REG - EKF Diagnostics Hldg - Interim results
26/09/2023 07:00
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RNS Number : 5989N EKF Diagnostics Holdings PLC 26 September 2023
EKF Diagnostics Holdings plc
("EKF", the "Company" or the "Group")
Half-year Report
EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed global diagnostics
business, announces its unaudited interim results for the six months ended 30
June 2023, a period of continued growth in Point-of-Care and good progress in
the Life Sciences fermentation capacity expansion.
Trading in the first half of 2023 ("H1 2023") was in line with Board
expectations, and revised guidance for the full year performance was provided
in the 12 September 2023 Trading Update.
Financial highlights (from continuing operations)
· Revenue from continuing operations of £26.9m (H1 2022: £37.5m)
- Revenue growth in continuing operations, excluding largely
COVID-related activities in Contract Manufacturing and Laboratory Testing
including the effect in 2022 of the US inventory payment, of 6.8%
· Adjusted EBITDA* of £4.4m (H1 2022: £9.7m)
· Gross profit of £11.8m (H1 2022: £17.7m) with GM% marginally
improved to 44.0% (H1 2022: 43.3%)
· Loss before tax of £0.03m (H1 2022: profit of £4.1m)
· Net cash generated from operations of £2.5m (H1 2022: £8.4m)
· Cash and cash equivalents of £9.2m (30 June 2022: £19.1m) (31
December 2022: £11.6m)
- reflecting investment in South Bend enzyme fermentation facility
- of which £2.4m (30 June 2022: £2.6m, 31 Dec 2022: £2.4m) is held
by EKF's Russian subsidiary and subject to regulatory restrictions.
* Earnings before interest, tax, depreciation and amortisation adjusted for
exceptional items and share-based payments
Operational highlights
· Business division revenues:
- Point-of-Care: up 10.2% to £16.6m (H1 2022: £15.1m)
- Life Sciences: excluding COVID-revenues up 14.5% to £7.5m
(H1 2022: £6.5m)
- Other: £1.3m (H1 2022: £5.0m, which include £3.5m relating to
cash received for US inventory)
· Quality Management Audits completed at new fermentation facility in
South Bend, with all fermenting units on site
· First customer order received for new South Bend facility, with
official site opening planned for 25 October 2023
· Additional cost reduction and operational efficiency measures to
further benefit FY 2024 performance
· Board changes: Julian Baines, Executive Chair, remaining in role on a
longer-term basis and Steve Young appointed as CFO in September 2023 after an
orderly handover
Julian Baines, Executive Chair of EKF, commented: "Looking forward our core
business is in a very strong position with continued growth momentum seen in
our Point-of-Care division and in sales of β-HB. With the capacity expansion
at our South Bend facility nearing completion, and having already received our
first purchase order we look forward to delivering strong growth in enzyme
fermentation revenues in 2024."
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)
EKF Diagnostics will be hosting a live online presentation open to all
existing and potential investors on Tuesday 26 September at 5.30pm (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)
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.
EKF Diagnostics Holdings plc www.ekfdiagnostics.com (http://www.ekfdiagnostics.com)
Julian Baines, Executive Chair / Stephen Young, CFO via Walbrook PR
Singer Capital Markets (Nominated Adviser & Broker) Tel: +44 (0)20 7496 3000
Aubrey Powell / Oliver Platts
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
The persons responsible for arranging the release of this announcement
on behalf of the Company are Julian Baines, Executive Chair, and Stephen
Young, CFO.
About EKF Diagnostics Holdings plc (www.ekfdiagnostics.com
(http://www.ekfdiagnostics.com) )
EKF is an AIM-listed global diagnostics business focussed on:
· Point-of-Care analysers in the key areas of Hematology and Diabetes,
as well as Central Laboratory products including clinical chemistry reagents,
analysers and centrifuges
· Life Sciences services provide specialist manufacture of enzymes and
custom products for use in diagnostic, food and industrial applications, as
well as other higher value Contract Manufacturing services
EKF has headquarters in Penarth (near Cardiff) and operates five manufacturing
sites across the US and Germany, selling into over 120 countries world-wide.
BUSINESS REVIEW
Despite 2023 remaining a transitional year for EKF, we are very pleased with
the strong performance delivered by our core established business in the first
half of the year. In particular, our Point-of-Care division has delivered
double digit organic growth with growth recorded across our Diabetes and
Hematology ranges. Our Life Sciences business has also benefitted from a 27%
year-on-year increase in sales of Beta-Hydroxybutyrate (β-HB) and remains an
opportunity for significant growth once new fermentation capacity comes
online.
Revenues for the six months ended 30 June 2023 were £26.9m (H1 2022: £37.5m)
and adjusted EBITDA was £4.4m (H1 2022: £9.7m). However, growth in our
continuing operations, excluding largely COVID-related activities in Contract
Manufacturing and Laboratory Testing, was 6.8% to £24.9m (H1 2022: £23.3m).
