REG - EKF Diagnostics Hldg - Half-year Report
20/09/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220920:nRST8408Za&default-theme=true
RNS Number : 8408Z EKF Diagnostics Holdings PLC 20 September 2022
EKF Diagnostics Holdings plc
("EKF", the "Company" or the "Group")
Half-year Report
Strong half-year, positioning the Group for sustainable and diversified growth
Life Sciences investment in increased capacity progressing well
Year of transition into non-COVID related revenues
EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed global diagnostics
business, announces its unaudited interim results for the six months ended 30
June 2022.
Despite this being a year of transition, as the business pivots away from a
busy COVID period, EKF has successfully maintained good momentum, recording a
strong first half in line with management expectations and positioning the
business for sustainable, diversified growth over the long term.
Financial highlights
· Revenues of £37.5m (H1 2021: £38.6m)
- 74.8% up from pre-pandemic levels (H1 2019: £21.4m)
· Revenue growth, excluding largely COVID-related activities in
Contract Manufacturing and Laboratory Testing, of 11.5% in period
· Adjusted EBITDA* of £9.7m (H1 2021: £12.8m)
- 73.9% up from pre-pandemic levels (H1 2019: £5.6m)
· Gross profit of £17.7m (H1 2021: £18.5m) with GM% maintained at 47%
(H1 2021: 48%)
· Profit before tax of £4.1m (H1 2021: £11.4m)
· Net cash generated from operations of £8.4m (H1 2021: £1.1m)
· Cash and cash equivalents of £19.1m (30 June 2021: £20.8m) (31
December 2021: £20.3m)
* Earnings before interest, tax, depreciation and amortisation adjusted for
exceptional items and share-based payments
Operational highlights
· Business division revenues
- Point-of-Care: up 9.7% to £13.8m (H1 2021: £12.5m)
- Central Laboratory: stable at £6.3m (H1 2021: £6.3m),
returned to growth in July
- Life Sciences: doubled to £2.0m (H1 2021: £1.0m)
- Contract Manufacturing: £8.6m (H1 2021: £17.5m)
reflecting expected drop in COVID revenues
- Laboratory Testing: £2.1m (H1 2021: nil, laboratory acquired in H2
2021)
- Other: £4.7m (H1 2021: £1.2m) including £3.5m relating to cash
received for US inventory
· Life Sciences: Investment to bring increased fermentation capacity
online from 2023 - customer onboarding processes are already underway with
audits, validation batches and tech transfer ongoing
· Laboratory Testing: new clinical toxicology testing service launched,
further test portfolio launches in Q4 2022 and Q1 2023, and non-invasive
prenatal test service with Yourgene Health to launch next month
· Implementation of reorganisation programme across the business to
align resources with the expansion opportunities
· Share Buyback programme completed successfully, 9m shares cancelled,
offsetting dilution from shares issued in H2 2021 as consideration for
laboratory testing business
Mike Salter, Chief Executive Officer of EKF, commented: "Whilst 2022 is a year
of transition, positioning EKF for long-term sustainable and diversified
growth, the strong first half delivery has been pleasing. This performance
shows the strength and robustness of our core established business and
provides the Board with confidence that the Group, as a whole, remains on
track to deliver an adjusted EBITDA result in line with its expectations for
the full year and is well positioned for the years ahead."
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 on Tuesday 20 September at 4.30pm (BST), 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)
EKF Diagnostics Holdings plc www.ekfdiagnostics.com (http://www.ekfdiagnostics.com)
Mike Salter, CEO / Marc Davies, CFO Tel: +44 (0)29 2071 0570
Singer Capital Markets (Nominated Adviser & Joint Broker) Tel: +44 (0)20 7496 3000
Aubrey Powell / George Tzimas / Oliver Platts
Investec Bank plc (Joint Broker) Tel: +44 (0)20 7597 4000
Gary Clarence / Daniel Adams / Ben Farrow
Walbrook PR (Media & Investor Relations) 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
BUSINESS REVIEW
We are delighted to announce such a positive first half performance for our
core established business, and a strong overall performance that has delivered
considerable growth compared to pre-pandemic levels. It also demonstrates our
robustness in the face of significant commercial change due to the near total
reduction after the first quarter of our COVID related activities.
Revenues for the six months ended 30 June 2022 were £37.5m (H1 2021: £38.6m)
and adjusted EBITDA was £9.7m (H1 2021: £12.8m). Considering our core
established business units, which excludes largely COVID-related revenue from
Contract Manufacturing and Laboratory Testing, the Group delivered
double-digit revenue growth compared to H1 2021. Compared to the performance
in 2019 as a pre-pandemic benchmark, when no COVID related activities were
recorded, total Group revenues are 74.8% up from 2019 levels (H1 2019:
£21.4m) and adjusted EBITDA is 73.9% ahead (H1 2019: £5.6m).
It is clear that, despite this being a year of transition, EKF has
successfully maintained good momentum, recording a strong first half in line
with management expectations and positioning the business for long-term
sustainable and diversified growth. We have strong foundations from which to
execute on our mission to build a leading Global Diagnostics company,
providing quality products and services to support the continued improvement
in patient healthcare and outcomes.
EKF is also well placed to build on this success, as we enter our next phase
of sustainable growth. The Board remains focused on delivering its strategy,
primarily to:
1. Drive organic growth from our stable and established Point-of-Care
& Central Laboratory businesses, leveraging existing products and routes
to markets, innovating and expanding into new territories;
2. Invest in the highly-scalable Life Sciences business unit, through
expansion plans for our fermentation capacity and capabilities which are led
by customer demand and will accelerate organic growth; and
3. Pivot Contract Manufacturing & Laboratory Testing to non-COVID
activities and build revenues by broadening our high-value services offering.
We have made good progress in the above three areas and will cover them in
more detail below.
Operations
1. Point-of-Care & Central Laboratory
Our established Point-of-Care ("POC") and Central Laboratory divisions have
returned to growth, with revenues now exceeding pre-COVID levels. These
businesses remain the cornerstone of EKF, contributing 53.5% to Group
revenues. They both supply a regular flow of high margin consumables providing
a steady recurring revenue and are both profitable and cash generative
enabling investment and further diversification of the Group.
POC has continued to experience steady growth post COVID, up 9.7% to £13.8m
(H1 2021: £12.5m), as a result of growth in the existing customer base and
new market initiatives. With increasing pressures on healthcare systems,
including an ageing population and the growing incidence of chronic diseases,
EKF is well placed to meet the rising demand for quality POC products that can
be performed at home or in primary care settings.
