
Group cash has increased to £15.8m from £14.3m. Excluding cash held in
Russia which is restricted the cash balance is £13.7m (2024: £13.0m). The
unused loan facility from HSBC UK plc which was a £3m revolving credit
facility has been cancelled. Cash generated by operations is £11.6m (2024:
£12.2m). Investment has been made in the acquisition of fixed assets (£1.5m
excluding IFRS 16 leases).
The Company's funding line with North Atlantic Smaller Companies Investment
Trust PLC ("NASCIT") expires on 26 March 2026 and is not expected to renew.
Christopher Mills, Non-executive Director of the Company, sits on the Board as
Chief Executive Officer of NASCIT and is a substantial shareholder of both the
Company and the lender. This is a committed facility for a maximum value of
£3.0m which, as at the year end and the date of this statement, is not drawn
down. The direct and indirect shareholdings of Mr. Mills in the Company
include those of the North Atlantic Smaller Companies Investment Trust PLC.
The lending facility is available for three years from the date of signature
in March 2023 and any amounts drawn down carry interest at 2.5% above the Bank
of England base rate from time to time, payable quarterly in arrears. Any loan
under the facility is required to be fully repaid at the end of the facility
term. An arrangement fee of £25k was paid to NASCIT in connection with the
facility being made available.
As a Substantial Shareholder (as defined in the AIM Rules), the arrangement of
the debt facility with NASCIT represented a related party transaction pursuant
to AIM Rule 13. In accordance with AIM Rule 13, the independent Directors of
EKF (being the Directors of the Company other than Christopher Mills),
consulted with Singer Capital Markets as the Company's nominated adviser, and
disclosed (prior to entry into the facility agreement) that they consider the
terms of that agreement are fair and reasonable in so far as shareholders are
concerned.
Going concern
The Directors have considered the applicability of the going concern basis in
the preparation of these financial statements. This included the review of
internal budgets and financial results covering the period to June 2027 which
show that, even taking into account severe but plausible changes in financial
performance, the Group will be able to meet its liabilities as they fall due
throughout the going concern period. In making this assessment the Directors
continue to consider all options for maximising shareholder value.
While the Company has net current liabilities, the majority of liabilities are
with controlled companies where the timing of outflows and the ability to
extract further cash from them are controlled by the Company.
The Directors have modelled a range of sensitivities from the base internal
Budget including lower revenues, the potential effect of changes in trading
relationships with the USA, and continued restrictions in Russia in relation
to accessing cash.
Considering the range of sensitivities which account for a severe downturn
versus expectation in 2026, plus the range of mitigation options available,
the business demonstrates sufficient headroom giving the Directors confidence
that the business can continue to meet its obligations as they fall due, even
under the worst-case scenarios, for at least 12 months from the date of this
report. Accordingly, the directors are satisfied they can prepare the
financial statements on a going concern basis.
Stephen Young
Chief Financial Officer
24 March 2026
Consolidated Income Statement
for the year ended 31 December 2025
2025 2024
Continuing operations £'000 £'000
Revenue 51,564 50,194
Cost of sales (25,084) (25,798)
Exceptional items - other charged to cost of sales - (330)
Gross profit 26,480 24,066
Administrative expenses (19,734) (18,078)
Exceptional items - other - (22)
Other income 232 294
Operating profit 6,978 6,260
