REG - EKF Diagnostics Hldg - Half-year Report
17/09/2024 07:00
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RNS Number : 4021E EKF Diagnostics Holdings PLC 17 September 2024
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 2024 ("H1 2024"), a period showing strong improvement in gross margins,
earnings growth and cash generation, in-line with management expectations.
Guidance for the full year performance remains unchanged from the 24 July 2024
Trading Update
(https://www.londonstockexchange.com/news-article/EKF/trading-update/16582676)
.
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 focussed on its higher margin product
ranges and core operations, with benefits continuing into the second half.
Financial highlights
● Revenue from continuing operations of £25.2m (H1 2023: £26.9m)
- Reflecting winding down of non-core and low margin product lines and
services
- Revenues (excluding COVID-related and clinical chemistry sales) of £24.5m
(H1 2023: £24.4m)
● Gross profit of £12.1m (H1 2023: £11.8m)
● Gross margins further improved to 48% (H1 2023: 44%; FY 2023: 45%)
● Adjusted EBITDA* up 22.7% to £5.4m (H1 2023: £4.4m)
● Profit before tax of £3.1m (H1 2023: loss before tax of £0.03m)
● Net cash generated from operations of £7.9m (H1 2023: £2.5m) including
effect of £2.1m US tax refund
● Cash and cash equivalents net of bank borrowing as at 30 June 2024 of £9.8m
(30 June 2023: £9.1m; 31 December 2023: £4.7m)
- Revolving credit facility of £3.0m repaid in full
- £2.2m held by EKF's Russian subsidiary and subject to regulatory
restrictions (30 June 2023: £2.4m; 31 December 2023: £1.7m), with £0.3m in
further dividends received in the period
* Earnings before interest, tax, depreciation and amortisation adjusted for
exceptional items and share-based payments
Operational highlights
● Business division revenues:
- Point-of-Care: £15.2m (H1 2023: £15.6m)
- Life Sciences: £8.6m (H1 2023: £8.1m)
- Other: £0.7m (H1 2023: £0.7m)
- Other (products being phased out): £0.7m (H1 2023: £2.5m)
● Life Sciences division's fermentation business revenues up 41% year-on-year
with increased revenue generation from new facility in South Bend
● Ongoing operational efficiency measures to further benefit FY 2024 performance
● Continued review of product portfolio to maximise margin improvements
Julian Baines, Executive Chair of EKF, commented: "The Board remains confident
in the outlook for the business overall and with orders already in house for
the second half we are very confident that the Point of Care performance in
Europe, Middle East and Africa will improve significantly. The actions we've
taken are expected to yield further improvements in gross margins, earnings
growth and cash generation, and as a result of our efficiency drive we now
have a leaner business, with a cost base correctly aligned to a more focussed
higher-margin product mix.
"The Company expects the improvement in performance to continue in H2 2024 and
remains confident that full year results will be in-line with market
expectations."
Copies of the interim results and associated investor presentation are
available here:
https://www.ekfdiagnostics.com/documents-reports.html
(https://www.ekfdiagnostics.com/documents-reports.html)
Investor Presentation
EKF Diagnostics will be hosting a live online presentation open to all
existing and potential investors on Wednesday 18 September 2024 at 4.30pm
(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
Phil Davies / Oliver Platts
Walbrook PR (Media & Investor Relations) Tel: +44 (0)20 7933 8780 or ekf@walbrookpr.com (mailto:ekf@walbrookpr.com)
Paul McManus / Charlotte Edgar Mob: +44 (0)7980 541 893 / +44 (0)7884 664 686
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 analyzers 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.
EXECUTIVE CHAIR'S STATEMENT
In the previous financial year we simplified the business by removing
non-core, low-margin products from our portfolio, focussing on key product
lines within our Point-of-Care and Life Sciences divisions. At the same time,
we also reduced and stabilised our cost base in order to drive further margin
improvement and enhance cash generation. I'm delighted to report that these
actions are bearing fruit with our half year results showing strong
improvement in gross margins, earnings growth and cash generation, in-line
with management expectations.
OPERATIONAL OVERVIEW
Total revenues for the six months ended 30 June 2024, from core operations
(excluding COVID-related, clinical chemistry and testing revenues), were
£24.5m (H1 2023: £24.4m). Gross Margins improved further to 48.1% (H1 2023:
44.0%) and adjusted EBITDA was £5.4m (H1 2023: £4.4m).