Sales in the POC diabetes segment have seen good growth in the period,
reaching £5.7m (H1 2021: £4.8m), an increase of 18.3%. Biosen sales are up
31.0% driven by strong growth in EMEA and APAC. Sales of Quo-Test and Quo-Lab
are up 8.2% and 7.4% respectively.
We have seen good growth across our POC hematology portfolio, with sales up
10.5% to £6.5m (H1 2021: £5.9m) as screening anaemia programmes have
continued to return to more normalised levels following the COVID pandemic.
Hemocontrol, a point-of-care hemoglobin analyser, delivered significant growth
with sales up 45.2% to £3.1m (H1 2021: £2.1m) due to the return of global
testing programmes post pandemic.
In the period we enhanced our POC analyser portfolio by launching EKF Link, a
digital connectivity solution for the secure management of POC analysers and
associated data on one centralised platform. This solution significantly
increases the target market for our analyser products where connectivity is
becoming increasingly attractive if not essential. The development and launch
of EKF Link was driven by customer demand and designed in partnership with
hospital POC managers to ensure the software meets their specific needs.
Integrated with hospital and laboratory IT systems, EKF Link enables real-time
remote management of data, such as patient test results, allowing physicians
and other healthcare professionals to easily evaluate patients' data securely
and accurately from a remote setting.
In Central Laboratory, we remain one of the clear market leaders for the
supply of β-HB (Beta-Hydroxybutyrate), a reagent used to detect ketones for
patients suffering from diabetic ketoacidosis, as well as many other clinical
applications. Our β-HB reagent is used by over 1,100 hospitals in the USA.
Total β-HB sales for H1 2022 were marginally impacted by temporary supply
delays at period end, but these have since been resolved and sales for the 7
months to the end of July 2022 have shown a 9.9% improvement on the same
period year-on-year. Glycated Albumin sales were up 138.9% with first half
sales already in excess of 2021 full year performance.
In the first six months Central Laboratory was flat at £6.3m (H1 2021:
£6.3m), but as described above β-HB sales have immediately caught up post
period end, putting it back on track for its expected growth performance
year-on-year.
2. Life Sciences
Strong organic growth from our specialist enzyme fermentation business saw
revenues doubling to £2.0m (H1 2021: £1.0m). This growth was driven by
increased demand from our large corporate customers utilising our existing
contract fermentation services to create and deliver high quality enzymes and
biomolecules for use in a variety of industrial applications.
EKF has established a dedicated team of highly skilled fermentation project
specialists who are uniquely positioned to deliver customer requirements and
expand these long-term strategic partnerships. The strong customer
relationships established by this unit over the years has led to customer-led
interest in increased volume services. EKF's current fermentation suites in
Elkhart utilise 10, 100, 250 and 1,600 litre (L) vessels, and as already
reported, we are investing around $10m to increase this capacity at our new
South Bend site and also our existing site in Elkhart, to meet existing
customer needs and attract new customers with higher volume requirements.
Progress in the construction and installation of the six new vessels in South
Bend - comprising 65, 300, 1,500, 3,000, 10,000 and 14,500L units - is going
well and remains on track to be completed by the year end. The 1,500 and
3,000L vessels have been delivered to the South Bend site and will be
installed and validated next month, with the larger 10,000L and 14,500L
vessels scheduled to be delivered in Q4 2022. A number of potential customers
interested in our larger volume vessels have already begun the process of
internal audit, validation and tech transfer to allow them to utilise this
capacity when it comes on stream. We would expect to produce pilot batches in
early 2023 moving to commercial scale production throughout 2023.
The global speciality enzymes market is experiencing rapid growth, driven by
the increased application of enzymes in the diagnostic industry, as well as
the food and industrial sectors, and as a result we are seeing increasing
demand for precision fermentation services. We are confident in the growth
trajectory of this business, which is closely aligned with the strong ongoing
customer demand which is driving our investment decision. We have a robust
contract pipeline and expect to see revenues build in 2023 and continue this
upward trajectory into 2024.
3. Contract Manufacturing & Laboratory Testing
As previously highlighted, the main challenges in our year of transition are
in Contract Manufacturing & Laboratory Testing, as we seek to shift our
operations to non-COVID revenues. The first six months certainly reflect this
change, as we still experienced a strong Q1 as COVID-related demand from our
diagnostic and healthcare customers continued for our end-to-end contract
manufacturing services across all of our sites in the US, Germany and UK.
However, as expected, there was a sharp drop in COVID related revenues in our
Contract Manufacturing division after the first quarter, which saw revenues
for the half reduce substantially to £8.6m from the higher levels seen during
the pandemic when COVID testing was more widespread (H1 2022: £17.5m). This
Q1 weighted demand for COVID-related services was also seen in Laboratory
Testing, which delivered H1 sales of £2.1m (H1 2021: £nil, laboratory
acquired in H2 2021).
In anticipation of this decline, during the period we began restructuring our
Contract Manufacturing business, reducing costs and focusing our capabilities
outside of COVID. Further costs associated with the restructuring are expected
in the second half of the financial year. We continue to execute our strategy
to pivot away from COVID products and services, utilising our capabilities and
capacity to focus on higher value contract manufacturing in the supply of
products and services for alternative applications. We expect Contract
Manufacturing revenues to build in the later part of 2022 and into 2023 as new
opportunities come online.
In Laboratory Testing, our efforts remain focussed on utilising the expertise
of Advanced Diagnostic Laboratory LLC ("ADL Health"), which specialises in
high complexity testing, to bring new tests online and expand our CLIA
laboratory testing portfolio beyond COVID assays. To this end, the team has
recently launched a new clinical toxicology method geared towards medication
adherence and developed an analysis of cannabis potency, with the first
samples being processed this month. Further tests in oncology, wound health
and women's health are on track to launch later in the year and into early
2023. At the beginning of the year, we signed a strategic partnership
agreement with Yourgene Health plc ("Yourgene") to offer a non-invasive
prenatal test ("NIPT") service from our accredited US laboratory. We expect
this service to launch in October 2022 and we believe this is an exciting
growth opportunity.
Our challenge with the Laboratory Testing division is to ensure that
investment into these areas quickly adds new revenue streams to the Group, and
to return this business to profitable growth before the year end based on a
wider portfolio of non-COVID testing services.
Operational efficiencies
As well as the restructuring of the Contract Manufacturing operations during
the first half, post-period end the new management team has implemented a
reorganisation programme across the business to align the cost base to match
the expansion opportunities being seen across the Group, and to ensure a
smooth transition into a sustainable growth business unrelated to the external
pandemic. Like many businesses, we have experienced supply-chain availability
challenges and input-costs inflationary pressure. To mitigate this, we
increased the focus on forward-looking sourcing requirements and have
responsibly adjusted our prices to customers.
