Business
Trading update
Trading update.
About this update from Ekf Diagnostics Holdings Plc
[{"type":"text","content":"\n \n \n \n This announcement contains inside information\nfor the purposes of UK Market Abuse Regulation.\n \n \n \n \n \n \n \n \n \n EKF Diagnostics Holdings plc\n \n \n \n (\"EKF\", the \"Company\" or the \"Group\")\n \n \n \n \n \n \n \n \n Trading update\n \n \n \n \n \n \n EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed\n global diagnostics business\n ,\n provides the following unaudited trading update for the year ended 31 December 2022 (\"FY 2022\"), reflecting strong growth in the core established business. The Company also gives a progress update on the expansion of the Life Sciences enzyme fermentation business and on the transition of Contract Manufacturing & Laboratory Testing into non-COVID revenues.\n \n \n \n \n \n \n Summary expected results for FY 2022\n \n \n \n The positive first half performance of the core established business, comprising Point-of-Care & Central Laboratory, continued into the second half, and the Life Sciences division also delivered significant year-on-year growth. Overall performance has shown considerable growth compared to pre-pandemic levels and, as a result, the Company will report revenues for FY 2022 that are in line with market expectations.\n \n \n \n \n \n The transition to non-COVID revenues in both Contract Manufacturing and Laboratory Testing is progressing, but is taking longer than originally anticipated. As a result of the underperformance in these businesses, adjusted EBITDA1 is now anticipated to be slightly below market expectations. Laboratory Testing has, however, moved closer to a return to profitability in recent months, driven by non-COVID services introduced.\n \n \n \n \n \n Group cash, net of borrowings, as at 31 December 2022 was £11.4m (31 December 2021: £19.6m), reflecting planned investments made during the year, including the significant capital expenditure to increase the Company's enzyme fermentation capacity in the US.\n \n \n \n \n \n \n Divisional Commentary\n \n \n \n \n \n \n \n 1. \n \n \n Point-of-Care (\"POC\") & Central Laboratory - Continued growth in key established business units\n \n \n \n The established POC & Central Laboratory businesses continues to deliver double-digit growth, and the Company expects continued growth in 2023. The temporary supply delays that mar...