REG - EKF Diagnostics Hldg - Half-year Report
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RNS Number : 4193Z EKF Diagnostics Holdings PLC 16 September 2025
EKF Diagnostics Holdings plc
("EKF" or the "Company", or the "Group")
Half-year Report
Record analyzer sales, continued improvement in earnings and cash generation
EKF Diagnostics Holdings plc (AIM: EKF), the AIM-quoted global diagnostics
business, announces its unaudited interim results for the six months ended 30
June 2025 ("H1 2025"), a period showing record analyzer sales, further
improvement in gross margins, pre-tax profit growth and cash generation,
in-line with management expectations.
Guidance for the full year performance remains unchanged from the 28 July 2025
Trading Update
(https://www.londonstockexchange.com/news-article/EKF/h1-2025-trading-update/17153558)
. The Company remains on track to deliver growth at the revenue and adjusted
EBITDA levels for FY 2025 in-line with market expectations(2).
Financial highlights
● Revenue from continuing operations of £25.2m (H1 2024: £25.2m)
- Following completion of rationalisation process for non-core and low margin
product lines and services
- Revenue up 2.2% on constant currency terms to £25.8m
● Gross profit of £12.7m (H1 2024: £12.1m)
● Gross margins further improved to 50.2% (H1 2024: 48.1%), driven by greater
focus on higher margin products
● Adjusted EBITDA(1) up 7.4% to £5.8m (H1 2024: £5.4m)
● Profit before tax up 16.1% to £3.6m (H1 2024: £3.1m)
● Net cash generated from operations of £4.9m (H1 2024: £7.9m - including
£2.1m US tax refund)
● Cash and cash equivalents net of bank borrowing as at 30 June 2025 of £16.6m
(31 December 2024: £14.3m)
- HSBC 3 year loan facility cancelled early due to strong cash generation
- £1.9m held by EKF's Russian subsidiary and subject to regulatory
restrictions (31 December 2024: £1.3m), with £0.2m in further dividends
received in the period
● c. £1m share buy back completed acquiring 4.6m shares, authority refreshed to
buy back further shares
(1)Earnings before interest, tax, depreciation and amortisation, excluding
exceptional items.
²Management understands consensus revenue and Adjusted EBITDA forecasts for
FY 2025 to be £53.6m and £12.4m respectively.
Operational highlights
● Core revenues (excl. clinical chemistry) up 2% to £25.0m (H1 2024: £24.4m)
- Point-of-Care: £15.4m (H1 2024: £15.2m)
- Life Sciences: £9.3m (H1 2024: £8.6m)
- Other*: £0.3m (H1 2024: £0.7m)
- Discontinued product lines: £0.2m (H1 2024: £0.7m)
● 60% increase in Hematology analyzer production vs. H1 2024 to drive consumable
growth in H2 2025 and FY 2026
● €4.65m (c. £4.03m) contract wins in Hematology POC testing post period end,
to be delivered over next 12 to 24 months
● Production capacity improvement plans initiated to increase POC production by
a further 30%
● Strong β-HB sales, up 12% (16% on consistent currency basis), as key partners
widen their conversion to own brand labelled product
● Continued investment for growth as part of the five-year strategic development
plan for the business
* Other includes miscellaneous accessories, consumables, and repairs
Julian Baines, Executive Chair of EKF, commented: "It is pleasing to see that
our five-year strategic development plan to support accelerated organic growth
is already bearing fruit as we deliver continued revenue growth and improved
profitability across both divisions. The key drivers of our performance have
been sales of our β-HB LiquiColor® reagent and the successful ramp up in
sales of our hematology analyzers, and we expect to see a further strong
performance from these lead product lines in H2 2025.
"The Board is very excited about the future prospects of the Company and we
remain on track to deliver growth at the revenue and adjusted EBITDA levels
for FY 2025 in-line with market expectations(2)."
Copies of the interim results and associated investor presentation are
available here:
https://www.ekfdiagnostics.com/documents-reports.html
(https://www.ekfdiagnostics.com/documents-reports.html)
Investor Presentation
EKF Diagnostics will be hosting a live online presentation open to all
existing and potential investors on Tuesday 16 September 2025 at 10.30am
(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)
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 person responsible for arranging the release of this Announcement
on behalf of the Company is Gavin Jones, Chief Executive Officer.
EKF Diagnostics Holdings plc www.ekfdiagnostics.com (http://www.ekfdiagnostics.com)
Julian Baines, Executive Chair via Walbrook PR
Gavin Jones, Chief Executive Officer
Stephen Young, Chief Financial Officer
Singer Capital Markets (Nominated Adviser & Broker) Tel: +44 (0)20 7496 3000
Phil Davies / Oliver Platts
Walbrook PR Limited Tel: +44 (0)20 7933 8780 or ekf@walbrookpr.com (mailto:ekf@walbrookpr.com)
Paul McManus / Alice Woodings Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654
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 offers 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.
EKF has headquarters in Penarth (near Cardiff) and operates five manufacturing
sites across the US and Germany, selling into over 120 countries world-wide.
EXECUTIVE CHAIR'S STATEMENT
The implementation of our five-year strategic development plan, focussing on
growing revenues from key product lines within our Point-of-Care and Life
Sciences divisions, and correctly aligning our cost base to drive further
margin improvement and enhance cash generation, is proving successful. In the
first half we have shown further increases in both gross margins and pre-tax
profit growth, and cash generation remains strong, in-line with management
expectations. Cash balances continue to grow, allowing us to effectively
invest in key areas of growth as part of the five-year plan, as well as to
deploy surplus cash to improve earnings per share via our share buyback
programme.