OPERATIONAL OVERVIEW
The strong first half performance from both Point-of-Care ("POC") and the Life
Sciences division can be seen below once the impact on the prior year
comparison of historical COVID-related revenues is separated out.
Divisional revenues H1 2023 H1 2022 +/- %
Yr-on-Yr
£ millions
Point-of-Care (POC) 16.6 15.1 +9.9%
Life Sciences 8.5 15.3 -44.4%
Life Sciences: β-HB and Fermentation sales 7.5 6.6 +13.6%
Life Sciences: other COVID-related revenues 1.0 8.7 - 88.5%
Other* 1.8 7.1† -74.6%
Total Group Revenues 26.9 37.5 -28.3%
Total Group Revenues (excluding all COVID-related revenues) 24.9 23.3 +6.8%
* Other revenue relating to US inventory payment, shipping and handling
recharges, repairs and other sundries
† Includes £3.5m relating to US inventory receipt
Point-of-Care
Point-of-Care (POC) Providing a portfolio of Point-of-Care analysers and consumables, particularly
for use in the area of Hematology and Diabetes, for use in hospital and
research laboratories, doctors' offices, blood banks and for in-field anaemia
screening programmes. EKF has an estimated 80,000 hemoglobin, hematocrit,
HbA1c, glucose and lactate analysers in regular use across more than 100
countries. Also includes Central Laboratory products including clinical
chemistry reagents, analysers and centrifuges.
We are delighted that the Point-of-Care division continues to deliver steady
growth and sales growth of just over 10% reflecting an increase in product
sales across our Diabetes and Hematology ranges to £16.6m (H1 2022: £15.1m).
Revenues from this division contributed 63.1% of total revenues and continues
to offer EKF a solid foundation with the majority of sales representing steady
recurring revenue from high margin consumables.
Our POC hematology product portfolio demonstrated good growth in the first
half recording sales of £7.21m, an increase of 11.4% year-on-year (H1 2022:
£5.68m). We have continued to benefit from the growth in anaemia screening
programmes post-pandemic and our stand-out performer in the first half was the
DiaSpect Tm, a hand-held hemoglobin analyzer, which saw H1 sales increase by
44% to £3.21m (H1 2022: £2.23m). Sales in Hemocontrol, our point-of-care
hemoglobin analyser, were £2.90m (H1 2022: £3.10m) after showing a
significant uplift from H1 2021 (£2.13m sales) and sales for other hematology
products such as HemataSTAT and Ultracrit remained broadly flat.
Our diabetes product range delivered sales growth of 6.9% to £6.07m (H1 2022:
£5.68m). The biggest contributor to sales in this range is our Biosen series
of glucose analyzers, a familiar name in laboratories and diabetes clinics
round the world. In H1 2022 we recorded sales of £2.70m (H1 2022: £2.85m).
Revenues from our HbA1c analyzer product lines grew during the period: Quo-Lab
sales were up 15.7% to £1.92m (H1 2022: £1.66m), and sales of Quo-Test were
up 24.0% to £1.45m (H1 2022: £1.16m).
During the period we also derived our first revenues from our EKF Link
product, a digital connectivity solution for the secure management of POC
analysers and associated data on one centralised platform. 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.
H1 2023 has seen the best revenue performance to date from our Point-of-Care
Division and we are delighted to see that this strong performance has
continued into the third quarter, as the high-level of demand for reagent-free
hemoglobin and HbA1c analyzers continues.
This division is also expected to benefit from a number of initiatives that
will improve productivity, margins and our competitive advantage. The
automation process for the manufacture of disposable cuvettes for the DiaSpect
Tm is being consolidated into our own manufacturing site in Barleben, Germany,
from a third-party producer. In addition, the manufacturing automation of
our Hemocontrol single-pack cuvette at Barleben will be completed and online
by the end of the year. Not only will this have a positive impact on margins,
but also positions EKF as the only company offering single-pack cuvettes,
giving us an advantage in emerging markets where wastage is a problem.
The regulatory team at EKF continues to work towards meeting the additional
requirements under the new In Vitro Diagnostic Regulation (IVDR) and other
legislation.
Life Sciences
Life Sciences Providing specialist manufacture of enzymes and custom products for use in
diagnostic, food and industrial applications, as well as other higher value
Contract Manufacturing services. Also included the production of β-HB, a
reagent used to identify patients suffering from diabetic ketoacidosis.
Our Life Sciences division delivered revenues of £8.5m, contributing 31.6% of
total revenues. The year-on-year comparative for 2022 (H1 2022: £15.3m)
includes £8.7m of COVID-related revenues from Contract Manufacturing, however
focussing solely on the on-going β-HB and enzyme fermentation sales, Life
Sciences produced 14.5% organic growth, driven by strong β-HB sales.
We remain one of the clear market leaders for the supply of β-HB, a reagent
used to detect ketones for patients suffering from diabetic ketoacidosis, as
well as many other clinical applications. β-HB sales for H1 2023 were up
27.3% to £6.31m (H1 2022: £4.96m).
