Ekf Diagnostics Holdings Plc · LSE:EKF
Ekf Diagnostics — FY2022 Earnings Presentation
27 slides from Ekf Diagnostics's earnings presentation, March 2023
Slide 1: EKF Diagnostics Holdings plc Full Year Results Presentation
EKF Diagnostics Holdings plc Full Year Results Presentation March 2023
Slide 2: Presenters
Presenters Julian Baines, MBE Executive Chairman Julian was Group CEO of BBI where he undertook a management buyout in 2000, a flotation on AIM in 2004 and was responsible for selling the business to Alere Inc. (now part of Abbott Laboratories) in 2008 for circa £85 million. Julian founded and was C
Slide 3: Introduction & Overview
Introduction & Overview ar Diagnostics
Slide 4: The equity story – strong opportunity for shareholder returns
The equity story – strong opportunity for shareholder returns 2022 financial Strong High growth Attractive performance established core opportunity platform for growth • £66.6m revenues and Adj- • +13% year-on-year growth • +60% year-on-year growth • Strong visibility from EBITDA of £14.9m from PoC
Slide 5: Focus on growth: profitable, cash generative, global diagnostics business
Focus on growth: profitable, cash generative, global diagnostics business OUR DIVERSIFIED RANGE OF PRODUCTS AND SERVICES POINT- CENTRAL LIFE OF-CARE LABORATORY SCIENCES Portfolio of analysers and Manufacturer of clinical Specialist manufacture of enzymes and custom products for use consumables in th
Slide 6: A simplified business
A simplified business • Point-of-Care production across US and DE (Barleben, Leipzig) Manufacturing sites 5 (↓) • Central Lab production in US (Texas) Global facilities 8 (↓) • Life Sciences Fermentation facilities Analysers sold (2022) >15k in Elkhart & South Bend (Indiana, US) Tests sold (2022) >8
Slide 7: Simplified story from 2023 onwards
Simplified story from 2023 onwards POINT-OF-CARE LIFE SCIENCES (Products) (Services) POINT- CENTRAL LIFE OF-CARE LABORATORY SCIENCES Portfolio of analysers and Manufacturer of clinical Specialist manufacture of Higher value, non-COVID consumables in the key areas chemistry reagents & enzymes and cus
Slide 8: Performance & Growth opportunities
Performance & Growth opportunities
Slide 9: Point-of-Care (Products)
Point-of-Care (Products) Performance Growth prospects • 2022 revenues of £30.8m • Global PoC market est. worth $45.4B in 2022, • +14% vs 2021 growing to $75.5B by 2027 • +12% vs. 2019 (pre-COVID): • Global move to introduce more virtual wards to full recovery plus growth support remote patient diagn
Slide 10: Central Laboratory (Products)
Central Laboratory (Products) Performance Growth prospects • 2022 revenues of £14.5m • Potential for additional private label • +11% vs 2021 opportunities with major US / Global pharma distribution / IVD companies • +9% vs. 2019 (pre-COVID): full recovery plus growth • Encouraging late-stage negotia
Slide 11: Life Sciences (Services)
Life Sciences (Services) Performance Growth prospects • 2022 revenues of £3.2m +60% vs 2021 • Leverage existing strong OEM customer • 2022 growth driven by existing Elkhart relationships capacity only • Molecular enzymes third party OEM and EKF • Customers well advanced in the on-boarding brand proc
Slide 12: Life Sciences
Life Sciences Elkhart, IN (20,000 SqFt) South Bend, IN (24,000 SqFt) Contract Fermentation Elkhart & South Bend, IN 2 sites 20 miles apart EKF Life Sciences Manufacturing enzymes and 10L x2 biomolecules from bacterial fermentation for use in IVD since 1983 South Bend Factory Acceptance Validation De
Slide 13: Financial Review (2022)
Financial Review (2022) 7 a ar Diagnostics
Slide 14: 2022 – Financial Highlights
2022 – Financial Highlights Revenue Revenue Adj. EBITDA £66.6m Gross Profit1 £14.9m Growth (£81.8m 2021) (non-COVID) £30.8m (2021: £26.5m) (2021: £39.4m) Strong growth in established core business 17% Robust underlying performance PBT Net Cash Cash generated Transition £(8.9m) £11.4m by operations C