In the first half, we began implementing new initiatives to drive efficiency
and integration across the global EKF Group, as well as bolstering our current
working practices. This included vertically integrating our supply chain, the
commencement of an IT standardisation project to consolidate global systems
and utilise new technologies, and the enhancement of financial analysis,
controls and the sharing of resources throughout the Group.
Regulatory and ESG strategy
We believe we are well positioned to meet the new and additional requirements
under In Vitro Diagnostic Regulation (IVDR). Our experienced regulatory team
is already connected with our Notified Body, who is aware of our plan for the
number of products subject to the conformity assessment requirements of IVDR,
and we have built in a safety buffer to ensure we are prepared.
We have also appointed a dedicated senior ESG resource to lead the development
of our Environmental and Sustainability strategy. This investment is a sign of
how EKF recognises the importance of analysing ESG performance going forward
to help investors gain a more holistic view of our business, better understand
how we manage ESG risks and incorporate sustainability as a core value.
Russia and Ukraine
EKF owns 60% of O.O.O. EKF Diagnostika, a distribution subsidiary located in
Moscow which sells EKF POC products and other third-party products into Russia
and neighbouring states. As a supplier of medical products with no dual use it
would not be appropriate to end supplies to the region, and sales have
continued in the first half of the year. We are working with the staff and
management of this business to keep it as stable as possible, but it is
becoming more challenging as we comply with the current sanction guidance. At
present there are controls over the payment of foreign dividends in Russia
hence the cash disclosed in Russia (30 June 2022: £2.6m) is currently not
accessible. Financial details of our business in Russia are shown in the
segmental analysis in Note 3.
We also have a distributor in Ukraine with whom we have worked for some years,
who we have continued to support during this time of substantial challenge.
Outlook
Our Point-of-Care & Central Laboratory business units are expected to
continue to grow steadily and contribute a solid base of stable revenues and
earnings. The investment in our Life Sciences business, and its increased
fermentation capacity, is expected to generate further significant revenue
growth from next year onwards. This expectation is underpinned by the advanced
nature of our work with new and existing customers keen to utilise this
capacity as it becomes available. The transition of Contract Manufacturing and
Laboratory Services into non-COVID-related revenues is our key challenge. We
have already identified a number of opportunities that are advancing, and a
wider portfolio of tests are beginning to come online, which we forecast will
start to deliver revenues in the second half of the year.
Whilst 2022 is a year of transition, positioning EKF for long-term sustainable
and diversified growth, the strong first half delivery has been pleasing. This
performance shows the strength and robustness of our core established business
and provides the Board with confidence that the Group, as a whole, remains on
track to deliver an adjusted EBITDA result in line with its expectations for
the full year and is well positioned for the years ahead.
Mike Salter
Chief Executive Officer
20 September 2022
Financial review
Revenue
Revenue for the period was £37.5m (H1 2021: £38.6m).
Revenue by Business Unit:
Unaudited Unaudited +/- %
6 months ended 30 June 2022 6 months ended 30 June 2021
£'000 £'000
Point-of-Care 13,756 12,534 9.7%
Central Laboratory 6,295 6,325 (0.5%)
Life Sciences 2,024 1,033 95.9%
Contract Manufacturing 8,570 17,469 (50.9%)
Laboratory Testing 2,141 - n/a
Other* 4,685 1,198 291.1%
Total revenue 37,471 38,559 (2.8%)
Considering our core established business units, which excludes largely
COVID-related revenue including that from Contract Manufacturing and
Laboratory Services, the Group delivered growth of 11.5% compared with the
equivalent period in 2021.
* Other revenue relating to US inventory payment, shipping and handling
recharges, repairs and other sundries
Revenue by Geographical Segment:
Unaudited Unaudited +/- %
6 months ended 30 June 2022 6 months ended 30 June 2021
£'000 £'000
Germany 13,582 14,542 (6.6%)
USA 20,925 18,156 15.3%
Russia 2,037 1,384 47.2%
UK 925 4,477 (79.3%)
Total revenue 37,471 38,559 (2.8%)
Geographic regions showing a decline is primarily due to the reduction in
COVID-related Contracted Manufacturing activity. The 2022 amount for USA
includes the £3.5m inventory payment.
Gross profit
Gross profit was £17.7m (H1 2021: £18.5m). The gross profit margin was 47%
(H1 2021: 48%). The gross profit has reduced mainly as a result of the
transition to COVID-related products and services.
Administrative expenses
In H1 2022, administration expenses increased to £14.5m (H1 2021: £7.0m),
representing 38.6% of revenue for the period (H1 2021: 18.2%, FY 2021: 21.6%).
The increase is largely due to a number of non-recurring events. In H1 2022, a
charge of £1.2m was recorded in relation to the $5.5m (£4.4m) cash payment
received in May 2022 with regard to US inventory. The total adjusted revenue
and EBITDA impact of this transaction is £3.5m and £1.2m, respectively.
In addition, exceptional costs in relation to the transition and restructure
of certain operations in the US, UK and Germany of £1.7m are recorded in
administration expenses in H1 2022. Finally, administrative expenses in H1
2021 benefited from a net write back of £1.4m in share-based payments (H1
2022: charge of £0.5m) stemming from the termination of the previous cash
settled share-based incentive scheme. The 2022 charge relates to the
replacement scheme which was described in the 2021 Annual Report.
To aid understanding, administrative expenses in each period are made up as
follows:
Unaudited 6 months ended 30 June 2022 Unaudited 6 months ended 30 June 2021 Audited Year ended 31 December 2021
Non-exceptional administration expenditure before R & D capitalisation and 13,076 8,960 19,511
share-based payments
Effect of share-based payments 517 (1,392) (1,238)
Less capitalised R & D (802) (317) (659)
Effect of exceptional items 1,682 (234) 95
Total administrative expenses 14,473 7,017 17,709
The charge for depreciation of fixed assets and for the amortisation of
intangibles is £3.4m (H1 2021: £2.8m).
Operating profit and adjusted earnings before interest tax and depreciation
The Group generated an operating profit of £4.1m (H1 2021: £11.4m). We
continue to consider that adjusted EBITDA gives a more meaningful measure of
performance which for H1 2022 was £9.7m (H1 2021: £12.8m).
Adjusted EBITDA excludes a charge for share-based payments of £0.5m (H1 2021:
credit of £1.4m) and exceptional charges of £1.7m (H1 2021: profit of
£0.2m). The exceptional charge relates mainly to transition and restructure
costs of certain operations in the US, UK and Germany including provisions
against inventory and the impairment of certain lease assets where the
property is no longer required. The reduction in operating profit and adjusted
EBITDA relates to the transition to a post-COVID business.