Our specialist enzyme fermentation business recorded revenues of £1.23m (H1
2022: £1.63m) from our existing site in Elkhart, with continued demand from
our large corporate customers to create and deliver high quality enzymes and
biomolecules for use in a variety of industrial applications.
As outlined in our recent Trading Update, good progress is being made to
complete the increased fermentation capacity at the South Bend facility in
Indiana. All of the new fermenting units are on site and in the process of
installation, validation and verification. We have successfully completed ISO
9001:2015 and ISO 13485:2016 Quality Management Audits at our sites and we
expect to see a steady build-up of revenues from this new capacity during FY
2024. We expect to host a ribbon cutting ceremony for the official opening of
the new site on 25 October 2023.
We are very pleased to announce receipt of our first purchase order for enzyme
manufacturing services for our new facility and this will contribute limited
revenues in Q4 FY 2023 and, as these scale-up, will cornerstone the
substantial revenue growth we expect to see next year from this new capacity.
Operational efficiencies and continued cost control
We continue to expect that improvements in adjusted EBITDA margin will be seen
in the second half. We also recognise that there are further cost savings and
efficiency measures that can be implemented, and these will benefit FY 2024.
We expect to see FY 2024 margins benefit further from the ramp-up in higher
margin enzyme fermentation revenues within Life Sciences as utilisation of our
additional capacity builds.
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. We continue to provide essential medical supplies to
the region, and whilst sales have continued in the first half of the year, the
number of products that we can supply into the region has reduced in line with
current sanctions.
Cash held in Russia totalled £2.39m at the period end. Restrictions remain in
place regarding the payment of foreign dividends in Russia and so this cash
remains partly inaccessible. We have been able to arrange for limited
dividends to be paid over in July and August, however there can be no
assurance that this will be able to continue. The Board continues to explore
options available to realise the value tied up in Russia.
Board Changes
Post-period end we announced the appointment of Steve Young as CFO, who has
been working as a consultant over the summer to ensure an orderly handover
from his predecessor. Steve is an experienced FD and CFO with a strong working
knowledge of how AIM companies operate. I worked closely with Steve at BBI
Holdings plc for a number of years and am delighted to have him on board at
EKF.
I have also confirmed to the Board my increased commitment as Executive
Chairman and I have a singular focus to ensure we are on track to meet or
exceed revised guidance and to deliver the significant long-term growth
prospects that I am confident our Life Sciences division offers to
shareholders.
Outlook
In our recent guidance update we confirmed that for the full year ending 31
December 2023 we expect to deliver revenues of around £53m and adjusted
EBITDA in the region of £10m.
Looking forward our core business is in a very strong position, with continued
growth momentum seen in our Point-of-Care division and in sales of β-HB. With
the capacity expansion at our South Bend facility nearing completion, and
already having received our first purchase order and we look forward to
delivering strong growth in enzyme fermentation revenues in 2024.
Increased utilisation of our additional capacity at South Bend is key to our
future growth. My colleagues and I are determined to ensure we succeed in
delivering this and the Board thanks the wider team for its diligent
commitment to our expansion plans. With strong engagement from current and
prospective customers to underpin increasing utilisation over time, our
confidence in the longer-term, significant growth prospects for EKF remains
high.
Julian Baines
Executive Chair
26 September 2023
Financial review
In March 2023, all of the share capital of Advanced Diagnostic Laboratory LLC
was sold to certain members of its management for a consideration consisting
of 1,200,000 EKF ordinary shares which were returned to EKF. These shares were
valued at £343,800 and are held in treasury. Costs of the transaction were
£107,000. In February 2023, the UK manufacturing operations, which had
largely serviced UK COVID-related customers were closed down, resulting in a
small number of redundancies.
Revenue
Revenue for the period was £26.8m (H1 2022: £37.5m).
Revenue by Business Unit:
Unaudited Unaudited
6 months ended 30 June 2023 6 months ended 30 June 2022
£'000 £'000
+/- %
Point-of-Care 16,627 15,093 10.2%
Life Sciences 8,511 15,244 (44.2%)
Other* 1,734 7,134 (78.2%)
Total revenue 26,872 37,471 (28.3%)
Considering our core established business units, which excludes largely
COVID-related revenue including that from Contract Manufacturing and
Laboratory Services totalling £2.0m in 2023 (H1 2022: £14.7m), the Group
delivered growth of 6.8% compared with the equivalent period in 2022.
* 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 2023 6 months ended 30 June 2022
£'000 £'000
+/- %
Continuing business
Germany 11,014 13,583 (18.9%)
USA 13,376 20,925 (36.1%)
Russia 1,690 2,037 (17.0%)
UK 792 926 (14.5%)
Total revenue 26,872 37,471 (28.3%)
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. 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 £11.8m (H1 2022: £17.7m). The gross profit margin was 44.0%
(H1 2022: 43.3%). The gross profit has increased marginally mainly as a result
of the mix of products and services.
Administrative expenses
In H1 2023, administration expenses (excluding exceptionals) reduced to
£10.9m (H1 2022: £12.8m), representing 40.7% of revenue for the period (H1
2022: 34.1%, FY 2022: 34.8%). The increase is largely due to the reduced
revenue. The Boards expects that cost savings and efficiency measures will be
implemented in the second half which will benefit FY 2024.