Slide 15: 2022 – Significant core growth since 2019
2022 – Significant core growth since 2019 Growth from 2019 Revenue growth from 2019 non-COVID ↑ 14% 2022 result Revenue Analysis 90 ↑ 13% 80 £30.8m 70 60 ↑ 9% 50 £'m £14.5m 40 30 ↑ 19% 20 £3.2m 10 - 2019 2020 2021 2022 Non-CV19 Revenue CV19 Revenue 14
Slide 16: 2022 – A Year of Transition and Restructuring
2022 – A Year of Transition and Restructuring Pro-active actions taken to reduce cost base and streamline operations post-pandemic Business Units Rationalisation Clean COVID Inventory Transition Rationalise Property Footprint • Exit from underperforming business units • US cash receipt from COVID cu
Slide 17: 2022 – Cash Flow Summary
2022 – Cash Flow Summary • Strong cash generation from operating activities (includes US inventory receipt) • £6.8m used in share buyback and external investments • £4.4m Capex: o Increase in Life Sciences capacity o Improvements across EKF DE business • £5.5m 2021 dividend (1.2p/share) • 1.2p/share
Slide 18: Summary & Outlook
Summary & Outlook ar Diagnostics
Slide 19: Outlook
Outlook Strong Controlled Growth • Strong and robust core • Cost reductions, restructuring • Rapid scale-up opportunity established PoC and Central and operational efficiency in Life Sciences with new Laboratory businesses measures implemented capacity online from Q3 2023 • Stable “razor, razor blad
Slide 20: Appendices
Appendices ar Diagnostics
Slide 21: 2022 Prelims – Business Unit Updates
2022 Prelims – Business Unit Updates POINT- CENTRAL LIFE LABORATORY CONTRACT OF-CARE LABORATORY SCIENCES TESTING MANUFACTURING £30.8m £14.5m £3.2m £2.6m £9.5m (↑ 14%) (↑ 11%) (↑ 60%) (2021: £1.0m) (↓ 74%) £6.0m of Other revenue relating to US inventory receipt, shipping and handling recharges, repai
Slide 22: Summary Income Statement
Summary Income Statement Financials Point-of-Care (PoC) 2022 £k 30,786 2021 £k 27,003 +/- £k 1,222 Central Laboratory 14,516 13,055 (30) Life Sciences 3,235 2,019 991 Laboratory Testing 2,630 1,030 2,141 Contract Manufacturing 9,514 36,279 (8,899) Other 5,954 2,449 3,487 Revenue 66,635 81,835 (1,088
Slide 23: Summary Balance Sheet
Summary Balance Sheet Financials 2022 £k 2021 £k Property, plant, equipment 20,435 15,991 Intangible assets 33,772 41,894 Investments 1,119 7,789 Inventories 9,434 13,238 Trade / other receivables 10,739 13,428 Cash and cash equivalents 11,578 20,341 Other assets 1,148 2,438 Total non-current liabil
Slide 24: Summary Adj. EBITDA Reconciliation
Summary Adj. EBITDA Reconciliation Financials Includes £k As Reported US Receipt1 Restructuring2 Revenue 66,635 3,499 - Cost of sales (35,823) (1,902) - Exceptional – other CoS (6,774) (1,902) (6,774) Gross profit 24,038 1,597 (6,774) Administration expenses (23,177) (1,223) - Exceptional – impairme
Slide 25: Growth Drivers
Growth Drivers Point-of-Care Central Laboratory Life Sciences Business drivers Business drivers Business drivers • Delivering rapid results at the • Economical, quality open- • Demand for precision point-of-care with high quality, channel reagents that provide fermentation technology and robust and
Slide 26: Non-executive Directors
Non-executive Directors Christopher Mills Christian Rigg Non-executive Director Senior Independent Non-executive Director Chris Rigg is a chartered accountant who has significant executive Christopher founded Harwood Capital Management in 2011, a experience at both public and private companies. He i
Slide 27: Disclaimer
Disclaimer The information contained in these slides and the accompanying oral presentation (together, the “Presentation”) has been prepared by EKF Diagnostics Holdings plc (the “Company”). The Presentation is subject to updating, completion, revision and amendment without notice and as such it may
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