Business
Update on strong cash position
Update on strong cash position.
About this update from Ekf Diagnostics Holdings Plc
[{"type":"text","content":"\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 Update on strong cash position\n \n \n \n \n \n \n \n \n EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed\n global diagnostics business\n , provides an update following the strengthening of its cash position.\n \n \n \n \n \n Within its final results announcement, released on 29 March 2022, the Company disclosed that w\n orking capital for the period ended 31 December 2021 grew by £6.7m, \"particularly as a result of additional inventory carried in the USA\". This inventory increase included inventory associated with COVID-related contract manufacturing services in the US. The Company can confirm that it has now received a cash payment of $5.5m in relation to this inventory.\n \n \n \n \n \n The accounting effect of this payment will represent an enhancement to both revenue and adjusted EBITDA for the current financial year ending 31 December 2022, however the quantum of the enhancement is not yet confirmed. Therefore, the Board is not seeking to change guidance to analysts on trading and outlook for 2022 at this stage, but expects to provide an ordinary course of business update within the interim results announcement in September.\n \n \n \n \n \n The Group's cash, net of borrowings, as at 31 May 2022 increased to £21.2m from £19.6m at the prior year end. The more recent figure takes into account the receipt of these inventory-related funds, while also reflecting the successful execution of the Company's £4m buyback programme (whereby 9,000,000 ordinary shares were bought back and cancelled) and a further £2.5m investment in Verici Dx plc (AIM: VRCI).\n \n \n \n \n \n \n Commenting Mike Salter, Chief Executive Officer of EKF, said:\n \n \n \"We are very pleased to confirm this additional boost to our already strong cash position. The receipt of this cash payment is a significant move towards a clean break from COVID-related services for our Contract Manufacturing business as we transition into new areas. Our strong cash position allows us to continue to execute our strategy of investing for sustainable future growth.\"\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n EKF Diagnostics Holdings plc\n \n \n \n \n \n \n \n www.ekfdiagnostics.com\n \n \n \n \n \n \n \n ...