The charge for depreciation of fixed assets and for the amortisation of
intangibles is £3.3m (H1 2022: £3.4m).
Operating profit and adjusted earnings before interest tax and depreciation
The Group generated an operating loss of £0.07m (H1 2022: profit of £4.1m).
We continue to consider that adjusted EBITDA gives a more meaningful measure
of performance which for H1 2023 was £4.4m (H1 2022: £9.7m).
In H1 2023 adjusted EBITDA excludes a charge for share-based payments of £nil
(H1 2022: charge of £0.5m) and exceptional charges of £1.2m (H1 2022: charge
of £1.7m). The exceptional charge relates mainly to transition and
restructure costs of certain operations in the US 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, in particular in the US and German regions relates to lower
revenues associated with the end of the COVID-19 pandemic, and increased cost
inflation.
Finance income
Net finance income is £0.04m (H1 2022: £0.01m). The income has increased
because of higher interest income on funds held in Russia.
Tax
There is a tax charge of £0.1m (H1 2022: £1.7m). The decrease largely
reflects the decrease in profit.
Earnings per share
Basic earnings per share from continuing operations has decreased to nil (H1
2022: 0.48p). There is no dilutive effect from the remaining share options,
which have now lapsed.
Balance sheet
Fixed assets
We have capitalised £3.4m (H1 2022: £2.3m) of property, plant and equipment.
The expenditure includes continuing work on adding capacity for Life Sciences
in the US. Further expenditure in Life Sciences to complete the new facility
in South Bend is planned for the second half of the year.
Intangible assets
The value of intangible fixed assets is £31.2m (31 December 2022: £33.8m).
The decrease is mainly the result of exchange rate movements. An amount of
£0.1m (H1 2022: £0.8m) has been capitalised during the first half.
Investments
Investments are held at fair value which has been calculated based on the
market value of the shares which at 30 June 2023 was £1.1125 (31 December
2022: £0.725) per share for Renalytix and £0.1175 (31 December 2022:
£0.125) per share for Verici Dx. The majority of the Group's shares in Verici
were transferred to EKF shareholders in 2022 through a dividend in specie. In
July 2023 the remaining Renalytix shares were sold for a consideration of
£1.33m.
Deferred consideration
The deferred consideration at 30 June 2022 related to the acquisition of
Advanced Diagnostic Laboratory LLC. (ADL). The remaining deferred
consideration was cancelled as part of the disposal of ADL earlier this year.
Cash and working capital
The gross cash position at 30 June 2023 was £9.2m (31 Dec 2022: £11.6m), and
the Group had cash net of bank borrowings of £9.1m (31 Dec 2022: £11.4m).
Cash generated from operations in H1 2023 is £2.5m (H1 2022: £8.4m). Trade
debtors have increased as a result of timing effects in the run-up to period
end.
Cash and cash equivalents held by the Russian subsidiary at 30 June 2023
totalled £2.4m (31 Dec 2022: £2.4m). These deposits are subject to
regulatory restrictions, and therefore may not be available for general use by
the other entities within the Group.
In July 2023, we disposed of our remaining shareholding in Renalytix plc for a
consideration of £1.33m.
In March 2023 the Company agreed a loan facility of £3.0m. At 30 June 2023
this facility had not been utilised.. In addition the Group expects to
finalise a further £3m undrawn facility from HSBC from late September 2023.
The strength of the Group's balance sheet and the cash and loan resources
available to it, 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.
Capital structure
1,200,000 ordinary shares were returned to the Company in April 2023 by the
acquirer of ADL, at a value of £348,000. These shares are currently held in
treasury. We have maintained shareholder authority to buy back shares, however
we currently have no plans to make any further purchases.
Dividend
At the Annual General Meeting in May 2023, shareholders approved the payment
of a dividend of 1.2p per ordinary share, to be paid on 1 December 2023 to
shareholders on the register at close of business on 3 November 2023. As this
declaration is irrevocable, the value of £5.445m is shown as a liability with
the debit shown in the statement of changes in equity.