OPERATIONAL OVERVIEW
Total revenues (excluding discontinued product lines) for the six months ended
30 June 2025 were up 2% to £25.0m (H1 2024: £24.5m). Gross Margins improved
further to 50.2% (H1 2024: 48.1%) and adjusted EBITDA increased by 7.4% to
£5.8m (H1 2024: £5.4m). Profit before tax rose 16.1% to £3.6m (H1 2024:
£3.1m).
The implementation of the five-year plan continues in-line with management
expectations, with a strong revenue performance from the key growth areas of
Hematology (8% increase year-on-year) and β-HB (12% increase year-on-year).
Diabetes sales have stabilised providing a steady performance in the first
half. The pipeline for contract manufacturing and fermentation opportunities
is encouraging with a number of high value prospects now in the advanced stage
of discussions.
Divisional revenue for the 6 months ended 30 June 2025 2024 % Change
£ millions Unaudited Unaudited
Point-of-Care (POC) 15.4 15.2 1%
POC: Hematology 7.8 7.3 7%
POC: Diabetes 5.5 5.4 2%
POC: Other 2.1 2.5 -16%
Life Sciences 9.3 8.6 8%
Life Sciences: β-HB 7.1 6.3 13%
Life Sciences: Fermentation 1.4 1.7 -18%
Life Sciences: Contract Manufacturing 0.8 0.6 33%
Other* 0.3 0.7 -57%
Discounted Product Lines 0.2 0.7 -71%
Total Revenues 25.2 25.2 0%
Total Revenues excluding discontinued product 25.0 24.5 2%
* Other revenue relating to, shipping and handling recharges, repairs and
other sundries.
1. Point-of-Care (POC)
EKF continues to maintain a strong position within the global market for
hematology and diabetes testing, building on our sales of over 12,000
Point-of-Care analyzers and over 94 million individual test consumables in
2024.
POC: Hematology
We identified hematology as the main opportunity for organic growth within the
POC division and have begun the process of creating a dedicated POC sales team
focused on Hemoglobin POC testing. This focus is showing early signs of
success with a strong revenue performance in the first half as total sales of
our hematology analyzers and consumables rose by 8% year-on-year to £7.8m (H1
2024: £7.3m). HemoControl remains the largest contributor to hematology
revenues, with revenues up by over 21% year-on-year. We have particularly
focussed on growing production capacity for our HemoControl product to meet
strong and rising demand in Peru, Brazil, Italy and the US. H1 2025 vs H1 2024
saw an increase in HemoControl analyser build of nearly 125% and whilst we
have ramped up supply capacity to meet further increased demand going into H2
2025, we expect to make further investments to grow consumable and analyser
production capacity at the Barleben site by 30%. With an increase in total
hematology analyser builds in H1 2025 of 60% compared to the previous period,
we anticipate seeing significant growth in consumable pull-through impacting
H2 2025 and beyond.
Our positive outlook was supported by the additional news post-period end that
we had signed further contracts worth approximately €4.65m (c. £4.03m), for
the supply of hemoglobin analysers and related consumables in Latin America
and Africa over the next 12 to 24 months.
Our second largest hematology product, Diaspect Tm, has returned to growth and
delivered an increase in total sales (both analysers and consumables) of just
over 4%. Analyser sales have shown a significant increase in H1 2025, and this
should support further consumable growth going forward. We have also won new
contracts for Diaspect Tm in India and Uganda.
We believe we are well placed to increase our commercial focus on the US
Hemoglobin POC testing market and will target wider adoption in blood banks,
plasma centres and Women Infants & Children (WIC) centers and other Public
Health settings in this key market. We are also looking to focus on
under-served markets by increasing engagement with our distributor base,
establishing new sales channels in LATAM, EMEA and APAC provided by infectious
disease, and identifying and targeting Non-Governmental Organisations (NGOs)
to drive market expansion.
POC: Diabetes
As we flagged in our 2024 full year results, there is a growing global trend
to reduce the frequency of glycated haemoglobin (HbA1c) testing driven by
lower reimbursement rates and the prevalence of Continuous Glucose Monitoring.
This has seen a steady decline in sales from our Diabetes product portfolio
over recent years. In this context broadly flat sales from the Diabetes
product portfolio of £5.5m (H1 2024: £5.4m) is encouraging.
Biosen sales, our largest contributor within diabetes, rose by 3.4% and
Quo-Lab revenues were up 1.1%, but these gains were balanced by a decline in
Quo-Test sales of 3.4%.
2. Life Sciences
Life Sciences: β-HB
H1 2025 saw further strong sales of our β-HB LiquiColor® reagent, up 12%
year-on-year to £7.1m (H1 2024: £6.3m), seeing us take more market share as
our key partners widened their conversion to own brand labelled product under
our white label contracts. Ongoing contract manufacture for bulk reagents and
kits remains a growing source of revenue within our Life Sciences division.
Life Sciences: Fermentation & Contract Manufacturing
The pipeline for contract manufacturing and fermentation opportunities remains
encouraging with a number of high value prospects now in the advanced stage of
discussions. We expect to confirm at least one new significant partnership in
H2 2025 and will update shareholders of our progress in growing this business.
Contract manufacturing in H1 25 primarily consists of molecular transport
medium revenues.
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. Sales remains impacted by the increased effect of
sanctions in the region, even for essential medical supplies, and restrictions
remain in place regarding the payment of foreign dividends in Russia and so
this cash remains partly inaccessible. Cash held in Russia totalled £1.9m at
the period end, with £0.2m of further dividends received from Russia during
the period.
Outlook
It is pleasing to see that our five-year strategic development plan to support
accelerated organic growth is already bearing fruit as we deliver continued
revenue growth and improved profitability across both divisions. The key
drivers of our performance have been sales of our β-HB LiquiColor® reagent
and the successful ramp up in sales of our hematology analyzers, and we expect
to see a further strong performance from these lead product lines in H2 2025.