Finance costs
Finance costs are £0.01m (H1 2021: £0.16m). The charge has reduced because
of lower charges relating to deferred consideration.
Tax
There is a tax charge of £1.7m (H1 2021: £2.2m). The decrease largely
reflects the decrease in profit, offset partially by an increased deferred tax
rate.
Earnings per share
Basic earnings per share has decreased to 0.48p (H1 2021: 1.99p). Diluted
earnings per share are 0.48p (H1 2021: 1.99p), dilutive effects having largely
ended.
Balance sheet
Fixed assets
We have capitalised £2.3m (H1 2021: £1.5m) of property, plant and equipment.
The expenditure includes continuing work on adding capacity for Life Sciences
in the US. Further expenditure in Life Sciences, and on new facilities in
Germany, is planned for the second half of the year.
Intangible assets
The value of intangible fixed assets is £43.4m (31 December 2021: £41.9m).
The increase is mainly the result of exchange rate movements. An amount of
£0.8m (H1 2021: £0.6m) has been capitalised during the first half.
Investments
During the period additional investments were made in the ordinary share
capital of Renalytix plc ("Renalytix") (£0.38m) and Verici Dx plc ("Verici")
(£2.5m). The majority of our holding in Verici was subsequently transferred
to shareholders by way of a dividend in specie at a value of £1,455,232
(15.994p per Verici share, equivalent to 0.31988p per EKF share). This
represented a discount from the prevailing market price of 27.3% reflecting
the lock-in period applied to the shares. Following this dividend the Group's
investments in Renalytix and Verici represented holdings of 1.53% and 0.42%
respectively. The investments are held at fair value which has been calculated
based on the market value of the shares which at 30 June 2022 was £1.05 (31
December 2021: £6.20) per share for Renalytix and £0.23 (31 December 2021:
£0.53) per share for Verici. The resulting unrealised loss during H1 2022 of
£7.2m is shown as a movement in Other comprehensive income.
Deferred consideration
The deferred consideration at 30 June 2022 relates to the acquisition in
September 2021 of Advanced Diagnostic Laboratory LLC. At 30 June 2021 the
deferred consideration related to a contingent share-based payment to the
former owner of EKF-Diagnostic GmbH, which was resolved in H2 2021.
Cash and working capital
The gross cash position at 30 June 2022 was £19.1m (31 Dec 2021: £20.3m),
and the Group had cash net of bank borrowings of £18.9m (31 Dec 2021:
£19.6m).
Cash generated from operations in H1 2022 is £8.4m (H1 2021: £1.1m). Trade
debtors have decreased as a result of timing effects in the run up to period
end. Major cash outflows have included £3.9m on purchase of own shares and
£2.9m for the purchase of investments, as well as cash payments totalling
£0.4m required in connection with the acquisition of ADL.
Cash and cash equivalents held by the Russian subsidiary at 30 June 2022
totalled £2.6m (31 Dec 2021: £1.3m). These deposits are subject to
regulatory restrictions, and therefore may not be available for general use by
the other entities within the Group.
Capital structure
We successfully completed the acquisition of 9,000,000 of our own ordinary
shares for a total consideration of £3.9m. These shares have been cancelled.
We received further authority to buy back up to 69,589,585 ordinary shares at
the Company's AGM on 18 May 2022 and we will make further purchases if
considered appropriate.
Dividend
At the Annual General Meeting in May 2022, shareholders approved the payment
of a dividend of 1.2p per ordinary share, to be paid on 1 December 2022 to
shareholders on the register at close of business on 4 November 2022. As this
declaration is irrevocable, the value of £5.459m is shown as a liability with
the debit shown in the statement of changes in equity.
Marc Davies
Chief Financial Officer
20 September 2022
CONSOLIDATED INCOME STATEMENT
FOR THE 6 MONTHS ENDED 30 JUNE 2022 Unaudited 6 months ended 30 June 2021
Unaudited 6 months ended 30 June 2022 Audited Year ended 31 December 2021
Notes £'000 £'000 £'000
Continuing operations
Revenue 3 37,471 38,559 81,836
Cost of sales (19,727) (20,019) (42,470)
Gross profit 17,744 18,540 39,366
Administrative expenses (14,473) (7,017) (17,709)
Other income 880 34 90
Operating profit 4,151 11,557 21,747
Depreciation and amortisation (3,361) (2,830) (5,885)
Share-based payments (517) 1,392 1,238
Exceptional items 4 (1,682) 234 (95)
EBITDA before exceptional items and share-based payments 9,711 12,761 26,489
Finance income 57 22 45
Finance costs (68) (155) (357)
Profit before income tax 4,140 11,424 21,435
Income tax charge 5 (1,717) (2,237) (5,277)
Profit for the period 2,423 9,187 16,158
Profit attributable to:
Owners of the parent 2,213 9,069 15,851
Non-controlling interest 210 118 307
2,423 9,187 16,158
Earnings per ordinary share attributable to the owners of the parent during
the period
6
Pence Pence Pence
Basic 0.48 1.99 3.47
Diluted 0.48 1.98 3.44
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2022
Unaudited Unaudited Audited
6 months ended 30 June 2022 6 months ended 30 June 2021 Year ended 31 December 2021
£'000 £'000 £'000
Profit for the period 2,423 9,187 16,158
Other comprehensive income/(expense):
Items that will not be reclassified to profit or loss (5,307) 4,040 (321)
Changes in fair value of equity instruments at fair value through other
comprehensive income (net of tax)
Items that may be subsequently reclassified to profit or loss 6,520 (1,334) (1,226)
Currency translation differences
Other comprehensive income/(loss) (net of tax) 1,213 2,706 (1,547)
Total comprehensive income for the period 3,636 11,893 14,611
Attributable to:
Owners of the parent 3,024 11,779 14,315
Non-controlling interests 612 114 296
Total comprehensive income for the period 3,636 11,893 14,611
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2022
Unaudited as at 30 June 2022 Unaudited as at 30 June 2021 Audited as at 31 December 2021
Notes £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 7 18,170 12,957 15,991
Right-of-use assets 7 1,495 890 1,875
Intangible assets 8 43,387 35,134 41,894
Investments 1,566 12,818 7,789
Deferred tax assets 23 14 15
Total non-current assets 64,641 61,813 67,564
Current Assets
Inventories 12,969 9,766 13,238
Trade and other receivables 12,236 16,107 13,428
Corporation tax receivable 408 - 548
Cash and cash equivalents 19,138 20,784 20,341
Total current assets 44,751 46,657 47,555
Total assets 109,392 108,470 115,119
Equity attributable to owners of the parent