Promised efficiencies delivered in H1
For much of last year we focussed on delivering efficiencies across both our
operations and within our product portfolio and these have delivered improved
gross margins, earnings growth and cash generation. By optimising efficiencies
within our operations we were able to reduce the cost base by £1.9m and have
established headcount at a sustainable level. We have cancelled low margin
contracts, reviewed suppliers, and identified outsourcing opportunities. In
terms of our external production needs, we have brought one process in-house
at our facility in Magdeburg, Germany and have consolidated all of our liquid
chemistry production into our in-house facility in Boerne, Texas. These
actions have helped reduce costs, improve margin and allow us to manage raw
material costs more effectively. A newly implemented electronic Quality
Management System and upgraded IT infrastructure is expected to deliver
further efficiencies and support further growth.
Within the portfolio we have discontinued several low margin product lines
including the entire Clinical Chemistry range. We had committed to adding new
features and functionality to our POC range and we expect to see the benefit
of this in H2 as new tender opportunities are now available to us due to the
connectivity that EKF Link(TM) provides across a number of products. Within
Life Sciences we have been able to significantly increase the yield for β-HB
production having reviewed processes and run cycles to deliver better value.
We have also looked to cancel or renegotiate all non-preferential partner
agreements which will have a positive impact on overall product margins as the
mix improves.
Further margin improvement expected
We expect that the adjusted EBITDA margin will improve in the second half
following the delivery of efficiencies above, change of product mix and the
increased weighting of higher margin product sales. Margins should continue to
benefit further from the ramp-up in higher margin enzyme fermentation revenues
within Life Sciences as utilisation of our additional capacity builds.
These improvements do not come at the expense of investment into capital
expenditure, but allows us to focus on a core product range and we have an
R&D roadmap in place which will deliver product improvements and cost
reductions, as well as new product introductions. Further investment in
injection moulding tool requirements and planned upgrades to existing
production lines are expected to provide improved efficiencies and additional
capacity to support growth. We also expect to benefit from further
efficiencies driven by planned investment in automation in production and
packing.
The first half shows broadly flat performance from Point-of-Care ("POC"),
which is a reflection of the changing of product mix and the timings of a
number of tender awards, such that we expect to see performance improve across
a number of our POC product lines in the second half. The Life Sciences
division has benefitted from continued growth in β-HB sales, and a ramp-up in
fermentation revenues.
Divisional revenues H1 2024 H1 2023 % Change
£ millions
Point-of-Care (POC) - hematology and diabetes 14.0 14.2 -1.4%
Point-of-Care (POC) - other * 1.2 1.4 -14.3%
Life Sciences (β-HB and Fermentation) 8.1 7.2 +12.5%
Life Sciences - other ** 0.5 0.9 -44.4%
Other *** 0.7 0.7 0.0%
Other - products being phased out 0.7 2.5 -72.0%
Total Revenues (exc. COVID-related & clinical chemistry revenues) 24.5 24.4 +0.4%
Total Revenues (inc. COVID-related & clinical chemistry revenues) 25.2 26.9 -6.3%
* POC - other, relating to other diagnostics tests.
** Life Sciences - Other, relating to contract manufacturing.
*** Other revenue relating to shipping and handling recharges, repairs and
other sundries.
(1) Point-of-Care
EKF continues to maintain a strong position within the global market for
hematology and diabetes testing, with over 12,000 Point-of-Care analyzers and
over 95 million individual test consumables sold in 2023.
· Hematology
Total sales of our hematology analyzers and consumables were up 4%
year-on-year. Our largest contributor to hematology revenues, Hemocontrol,
grew by 10% reversing the declines we saw in FY 2023 (down 5%) and driving the
overall performance of this product group. We expect this performance to
continue into the second half as new tenders are now available to us due to
the connectivity that our EKF Link(TM) data management platform now provides
for this product.
Revenues in our second largest hematology product, Diaspect Tm, were broadly
flat year-on-year although the timing of sales related to our ongoing support
of Egypt's Vision 2030 programme will deliver an improved performance in the
second half, as these orders will be fulfilled entirely using in-house
resources.
We continue to grow our presence in the global blood bank market and secured
two new contract wins from the Red Cross in Hong Kong and in Thailand
post-period end.