Depreciation and amortisation (5,396) (4,724)
Share-based payments (14) -
Exceptional items - (352)
EBITDA before exceptional items and share-based payments 12,388 11,336
Finance income 262 174
Finance costs (154) (171)
Profit before income tax 7,086 6,263
Income tax (charge)/ credit (4,555) 314
Profit for the year 2,531 6,577
Profit attributable to:
Owners of the parent 2,122 6,242
Non-controlling interest 409 335
2,531 6,577
Pence Pence
Earnings per Ordinary Share attributable to the owners of the parent during
the year
Basic 0.47 1.38
Diluted 0.47 1.38
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
2025 2024
£'000 £'000
Profit for the year 2,531 6,577
Other comprehensive (loss)/ income
Items that will not be reclassified to profit or loss
Changes in fair value of equity instruments at fair value through other (174) (48)
comprehensive income (net of tax)
Items that may be subsequently reclassified to profit or loss
Currency translation differences on translation of foreign operations 45 (1,198)
Other comprehensive income/(loss) (net of tax) (129) (1,246)
Total comprehensive income for the year 2,402 5,331
Attributable to:
Owners of the parent 1,700 5,210
Non-controlling interests 702 121
Total comprehensive income for the year 2,402 5,331
Consolidated Statement of Financial Position
as at 31 December 2025
Group Group
2025 2024
£'000 £'000
Assets
Non-current assets
Property, plant and equipment 20,988 22,779
Right-of-use asset 1,311 1,255
Intangible assets 27,884 28,922
Investments 54 228
Deferred tax assets 25 9
Total non-current assets 50,262 53,193
Current assets
Inventories 8,302 7,393
Trade and other receivables 6,739 6,803
Current income tax receivable - 55
Cash and cash equivalents (including restricted cash of £2,147,000 (2024: 15,834 14,301
£1,289,000))
Total current assets 30,875 28,552
Total assets 81,137 81,745
Equity attributable to owners of the parent
Share capital 4,338 4,537
Share premium 7,375 7,375
Other equity - Ordinary shares held in treasury 16 12
Other reserves 53 32
Foreign currency reserves 5,124 5,372
Retained earnings 52,144 54,999
69,050 72,327
Non-controlling interest 1,225 885
Total equity 70,275 73,212
Liabilities
Non-current liabilities
Lease liabilities 987 898
Deferred tax liabilities 2,455 1,198
Total non-current liabilities 3,442 2,096
Current liabilities
Trade and other payables 5,334 5,399
Lease liabilities 398 420
Current income tax liabilities 1,688 618
Total current liabilities 7,420 6,437
Total liabilities 10,862 8,533
Total equity and liabilities 81,137 81,745
Consolidated Statement of Cash Flows
for the year ended 31 December 2025
Group Group
2025 2024
£'000 £'000
Cash flow from operating activities
Cash generated from operations 11,633 12,170
Interest received 262 174
Interest paid (8) (91)
Income tax (paid)/received (2,180) 1,403
Net cash generated from operating activities 9,707 13,656
Cash flow from investing activities
Payment for property, plant and equipment (PPE) (1,530) (2,246)
Payment for intangibles (837) (510)
Proceeds from sale of PPE 29 94
Net cash (used in) investing activities (2,338) (2,662)
Cash flow from financing activities
Repayments of borrowings - (3,000)
Share buy back (4,991) -
Principal elements of lease payments (510) (741)
Dividend payment to non-controlling interest (362) (336)
Net cash used in financing activities (5,863) (4,077)
Net increase/(decrease) in cash and cash equivalents 1,506 6,917
Cash and cash equivalents at beginning of year 14,301 7,726
Exchange gains/ (losses) on cash and cash equivalents 27 (342)
Cash and cash equivalents at end of year 15,834 14,301
Cash and cash equivalents totalling £2,147,000 (2024: £1,289,000) are held
by the Group's 60% owned subsidiary company in Russia. As a result of action
by the Russian Government following international sanctions being imposed on
Russia, access to this cash is currently restricted.