Stephen Young
Chief Financial Officer
26 September 2023
CONSOLIDATED INCOME STATEMENT
FOR THE 6 MONTHS ENDED 30 JUNE 2023 Unaudited 6 months ended 30 June 2022
Unaudited 6 months ended 30 June 2023 Audited Year ended 31 December 2022
Notes £'000 £'000 £'000
Continuing operations
Revenue 3 26,872 37,471 66,635
Cost of sales (14,855) (19,727) (35,823)
Exceptional items - other charged to cost of sales (196) (1,499) (6,774)
Gross profit 11,821 16,245 24,038
Administrative expenses (10,939) (12,791) (23,177)
Exceptional items - impairment of assets (671) (183) (10,384)
Exceptional items - other (341) - (367)
Other income 63 880 919
Operating (loss)/profit (67) 4,151 (8,971)
Depreciation and amortisation (3,274) (3,361) (6,658)
Share-based payments - (517) 308
Exceptional items 4 (1,209) (1,682) (17,525)
EBITDA before exceptional items and share-based payments 4,416 9,711 14,904
Finance income 59 57 131
Finance costs (18) (68) (102)
(Loss)/profit before income tax (26) 4,140 (8,942)
Income tax charge 5 (144) (1,717) (634)
(Loss)/profit for the period (170) 2,423 (9,576)
(Loss)/profit is attributable to:
Owners of the parent (358) 2,213 (10,101)
Non-controlling interest 188 210 525
(170) 2,423 (9,576)
(Loss)/earnings per ordinary share attributable to the owners of the parent
during the period
6
Pence Pence Pence
Basic (0.08) 0.48 (2.21)
Diluted (0.08) 0.48 (2.21)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2023
Unaudited Unaudited Audited
6 months ended 30 June 2023 6 months ended 30 June 2022 Year ended 31 December 2022
£'000 £'000 £'000
(Loss)/profit for the period (170) 2,423 (9,576)
Other comprehensive income/(expense):
Items that will not be reclassified to profit or loss 437 (5,307) (6,096)
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 (3,502) 6,520 6,811
Currency translation differences
Other comprehensive (loss)/income (net of tax) (3,065) 1,213 715
Total comprehensive (loss)/income for the period (3,235) 3,636 (8,861)
Attributable to:
Owners of the parent (3,139) 3,024 (9,420)
Non-controlling interests (96) 612 559
Total comprehensive (loss)/income for the period (3,235) 3,636 (8,861)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
Unaudited as at 30 June 2023 Unaudited as at 30 June 2022 Audited as at 31 December 2022
Notes £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 7 21,576 18,170 20,435
Right-of-use assets 7 507 1,495 1,279
Intangible assets 8 31,163 43,387 33,772
Investments 1,556 1,566 1,119
Deferred tax assets 878 23 925
Total non-current assets 55,680 64,641 57,530
Current Assets
Inventories 9,414 12,969 9,434
Trade and other receivables 7,979 12,236 10,739
Corporation tax receivable 13 408 10
Cash and cash equivalents 9,165 19,138 11,578
Total current assets 26,571 44,751 31,761
Total assets 82,251 109,392 89,291
Equity attributable to owners of the parent
Share capital 4,537 4,549 4,549
Share premium 7,375 7,375 7,375
Other reserve (182) (184) (629)
Foreign currency reserves 6,129 8,931 9,590
Retained earnings 46,326 64,775 52,461
64,185 85,446 73,346
Non-controlling interest 1,081 1,230 1,177
Total equity 65,266 86,676 74,523
Liabilities
Non-current liabilities
Borrowings - 44 -
Lease liabilities 223 793 537
Deferred consideration - 173 -
Deferred tax liability 2,140 3,795 2,493
Total non-current liabilities 2,363 4,805 3,030
Current liabilities
Trade and other payables 11,702 14,148 8,288
Lease liabilities 400 902 873
Deferred consideration - 72 -
Current income tax liabilities 2,476 2,611 2,440
Borrowings 44 178 137
Total current liabilities 14,622 17,911 11,738
Total liabilities 16,985 22,716 14,768
Total equity and liabilities 82,251 109,392 89,291
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS ENDED 30 JUNE 2023
Unaudited 6 months ended 30 June 2023 Unaudited 6 months ended 30 June 2022 Audited Year to 31 December 2022
£'000 £'000 £'000
Cash flow from operating activities
(Loss)/profit before income tax (26) 4,140 (8,942)
Adjustments for
- Depreciation 1,590 1,505 3,098
- Amortisation and impairment charges 1,684 1,856 3,560
- Exceptional items 1,209 1,682 17,525
- (Profit)/loss on disposal of assets 5 19 28
- Share-based payments - 517 (308)
- Cash outflows relating to exceptional items (157) - (617)
- Foreign Exchange - - (71)
- Bad debt written down 174 - 127
- Net finance costs (41) 11 (29)
Changes in working capital
- Inventories (445) (693) (815)
- Trade and other receivables 1,708 1,698 1,276
- Trade and other payables (2,862) (323) (2,177)
Cash generated from operations 2,839 10,412
12,655
Interest received 59 57 85
Interest paid (3) (39) (46)
Income tax paid (389) (1,945) (3,006)
Net cash generated from operating activities 2,506 8,428 9,688
Cash flow from investing activities
Payment for investments - (2,930) (2,930)
Payment for property, plant and equipment (PPE) (3,345) (2,167) (4,434)
Payment for intangibles (138) (819) (1,394)
Payment for acquisition of subsidiaries, net of cash acquired - (403) (403)
Proceeds from sale of PPE 59 6 229
Net cash used in investing activities (3,424) (6,256) (8,932)