Share capital 4,549 4,550 4,639
Share premium 7,375 200 7,375
Other reserve (184) 9,394 5,033
Foreign currency reserves 8,931 2,698 2,813
Retained earnings 64,775 67,580 74,264
85,446 84,422 94,124
Non-controlling interest 1,230 435 618
Total equity 86,676 84,857 94,742
Liabilities
Non-current liabilities
Borrowings 44 310 431
Lease liabilities 793 475 1,095
Deferred consideration 173 - 170
Deferred tax liability 3,795 4,586 5,031
Total non-current liabilities 4,805 5,371 6,727
Current liabilities
Trade and other payables 14,148 13,152 9,078
Lease liabilities 902 456 838
Deferred consideration 72 3,033 465
Current income tax liabilities 2,611 1,512 3,004
Borrowings 178 89 265
Total current liabilities 17,911 18,242 13,650
Total liabilities 22,716 23,613 20,377
Total equity and liabilities 109,392 108,470 115,119
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS ENDED 30 JUNE 2022
Unaudited 6 months ended 30 June 2022 Unaudited 6 months ended 30 June 2021 Audited Year to 31 December 2021
£'000 £'000 £'000
Cash flow from operating activities
Profit before income tax 4,140 11,424 21,435
Adjustments for
- Warranty claim - (251) (285)
- Restructuring exceptional cost 1,682 - -
- Depreciation 1,505 919 2,041
- Amortisation and impairment charges 1,856 1,911 3,844
- Deferred consideration (FV adjust) - 132 285
- Foreign Exchange - (40) 61
- Bad debt written down - - 58
- (Profit)/loss on disposal of assets 19 (9) (13)
- Share-based payments 517 (1,392) (6,586)
- Net finance costs 11 1 26
Changes in working capital
- Inventories (693) (1,450) (4,601)
- Trade and other receivables 1,698 (2,960) (3,274)
- Trade and other payables (323) (5,126) 1,217
Cash generated by operations 10,412 3,159
14,208
Interest paid (39) (11) (36)
Income tax paid (1,945) (2,019) (3,934)
Net cash generated by operating activities 8,428 1,129 10,238
Cash flow from investing activities
Purchase of investments (2,930) - -
Purchase of property, plant and equipment (PPE) (2,167) (1,342) (4,335)
Purchase of intangibles (819) (623) (1,314)
Acquisition of subsidiaries (403) - 84
Proceeds from sale of PPE 6 14 43
Interest received 57 22 45
Net cash used in investing activities (6,256) (1,929) (5,477)
Cash flow from financing activities
Dividend - - (5,103)
Purchase of own shares (3,896) - -
Repayment of borrowings (525) (89) (178)
Principal lease payments (551) (257) (643)
Dividends paid to non-controlling interests - (231) (231)
Net cash used in financing activities (4,972) (577) (6,155)
Net decrease in cash and cash equivalents (2,800) (1,377) (1,394)
Cash and cash equivalents at beginning of period 20,341 21,913 21,913
Exchange gains on cash and cash equivalents 1,597 248 (178)
Cash and cash equivalents at end of period 19,138 20,784 20,341
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 30 JUNE 2022
Share Capital Share Premium Other Reserve Foreign Currency Reserve Retained earnings Total Non-controlling interest Total equity
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 1 January 2021 4,550 200 5,354 4,028 63,516 77,648 552 78,200
Comprehensive income/(expense)
Profit for the period - - - - 9,069 9,069 118 9,187
Other comprehensive income/(expense)
Changes in fair value of equity instruments at fair value through other - - 4,040 - - 4,040 - 4,040
comprehensive income/(expense)
Currency translation differences - - - (1,330) - (1,330) (4) (1,334)
Total comprehensive income/(expense) - - 4,040 (1,330) 9,069 11,779 114 11,893
Transactions with owners
Dividends to non-controlling interest - - - - - - (231) (231)
Dividend declared but not paid - - - - (5,005) (5,005) - (5,005)
Total contributions by and distributions to owners - - - - (5,005) (5,005) (231) (5,236)
At 30 June 2021 4,550 200 9,394 2,698 67,580 84,422 435 84,857
Comprehensive income/(expense)
Profit for the period - - - - 6,782 6,782 189 6,971
Other comprehensive income/(expense)
Changes in fair value of equity instruments at fair value through other - - (4,361) - - (4.361) - (4,361)
comprehensive income/(expense)
- - - 115 - 115 (7) 108
Currency translation differences
Total comprehensive income/(expense) - - (4,361) 115 6,782 2,536 182 2,718
Transactions with owners
Issue of ordinary shares as consideration for a business combination, net of 89 7,175 - - - 7,264 - 7,264
transaction costs
Dividend to owners - - - - (98) (98) - (98)
Dividends to non-controlling interest - - - - - - 1 1
Total contributions by and distributions to owners 89 7,175 - - (98) 7,166 1 7,167
At 31 December 2021 4,639 7,375 5,033 2,813 74,264 94,124 618 94,742
Comprehensive income
Profit for the period - - - - 2,213 2,213 210 2,423
Other comprehensive income/(expense)
Changes in fair value of equity instruments at fair value through other - - (5,307) - - (5,307) - (5,307)
comprehensive income/(expense)
Currency translation differences - - - 6,118 - 6,118 402 6,520
Total comprehensive income/(expense) - - (5,307) 6,118 2,213 3,024 612 3,636
Transactions with owners
Acquisition of own shares (90) - 90 - (3,896) (3,896) - (3,896)
Dividends to owners - - - - (7,806) (7,806) - (7,806)
Dividends to non-controlling interest - - - - - - - -
Total contributions by and distributions to owners (90) - 90 - (11,702) (11,702) - (11,702)
At 30 June 2022 4,549 7,375 (184) 8,931 64,775 85,446 1,230 86,676
NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS
1. General information and basis of presentation
EKF Diagnostics Holdings Plc is a company incorporated and domiciled in the
United Kingdom. The Company is a public limited company, which is listed on
the AIM 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 and other
industries. The Group has presence in the UK, USA, Germany, Russia, and China,
and sells throughout the world including Europe, the Middle East, the
Americas, Asia, and Africa.
The financial statements are presented in British Pounds Sterling, the
currency of the primary economic environment in which the Company's
headquarters is operated.
The financial information in these interim results is that of the holding
company and all of its subsidiaries. It has been prepared in accordance with
the UK-adopted International Accounting Standards and the Companies Act 2006.
The accounting policies applied by the Group in this financial information are
the same as those applied by the Group in its financial statements for the
year ended 31 December 2021 and which will form the basis of the 2022
financial statements except for a number of new and amended standards which
have become effective since the beginning of the previous financial year.