Particularly encouraging is the significant increase in analyzer production to
meet our current order flow during H1 2025. Whilst the analyzers themselves
are low margin products, the increased number of units in the field should see
a significant pull through of higher margin consumables in H2 2025 and beyond.
Having successfully increased supply capacity going into H2 2025, further
investment will be needed to grow Hemoglobin consumable and analyser
production capacity at our Barleben site by 30%, and we look forward to
updating shareholders on our progress.
Now that our US sales team are able to fully concentrate on β-HB LiquiColor®
sales, we are able to more effectively target acute care hospitals in the US
not currently using β-HB, because they are using outdated technology or not
following current Diabetic Ketoacidosis guidelines. We expect to see continued
growth in this area.
By delivering against our five-year strategic development plan we believe we
would be able to create a business generating in excess of £80m revenues and
£20m adjusted EBITDA by 2029. We continue to target becoming number 1 in both
POC hematology testing, and Ketone testing (β-HB) by 2029 and are encouraged
by our progress to date.
The Board is very excited about the future prospects of the Company and we
remain on track to deliver growth at the revenue and adjusted EBITDA levels
for FY 2025 in-line with market expectations(2).
Julian Baines
Executive Chair
FINANCIAL REVIEW
Revenue
Revenue for the period was £25.2m (H1 2024: £25.2m). On a constant currency
basis using 2024 rates, revenue would have been £25.8m. In 2023 we announced
that we were winding down our Clinical Chemistry business due to its low
margins. Residual revenue from this business in H1 2025 was £0.2m (H1 2024:
£0.7m).
Revenue by Business Unit:
Unaudited Unaudited
6 months ended 30 June 2025 6 months ended 30 June 2024
£'000 £'000
+/- %
Point-of-care 15,458 15,191 1.8%
Life sciences 9,253 8,599 7.6%
Other* 321 667 (51.9%)
Revenue from core operations 25,032 24,457 2.4%
Clinical chemistry 207 755 (72.5%)
Total revenue 25,239 25,212 0.1%
* Other revenue relating to shipping and handling recharges, repairs and other
sundries
Revenue from core operations (excluding clinical chemistry revenues) increased
by 2.4% (H1 2024: 0.4%), particularly as a result of higher β-HB revenues.
Revenue by Geographical Segment:
Unaudited Unaudited
6 months ended 30 June 2025 6 months ended 30 June 2024
£'000 £'000
+/- %
Continuing business
Germany 10,392 9,916 4.8%
USA 12,871 13,658 (5.8%)
Russia 1,976 1,638 20.6%
Total revenue 25,239 25,212 0.1%
Revenue in local currency showed growth of 6% in Germany, 16% in Russia, and a
2% decline in the USA, however the continuing core business in the USA without
the clinical chemistry business grew by 2%.
Revenue in Germany has recovered from last year which was affected by the
delayed launch of the updated Biosen.
In the USA, revenue in GBP is lower as a result of the closure of our clinical
chemistry business and the effect of the US dollar exchange rate.
The Group's Russian subsidiary, which is 60% owned by the Group, is
consolidated in full in accordance with accounting standards. The interest of
the minority shareholders is included as a separate item in the Consolidated
Income statement.
Gross profit
Gross profit was £12.7m (H1 2024: £12.1m). The gross profit margin was 50.2%
(H1 2024: 48.1%), a further improvement, mainly as a result of higher β-HB
revenue and the ending of clinical chemistry. The gross profit margin on an
Adjusted Earnings basis (i.e. excluding depreciation, amortisation, and
exceptional items included in cost of sales) was 54.1% (H1 2024: 51.5%).
Administrative expenses
In H1 2025, administration expenses (excluding exceptionals) were unchanged at
£9.2m (H1 2024: £9.2m), representing 36.4% of revenue for the period (H1
2024: 36.3%, FY 2024: 36.6%). The Board expects that the continuing effect of
the cost savings and efficiency measures that have been implemented will be
offset by the additional cost of investments being made in line with the
Group's new strategy.
The charge for depreciation of fixed assets and for the amortisation of
intangibles is £2.1m (H1 2024: £2.4m).
Headcount
The Group had an average of 297 employees during H1 2025 (H1 2024: 309).
Operating profit and adjusted earnings before interest tax and depreciation
The Group generated an operating profit of £3.5m (H1 2024: £3.1m), a 16.8%
improvement. We continue to consider that adjusted EBITDA gives a more
meaningful measure of performance which for H1 2025 was £5.8m (H1 2024:
£5.4m), a 6.5% increase.
There have been no exceptional items in H1 2025. In H1 2024 adjusted EBITDA
excluded an exceptional credit of £0.03m relating mainly to the reversal of
provisions against inventory originally charged to exceptional items.
Finance income
Net finance income is £0.04m (H1 2023: cost of £0.01m). The improvement is
largely because of lower bank interest on loans offset by higher interest
income. The Group no longer has any borrowings.
Tax
There is a tax charge of £1.5m (H1 2024: £0.8m). The increase largely
reflects the deferred tax effect of a reduction in the anticipated US tax
losses brought forward, as well as the increase in profit.
Earnings per share
Basic earnings per share from continuing operations is 0.43 pence (H1 2024:
0.46 pence), mainly as a result of the higher tax charge. There are no
outstanding potentially dilutive items.
Balance sheet
Fixed assets
We have capitalised £0.5m (H1 2024: £2.0m) of property, plant and equipment
including the effect of the capitalisation of new operating leases. A number
of capital projects designed to improve capacity, mainly in Germany, are
expected to complete in the second half of 2025.
