Business
Update on trading and COVID-19 related contract
Update on trading and COVID-19 related contract.
About this update from Ekf Diagnostics Holdings Plc
[{"type":"text","content":"\n \n \n RNS Number : 8824S\n EKF Diagnostics Holdings PLC\n 14 July 2020\n \n \n \n \n This announcement contains inside information\nfor the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR)\n \n \n \n \n \n EKF Diagnostics Holdings plc\n \n \n (\"EKF\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Trading update and \n \n \n Update on COVID-19 related manufacturing contract\n \n \n \n \n \n EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care business, provides the following trading update for the six months ended 30 June 2020 and confirmation that, since the 15 May 2020 update, it has received P\n rimeStore MTM sample collection device orders totalling $9.0m. This brings the current total of such orders for the three month period ending 30 September 2020 to $14.1m. \n \n \n \n \n \n Trading update\n \n \n The current financial year has started very well, as reflected in the recent trading updates and upgraded market expectations. The over-performance, in terms of adjusted EBITDA1 growth, is largely due to high demand for the \n PrimeStore MTM Device which is used for safe COVID-19 sample collection and is manufactured under contract by EKF in the US and UK.\n \n \n \n \n \n Previous guidance from the 15 May 2020 trading update set expectations of revenues of at least £25m and adjusted EBITDA £7.5m for the first half, and these have been comfortably exceeded. Revenues for the six months ended 30 June 2020 are £26.3m (H1 2019: £21.44m) and the Company expects to report adjusted EBITDA in the region of £9m (H1 2019: £5.58m).\n \n \n \n \n \n Gross cash as at 30 June 2020 was £16.9m and cash net of borrowings was £16.3m, significantly above management expectations. The Company's Renalytix AI plc securities (2,677,981 shares) are valued at a fair value of £14.2m, based on the closing mid-market price on 30 June 2020.\n \n \n \n \n \n Earlier this year, EKF shareholders approved a payment of an inaugural dividend reflecting the progress in the business and its strong cash generation. A dividend of 1p per share will be paid on 1 December 2020 to shareholders on the register on 6 November 2020.\n \n \n \n \n \n Further orders for PrimeStore MTM sample collection devices and Outlook\n \n \n The Board expects the second half of the year to continue t...