Cash flow from financing activities
Dividend paid to company shareholders - - (5,459)
Payment for shares bought back - (3,896) (3,896)
Repayments of borrowings (93) (525) (613)
Principal elements of lease payments (507) (551) (1,071)
Dividends payment to non-controlling interests - - -
Net cash used in financing activities (600) (4,972) (11,039)
Net decrease in cash and cash equivalents (1,518) (2,800) (10,283)
Cash and cash equivalents at beginning of period 11,578 20,341 20,341
Exchange gains on cash and cash equivalents (895) 1,597 1,520
Cash and cash equivalents at end of period 9,165 19,138 11,578
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 30 JUNE 2023
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 2022 4,639 7,375 5,033 2,813 74,264 94,124 618 94,742
Comprehensive income/(expense)
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
Comprehensive income/(expense)
Profit for the period - - - - (12,314) (12,314) 315 (11,999)
Other comprehensive income/(expense)
Changes in fair value of equity instruments at fair value through other - - (445) - - (445) - (445)
comprehensive income/(expense)
Acquisition of own shares - - (344) - - (344) - (344)
- - - 659 (1) 658 (368) 290
Currency translation differences
Total comprehensive income/(expense) - - (789) 659 (12,315) (12,445) (53) (12,498)
Transactions with owners
Reserve transfer - - 344 - 1 345 - 345
Total contributions by and distributions to owners - - 344 - 1 345 - 345
At 31 December 2022 4,549 7,375 (629) 9,590 52,461 73,346 1,177 74,523
Comprehensive income
Profit for the period - - - - (358) (358) 188 (170)
Other comprehensive income/(expense)
Changes in fair value of equity instruments at fair value through other - - 437 - - 437 - 437
comprehensive income/(expense)
Currency translation differences - - (2) (3,461) 12 (3,451) (284) (3,735)
Total comprehensive income/(expense) - - 435 (3,461) (346) (3,372) (96) (3,468)
Transactions with owners
Acquisition of own shares (12) - 12 - (344) (344) - (344)
Dividends to owners - - - - (5,445) (5,445) - (5,445)
Total contributions by and distributions to owners (12) - 12 - (5,789) (5,789) - (5,789)
At 30 June 2023 4,537 7,375 (182) 6,129 46,326 64,185 1,081 65,266
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 is operated. 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 2023. 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 2022 and which will form the basis of the 2023
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.
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 2022 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 2023 and 30 June 2022 is
unaudited and the twelve months to 31 December 2022 is audited.
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.
Following the end of the COVID-19 pandemic, the Group's core established
business has now returned to normal. The business has seen a significant
reduction in pandemic-related contract manufacturing and testing activities
and as a result has closed its UK manufacturing operations and disposed of its
US laboratory testing business, ADL Health.
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, action by the Russian Government is
currently restricting 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. In addition, the Group
has secured a committed £3m of funding from the North Atlantic Smaller
Companies Investment Trust, to 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,
as well as central laboratory reagents, primarily into the in-vitro diagnostic
(IVD) market. 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 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 2023 unaudited
Germany USA Russia UK Total
£'000 £'000 £'000 £'000 £'000
Income statement
Revenue 13,419 13,376 1,690 792 29,277
Inter-segment (2,405) - - - (2,405)
External revenue 11,014 13,376 1,690 792 26,872
Adjusted EBITDA* 2,765 3,059 546 (1,954) 4,416
Share-based payment - - - - -
Exceptional items 37 (719) - (527) (1,209)
EBITDA 2,802 2,340 546 (2,481) 3,207
Depreciation (418) (967) (25) (180) (1,590)
Amortisation (880) (125) - (679) (1,684)
Operating profit/(loss) 1,504 1,248 521 (3,340) (67)
Net finance costs (1) - 57 (15) 41
Income tax (321) 163 (109) 123 (144)
Profit/(loss) for the period 1,182 1,411 469 (3,232) (170)
Segment assets
Operating assets 32,860 74,876 578 (21,265) 87,049
Inter-segment assets 254 (18,662) - 4,445 (13,963)
External operating assets 33,114 56,214 578 (16,820) 73,086
Cash and cash equivalents 2,592 4,100 2,388 85 9,165
Total assets 35,706 60,314 2,966 (16,735) 82,251
Segment liabilities
Operating liabilities (3,824) 21,217 324 13,187 30,904
Inter-segment liabilities 9,494 (17,775) - (5,682) (13,963)
External operating liabilities 5,670 3,442 324 7,505 16,941
Borrowings 44 - - - 44
Total liabilities 5,714 3,442 324 7,505 16,985
Other segmental information
Non-current assets - PPE 6,043 14,143 95 1,295 21,576
Non-current assets - Right-of-use assets 197 288 2 20 507
Non-current assets - Intangibles 18,554 8,292 68 4,249 31,163