Consolidated Statement of Changes in Equity
Share capital Share premium account Other equity Other reserves Foreign currency reserve Retained earnings Total Non- controlling interest Total equity
Consolidated Note £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2024 4,537 7,375 12 80 6,356 48,757 67,117 1,100 68,217
Comprehensive income
Profit for the year - - - - - 6,242 6,242 335 6,577
Other comprehensive (expense)
Revaluation of investment in Llusern - - - (2) - - (2) - (2)
Changes in fair value of equity instruments at fair value through other - - - (46) - - (46) - (46)
comprehensive income
Currency translation differences - - - - (984) - (984) (214) (1,198)
Total other comprehensive (expense)/income - - - (48) (984) - (1,032) (214) (1,246)
Total comprehensive (expense)/income
- - - (48) (984) 6,242 5,210 121 5,331
Transactions with owners
Dividends to non-controlling interest - - - - - - - (336) (336)
Total distributions to owners - - - - - - - (336) (336)
At 31 December 2024 4,537 7,375 12 32 5,372 54,999 72,327 885 73,212
Comprehensive income
Profit for the year - - - - - 2,122 2,122 409 2,531
Other comprehensive (expense)/ income
Changes in fair value of equity instruments at fair value through other 22 - - - (174) - - (174) - (174)
comprehensive income
Currency translation differences - - - - (248) - (248) 293 45
Total other comprehensive (expense)/income - - - (174) (248) - (422) 293 (129)
Total comprehensive (expense)/income - - - (174) (248) 2,122 1,700 702 2,402
Transactions with owners
Cancellation of shares 29 - - (195) 195 - - - - -
Shares acquired into treasury 29 (199) - 199 - - (4,991) (4,991) - (4,991)
Dividends to non-controlling interest - - - - - - - (362) (362)
Share-based payment charge 30 - - - - - 14 14 - 14
Total distributions to owners (199) - 4 195 - (4,977) (4,977) (362) (5,339)
At 31 December 2025 4,338 7,375 16 53 5,124 52,144 69,050 1,225 70,275
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 December 2025
1. General information
EKF Diagnostics Holdings Plc is a company incorporated in England and Wales
and domiciled in the United Kingdom. The Company is a public limited company,
which is listed on the Alternative Investment Market of the London Stock
Exchange. The address of the registered office is Avon House, 19 Stanwell
Road, Penarth, Cardiff CF64 2EZ.
The principal activity of the Group is the development, manufacture and supply
of products and services into the in-vitro diagnostic (IVD) market place. The
Group has a presence in the UK, USA, Germany, and Russia, and sells throughout
the world including Europe, the Middle East, the Americas, Asia, and Africa.
The financial information does not constitute statutory accounts within the
meaning of sections 434(3) and 435(3) of the Companies Act 2006 or contain
sufficient information to comply with the disclosure requirements of UK
adopted International Accounting Standards. The Company's auditor,
PricewaterhouseCoopers LLP, has given an unqualified report on the
consolidated financial statements for the year ended 31 December 2025. The
auditor's report did not include reference to any matters to which the auditor
drew attention without qualifying its report and did not contain any statement
under section 498 of the Companies Act 2006. The consolidated financial
statements will be filed with the Registrar of Companies, subject to their
approval by the Company's shareholders on 19 May 2026 at the Company's Annual
General Meeting.
The financial statements have been prepared in accordance with UK-adopted
International Accounting Standards (UK IAS) and with the requirements of the
Companies Act 2006 as applicable to companies reporting under those standards.
Whilst the financial information included in this preliminary announcement has
been prepared in accordance with UK IAS, this announcement does not contain
sufficient information to comply with UK IAS. The accounting policies used in
the preparation of these condensed financial statements are consistent with
those used in the preparation of the audited financial statements for the year
ended 31 December 2024.
Certain statements in this announcement constitute forward-looking statements.
Any statement in this announcement that is not a statement of historical fact
including, without limitation, those regarding the Company's future
expectations, operations, financial performance, financial condition and
business is a forward-looking statement. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to differ
materially. These risks and uncertainties include, amongst other factors,
changing economic, financial, business or other market conditions. These and
other factors could adversely affect the outcome and financial effects of the
plans and events described in this announcement and the Company undertakes no
obligation to update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this announcement
should be construed as a profit forecast.
2. Significant accounting policies - Going concern
The Directors have considered the applicability of the going concern basis in
the preparation of these financial statements. This included the review of
internal budgets and financial results covering the period to June 2027 which
show that, even taking into account severe but plausible changes in financial
performance, the Group will be able to meet its liabilities as they fall due
throughout the going concern period. In making this assessment, the Directors
continue to consider all options for maximising shareholder value.
While the Company has net current liabilities, the majority of liabilities are
with controlled companies where the timing of outflows and the ability to
extract further cash from them are controlled by the Company.
The Directors have modelled a range of sensitivities from the base internal
Budget including lower revenues, the potential effect of changes in trading
relationships with the USA, and continued restrictions in Russia in relation
to accessing cash.
Considering the range of sensitivities which account for a severe downturn
versus expectation in 2026 and beyond, plus the range of mitigation options
available, the business demonstrates sufficient headroom giving the Directors
confidence that the business can continue to meet its obligations as they fall
due, even under the worst-case scenarios, for at least 12 months from the date
of this report. Accordingly, the Directors are satisfied they can prepare the
financial statements on a going concern basis.