Intangible assets
The value of intangible fixed assets is largely unchanged at £28.8m (31
December 2024: £28.9m), as additions and amortisation have offset. An amount
of £0.5m (H1 2024: £0.3m) has been capitalised during the first half,
largely for R & D expenses. We have started the process of aligning our R
& D programmes more closely with our strategy, with a focus on continuous
improvement and cost reduction of core products.
Investments
Investments are held at fair value which has been calculated based on the
market value of the shares for Verici Dx. The Group did not participate in
Verici's July 2025 fundraising.
Cash and working capital
The gross and net cash position at 30 June 2025 was £16.6m (31 Dec 2024:
£14.3m).
Cash generated from operating activities in H1 2025 is £4.9m (H1 2024:
£7.9m). The reduction is to a large extent related to tax in the USA, In 2024
a tax repayment of £2.1m was received, while in 2025 we have now returned to
making payments on account.
The undrawn loan facility of £3m with HSBC was cancelled during the period
because of the strong cash generation, and to save cost.
Cash and cash equivalents held by the Russian subsidiary as at 30 June 2025
totalled £1.9m (31 Dec 2024: £1.3m). These balances are subject to
regulatory restrictions, and therefore may not be available for general use by
the other entities within the Group. We have been able to organise further
dividends from Russia during the period of £0.2m which have limited our
exposures.
Share capital
During the period a share buy back was completed. 4,636,774 ordinary shares
were acquired at a net cost of £996,000. These shares plus the 1,200,000
already held in treasury have subsequently been cancelled. We have maintained
shareholder authority to buy back further shares, and will do so if
appropriate.
Dividend
Based on the need for continued investment in our core areas the Board has
decided that it would be prudent to discontinue dividend payments. The Board
will however consider recommencing the payment of dividends if and when
appropriate.
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 revenues from customers in Russia which are serviced by our
entity based in Moscow. As a result of the continuing sanctions 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, while we have been able to make some
dividend payments out of Russia, action by the Russian Government continues to
restrict the Russian entity's ability to pay dividends to its shareholders. In
preparing a downside going concern forecast we have discounted future sales
and cash from this region entirely.
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. The Group has cash
resources and an unutilised facility of £3m from the North Atlantic Smaller
Companies Investment Trust, which is available until 2026, and which can be
drawn down if necessary. Accordingly, the Directors are satisfied they can
prepare the accounts on a going concern basis.
Stephen Young
Chief Financial Officer
16 September 2025
CONSOLIDATED INCOME STATEMENT
FOR THE 6 MONTHS ENDED 30 JUNE 2025
Unaudited 6 months ended 30 June 2025 Unaudited 6 months ended 30 June 2024 Audited Year ended 31 December 2024
Notes £'000 £'000 £'000
Continuing operations
Revenue 3 25,239 25,212 50,194
Cost of sales (12,568) (13,150) (25,798)
Exceptional items - other credited/(charged) to cost of sales - 58 (330)
Gross profit 12,671 12,120 24,066
Administrative expenses (9,183) (9,160) (18,078)
Exceptional items - other - (29) (22)
Other income 98 139 294
Operating profit 3,586 3,070 6,260
Depreciation and amortisation (2,188) (2,382) (4,724)
Exceptional items 4 - 29 (352)
EBITDA before exceptional items and share-based payments 5,774 5,423 11,336
Finance income 92 98 174
Finance costs (48) (111) (171)
Profit before income tax 3,630 3,057 6,263
Income tax charge 5 (1,530) (837) 314
Profit for the period 2,100 2,220 6,577
Profit is attributable to:
Owners of the parent 1,944 2,066 6,242
Non-controlling interest 156 154 335
2,100 2,220 6,577
Earnings per ordinary share attributable to the owners of the parent during
the period
6
Pence Pence Pence
Basic 0.43 0.46 1.38
Diluted 0.43 0.46 1.38
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2025
Unaudited Unaudited Audited
6 months ended 30 June 2025 6 months ended 30 June 2024 Year ended 31 December 2024
£'000 £'000 £'000
Profit for the period 2,100 2,220 6,577
Other comprehensive expense
Items that will not be reclassified to profit or loss
Changes in fair value of equity instruments at fair value through other (21) (29) (48)
comprehensive income (net of tax)
Items that may be subsequently reclassified to profit or loss
Currency translation differences (1,239) (300) (1,198)
Other comprehensive (loss)/income (net of tax) (1,260) (329) (1,246)
Total comprehensive income/(loss) for the period 840 1,891 5,331
Attributable to:
Owners of the parent 403 1,684 5,210
Non-controlling interests 437 207 121
Total comprehensive income/(loss) for the period 840 1,891 5,331
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
Unaudited as at 30 June 2025 Unaudited as at 30 June 2024 Audited as at 31 December 2024
Notes £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 7 20,815 23,696 22,779
Right-of-use assets 7 1,060 1,212 1,255
Intangible assets 8 28,791 29,466 28,922
Investments 206 226 228
Deferred tax assets 25 17 9
Total non-current assets 50,897 54,617 53,193
Current Assets
Inventories 7,826 8,157 7,393
Trade and other receivables 7,091 6,600 6,803
Corporation tax receivable - 133 55
Cash and cash equivalents * 16,616 9,820 14,301
Total current assets 31,533 24,710 28,552
Total assets 82,430 79,327 81,745
Equity attributable to owners of the parent
Share capital 4,491 4,537 4,537
Share premium 7,375 7,375 7,375