These new and amended standards are not expected to materially affect the
Group.
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.
The financial information presented herein does not constitute full statutory
accounts under Section 434 of the Companies Act 2006 and was not subject to a
formal review by the auditors. The financial information in respect of the
year ended 31 December 2021 has been extracted from the statutory accounts
which have been delivered to the Registrar of Companies. The Group's
Independent Auditor's report on those accounts was unqualified, did not
include references to any matters to which the auditor drew attention by way
of emphasis without qualifying their report and did not contain a statement
under section 498(2) or 498(3) of the Companies Act 2006. The financial
information for the half years ended 30 June 2022 and 30 June 2021 is
unaudited and the twelve months to 31 December 2021 is audited.
In the context of an increased level of uncertainty, the Group has exercised
critical judgements in applying its accounting policies in whether the Group
should continue to consolidate its Russian business. The Group has applied
judgement in regard to whether the Group continues to control its Russian
subsidiary due to the restrictions imposed by the Russian government or any
other authority. Control exists when the Group is exposed, or has rights, to
variable returns from its involvement with the subsidiary and has the ability
to affect those returns through its power over the subsidiary. The Russian
government introduced various sanctions in recent months, including
restrictions on the payment of dividends to "unfriendly states" that require
consent from the Ministry of Finance of Russia. Since the Group continued to
direct the operations and the Russian regulations currently do not prohibit
the declaration and payment of dividends, the Group has taken the view that it
has retained control through the six months ended 30 June 2022. Were the Group
to conclude that it no longer retains control, the Russian operations would be
treated as if they had been disposed of, with the associated assets and
liabilities derecognised.
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 which show, taking into account
reasonably plausible changes in financial performance, that the Group will be
able to operate within the level of its current funding arrangements.
The Group has passed through the COVID pandemic successfully and emerged with
growth in its core established business. While there is still some disruption
in certain territories, healthcare activities are continuing to return to
normal levels. Through the pandemic EKF has been able to learn new skills and
develop a business model which offers possibilities in the post-pandemic
world, the business has however now seen a significant reduction in
pandemic-related contract manufacturing and testing activities and has adopted
a pragmatic view that this will continue for the remainder of the year.
The Group has revenues from customers in Russia and an entity based there. As
a result of the sanctions recently imposed on Russia by the EU, the USA and
other countries, there are enhanced risks in respect of our Russian entity,
including regulatory restrictions and credit risk to cash balances, its
ability to collect debtors, and EKF's ability to import products into Russia.
In addition, action by the Russian Government is currently restricting the
Company's ability to pay dividends from its Russia entity. In preparing a
downside going concern forecast we have discounted sales and cash from this
region entirely.
The Group maintains a global supply chain and hence has experienced
supply-chain availability challenges and input-costs inflationary pressure.
Mitigating actions have been taken including considering forward-looking
sourcing requirements and responsible price increases.
While any further economic disruption stemming from the pandemic and other
Global events is impossible to forecast, the strength of the Group's balance
sheet aligned to the continuing performance of the business gives the
Directors confidence that the business can continue to meet its obligations as
they fall due, even under our worst-case scenarios, for at least the next 12
months. Accordingly, the Directors are satisfied they can prepare the accounts
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 development, manufacture and supply
of products and services into the in-vitro diagnostic (IVD) market and other
industries. This activity takes place across various countries, such as the
USA, Germany, Russia, and 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. In addition,
the COMD considers the segmental revenue performance of business segments.
The reportable segments derive their revenue primarily from the development,
manufacture and supply of products and services. Other services include the
servicing and distribution of third--party company products under separate
distribution agreements.
Currently the key operating performance measures used by the CODM are Revenue
and adjusted EBITDA (earnings before interest, tax, depreciation and
amortisation, adjusted for exceptional items and share-based payments).
The segment information provided to the Board for the reportable geographic
segments is as follows:
Period ended 30 June 2022 unaudited
Germany USA Russia UK Total
£'000 £'000 £'000 £'000 £'000
Income statement
Revenue 16,283 21,323 2,037 927 40,570
Inter-segment (2,701) (398) - - (3,099)
External revenue 13,582 20,925 2,037 927 37,471
Adjusted EBITDA* 4,989 6,911 665 (2,854) 9,711
Share-based payment - - - (517) (517)
Exceptional items (795) 755) - (132) (1,682)
EBITDA 4,194 6,156 665 (3,503) 7,512
Depreciation (370) (898) (37) (200) (1,505)
Amortisation (468) (138) - (1,250) (1,856)
Operating profit/(loss) 3,356 5,120 628 (4,953) 4,151
Net finance costs (25) (3) 56 (39) (11)
Income tax (493) (996) (158) (70) (1,717)
Profit/(loss) for the period 2,838 4,121 526 (5,062) 2,423
Segment assets
Operating assets 32,707 89,337 1,047 (16,294) 106,797
Inter-segment assets (47) (16,699) - 203 (16,543)
External operating assets 32,660 72,638 1,047 (16,091) 90,254
Cash and cash equivalents 7,833 8,220 2,585 500 19,138
Total assets 40,493 80,858 3,632 (15,591) 109,392
Segment liabilities
Operating liabilities 1,046 24,045 439 14,524 40,054
Inter-segment liabilities 4,986 (19,199) - (3,347) (17,560)
External operating liabilities 6,032 4,846 439 11,177 22,494
Borrowings 222 - - - 222
Total liabilities 6,254 4,846 439 11,177 22,716
Other segmental information
