Business
Trading Update
Trading Update.
About this update from Ekf Diagnostics Holdings Plc
[{"type":"text","content":"\n\nThis announcement contains inside information\nfor the purposes of UK Market Abuse Regulation.\n \nEKF Diagnostics Holdings plc\n(\"EKF\" or the \"Company\")\n \nTrading Update\n \nSubstantial improvement in earnings and cash generation\n \nEKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed global diagnostics business, provides an unaudited trading update for the six months ended 30 June 2024 (\"H1 2024\"), a period showing strong improvement in gross margins, earnings growth and cash generation, in-line with management expectations.\n \nAs announced at the Final Results in March this year, in 2023 EKF focussed on simplifying its business around key product lines within its two divisions, Point-of-Care and Life Sciences, as well as reducing and stabilising its cost base. The first half has seen the results of these efforts as the Company successfully grew and developed its higher margin product ranges.\n \nAs a result, Gross Margins are continuing to improve and the Company expects to report adjusted EBITDA1 growth of at least 20% year-on-year (H1 2023: £4.4m) in-line with management expectations. Cash generation in the first half of the year was also strong with £5.1m generated. Cash, net of bank borrowings, as at 30 June 2024 was £9.8m (31 December 2023: £4.7m).\n \nRevenues remain in-line with management expectations and, as expected, will show a lower performance year-on-year due to the termination of operations and non-core, low margin products (which are being removed from the portfolio) contributing to H1 2023 comparators. The Life Sciences division's fermentation business performed particularly well in the first half, recording sales growth of 41% year-on-year.\n \nThe Company expects this improvement in performance to continue in H2 2024 and remains confident that full year results will be in-line with market expectations.\n \nEKF expects to announce its unaudited results for H1 2024 on 17 September 2024.\n \n1Earnings before interest, tax, depreciation and amortisation, excluding exceptional items and share based payments.\n \nThe person responsible for arranging the release of this Announcement\non behalf of the Company is Julian Baines, Executive Chair.\n \n\n\n\n\nEKF Diagnostics Holdings plc\n\n\nwww.ekfdiagnostics.com\n\n\n\n\nJulian Baines,...