· Diabetes
Our diabetes product portfolio saw an overall 11% decline in year-on-year
sales, with all three key product lines (Biosen, Quo-Test and Quo-Lab) down
compared to H1 2023. We are also seeing some movement in our user base for
glycated haemoglobin (HbA1c) testing products as customers transition away
from Quo-Lab to our higher margin Quo-Test; however, we expect to see this
positively impact performance in the second half as we see greater consumable
pull-through, particularly from a substantial tender in South Africa where
analyzers have already been shipped, and many installed, but there has been a
delay for diagnostic programmes using this equipment in becoming operational.
Biosen sales, our largest contributor within diabetes, were impacted by the
greater effect of sanctions in Russia, and other customers have refrained from
ordering new systems ahead of the launch of the new and enhanced Biosen
C-Line, which offers improved connectivity and usability. Post-period end this
updated product was made available to customers.
Whilst we expect to see a stronger performance from Quo-Test and Biosen in H2
2024, we don't expect overall revenues across the Diabetes product portfolio
to exceed those levels seen in 2023.
(2) Life Sciences
· β-HB
Sales of our β-HB LiquiColor® reagent rose by 6% year-on-year as we continue
to benefit from the White Label ("WL") contract with Thermo Fisher. Thermo
Fisher has now depleted its pre-existing EKF-branded stock and regular stock
ordering, and replenishment of the inventory with the new WL β-HB reagent has
resumed.
Following the discontinuation of our STAT-Site M β-HB, we have been focussing
on growing our userbase for our STAT-Site WB Analyzer, a handheld device for
the quantitative determination of β-HB in whole blood. The roll-out of this
product is continuing to develop well with a 50% increase in total sales
year-on-year. We expect further sustained growth in consumables for the
STAT-Site WB driven by the heavy push for initial analyzer sales in H2 2023.
· Fermentation
Having opened the South Bend site in October 2023, we have seen a steady
increase in revenues in the first half as we scale up output for our
customers. Revenues for H1 2024 are up 41% through sales to new and existing
customers compared to a low base in H1 2023 and we continue to aim to operate
the site closer to optimal capacity by the beginning of 2026.
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. As expressed earlier, sales continue to be impacted
by the increased effect of sanctions in the region, even for essential medical
supplies.
Cash held in Russia totalled £2.2m at the period end. Restrictions remain in
place regarding the payment of foreign dividends in Russia and so this cash
remains partly inaccessible, although £0.3m of further dividends were
received from Russia during the period.
Outlook
Life Sciences has seen good growth in fermentation revenues and β-HB sales
have continue to perform well. Within Point of Care, Hematology has delivered
a robust performance and we expect to see this improve in H2 based on new
shipments to Egypt confirmed and a number of additional wins relating to blood
bank centres going live since the period-end. We should see improvements with
Diabetes in the second half but as highlighted previously, it is unlikely that
these products will reach the revenue levels seen in 2023. It is the nature of
a business with a wide variety of products to see mixed performances across
this portfolio.
The Board remains confident in the outlook for the business overall and with
orders already in house for the second half we are very confident that the
Point of Care performance in Europe, Middle East and Africa will improve
significantly. All of the actions described above are expected to yield
further improvements in gross margins, earnings growth and cash generation,
and as a result of our efficiency drive we now have a leaner business, with a
cost base correctly aligned to a more focussed higher-margin product mix.
The Company expects the improvement in performance to continue in H2 2024 and
remains confident that full year results will be in-line with market
expectations.
Julian Baines
Executive Chair
17 September 2024
Financial review
Revenue
Revenue for the period was £25.2m (H1 2023: £26.9m). During H1 2023,
Advanced Diagnostic Laboratory (ADL), the Group's former testing business, was
sold and UK contract manufacturing and testing ceased. These businesses had a
combined revenue in H1 2023 of £1.2m. In H2 2023 we announced that we were
winding down our Clinical Chemistry business due to its low margins, and had
discontinued our STAT-Site M β-HB product line. These had a combined revenue
in H1 2023 of £1.4m.