Non-current assets - PPE 6,087 10,445 101 1,537 18,170
Non-current assets - Right-of-use assets 139 1,072 4 280 1,495
Non-current assets - Intangibles 19,600 19,222 117 4,448 43,387
Intangible assets -additions 394 145 - 280 819
PPE - additions 357 1,769 - 41 2,167
Right-of-use assets - additions 78 72 - - 150
Year ended December 2021 audited
Germany USA Russia UK Total
£'000 £'000 £'000 £'000 £'000
39,665 38,974 3,286 8,514 90,439
Income statement
Revenue
Inter-segment (5,494) (2,918) - (191) (8,603)
External revenue 34,171 36,056 3,286 8,323 81,836
11,480 12,735 981 1,293 26,489
Adjusted EBITDA*
Exceptional items (452) - - 357 (95)
Share-based payments - - - 1,238 1,238
11,028 12,735 981 2,888 27,632
EBITDA
Depreciation (752) (938) (57) (294) (2,041)
Amortisation (1,525) (1,383) - (936) (3,844)
8,751 10,414 924 1,658 21,747
Operating profit/(loss)
Finance income - 7 38 - 45
Finance cost (31) (37) - (289) (357)
Income tax (2,806) (2,402) (193) 124 (5,277)
Profit for the year 5,914 7,982 769 1,493 16,158
29,672 59,803 431 29,860 119,766
Segment assets
Operating assets
Inter-segment assets (1,441) (16,712) - (6,835) (24,988)
External operating assets 28,231 43,091 431 23,025 94,778
Cash and cash equivalents 8,384 5,734 1,344 4,879 20,341
Total assets 36,615 48,825 1,775 27,904 115,119
6,387 24,796 167 13,319 44,669
Segment liabilities
Operating liabilities
Inter-segment liabilities (608) (17,703) - (6,677) (24,988)
External operating liabilities 5,779 7,093 167 6,642 19,681
Borrowings 303 393 - - 696
Total liabilities 6,082 7,486 167 6,642 20,377
Other segmental information 5,628 8,291 80 1,992 15,991
Non-current assets - PPE
Non-current assets - Right of use assets 111 1,379 18 367 1,875
Non-current assets - Intangibles 15,429 16,911 76 9,478 41,894
Intangible assets - additions 694 8,171 - 521 9,386
PPE - additions 693 3,366 17 258 4,335
Right-of-use assets - additions 82 1,082 31 156 1,351
Period ended 30 June 2021 unaudited
Germany USA Russia UK Total
£'000 £'000 £'000 £'000 £'000
Income statement
Revenue 17,288 19,772 1,384 4,481 42,925
Inter-segment (2,746) (1,616) - (4) (4,366)
External revenue 14,542 18,156 1,384 4,477 38,559
Adjusted EBITDA 5,326 7,521 364 (450) 12,761
Share-based payment - - - 1,392 1,392
Exceptional items 251 - - (17) 234
EBITDA 5,577 7,521 364 925 14,387
Depreciation (342) (246) (11) (320) (919)
Amortisation (438) (61) - (1,412) (1,911)
Operating profit/(loss) 4,797 7,214 353 (807) 11,557
Net finance costs (8) 5 16 (146) (133)
Income tax (692) (1,464) (75) (6) (2,237)
Profit/(loss) for the period 4,097 5,755 294 (959) 9,187
Segment assets
Operating assets 41,595 67,395 432 (618) 108,804
Inter-segment assets (143) (16,480) - (4,495) (21,118)
External operating assets 41,452 50,915 432 (5,113) 87,686
Cash and cash equivalents 4,382 6,177 966 9,259 20,784
Total assets 45,834 57,092 1,398 4,146 108,470
Segment liabilities
Operating liabilities 5,714 21,240 230 17,148 44,332
Inter-segment liabilities (446) (17,794) - (2,878) (21,118)
External operating liabilities 5,268 3,446 230 14,270 23,214
Borrowings 399 - - - 399
Total liabilities 5,667 3,446 230 14,270 23,613
Other segmental information
Non-current assets - PPE 5,796 5,014 82 2,065 12,957
Non-current assets - Right-of-use assets 78 585 2 225 890
Non-current assets - Intangibles 24,376 10,416 77 265 35,134
Intangible assets -additions 366 120 - 137 623
PPE - additions 456 679 - 206 1,341
Right-of-use assets - additions 44 (35) 15 103 127
* Adjusted EBITDA represents earnings before interest, tax,
depreciation and amortisation adjusted for exceptional items and share-based
payments
Disclosure of Group revenues by geographic location
Unaudited Unaudited Audited
6 months 6 months Year ended
ended 30 ended 30 31 December 2021
June 2022 June 2021
£000 £000 £000
Americas
United States of America 17,620 16,016 31,522
Rest of Americas 1,771 1,026 3,248
Europe, Middles East and Africa (EMEA)
Germany 4,245 4,286 7,942
United Kingdom 1,165 4,621 8,848
Ireland 5,229 4,384 14,292
Rest of Europe 1,641 2,920 4,616
Russia 2,037 1,384 3,286
Middle East 561 661 1,464
Africa 656 939 2,323
Rest of World
China 538 424 985
Rest of Asia 2,008 1,898 3,310
Total Revenue 37,471 38,559 81,836
Revenue by business segment, which is presented for illustrative purposes
only, is as follows:
Unaudited Unaudited +/- %
6 months ended 30 June 2022 6 months ended 30 June 2021
£'000 £'000
Point-of-Care 13,756 12,534 9.7%
Central Laboratory 6,295 6,325 (0.5%)
Life Sciences 2,024 1,033 95.9%
Contract Manufacturing 8,570 17,469 (50.9%)
Laboratory Testing 2,141 - n/a
Other 4,685 1,198 291.1%
Total revenue 37,471 38,559 (2.8%)
4. Exceptional items
Included within administration expenses and cost of sales are exceptional
items as shown below:
Unaudited 6 months ended 30 June 2022 Unaudited 6 months ended 30 June 2021 Audited year ended 31 December 2021
Note £000 £000 £000
Exceptional items include:
- Restructuring costs a (1,682) - -
- Business reorganisation costs b - (17) (37)
- Warranty claim c - 251 285
- Settlement of warranty claim and deferred consideration c - - (179)
- Acquisition costs d - - (164)
Exceptional items (1,682) 234 (95)
(a) Costs associated with the transition and restructure of
certain operations in the US, UK and Germany
(b) Costs associated with the restructuring of the business
including the closure of EKF Ireland
(c) Change in the value of an estimated warranty claim which
offsets the deferred consideration of £3.2m (2020: £2.9m) relating to a
share-based payment to the former owner of EKF-Diagnostic GmbH. The dispute
was settled before 31 December 2021 resulting in a payment in cash to the
former owner of £179,000. The remaining warranty claim and deferred
consideration have both been written down and there is no further liability as
at 30 June 2022.
(d) Professional fees relating to the acquisition of Advanced
Diagnostic Laboratory LLC in September 2021
5. Income tax
Unaudited Unaudited Audited
6 months 6 months Year ended
ended 30 ended 30 31 December 2021
June 2022 June 2021
£000 £000 £000
Current tax
Current tax on profit for the period (1,692) (2,387) (5,096)
Adjustments for prior periods - (4) (96)
Total current tax (1,692) (2,391) (5,192)
Deferred tax
Origination and reversal of temporary differences (25) 154 85
Total deferred tax (25) 154 85
Income tax charge 1,717 (2,237) (5,277)
6. Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the parent by the weighted average number of ordinary shares
in issue during the period.
Diluted profit 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 share, being share options.