Other equity - Ordinary shares held in treasury - 12 12
Other reserve 69 51 32
Foreign currency reserves 3,852 6,003 5,372
Retained earnings 55,947 50,823 54,999
71,734 68,801 72,327
Non-controlling interest 1,146 1,134 885
Total equity 72,880 69,935 73,212
Liabilities
Non-current liabilities
Lease liabilities 914 1,009 898
Deferred tax liability 1,813 3,006 1,198
Total non-current liabilities 2,727 4,015 2,096
Current liabilities
Trade and other payables 5,791 4,844 5,399
Lease liabilities 208 237 420
Current income tax liabilities 824 296 618
Total current liabilities 6,823 5,377 6,437
Total liabilities 9,550 9,392 8,533
Total equity and liabilities 82,430 79,327 81,745
*including restricted cash of £1,947,000 (June 2024: £2,229,000, December
2024: £1,289,000)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS ENDED 30 JUNE 2025
Unaudited 6 months ended 30 June 2025 Unaudited 6 months ended 30 June 2024 Audited Year to 31 December 2024
£'000 £'000 £'000
Cash flow from operating activities
Profit/(Loss) before income tax 3,630 3,057 6,263
Adjustments for
- Depreciation 1,635 1,733 3,633
- Amortisation and impairment charges 553 649 1,091
- Exceptional items - other, charged to cost of sales - 58 330
- Exceptional items - other - (29) -
- Loss on disposal of assets 14 67 19
- Cash outflows relating to exceptional items - (18) -
- Foreign Exchange - (104) 141
- Bad debt written (back)/down (56) (28) 17
- Finance income (92) (98) (174)
- Finance costs 6 89 91
- Lease interest 42 22 80
- Release of debt fees - - 14
Changes in working capital
- Inventories (420) 922 765
- Trade and other receivables (285) 343 (122)
- Trade and other payables 407 (715) 22
Cash generated from operations 5,434 5,948 12,170
Interest received 92 98 174
Interest paid (6) (89) (91)
Income tax (paid)/received (600) 1,908 1,403
Net cash generated from operating activities 4,920 7,865 13,656
Cash flow from investing activities
Payment for property, plant and equipment (PPE) (486) (1,495) (2,246)
Payment for intangibles (452) (263) (510)
Proceeds from sale of PPE - - 94
Net cash used in investing activities (938) (1,758) (2,662)
Cash flow from financing activities
Repayments of borrowings - (3,000) (3,000)
Principal elements of lease payments (265) (897) (741)
Dividends payment to non-controlling interests (176) (173) (336)
Net cash used in financing activities (1,437) (4,070) (4,077)
Net increase in cash and cash equivalents 2,545 2,037 6,917
Cash and cash equivalents at beginning of period 14,301 7,726 7,726
Exchange (losses)/gains on cash and cash equivalents (230) 57 (342)
Cash and cash equivalents at end of period 16,616 9,820 14,301
As at 30 June 2025 cash and cash equivalents totalling £1.9m (June 23:
£2.2m, December 2024: £1.3m) are held by the Group's 60% owned Russian
subsidiary. 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
FOR THE 6 MONTHS ENDED 30 JUNE 2025
Share Capital Share Premium Other Equity Other Reserve Foreign Currency Reserve Retained earnings Total Non-controlling interest Total equity
£'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 period - - - - - 2,066 2,066 154 2,220
Other comprehensive income/(expense)
Revaluation of Investment in Verici - - - (29) - - (29) - (29)
Currency translation differences - - - - (353) - (353) 53 (300)
Total comprehensive income/(expense) - - - (29) (353) 2,066 1,684 207 1,891
Transactions with owners
Dividends to non-controlling shareholders - - - - - - - (173) (173)
Total contributions by and distributions to owners - - - - - - - (173) (173)
At 30 June 2024 (unaudited) 4,537 7,375 12 51 6,003 50,823 68,801 1,134 69,935
Comprehensive income/(expense)
Profit for the period - - - - - 4,176 4,176 181 4,357
Other comprehensive income/(expense)
Revaluation of Investment in Llusern - - - (2) - - (2) - (2)
Revaluation of Investment in Verici - - - (17) - - (17) - (17)
Currency translation differences - - - - (631) - (631) (267) (898)
Total comprehensive income/(expense) - - - (19) (631) 4,176 3,526 (86) 3,440
Transactions with owners
Dividends to non-controlling interest - - - - - - - (163) (163)
Total contributions by and distributions to owners - - - - - - - (163) (163)
At 31 December 2024 4,537 7,375 12 32 5,372 54,999 72,327 885 73,212
Comprehensive income
Profit for the period - - - - - 1,944 1,944 156 2,100
Other comprehensive income/(expense)
Revaluation of Investment in Verici - - - (21) - - (21) - (21)
Currency translation differences - - - - (1,520) - (1,520) 281 (1,239)
Total comprehensive income/(expense) - - - (21) (1,520) 1,944 403 437 840
Transactions with owners
Acquisition and cancellation of own shares (46) - (12) 58 - (996) (996) - (996)
Dividends to non-controlling shareholders - - - - - - - (176) (176)
Total contributions by and distributions to owners (46) - (12) 58 - (996) (996) (176) (1,172)
At 30 June 2025 (unaudited) 4,491 7,375 - 69 3,852 55,947 71,734 1,146 72,880
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 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 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 statements are presented in British Pounds Sterling, the
currency of the primary economic environment in which the Company's
headquarters operates. The consolidated financial statements have been
prepared under the historical cost convention, as modified by the revaluation
of certain financial liabilities at fair value through profit and loss and
certain financial assets measured at fair value through other comprehensive
income.
The financial information in these interim results is that of the holding
company and all of its subsidiaries as at 30 June 2025. It has been prepared
in accordance with UK-adopted International Accounting Standards and the
Companies Act 2006 as applicable to companies reporting under those standards.