3. Segmental reporting
Management has determined the Group's operating segments based on the monthly
management reports presented to the Chief Operating Decision Maker ('CODM').
The CODM is the Executive Directors and the monthly management reports are
used by the Group to make strategic decisions and allocate resources.
The principal activity of the Group is the design, development, manufacture
and sale of diagnostic instruments, reagents and certain ancillary products.
This activity takes place across various countries, such as the USA, Germany,
and Russia, with head office activities taking place in the United Kingdom,
and as such the Board considers the business primarily from a geographic
perspective. Although not all the segments meet the quantitative thresholds
required by IFRS 8, management has concluded that all segments should be
maintained and reported.
The reportable segments derive their revenue primarily from the manufacture
and sale of medical diagnostic equipment and reagents. Other services include
the servicing and distribution of third party company products under separate
distribution agreements. Transactions between segments consist of the sale of
products for resale. The basis of accounting for these transactions is the
same as for external revenue. Currently the key operating performance measures
used by the CODM are revenue and adjusted EBITDA.
The segment information provided to the Board for the reportable segments for
the years ended 31 December 2025 and 2024 is as follows:
Germany USA Russia^ UK Total
2025 £'000 £'000 £'000 £'000 £'000
Income statement
Revenue 27,343 25,155 4,262 - 56,760
Inter-segment (5,196) - - - (5,196)
External revenue 22,147 25,155 4,262 - 51,564
Adjusted EBITDA* 6,223 8,839 1,217 (3,891) 12,388
Share based payment - - - (14) (14)
EBITDA 6,223 8,839 1,217 (3,905) 12,374
Depreciation (991) (1,974) (39) (64) (3,068)
Amortisation (2,072) (277) - 21 (2,328)
Operating profit/(loss) 3,160 6,588 1,178 (3,948) 6,978
Finance income 262
Finance cost (154)
Income tax (4,555)
Profit for the year 2,531
Segment assets
Operating assets 43,219 34,351 1,423 9,949 88,942
Inter-segment assets (10,690) (7,853) (119) (4,976) (23,638)
External operating assets 32,529 26,498 1,304 4,973 65,304
Cash 3,862 5,760 2,147 4,065 15,834
Total assets 36,391 32,258 3,451 9,038 81,138
Segment liabilities
Operating liabilities 4,894 3,772 346 25,489 34,501
Inter-segment liabilities (119) (32) - (23,487) (23,638)
External operating liabilities 4,775 3,740 346 2,002 10,863
Total liabilities 4,775 3,740 346 2,002 10,863
Other segmental information
Non-current assets - PPE 8,206 13,722 180 191 22,299
Non-current assets - Intangibles 17,508 7,020 73 3,283 27,884
PPE - additions 999 930 71 18 2,018
Intangible assets - additions 550 287 - - 837
* Adjusted EBITDA excludes exceptional items and share-based payments. The UK
includes head office costs.
^ relates to a subsidiary with a non-controlling interest
Germany USA Russia^ UK Total
2024 £'000 £'000 £'000 £'000 £'000
Income statement
Revenue 25,487 26,166 3,357 - 55,010
Inter-segment (4,816) - - - (4,816)
External revenue 20,671 26,166 3,357 - 50,194
Adjusted EBITDA* 5,588 8,748 925 (3,925) 11,336
Exceptional items - other, charged to cost of sales 109 (439) - - (330)
Exceptional items - impairments (Note 8) - - - - -
Exceptional items - other 8 - - (30) (22)
EBITDA 5,705 8,309 925 (3,955) 10,984
Depreciation (934) (2,538) (45) (116) (3,633)
Amortisation (751) (360) - 20 (1,091)
Operating profit/(loss) 4,020 5,411 880 (4,051) 6,260
Finance income 174
Finance cost (171)
Income tax 314
Profit/(loss) for the year 4,020 5,411 880 (4,051) 6,577
Segment assets
Operating assets 39,651 29,758 1,244 12,675 83,328
Inter-segment assets (10,272) - (271) (5,341) (15,884)
External operating assets 29,379 29,758 973 7,334 67,444
Cash 4,090 8,750 1,289 172 14,301
Total assets 33,469 38,508 2,262 7,506 81,745
Segment liabilities
Operating liabilities 4,684 3,142 176 16,415 24,417
Inter-segment liabilities (271) (829) - (14,784) (15,884)
External operating liabilities 4,413 2,313 176 1,631 8,533
Borrowings (excluding lease liabilities) - - - - -
Total liabilities 4,413 2,313 176 1,631 8,533
Other segmental information
Non-current assets - PPE 6,712 15,814 117 1,391 24,034
Non-current assets - Intangibles 16,789 7,651 55 4,427 28,922
PPE - additions 1,320 1,490 60 272 3,142
Intangible assets - additions 466 44 - - 510
* Adjusted EBITDA excludes exceptional items and share-based payments. The UK
includes head office costs.
