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. The Company remains on track to deliver growth at the revenue and adjusted EBITDA levels for FY 2025 in-line with market expectations2.
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 EBITDA1 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
1Earnings 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)
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%
●
Strongβ-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 expectations2."
Copies of the interim results and associated investor presentation are available here:
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
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
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 orekf@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)
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 expectations2.
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 comprehensive income (net of tax)
(21)
(29)
(48)
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 June2025
-
-
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. 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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