REG - EKF Diagnostics Hldg - AGM Statement & Positive Q1 Trading update

EKF Diagnostics HoldingsAnnouncement

14/05/2024 07:00

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RNS Number : 2415O  EKF Diagnostics Holdings PLC  14 May 2024

EKF Diagnostics Holdings plc

("EKF" or the "Company")

 

AGM Statement

& Positive Q1 Trading update

 

EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed global diagnostics
business, provides an update to shareholders ahead of its Annual General
Meeting ('AGM') today at Harwood Capital LLP, 6 Stratton Street, Mayfair,
London W1J 8LD at 11.00 am.

 

The Company is providing a facility for shareholders to listen in to the AGM,
either online or telephonically (in a non-voting capacity) and investor
questions will be addressed afterwards, as previously announced. For dial-in
details please contact Walbrook PR via email at ekf@walbrookpr.com
(mailto:ekf@walbrookpr.com) or call +44 (0)20 7933 8780.

 

Executive Chair's AGM statement

 

In 2023 we successfully simplified the business and focussed our efforts on
the areas within our Point-of-Care and Life Sciences business where we have
the strongest opportunities to deliver growth, with a clear goal: to further
improve profit margins and cash generation.

 

Having discontinued a number of products within our portfolio we went into
2024 focussed on our more profitable core products and services and this,
alongside continued cost savings, is already showing a significant positive
impact on gross margins in Q1. As a result, adjusted EBITDA(1) for the first
three months of the year is already showing a c.20% improvement on Q1 2023.

 

Overall trading in the first quarter of 2023 has been in-line with the Board
expectations, with pleasing results from key high margin business lines within
our two divisions, where we had expected an improvement in performance in
2024, and which were flagged in our 2023 Full Year Results.

 

The stronger growth expected from β-HB sales, up 7% in Q1 2024 compared to Q1
2023, is beginning to come through as we benefit from the positive impact of
White Label contracts for β-HB LiquiColor® with Thermo Fisher and Cardinal.

 

The expected scaling up of fermentation services at our South Bend site
continues as expected, for both existing customers, as well as new customers
looking to take advantage of our increased capacity. Sales for fermentation
services in Q1 2024 are up 156% year-on-year, and so we remain in-line with
our previous guidance for a gradual build-up in revenues and profitability
from this side of the business.

 

Within Point-of-Care we previously flagged that our largest contributor to
Hematology revenues, HemoControl, was expected to return to growth in 2024. In
Q1 2024 HemoControl revenues were up 12% compared to the previous first
quarter as Women, Infants and Children clinics in the US returned to regular
ordering and a resumption in orders from our key partners in Peru.

 

Net Cash across the group increased in the first quarter in-line with
management expectations and we have been in receipt of regular dividend
payments from the Russian operation since the start of the year. In addition,
last week we received the $2.7m tax refund in relation to the US business
which we had originally expected before the end of 2024, further improving our
cash position in the second quarter.

 

With very pleasing trading in the first quarter of 2024, particularly with a
focus on our key higher margin product lines, we remain confident that our
overall financial performance for the year will be in-line with management
expectations, and that 2024 will be a year of significant momentum in terms of
both EBITDA margins and cash generation.

 

(1)adjusted earnings before interest, tax, depreciation and amortisation,
share-based payments and exceptional items

 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 Limited            Tel: +44 (0)20 7933 8780 or ekf@walbrookpr.com (mailto:ekf@walbrookpr.com)
 Paul McManus / Alice Woodings  Mob: +44 (0)7980 541 893 / +44 (0)7407 804 654

 

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

 

EKF is an AIM-listed global diagnostics business focussed on:

 

 ●    Point-of-Care analysers in the key areas of Hematology and Diabetes

 ●    Life Sciences services provide specialist manufacture of enzymes and custom
      products for use in diagnostic, food and industrial 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.

 

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