^ relates to a subsidiary with a non-controlling interest
Disclosure of Group revenues by geographic location of customer is as follows:
2025 2024
£'000 £'000
Americas
United States of America 21,970 22,109
Peru 2,426 1,449
Rest of Americas 1,579 1,866
Europe, Middle East and Africa (EMEA)
Germany 7,254 7,188
United Kingdom 867 781
Rest of Europe 4,614 4,344
Russia 4,262 3,357
Middle East 1,086 1,041
Africa 3,317 3,272
Asia and Rest of World
China 872 1,025
Rest of Asia and Oceania 3,317 3,762
Total revenue 51,564 50,194
In 2025, revenues of £5,519,000 (10.7%) (2024: £4,953,000) were derived from
one external customer. £5,512,000 of this revenue relates to the USA, with
the remainder relating to Germany. No other customer contributed 10% or more
of the Group's total external revenue during the year. In 2024 no customer
represented more than 10% of external revenues.
4. Exceptional items
2025 2024
Note £'000 £'000
- Business reorganisation costs - other charged to cost of sales a - (330)
- Business reorganisation costs - other charged to operating expenses b - (22)
Exceptional items - (352)
a. Costs associated with the transition and restructure of
operations. In 2024 costs of £0.5m are inventory provisions associated with
the ending of the group's clinical chemistry product line offset by reductions
of provisions previously made against COVID-19 inventory where the inventory
had now been utilised.
b. Higher than expected professional fees associated with the 2023
closure of DiaSpect Medical AB.
5. Income tax (credit)/charge
2025 2024
Group £'000 £'000
Current tax:
Current tax on profit for the year 2,065 993
Adjustments in respect of prior periods 1,237 -
Total current tax charge 3,302 993
Deferred tax (note 28):
Origination and reversal of temporary differences 1,253 (1,307)
Total deferred tax charge/(credit) 1,253 (1,307)
Income tax charge/(credit) 4,555 (314)
6. Earnings per share
2025 2024
£'000 £'000
Profit attributable to owners of the parent 2,122 6,242
Weighted average number of Ordinary Shares in issue 448,330,087 453,730,564
Basic earnings per share 0.47 pence 1.38 pence
2025 2024
£'000 £'000
Profit attributable to owners of the parent 2,122 6,242
Weighted average number of Ordinary Shares in issue 448,470,937 453,730,564
Diluted earnings per share 0.47 pence 1.38 pence
2025 2024
Weighted average number of Ordinary Shares in issue 448,330,087 453,730,564
Adjustment for assumed conversion of share awards 140,850 -
Weighted average number of Ordinary Shares in issue 448,470,937 453,730,564
Diluted earnings per share is calculated by adjusting the weighted average
number of Ordinary shares outstanding assuming conversion of all dilutive
potential Ordinary shares. The Company has one category of dilutive potential
Ordinary shares in 2025 being an equity-based Long Term Incentive Plan (LTIP)
which was approved in September 2025.
There were no outstanding share options at 31 December 2024, or other dilutive
items. The number of shares in issue in 2025 excludes 1,555,980 (2024:
1,200,000) shares held in treasury.
7. Dividends
Based on the need for continued investment in our core areas the Board has
decided that it would be prudent to discontinue dividend payments and to
enhance shareholder value mainly through growth. The Board will however
consider recommencing the payment of dividends if and when appropriate.