Revenue by Business Unit:
Unaudited Unaudited
6 months ended 30 June 2024 6 months ended 30 June 2023
£'000 £'000
+/- %
Point-of-care 15,191 15,641 (2.9%)
Life sciences 8,599 8,083 6.4%
Other* 667 642 3.8%
Revenue from core operations 24,457 24,366 0.4%
Testing and UK manufacture - 1,155 (100%)
Clinical chemistry 755 1,018 (25.8%)
STAT-Site M β-HB - 333 (100%)
Total revenue 25,212 26,872 (6.2%)
Revenue from core operations (excluding testing, clinical chemistry and
STAT-Site M β-HB revenues) increased by 0.4%, with Point-of-care revenues
affected by customers holding off on placing orders for the new Biosen product
that is being launched in H2 2024.
* Other revenue relating to shipping and handling recharges, repairs and other
sundries
Revenue by Geographical Segment:
Unaudited Unaudited
6 months ended 30 June 2024 6 months ended 30 June 2023
£'000 £'000
+/- %
Continuing business
Germany 9,916 11,014 (10.0%)
USA 13,658 13,376 +2.1%
Russia 1,638 1,690 (3.1%)
UK - 792 (100%)
Total revenue 25,212 26,872 (6.2%)
Revenue in Germany was down, due to the Biosen launch previously highlighted,
Quo-Lab, and an element of COVID related product sales.
In the USA, H1 2023 included Testing revenue achieved by ADL, plus higher
levels of sales of the low margin products that are being phased out, however
growth overall was still achieved.
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 £12.1m (H1 2023: £11.8m). The gross profit margin was 48.1%
(H1 2023: 44.0%). The gross profit has increased marginally mainly as a result
of the mix of products and services. The gross profit margin on an Adjusted
Earnings basis (i.e. excluding depreciation, amortisation, exceptional items
and share-based payments included in cost of sales) was 51.5% (H1 2023:
47.8%).
Administrative expenses
In H1 2024, administration expenses (excluding exceptionals) further reduced
to £9.2m (H1 2023: £10.9m), representing 36.3% of revenue for the period (H1
2023: 40.7%, FY 2023: 37.4%). The decrease is largely due to cost savings and
lower amortisation. The Boards expects that the cost savings and efficiency
measures that have been implemented will continue to benefit in the second
half of the year.
The charge for depreciation of fixed assets and for the amortisation of
intangibles is £2.4m (H1 2023: £3.3m).
Headcount
The Group had an average of 309 employees during H1 2024 (H1 2023: 345)
Operating profit and adjusted earnings before interest tax and depreciation
The Group generated an operating profit of £3.1m (H1 2023: loss of £0.07m).
We continue to consider that adjusted EBITDA gives a more meaningful measure
of performance which for H1 2024 was £5.4m (H1 2023: £4.4m).
In H1 2024 adjusted EBITDA excludes an exceptional credit of £0.03m (H1 2023:
charge of £1.2m). The exceptional credit relates mainly to the reversal of
provisions against inventory originally charged to exceptional items.
Finance income
Net finance cost is £0.01m (H1 2023: income of £0.04m). The charge is
largely because of bank interest on loans offset by higher interest income on
funds held in Russia. The £3m drawn down on the revolving credit facility has
been repaid during the period.
Tax
There is a tax charge of £0.8m (H1 2023: £0.1m). The increase largely
reflects the increase in profit. A tax refund relating to the USA of £2.1m
has been received during the period.
Earnings per share
Basic earnings per share from continuing operations has increased to 0.46
pence (H1 2023: 0.08 pence loss). There are no dilutive effects.
Balance sheet
Fixed assets
We have capitalised £2.0m (H1 2023: £3.4m) of property, plant and equipment.
The expenditure includes continuing work on adding capacity for Life Sciences
in South Bend, and the effect of the capitalisation of new operating leases
including the renewal of the lease on the Group's headquarters in Penarth.
While some further expenditure in Life Sciences to complete the new facility
in South Bend is planned for the second half of the year, the bulk of the
expenditure has now been completed.
Intangible assets
The value of intangible fixed assets is £29.5m (31 December 2023: £30.2m).
The decrease is mainly the result of amortisation. An amount of £0.3m (H1
2023: £0.1m) has been capitalised during the first half, largely for R &
D expenses.
Investments
Investments are held at fair value which has been calculated based on the
market value of the shares for Verici Dx. The value of the Group's investment
in Llusern Scientific was decreased following a further fund raising in which
the Group did not participate.
Cash and working capital
The gross cash position at 30 June 2024 was £9.8m (31 Dec 2023: £7.7m), and
the Group had cash net of bank borrowings of £9.8m (31 Dec 2023: £4.7m).
