REG - EKF Diagnostics Hldg - Trading Update

EKF Diagnostics HoldingsAnnouncement

24/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240724:nRSX5327Xa&default-theme=true

RNS Number : 5327X  EKF Diagnostics Holdings PLC  24 July 2024

This announcement contains inside information

for the purposes of UK Market Abuse Regulation.

 

EKF Diagnostics Holdings plc

("EKF" or the "Company")

 

Trading Update

 

Substantial improvement in earnings and cash generation

 

EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed global diagnostics
business, provides an unaudited trading update for the six months ended 30
June 2024 ("H1 2024"), a period showing strong improvement in gross margins,
earnings growth and cash generation, in-line with management expectations.

 

As announced at the Final Results in March this year, in 2023 EKF focussed on
simplifying its business around key product lines within its two divisions,
Point-of-Care and Life Sciences, as well as reducing and stabilising its cost
base. The first half has seen the results of these efforts as the Company
successfully grew and developed its higher margin product ranges.

 

As a result, Gross Margins are continuing to improve and the Company expects
to report adjusted EBITDA(1) growth of at least 20% year-on-year (H1 2023:
£4.4m) in-line with management expectations. Cash generation in the first
half of the year was also strong with £5.1m generated. Cash, net of bank
borrowings, as at 30 June 2024 was £9.8m (31 December 2023: £4.7m).

 

Revenues remain in-line with management expectations and, as expected, will
show a lower performance year-on-year due to the termination of operations and
non-core, low margin products (which are being removed from the portfolio)
contributing to H1 2023 comparators. The Life Sciences division's fermentation
business performed particularly well in the first half, recording sales growth
of 41% year-on-year.

 

The Company expects this improvement in performance to continue in H2 2024 and
remains confident that full year results will be in-line with market
expectations.

 

EKF expects to announce its unaudited results for H1 2024 on 17 September
2024.

 

(1)Earnings before interest, tax, depreciation and amortisation, excluding
exceptional items and share based payments.

 

The person responsible for arranging the release of this Announcement

on behalf of the Company is Julian Baines, Executive Chair.

 

 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
 Phil Davies / Oliver Platts

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

 

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

 

EKF is 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.

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

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