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 2024 and which will form the basis of the 2025
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. The preparation of financial statements requires the use of certain
critical accounting estimates. It also requires management to exercise its
judgement in the process of applying the Group's accounting policies. There
has been no material change either in relation to the critical accounting
estimates used or the judgement required.
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 2024 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 2025 and 30 June 2024 is
unaudited and the twelve months to 31 December 2024 is audited. These interim
accounts have been prepared in accordance with IAS 34 "Interim Financial
Statements".
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 revenues from customers in Russia which are serviced by our
entity based in Moscow. As a result of the continuing sanctions 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, while we have been able to make
limited dividend payments out of Russia, action by the Russian Government
continues to restrict the Russian entity's ability to pay dividends to its
shareholders. In preparing a downside going concern forecast we have
discounted future sales and cash from this region entirely.
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. The Group has
unutilised facilities of £3m from the North Atlantic Smaller Companies
Investment Trust, which is available until 2026, which can be drawn down if
necessary. 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 design, development, manufacture
and sale of diagnostic instruments, reagents and certain ancillary products,
primarily into the in-vitro diagnostic (IVD) market. This activity takes place
across various countries, such as the USA, Germany, Russia, and the UK, 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 CODM considers the segmental revenue performance of
business segments.
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 (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 2025 unaudited
Germany USA Russia UK Total
£'000 £'000 £'000 £'000 £'000
Income statement
Revenue 12,672 12,871 1,976 - 27,519
Inter-segment (2,280) - - - (2,280)
External revenue 10,392 12,871 1,976 - 25,239
Adjusted EBITDA* 2,884 4,607 227 (1,944) 5,774
Exceptional items - - - - -
EBITDA 2,884 4,607 227 (1,944) 5,774
Depreciation (571) (995) (18) (51) (1,635)
Amortisation (400) (80) - (73) (553)
Operating profit/(loss) 1,913 3,532 209 (2,068) 3,586
Net finance costs (48)
Income tax (1,530)
Profit for the period 2,100
Segment assets
Operating assets 44,506 64,361 1,351 (11,933) 98,285
Inter-segment assets (11,686) (15,617) (294) (4,874) (32,471)
External operating assets 32,820 48,744 1,057 (16,807) 65,814
Cash and cash equivalents 4,072 9,487 1,947 1,110 16,616
Total assets 36,892 58,231 3,004 (15,697) 82,430
Segment liabilities
Operating liabilities 6,075 17,289 361 18,296 42,021
Inter-segment liabilities (1,079) (14,388) - (17,004) (32,471)
Total liabilities 4,996 2,901 361 1,292 9,550
Other segmental information
Non-current assets - PPE 6,144 13,403 122 1,146 20,815
Non-current assets - Right-of-use assets 437 404 14 205 1,060
Non-current assets - Intangibles 17,548 7,237 72 3,934 28,791
Intangible assets -additions 294 158 - - 452
PPE - additions 161 321 - 4 486
Right-of-use assets - additions 38 4 - 8 50
Year ended December 2024 audited
Germany USA Russia UK Total
£'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 8 - - (30) (22)
Exceptional items - other to cost of sales 109 (439) - - (330)
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 for the year 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 and cash equivalents 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 6,228 15,286 98 1,167 22,779
Non-current assets - Right-of-use assets 484 528 19 224 1,255
Non-current assets - Intangibles 16,789 7,651 55 4,427 28,922
PPE - additions 466 44 - - 510
Intangible assets - additions 748 1,490 1 7 2,246
Right-of-use assets - additions 572 - 59 265 896
Period ended 30 June 2024 unaudited
Germany USA Russia UK Total
£'000 £'000 £'000 £'000 £'000
Income statement
Revenue 12,012 13,658 1,638 - 27,308
Inter-segment (2,096) - - - (2,096)
External revenue 9,916 13,658 1,638 - 25,212
Adjusted EBITDA* 2,415 4,656 417 (2,065) 5,423
Exceptional items 46 13 - (30) 29
EBITDA 2,461 4,669 417 (2,095) 5,452
Depreciation (430) (1,234) (28) (41) (1,733)
Amortisation (468) (134) - (47) (649)
Operating profit/(loss) 1,563 3,301 389 (2,183) 3,070
Net finance costs (13)
Income tax (837)
Profit for the period 2,220
Segment assets
Operating assets 31,160 78,430 812 (25,466) 84,936
Inter-segment assets 233 (23,250) - 7,588 (15,429)
External operating assets 31,393 55,180 812 (17,878) 69,507
Cash and cash equivalents 1,995 5,342 2,229 254 9,820
Total assets 33,388 60,522 3,041 (17,624) 79,327
Segment liabilities
Operating liabilities (6,905) 22,675 282 8,769 24,821
Inter-segment liabilities 10,639 (18,819) - (7,249) (15,429)
Total liabilities 3,734 3,856 282 1,520 9,392
Other segmental information
Non-current assets - PPE 6,242 16,131 137 1,186 23,696
Non-current assets - Right-of-use assets 222 734 5 251 1,212
Non-current assets - Intangibles 17,513 7,828 72 4,053 29,466
Intangible assets -additions 258 5 - - 263
PPE - additions 266 1,229 1 3 1,499
Right-of-use assets - additions 156 73 23 265 517
* Adjusted EBITDA represents earnings before interest, tax,
depreciation and amortisation adjusted for exceptional items and share-based
payments
Russian operations
In the context of a continuing 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 regards 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, including restrictions on the
payment of dividends to "unfriendly states" that require consent from the
Ministry of Finance of Russia. Since the Group continues 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 2025. 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.