During the period the loan from HSBC UK which at 31 December 2023 was £3m was
repaid in full.
Cash generated from operating activities in H1 2024 is £7.9m (H1 2023:
£2.5m). A tax repayment of £2.1m has been received in the USA and there has
been further benefit from lower payments on account.
Cash and cash equivalents held by the Russian subsidiary as at 30 June 2024
totalled £2.2m (31 Dec 2023: £1.7m). These deposits 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 £0.3m which have limited our
exposures.
Share capital
1,200,000 ordinary shares were returned to the Company in April 2023 by the
acquirer of ADL. These shares remain in treasury. We have maintained
shareholder authority to buy back shares, however we currently have no plans
to make any further purchases.
Dividend
In December 2023, the Company paid a final dividend of 1.2p per ordinary
share. 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
unutilised facilities of £3m from HSBC UK and a further £3m from the North
Atlantic Smaller Companies Investment Trust, both of which are 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.
Stephen Young
Chief Financial Officer
17 September 2024
CONSOLIDATED INCOME STATEMENT
FOR THE 6 MONTHS ENDED 30 JUNE 2024 Unaudited 6 months ended 30 June 2023
Unaudited 6 months ended 30 June 2024 Audited Year ended 31 December 2023
Notes £'000 £'000 £'000
Continuing operations
Revenue 3 25,212 26,872 52,611
Cost of sales (13,150) (14,855) (28,175)
Exceptional items - other credited/(charged) to cost of sales 58 (196) (577)
Gross profit 12,120 11,821 23,859
Administrative expenses (9,160) (10,939) (19,680)
Exceptional items - impairment of assets - (671) (961)
Exceptional items - other (29) (341) (1,295)
Other income 139 63 158
Operating profit/(loss) 3,070 (67) 2,081
Depreciation and amortisation (2,382) (3,274) (5,472)
Share-based payments - - 2
Exceptional items 4 29 (1,209) (2,833)
EBITDA before exceptional items and share-based payments 5,423 4,416 10,384
Finance income 98 59 125
Finance costs (111) (18) (75)
Profit/(loss) before income tax 3,057 (26) 2,131
Income tax charge 5 (837) (144) 600
Profit/(loss) for the period 2,220 (170) 2,731
Profit/(loss) is attributable to:
Owners of the parent 2,066 (358) 2,352
Non-controlling interest 154 188 379
2,220 (170) 2,731
Earnings/(loss) per ordinary share attributable to the owners of the parent
during the period
6
Pence Pence Pence
Basic 0.46 (0.08) 0.52
Diluted 0.46 (0.08) 0.52
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTHS ENDED 30 JUNE 2024
Unaudited Unaudited Audited
6 months ended 30 June 2024 6 months ended 30 June 2023 Year ended 31 December 2023
£'000 £'000 £'000
Profit/(loss) for the period 2,220 (170) 2,731
Other comprehensive (expense)/income:
Items that will not be reclassified to profit or loss (29) 437 489
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
Currency translation differences (300) (3,502) (3,564)
Other comprehensive (loss)/income (net of tax) (329) (3,065) (3,075)
Total comprehensive income/(loss) for the period 1,891 (3,235) (344)
Attributable to:
Owners of the parent 1,684 (3,139) (438)
Non-controlling interests 207 (96) 94
Total comprehensive income/(loss) for the period 1,891 (3,235) (344)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
Unaudited as at 30 June 2024 Unaudited as at 30 June 2023 Audited as at 31 December 2023
Notes £'000 £'000 £'000
Assets
Non-current assets
Property, plant and equipment 7 23,696 21,576 23,744
Right-of-use assets 7 1,212 507 1,031
Intangible assets 8 29,466 31,163 30,224
Investments 226 1,556 276
Deferred tax assets 17 878 18
Total non-current assets 54,617 55,680 55,293
Current Assets
Inventories 8,157 9,414 8,766
Trade and other receivables 6,600 7,979 6,787
Corporation tax receivable 133 13 2,277
Cash and cash equivalents * 9,820 9,165 7,726
Total current assets 24,710 26,571 25,556
Total assets 79,327 82,251 80,849
Equity attributable to owners of the parent
Share capital 4,537 4,537 4,537
Share premium 7,375 7,375 7,375
Other equity - Ordinary shares held in treasury 12 - 12
Other reserve 51 (182) 80
Foreign currency reserves 6,003 6,129 6,356
Retained earnings 50,823 46,326 48,757
68,801 64,185 67,117
Non-controlling interest 1,134 1,081 1,100
Total equity 69,935 65,266 68,217
Liabilities
Non-current liabilities
Lease liabilities 1,009 223 618
Deferred tax liability 3,006 2,140 2,517