Intangible assets -additions 112 26 - - 138
PPE - additions 428 2,910 - 7 3,345
Right-of-use assets - additions 52 - - - 52
Year ended December 2022 audited
Germany USA Russia UK Total
£'000 £'000 £'000 £'000 £'000
Income statement
Revenue 30,384 37,220 4,202 1,427 73,233
Inter-segment (6,192) (398) - (8) (6,598)
External revenue 24,192 36,822 4,202 1,419 66,635
Adjusted EBITDA* 8,089 8,309 1,563 (3,057) 14,904
Exceptional items - impairments (32) (10,324) - (28) (10,384)
Exceptional items - other (1,857) (4,909) - (375) (7,141)
Share-based payments - - - 308 308
EBITDA 6,200 (6,924) 1,563 (3,152) (2,313)
Depreciation (744) (1,925) (21) (408) (3,098)
Amortisation (1,667) (1,835) - (58) (3,560)
Operating profit 3,789 (10,684) 1,542 (3,618) (8,971)
Finance income 1 1 118 11 131
Finance cost (33) (4) - (65) (102)
Income tax (790) 644 (348) (140) (634)
Profit for the year 2,967 (10,043) 1,312 (3,812) (9,576)
Segment assets
Operating assets 41,835 57,213 873 13,246 113,167
Inter-segment assets (10,608) (22,634) - (2,212) (35,454)
External operating assets 31,227 34,579 873 11,034 77,713
Cash and cash equivalents 2,774 5,785 2,366 653 11,578
Total assets 34,001 40,364 3,239 11,687 89,291
Segment liabilities
Operating liabilities 7,211 27,125 207 15,542 50,085
Inter-segment liabilities (986) (21,908) - (12,560) (35,454)
External operating liabilities 6,225 5,217 207 2,982 14,631
Borrowings (excluding lease liabilities) 137 - - - 137
Total liabilities 6,362 5,217 207 2,982 14,768
Other segmental information
Non-current assets - PPE 5,982 13,590 155 1,987 21,714
Non-current assets - Intangibles 18,606 8,822 87 6,257 33,772
PPE - additions 877 5,909 84 102 6,972
Intangible assets - additions 832 192 - 370 1,394
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
* Adjusted EBITDA represents earnings before interest, tax,
depreciation and amortisation adjusted for exceptional items and share-based
payments
Russian operations
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 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 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 2023. 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 €70,000 per month.
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 6 months Year ended
ended 30 ended 30 31 December 2022
June 2023 June 2022
£000 £000 £000
Americas
United States of America 10,832 17,620 30,941
Rest of Americas 1,689 1,771 4,126
Europe, Middles East and Africa (EMEA)
Germany 4,248 4,245 8,001
United Kingdom 374 1,165 1,886
Ireland 1,006 5,229 5,253
Rest of Europe 2,207 1,641 3,715
Russia 1,690 2,037 4,202
Middle East 859 561 1,449
Africa 1,340 656 1,945
Asia and Rest of World
China 640 538 1,014
Rest of Asia and Oceania 1,987 2,008 4,103
Total Revenue 26,872 37,471 66,635
Revenue by business segment, which is presented for illustrative purposes
only, is as follows:
Unaudited Unaudited
6 months ended 30 June 2023 6 months ended 30 June 2022
£'000
£'000
+/- %
Continuing business
Point-of-Care 16,627 15,093 10.2%
Life Sciences 8,511 15,244 (44.2%)
Other* 1,734 7,134 (78.2%)
Total revenue 26,872 37,471 (28.3%)
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 2023
6 months ended 30 June 2022
year ended 31 December 2022
Note £000 £000 £000
Exceptional items include:
- Deferred consideration and settlement of warranty claim a - - 2
- Business reorganisation costs - other charged to cost of sales b (196) (1,499) (6,774)
- Business reorganisation costs - Impairment c (671) (183) (10,384)
- Business reorganisation costs - other charged to operating expenses d (342) - (369)
Exceptional items (1,209) (1,682) (17,525)
a. Change in the value of deferred consideration relating to
the acquisition of Advanced Diagnostic Laboratory LLC.
b. Costs associated with the transition and restructure of
certain operations in the US, UK and Germany, which have been charged to cost
of sales. The costs include provisions against certain COVID-19 related and
other inventory and provisions for certain onerous contracts following the
decision to focus on its other businesses.
c. Impairments associated with the transition and restructure
of certain operations in the US, UK and Germany, which have been charged to
operating expenses.
d. Costs associated with the transition and restructure of
certain operations in the US, UK and Germany, which have been charged to
operating expenses.
5. Income tax
Unaudited Unaudited Audited
6 months 6 months Year ended
ended 30 ended 30 31 December 2022
June 2023 June 2022
£000 £000 £000
Current tax
Current tax on profit for the period 431 1,692 2,815
Adjustments for prior periods (9) - 62
Total current tax 422 1,692 2,877
Deferred tax
Origination and reversal of temporary differences (278) 25 (2,243)
Total deferred tax (278) 25 (2,243)
Income tax charge 144 1,717 634
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. In August 2023 the remaining share
options lapsed. The Company is holding 1,200,000 ordinary shares in treasury.
These shares have therefore been excluded from the earnings per share
calculation.