In July 2023, the Group sought and gained permission for its Russian entity to
commence limited dividend payments, totalling around €140,000 per quarter,
paid in two tranches per quarter each of around €70,000. Four such payments
were received during H1 2025. There is no certainty how long these payments
will be able to continue.
Disclosure of Group revenues by geographic location
Unaudited Unaudited Audited
6 months ended 30 June 2025 6 months ended 30 June 2024 Year ended 31 December 2024
£000 £000 £000
Americas
United States of America 11,167 11,215 22,109
Rest of Americas 1,890 1,421 3,315
Total Americas 13,057 12,636 25,424
Europe, Middles East and Africa (EMEA)
Germany 3,839 3,689 7,188
United Kingdom 492 402 781
Ireland 103 142 245
Rest of Europe 2,064 2,084 4,099
Russia 1,976 1,638 3,357
Middle East 441 449 1,041
Africa 1,250 1,436 3,272
Total EMEA 10,165 9,840 19,983
Asia and Rest of World (APAC)
China 324 625 1,025
Rest of Asia and Oceania 1,693 2,111 3,762
Total APAC 2,017 2,736 4,787
Total Revenue 25,239 25,212 50,194
4. Exceptional items
Included within administration expenses and cost of sales are exceptional
items as shown below:
Unaudited Unaudited Audited
6 months ended 30 June 2025 6 months ended 30 June 2024 year ended 31 December 2024
Note £000 £000 £000
Exceptional items include:
- Business reorganisation costs - other credited/(charged) to cost of sales a - 58 (330)
- Business reorganisation costs - other charged to operating expenses b - (29) (21)
Exceptional items - 29 (352)
a. Costs associated with the transition and restructure of
operations. In 2024 inventory provisions associated with the ending of the
group's clinical chemistry product line are offset by reductions of provisions
previously made against COVID-19 inventory which was subsequently utilised.
b. Higher than expected professional fees associated with the
closure of DiaSpect Medical AB in 2023.
5. Income tax
Unaudited Unaudited Audited
6 months ended 30 June 2025 6 months ended 30 June 2024 Year ended 31 December 2024
£000 £000 £000
Current tax
Current tax on profit for the period 822 350 993
Adjustments for prior periods 77 (9) -
Total current tax 899 341 993
Deferred tax
Origination and reversal of temporary differences 631 496 (1,307)
Total deferred tax 631 496 (1,307)
Income tax charge 1,530 837 (314)
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.
There are no potentially dilutive ordinary shares during the periods to 30
June 2025, 30 June 2024, or the year to 31 December 2024 . During the period
the Company acquired 4,636,774 of its own ordinary shares. These are excluded
from the calculation from the date of purchase. 1,200,000 shares acquired in
2024 are also excluded.
Unaudited 6 months ended 30 June 2025 Unaudited 6 months ended 30 June 2024 Audited year ended 31 December 2024
£'000 £'000 £'000
Profit attributable to owners of the parent 1,944 2,066 6,242
Weighted average number of ordinary shares in issue 451,951,692 453,730,564 453,730,564
Pence Pence Pence
Basic 0.43 0.46 1.38
7. Property, plant and equipment
Group Land and buildings Fixtures and fittings Plant and machinery Motor vehicles Assets under construct-ion Right-of-use assets 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 918 80 390 - 111 517 2,016
Transfers 73 - 940 - (1,013) - -
Disposal - (1) (20) (10) (45) (1,053) (1,129)
Exchange differences 27 10 58 - (4) (16) 75
At 30 June 2024 15,531 1,526 22,635 198 237 2,771 42,898
Additions 261 - 283 - 203 379 1,126
Transfers - - 42 - (42) - -
Disposals - (17) (972) 10 01 (125) (1,103)
Exchange differences (58) (46) (349) (39) (18) (9) (519)
At 31 December 2024 15,734 1,463 21,639 169 381 3,016 42,402
Additions 13 75 179 - 219 50 536
Transfers - - 209 - (209) - -
Disposal - - (7) (10) (12) (1,206) (1,235)
Exchange differences (765) (4) (634) 51 13 (27) (1,366)
At 30 June 2025 14,982 1,534 21,386 210 392 1,833 40,337
Depreciation
At 1 January 2024 3,870 1,065 9,862 72 - 2,292 17,161
Exchange differences (5) (15) (145) 3 - - (162)
Disposal - (1) (11) (10) - (1,040) (1,062)
Charge for the period 383 94 920 9 - 327 1,733
At 30 June 2024 4,248 1,143 10,626 74 - 1,579 17,670
Exchange differences 16 (19) (129) (18) - 05 (145)
Disposal - (16) (913) 10 - (138) (1,057)
Charge for the period 599 58 921 7 - 315 1,900
At 31 December 2024 4,863 1,166 10,505 73 - 1,761 18,368
Exchange differences (268) 7 (74) 21 - (6) (320)
Disposal - (1) (4) (10) - (1,206) (1,221)
Transfers - - - - - - -
Charge for the period 337 73 994 7 - 224 1,635
At 30 June 2025 4,932 1,245 11,421 91 - 773 18,462
Net book value
30 June 2025 10,050 289 9,965 119 392 1,060 21,875
31 December 2024 10,871 297 11,134 96 381 1,255 24,034
30 June 2024 11,283 383 12,009 124 237 1,192 25,228
8. Intangible Fixed Assets
Group Goodwill Trademarks trade names & licences Customer relationships Trade secrets Development costs Software Total
£'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 - 6 - - 257 - 263
Disposal - - - - (1,816) - (1,816)
Exchange differences (280) (58) (45) (229) (83) 1 (694)
At 30 June 2024 24,145 4,626 15,226 13,027 3,897 665 61,586
Additions - 53 - - 194 - 247
Disposal - - - - 20 - 20
Exchange differences (270) (56) (43) (221) (75) (8) (673)
At 31 December 2024 23,875 4,623 15,183 12,806 4,036 657 61,180
Additions - 124 - - 328 - 452
Disposal - - - - (66) - (66)
Exchange differences (114) (40) (695) 264 73 (18) (530)