Total non-current liabilities 4,015 2,363 3,135
Current liabilities
Trade and other payables 4,844 11,702 5,512
Lease liabilities 237 400 495
Current income tax liabilities 296 2,476 504
Borrowings - 44 2,986
Total current liabilities 5,377 14,622 9,497
Total liabilities 9,392 16,985 12,632
Total equity and liabilities 79,327 82,251 80,849
*including restricted cash of £2,229 (June 2023: £2,366 & Dec 2023:
£1,706)
FOR THE 6 MONTHS ENDED 30 JUNE 2024
Unaudited 6 months ended 30 June 2024 Unaudited 6 months ended 30 June 2023 Audited Year to 31 December 2023
£'000 £'000 £'000
Cash flow from operating activities
Profit/(Loss) before income tax 3,057 (26) 2,131
Adjustments for
- Depreciation 1,733 1,590 3,276
- Amortisation and impairment charges 649 1,684 2,196
- Exceptional items - other, charged to cost of sales 58 196 577
- Exceptional items - impairment - 671 961
- Exceptional items - other (29) 342 1,295
- Loss on disposal of assets 67 5 -
- Share-based payments - - (2)
- Cash outflows relating to exceptional items (18) (157) (721)
- Foreign Exchange (104) - (5)
- Bad debt written (back)/down (28) 174 214
- Finance income (98) (59) (125)
- Finance costs 111 18 75
Changes in working capital
- Inventories 922 (445) (745)
- Trade and other receivables 343 1,708 2,495
- Trade and other payables (715) (2,862) (2,799)
Cash generated from operations 5,948 2,839 8,823
Interest received 98 59 125
Interest paid (89) (3) (47)
Income tax received/(paid) 1,908 (389) (2,590)
Net cash generated from operating activities 7,865 2,506 6,311
Cash flow from investing activities
Payment for property, plant and equipment (PPE) (1,495) (3,345) (6,598)
Payment for intangibles (263) (138) (377)
Proceeds from sale of PPE - 59 1,333
Net cash used in investing activities (1,758) (3,424) (5,642)
Cash flow from financing activities
Dividend paid to company shareholders - - (5,445)
Repayments of borrowings (3,000) (93) (137)
Proceeds from new borrowings - - 3,000
Fees for borrowing - - (14)
Principal elements of lease payments (897) (507) (879)
Dividends payment to non-controlling interests (173) - (171)
Net cash used in financing activities (4,070) (600) (3,646)
Net increase/(decrease) in cash and cash equivalents 2,037 (1,518) (2,977)
Cash and cash equivalents at beginning of period 7,726 11,578 11,578
Exchange gains on cash and cash equivalents 57 (895) (875)
Cash and cash equivalents at end of period 9,820 9,165 7,726
At 30 June 2024 cash and cash equivalents totalling £2.2m (31 Dec 2023:
£1.7m) 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 2024
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 2023 4,549 7,375 - (629) 9,590 52,461 73,346 1,177 74,523
Comprehensive income/(expense)
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)
Dividends to non-controlling interest - - - - - - - - -
Total contributions by and distributions to owners (12) - 12 - - (5,789) (5,789) - (5,789)
At 30 June 2023 (unaudited) 4,537 7,375 12 (194) 6,129 46,326 64,185 1,081 65,266
Comprehensive income/(expense)
Profit for the period - - - - - 2,710 2,710 191 2,901
Other comprehensive income/(expense)
Changes in fair value of equity instruments at fair value through other - - - 52 - - 52 - 52
comprehensive income/(expense)
Reserves transfer - - - 262 - (262) - - -
- - - 1 227 (56) 172 (1) 171
Currency translation differences
Total comprehensive income/(expense) - - - 315 227 2,392 2,934 190 3,124
Transactions with owners
Acquisition of own shares - - - - - - - - -
Share based payment reserve - - - - - (2) (2) - (2)
Dividends to non-controlling interest - - - - - - - (171) (171)
Reserve transfer - - - (41) - 41 - - -
Total contributions by and distributions to owners - - - (41) - 39 (2) (171) (173)
At 31 December 2023 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)
Changes in fair value of equity instruments at fair value through other - - - (29) - - (29) - (29)
comprehensive income/(expense)
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
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 2024. 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 2023 and which will form the basis of the 2024
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 2023 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 2024 and 30 June 2023 is
unaudited and the twelve months to 31 December 2023 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.