8. Property, plant and equipment
Group Land and buildings Fixtures & fittings Plant and machinery Motor vehicles Assets under construction Right-of-use asset Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 January 2024 14,513 1,437 21,267 208 1,188 3,323 41,936
Additions 1,179 80 673 - 314 896 3,142
Exchange differences (31) (36) (291) (39) (22) (25) (444)
Transfers 73 - 982 - (1,055) - -
Disposals - (18) (992) - (44) (1,178) (2,232)
At 31 December 2024 15,734 1,463 21,639 169 381 3,016 42,402
Accumulated depreciation
At 1 January 2024 3,870 1,065 9,862 72 - 2,292 17,161
Charge for the year 982 152 1,841 16 - 642 3,633
Exchange differences 11 (34) (274) (15) - 5 (307)
Disposals - (17) (924) - - (1,178) (2,119)
At 31 December 2024 4,863 1,166 10,505 73 - 1,761 18,368
Net book value at 31 December 2024 10,871 297 11,134 96 381 1,255 24,034
Cost
At 1 January 2025 15,734 1,463 21,639 169 381 3,016 42,402
Additions 247 126 527 71 559 111 1,641
Adjustments - - - - - 377 377
Exchange differences (472) 19 (232) 53 23 (27) (636)
Transfers 413 - 581 - (581) - 413
Disposals - (40) (14) (23) (63) (812) (952)
At 31 December 2025 15,922 1,568 22,501 270 319 2,665 43,245
Accumulated depreciation
At 1 January 2025 4,863 1,166 10,505 73 - 1,761 18,368
Charge for the year 628 150 1,845 16 - 429 3,068
Exchange differences (169) 25 121 22 - (24) (25)
Transfers 413 - - - - - 413
Disposals - (40) (10) (16) - (812) (878)
At 31 December 2025 5,735 1,301 12,461 95 - 1,354 20,946
Net book value at 31 December 2025 10,187 267 10,040 175 319 1,311 22,299
9. Intangible assets
Goodwill Trademarks, trade names and licences Customer relationships Trade secrets Development costs Software & website Total
Group £'000 £'000 £'000 £'000 £'000 £'000 £'000
Cost
At 1 January 2024 24,425 4,678 15,271 13,256 5,539 664 63,833
Additions - 59 - - 451 - 510
Disposals - - - - (1,796) - (1,796)
Exchange differences (550) (114) (88) (450) (158) (7) (1,367)
At 31 December 2024 23,875 4,623 15,183 12,806 4,036 657 61,180
Accumulated amortisation and impairment
At 1 January 2024 - 3,797 14,659 12,114 2,624 415 33,609
Charge for the year - 251 214 179 328 119 1,091
Disposal - - - - (1,796) - (1,796)
Exchange differences - (89) (90) (396) (65) (6) (646)
At 31 December 2024 - 3,959 14,783 11,897 1,091 528 32,258
Net book value at 31 December 2024 23,875 664 400 909 2,945 129 28,922
Cost
At 1 January 2025 23,875 4,623 15,183 12,806 4,036 657 61,180
Additions - - - - 680 157 837
Disposals - - - - (1,412) - (1,412)
Exchange differences 261 45 (411) 456 131 (6) 476
At 31 December 2025 24,136 4,668 14,772 13,262 3,435 808 61,081
Accumulated amortisation and impairment
At 1 January 2025 - 3,959 14,783 11,897 1,091 528 32,258
Charge for the year - 270 89 184 1,730 55 2,328
Disposal - - - - (1,412) - (1,412)
Exchange differences - (19) (384) 405 14 7 23
At 31 December 2025 - 4,210 14,488 12,486 1,423 590 33,197
Net book value at 31 December 2025 24,136 458 284 776 2,012 218 27,884
10. Cash generated from operations
Group Group
2025 2024
£'000 £'000
Profit/ (loss) before tax 7,086 6,263
Adjustments for:
- Depreciation 3,068 3,633
- Amortisation 2,328 1,091
- Exceptional items - other, charged to cost of sales - 330
- Exceptional items - other - 22
- Loss on disposal of fixed assets 45 19
- Share-based payments 14 -
- Cash outflows relating to exceptional items - (22)
- Foreign exchange (227) 141
- Bad debt written down (60) 17
- Release of debt fees - 14
- Finance income (262) (174)
- Finance cost 48 91
- Lease interest 106 80
- Inter-company dividend - -
Changes in working capital
- Inventories (711) 765
- Trade and other receivables 178 (122)
- Trade and other payables 20 22
Net cash generated from operations 11,633 12,170
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