At 30 June 2025 23,761 4,707 14,488 13,070 4,371 639 61,036
Amortisation
At 1 January 2024 - 3,797 14,659 12,114 2,624 415 33,609
Exchange differences - (39) (44) (202) (38) 1 (322)
Disposal - - - - (1,816) - (1,816)
Charge for the period - 162 168 94 173 52 649
At 30 June 2024 - 3,920 14,783 12,006 943 468 32,120
Exchange differences - (50) (46) (194) (27) (7) (324)
Disposal - - - - 20 - 20
Charge for the period - 89 46 85 155 67 442
At 31 December 2024 - 3,959 14,783 11,897 1,091 528 32,258
Exchange differences - (64) (660) 230 (3) (3) (500)
Disposal - - - - (66) - (66)
Charge for the period - 163 43 89 234 24 553
At 30 June 2025 - 4,058 14,166 12,216 1,256 549 32,245
Net book value
30 June 2025 23,761 649 322 854 3,115 90 28,791
31 December 2024 23,875 664 400 909 2,945 129 28,922
30 June 2024 24,145 706 443 1,021 2,954 197 29,466
9. Financial Instruments
(a) Assets
Unaudited as at 30 June 2025 Unaudited as at 30 June 2024 Audited as at 31 December 2024
£'000 £'000 £'000
Assets as per balance sheet
Financial assets at fair value through other comprehensive income 206 226 228
Trade and other receivables excluding prepayments and corporation tax 6,408 5,980 6,221
Cash and cash equivalents 16,616 9,820 14,301
Total 23,230 16,026 20,750
(b) Liabilities
Unaudited as at 30 June 2025 Unaudited as at 30 June 2024 Audited as at 31 December 2024
£'000 £'000 £'000
Liabilities as per balance sheet
Borrowings - - -
Lease liabilities 1,122 1,246 1,318
Trade and other payables (excluding deferred grants and deferred income) 4,703 3,750 4,323
Total 5,825 4,996 5,641
Liabilities in the analysis above are all categorised as "other financial
liabilities at amortised cost". The Group no longer has any borrowings.
10 . Share capital
Share capital Share premium
Number of Ordinary Shares £'000 £'000
At 1 January 2024 453,730,564 4,537 7,375
At 30 June 2024 and 31 December 2024 453,730,564 4,537 7,375
Ordinary shares acquired into treasury (4,636,774) (46) -
At 30 June 2025 449,093,790 4,491 7,375
Other equity - shares held in Treasury Other Equity
Number of Ordinary Shares £'000
At 1 January 2024 1,200,000 12
At 30 June 2024 and 31 December 2024 1,200,000 12
Ordinary shares acquired into treasury 4,636,774 46
Ordinary shares cancelled (5,836,774) (58)
At 30 June 2025 - -
11. 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.
12. Related party transactions
Directors
Christopher Mills is interested in 29.49%. of the Company's issued share
capital which is held through North Atlantic Smaller Companies Investment
Trust PLC, Oryx International Growth Fund Limited, and in his own name.
Harwood Capital LLP is investment manager to North Atlantic Smaller Companies
Investment Trust plc and investment adviser to Oryx International Growth Fund
Limited. Harwood Capital LLP, which is part of the Harwood Capital Management
Group (of which Christopher is sole shareholder) is a limited liability
partnership of which Christopher Mills is Chief Investment Officer. He holds a
15% shareholding in Verici Dx plc ("Verici").
The Company has agreed a funding line with North Atlantic Smaller Companies
Investment Trust PLC. Christopher Mills, Non-executive Director of the
Company, sits on the Board as Chief Executive Officer of North Atlantic
Smaller Companies Investment Trust PLC 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 is not currently drawn down, and no amounts have been
drawn to date. The terms of the facility are substantially similar to those
considered to be commercially available to the Company. This facility
partially sets off the potential exposure faced by the Group given the limited
ability to access cash reserves held in Russia. The Board believes it is a
prudent measure to have access to additional cash if needed and further that
the facility demonstrates the continued support from its largest shareholder,
Christopher Mills. 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 27 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. The Company
may repay any such loan early, in part or in full, but may not re-borrow such
amounts.
During the period the Company acquired 1,366,807 ordinary shares from Mr Mills
and his associated companies as part of the share buy back programme.
The Group was invoiced £9,000 (June 2024: £8,500, 2024: £17,500) by J &
K (Cardiff) Limited for property rent. Julian Baines is a Director and 20%
shareholder of J & K (Cardiff) Limited.
Julian is chair of Verici DX plc. As at 30 June 2025 the Group owns 0.3% of
Verici and Mr Baines holds 1,629,490 (0.7%) shares in Verici.
Mr Young holds 9,200 (0.004%) shares in Verici.
There are no outstanding balances at 30 June 2025 or at 31 December 2024, and
during the year there were no sales or purchases, between the Group and
Verici.
Other related party transactions
Sergey Kots who is Chief Executive of OOO EKF Diagnostika ("EKF Russia"), owns
20% of the subsidiary's share capital. During the period EKF Russia invoiced
£239,000 (2024: £411,000) to OOO Laboratory Diagnostic Systems ("LDS"), a
company of which Mr Kots' brother is a director. There was no receivable
balance outstanding from LDS at 30 June 2025 or at 31 December 2024.
13. Availability of this announcement
This announcement and the Group's Interim Report for the six months ended 30
June 2025 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)2920 710570 to request a copy.
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