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
unutilised facilities of £3m from HSBC UK and a further £3m from the North
Atlantic Smaller Companies Investment Trust, both of which are 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,
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 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 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
Year ended December 2023 audited
Germany USA Russia UK Total
£'000 £'000 £'000 £'000 £'000
Income statement
Revenue 27,122 26,133 3,568 816 57,639
Inter-segment (5,027) - - (1) (5,028)
External revenue 22,095 26,133 3,568 815 52,611
Adjusted EBITDA* 6,459 6,851 1,092 (4,018) 10,384
Exceptional items - impairments (677) (120) - (164) (961)
Exceptional items - other (86) (1,186) - (23) (1,295)
Exceptional items - other to cost of sales 205 (775) - (7) (577)
Share-based payments - - - 2 2
EBITDA 5,901 4,770 1,092 (4,210) 7,553
Depreciation (907) (2,065) (37) (267) (3,276)
Amortisation (1,182) (929) - (85) (2,196)
Operating profit/(loss) 3,812 1,776 1,055 (4,562) 2,081
Finance income 125
Finance cost (75)
Income tax 600
Profit for the year 2,731
Segment assets
Operating assets 42,131 53,717 1,271 9,304 106,423
Inter-segment assets (10,818) (20,493) (210) (1,779) (33,300)
External operating assets 31,313 33,224 1,061 7,525 73,123
Cash and cash equivalents 1,269 3,955 1,706 796 7,726
Total assets 32,582 37,179 2,767 8,321 80,849
Segment liabilities
Operating liabilities 4,959 23,125 160 14,701 42,945
Inter-segment liabilities (770) (19,184) - (13,346) (33,300)
External operating liabilities 4,189 3,941 160 1,355 9,645
Borrowings (excluding lease liabilities) - - - 2,986 2,986
Total liabilities 4,189 3,941 160 4,341 12,631
Other segmental information
Non-current assets - PPE 6,176 15,834 138 1,596 23,744
Non-current assets - Right-of-use assets 148 884 - (1) 1,031
Non-current assets - Intangibles 18,117 7,650 68 4,389 30,224
PPE - additions 1,240 5,495 56 8 6,799
Intangible assets - additions 314 63 - - 377
Right-of-use assets - additions 67 544 - - 611
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 41
Income tax (144)
Loss for the period (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
* 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, 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 2024. 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 2024. 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 2023
June 2024 June 2023
£000 £000 £000
Americas
United States of America 11,215 10,832 21,187
Rest of Americas 1,421 1,689 3,791
Europe, Middles East and Africa (EMEA)
Germany 3,689 4,248 8,231
United Kingdom 402 374 767
Ireland 142 1,006 1,277
Rest of Europe 2,084 2,207 4,094
Russia 1,638 1,690 3,568
Middle East 449 859 1,656
Africa 1,436 1,340 2,805
Asia and Rest of World
China 625 640 1,246
Rest of Asia and Oceania 2,111 1,987 3,989
Total Revenue 25,212 26,872 52,611
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 2024
6 months ended 30 June 2023
year ended 31 December 2023
Note £000 £000 £000
Exceptional items include:
- Business reorganisation costs - other credited/(charged) to cost of sales 58 (196) (577)
a
- Business reorganisation costs - Impairment b - (671) (961)
- Business reorganisation costs - other charged to operating expenses (29) (342) (1,295)
c
Exceptional items 29 (1,209) (2,833)
a. 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. In 2024 some of these provisions have been released.
b. Impairments associated with the transition and restructure of certain
operations in the US, UK and Germany, which have been charged to operating
expenses.