Audited year ended 31 December 2021
Unaudited Unaudited 6 months ended 30 June 2021
6 months ended 30 June 2022
£'000 £'000 £'000
Profit attributable to owners of the parent 2,213 9,069 15,851
Weighted average number of ordinary shares 459,474,072 454,993,227 457,001,067
in issue
Assumed conversion of share awards 4,987 12,150 12,640
Assumed payment of equity deferred consideration 157,580 4,043,940 3,944,226
Weighted average number of ordinary shares - diluted 459,636,639 459,049,317 460,957,933
Pence Pence Pence
From continuing operations
Basic 0.48 1.99 3.47
Diluted 0.48 1.98 3.44
7. Property, plant and equipment
Group Land and buildings Plant and machinery
£'000
Fixtures and fittings £'000 Motor vehicles Assets under construct-ion
£'000 £'000 £'000 Right-of-use assets Total
£'000 £'000
Cost
At 1 January 2021 10,210 1,389 11,809 201 735 1,600 25,944
Additions 325 446 384 - 187 126 1,468
Transfers 58 332 (58) - (332) - -
Disposal (19) (37) (113) 7 - (64) (226)
Exchange differences (209) (38) (414) - (18) (48) (727)
At 30 June 2021 10,365 2,092 11,608 208 572 1,614 26,459
Acquisition of subsidiary 4 - 818 - - 111 933
Additions 155 197 356 17 2,268 1,225 4,218
Transfers 161 (202) 397 - (356) - -
Disposals 12 (65) (134) (63) (13) - (222)
Exchange differences 14 (10) 143 (2) (1) 60 204
At 31 December 2021 10,711 2,012 13,188 160 2,470 3,010 31,551
Additions 304 101 683 - 1,079 150 2,317
Transfers - 215 (215) - - - -
Disposal - - (213) - - (207) (420)
Exchange differences 694 72 951 79 255 192 2,243
At 30 June 2022 11,709 2,400 14,394 239 3,804 3,145 35,691
Depreciation
At 1 January 2021 2,300 1,102 8,214 108 - 581 12,305
Exchange differences (41) (34) (301) (1) - (13) (390)
Disposal (19) (36) (110) 7 - (64) (222)
Transfers - 182 (182) - - - -
Charge for the period 151 134 403 11 - 220 919
At 30 June 2021 2,391 1,348 8,024 125 - 724 12,612
Exchange differences 15 (8) 164 (1) - 18 188
Disposal 12 (65) (128) (56) - - (237)
Transfers - (182) 182 - - - -
Charge for the period 177 156 383 13 - 393 1,122
At 31 December 2021 2,595 1,249 8,625 81 - 1,135 13,685
Exchange differences 222 50 666 43 - 67 1,048
Disposal - - (188) - - (207) (395)
Impairment - - 51 - - 132 183
Transfers - 194 (194) - - - -
Charge for the period 255 158 555 14 - 523 1,505
At 30 June 2022 3,072 1,651 9,515 138 - 1,650 16,026
Net book value
30 June 2022 8,637 749 4,879 101 3,804 1,495 19,665
31 December 2021 8,116 763 4,563 79 2,470 1,875 17,866
30 June 2021 7,974 744 3,584 83 572 890 13,847
8. Intangible Fixed Assets
Group Goodwill Customer relationships
£'000
Trademarks trade names & licences £'000 Trade secrets Develop-ment costs
£'000 £'000 £'000 Software Total
£'000
£'000
Cost
At 1 January 2021 27,003 3,317 15,541 19,056 4,453 593 69,963
Additions - 238 - - 317 68 623
Disposal - (2) - - - - (2)
Exchange differences (718) 275 (338) (498) (116) (14) (1,409)
At 30 June 2021 26,285 3,828 15,203 18,558 4,654 647 69,175
Acquisition of subsidiary 3,755 467 1,166 - - 2,684 8,072
Additions - (134) - - 820 5 691
Disposals (1,407) (17) (749) (1,073) (288) - (3,534)
Exchange differences (75) (12) 86 (157) (11) 34 (135)
At 31 December 2021 28,558 4,284 15,706 17,328 5,023 3,370 74,269
Additions - 15 - - 802 2 819
Disposal - - - - - - -
Impairment (1,177) - - (3,950) (28) - (5,155)
Exchange differences 1,553 296 1,422 355 257 359 4,242
At 30 June 2022 28,934 4,595 17,128 13,733 6,054 3,731 74,175
Amortisation
At 1 January 2021 2,605 2,947 11,556 14,461 1,343 - 32,912
Exchange differences (54) (84) (251) (362) (30) - (781)
Disposal - (1) - - - - (1)
Impairment - - - - (8) - (8)
Charge for the period - (52) 588 1,234 107 42 1,919
At 30 June 2021 2,551 2,810 11,893 15,333 1,412 42 34,041
Exchange differences 33 (60) 48 (92) 6 1 (64)
Disposal (1,407) (18) (749) (1,073) (288) - (3,535)
Impairment - - - - 8 - 8
Charge for the period - 289 633 496 441 66 1,925
At 31 December 2021 1,177 3,021 11,825 14,664 1,579 109 32,375
Exchange differences - 205 1,066 292 126 23 1,712
Disposal - - - - - - -
Impairment (1,177) - - (3,950) (28) - (5,155)
Charge for the period - 110 705 494 228 319 1,856
At 30 June 2022 - 3,336 13,596 11,500 1,905 451 30,788
Net book value
30 June 2022 28,934 1,259 3,532 2,233 4,149 3,280 43,387
31 December 2021 27,381 1,263 3,881 2,664 3,444 3,261 41,894
30 June 2021 23,734 1,018 3,310 3,225 3,242 605 35,134
9. Dividends
A dividend to shareholders of the holding company of 1.2p per ordinary share
has been provided during the period following shareholder approval at the
Annual General Meeting of the Company in May 2022 (six months to 30 June 2021
and year to 31 December 2021: both 1.1p). It will be paid on 1 December 2022
to shareholders on the register of members at the close of business on 4
November 2022.
10. Availability of this announcement
This announcement and the Group's Interim Report for the six months ended 30
June 2022 are available from the Company's website, www.ekfdiagnostics.com
(http://www.ekfdiagnostics.com) . If you would like to receive a hard copy of
the Interim Report, please contact the EKF Diagnostics Holdings plc offices on
+44 (0)29 2071 0570 to request a copy.
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 IR BDGDCIDBDGDIRecent news on EKF Diagnostics Holdings
See all newsREG - EKF Diagnostics Hldg - Cancellation of Treasury Shares & TVR
AnnouncementREG - EKF Diagnostics Hldg - Share Buyback
AnnouncementREG - EKF Diagnostics Hldg - Share Buyback
AnnouncementREG - EKF Diagnostics Hldg - Share Buyback
AnnouncementREG - EKF Diagnostics Hldg - Total Voting Rights
Announcement