Audited year ended 31 December 2022
Unaudited Unaudited 6 months ended 30 June 2022
6 months ended 30 June 2023
£'000 £'000 £'000
(Loss)/profit attributable to owners of the parent (358) 2,213 (10,101)
Weighted average number of ordinary shares 454,492,995 459,474,072 457,180,086
in issue
Assumed conversion of share awards - 4,987 -
Assumed payment of equity deferred consideration - 157,580 -
Weighted average number of ordinary shares - diluted 454,492,995 459,636,639 457,180,186
Pence Pence Pence
Basic (0.08) 0.48 (2.21)
Diluted (0.08) 0.48 (2.21)
7. Property, plant and equipment
Group Land and buildings Plant and machinery Assets under construct-ion
£'000
Fixtures and fittings £'000 Motor vehicles £'000 Right-of-use assets
£'000 £'000 £'000 Total
£'000
Cost
At 1 January 2022 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
Additions 260 32 905 48 3,158 252 4,655
Transfers 40 (205) 608 - (443) - -
Disposals (3) (363) (1,064) (20) (125) (78) (1,653)
Exchange differences 144 108 34 (57) 21 3 253
At 31 December 2022 12,150 1,972 14,877 210 6,415 3,322 38,946
Additions 1,033 23 1,432 - 857 52 3,397
Transfers 88 - 636 - (724) - -
Disposal (5) (403) (1,676) - (8) (960) (3,052)
Discontinued operations - - - - - (176) (176)
Exchange differences (435) (48) (516) (44) (296) (127) (1,466)
At 30 June 2023 12,831 1,544 14,753 166 6,244 2,111 35,538
Depreciation
At 1 January 2022 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
Exchange differences 4 100 (55) (33) - (15) 1
Disposal (3) (336) (1,029) (14) - (64) (1,466)
Impairment 1 - 1,078 - - (21) 1,058
Transfers - (194) 194 - - - -
Charge for the period 270 150 694 (14) - 493 1,593
At 31 December 2022 3,344 1,371 10,397 77 - 2,043 17,232
Exchange differences (143) (31) (352) (16) - (74) (616)
Disposal (5) (378) (1,499) - - (960) (2,842)
Impairment - - - - - 353 353
Transfers 18 - (18) - - - -
Charge for the period 310 193 682 11 - 394 1,590
At 30 June 2023 3,524 1,155 9,211 72 - 1,604 15,566
Net book value
30 June 2023 9,307 389 5,542 94 6,244 507 22,083
31 December 2022 8,806 601 4,480 133 6,415 1,279 21,714
30 June 2022 8,637 749 4,879 101 3,804 1,495 19,665
8. Intangible Fixed Assets
Group Good-will Customer relationships
£'000
Trademarks trade names & licences £'000 Trade secrets Develop-ment costs
£'000 £'000 £'000 Total
Software £'000
£'000
Cost
At 1 January 2022 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
Additions - (15) - - 590 - 575
Disposals - - - - (570) (25) (595)
Exchange differences 442 52 145 317 92 25 1,073
At 31 December 2022 29,376 4,632 17,273 14,050 6,166 3,731 75,228
Additions - 15 - - 118 5 138
Disposal (4,161) (517) (1,293) - (427) (2,975) (9,373)
Transfer - 726 - (520) (206) - -
Exchange differences (911) (211) (739) (366) (182) (94) (2,503)
At 30 June 2023 24,304 4,645 15,241 13,164 5,469 667 63,490
Amortisation
At 1 January 2022 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
Exchange differences - 31 100 246 24 (10) 391
Disposal - - - - (598) - (598)
Impairment 4,254 463 1,157 - 636 2,661 9,171
Charge for the period - 217 733 268 244 242 1,704
At 31 December 2022 4,254 4,047 15,586 12,014 2,211 3,344 41,456
Exchange differences (93) (154) (668) (323) (129) (78) (1,445)
Disposal (4,161) (517) (1,293) - (423) (2,975) (9,369)
Charge for the period - 208 620 191 584 81 1,684
At 30 June 2023 - 3,584 14,245 11,882 2,243 372 32,326
Net book value
30 June 2023 24,304 1,061 996 1,282 3,226 295 31,164
31 December 2022 25,122 585 1,687 2,036 3,955 387 33,772
30 June 2022 28,934 1,259 3,532 2,233 4,149 3,280 43,387
9. Disposal
In March 2023 Advanced Diagnostic Laboratory LLC, which traded as ADL Health,
was sold to a company controlled by its Chief Executive.
The summary results from this business in the period from 1 January 2023 to
disposal are as follows:
Advanced Diagnostic Laboratory
£000
Revenue 475
Cost of sales (505)
Gross loss (30)
Administrative expenses (114)
Net loss for the period (144)
Depreciation included in administrative expenses 55
10. 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 2023 (six months to 30 June 2022
and year to 31 December 2022: both 1.2p). It will be paid on Friday 1 December
2023 to shareholders on the register of members at the close of business on
Friday 3 November 2023.
10. Availability of this announcement
This announcement and the Group's Interim Report for the six months ended 30
June 2023 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
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. END IR FELLLXKLZBBXRecent news on EKF Diagnostics Holdings
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