c. 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 2023
June 2024 June 2023
£000 £000 £000
Current tax
Current tax on profit for the period 350 431 1,182
Adjustments for prior periods (9) (9) (2,729)
Total current tax 341 422 (1,547)
Deferred tax
Origination and reversal of temporary differences 496 (278) 947
Total deferred tax 496 (278) 947
Income tax charge 837 144 (600)
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 no longer has any dilutive potential
ordinary shares. 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 2023
Unaudited Unaudited 6 months ended 30 June 2023
6 months ended 30 June 2024
£'000 £'000 £'000
Profit/(loss) attributable to owners of the parent 2,066 (358) 2,352
Weighted average number of ordinary shares 453,730,564 454,492,995 454,105,359
in issue
Assumed conversion of share awards - - -
Weighted average number of ordinary shares - diluted 453,730,564 454,492,995 454,105,359
Pence Pence Pence
Basic 0.46 (0.08) 0.52
Diluted 0.46 (0.08) 0.52
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 2023 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 - (403) (92) - (8) (1,136) (1,639)
Disposal of subsidiary (5) - (1,584) - - - (1,589)
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 37,649
Additions 1,548 85 747 55 1,019 559 4,013
Transfers 107 (22) 5,933 - (6,075) - (57)
Disposals - (180) (224) (13) 4 669 256
Exchange differences 27 10 58 - (4) (16) 75
At 31 December 2023 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 (35) (18) (187) 10 (19) 4 (245)
At 30 June 2024 15,469 1,498 22,390 208 222 2,791 42,578
Depreciation
At 1 January 2023 3,344 1,371 10,397 77 - 2,043 17,232
Exchange differences (143) (31) (351) (16) - (74) (615)
Disposal - (378) (89) - - (1,112) (1,579)
Disposal of subsidiary (5) - (1,410) - - - (1,415)
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
Exchange differences (2) 6 43 - - (1) 46
Disposal - (202) (236) (9) - 645 198
Impairment - - - - - (278) (278)
Transfers (18) - (39) - - - (57)
Charge for the period 366 106 883 9 - 322 1,686
At 31 December 2023 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
Net book value
30 June 2024 11,221 355 11,764 134 222 1,212 24,908
31 December 2023 10,643 372 11,405 136 1,188 1,031 24,775
30 June 2023 9,307 389 5,542 94 6,244 507 22,083
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 2023 29,376 4,632 17,273 14,050 6,166 3,731 75,228
Additions - 15 - - 118 5 138
Disposal - - - - (427) - (427)
Disposal of subsidiary (4,161) (517) (1,293) - - (2,975) (8,946)
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
Additions - (7) - - 251 (5) 239
Disposal - - - - (212) - (212)
Exchange differences 121 40 30 92 31 2 316
At 31 December 2023 24,425 4,678 15,271 13,256 5,539 664 63,833
Additions - 6 - - 257 - 263
Disposal - - - - (1,816) - (1,816)
Transfer - - - - - - -
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
Amortisation
At 1 January 2023 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 - - - - (423) - (423)
Disposal of subsidiary (4,161) (517) (1,293) - - (2,975) (8,946)
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
Exchange differences 0 (8) 26 80 47 (5) 140
Disposal - - - - (256) - (256)
Impairment - - - - 887 - 887
Charge for the period - 221 388 152 (297) 48 512
At 31 December 2023 - 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
Net book value
30 June 2024 24,145 706 443 1,021 2,954 197 29,466
31 December 2023 24,425 881 612 1,142 2,915 249 30,224
30 June 2023 24,304 1,061 996 1,282 3,226 295 31,164
9. Dividends
In December 2023, the Company paid a final dividend of 1.2p per ordinary
share. 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.
10. Availability of this announcement
This announcement and the Group's Interim Report for the six months ended 30
June 2024 are available from the Company's website, www.ekfdiagnostics.com
(http://www.ekfdiagnostics.com) . If you would like to receive a hard copy of
the Interim Report, please contact the EKF Diagnostics Holdings plc offices on
+44 (0)29 2071 0570 to request a copy.
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. END IR BLGDCLSBDGSLRecent news on EKF Diagnostics Holdings
See all newsREG - EKF Diagnostics Hldg - Half-year Report
AnnouncementREG - EKF Diagnostics Hldg - Notice of Results and Investor Presentation
AnnouncementREG - Takeover Panel - Disclosure Table
AnnouncementREG - Takeover Panel - Disclosure Table
AnnouncementREG - Takeover Panel - Disclosure Table
Announcement