Ekf Diagnostics Holdings Plc · LSE:EKF
Ekf Diagnostics — H1 2024 Earnings Presentation
28 slides from Ekf Diagnostics's earnings presentation, September 2024
Slide 1: EKF Diagnostics Holdings plc Interim Results Presentation
EKF Diagnostics Holdings plc Interim Results Presentation September 2024 ekfdiagnostics.com
Slide 2: Presentation Contents
Presentation Contents 01 Overview 04 Financial Information 02 Performance 05 Appendices 03 Outlook Page 1
Slide 3: Overview
Overview Page 2
Slide 4: Financial Highlights
Financial Highlights • Revenues of £25.2m (H1 2023: £26.9m) reflects wind down of non-core product lines and services • Gross profit of £12.1m (H1 2023: £11.8m) • Gross margin improved to 48% (H1 2023: 44%) • Adjusted EBITDA of £5.4m (H1 2023: £4.4m) – up 22.7% • Profit before tax of £3.1m (H1 2023
Slide 5: Operational Highlights
Operational Highlights • Simplified business and stabilised cost base yielding results • Company successfully focussed on its higher margin product ranges and core operations • Business division revenues broadly flat to slightly up reflecting change of product mix • Fermentation grew by 41% as Life
Slide 6: Operational Focus
Operational Focus Increased margin and EBITDA due to: • Improvements in DiaSpect and Lactate Scout margin • Operational efficiencies implemented across the business • Discontinued low margin / low performing products; STAT-Site M BHB, Clinical Chemistry, Creamatocrit, Micro-12, Glycated Albumin Oper
Slide 7: Operational Efficiencies Delivered
Operational Efficiencies Delivered Optimising Efficiencies - Outcome - Operations H1 2023 Operations H1 2024 • Review and reduce the cost base of the • Reduced the cost base by £1.9m entire business, focusing on internal and (annually) external expenditure • Cancelled low margin contracts, reviewed
Slide 8: Portfolio Efficiencies Delivered
Portfolio Efficiencies Delivered Optimising Efficiencies - Outcome - Portfolio H1 2023 Portfolio H1 2024 • Removal of low-margin products to help • Discontinued several low margin product drive focus on high-margin and high- lines including the entire Clinical performing Chemistry range excluding β-
Slide 9: Strategy for Growth
Strategy for Growth Continue operational review Continue investment CapEx • Review existing injection moulding tool requirements to upgrade / outsource as • Identify low / negative margin • Align CapEx required to deliver appropriate products for margin improvement / additional capacity with longer
Slide 10: Performance
Performance Page 9
Slide 11: Geographic Highlights
Geographic Highlights Revenue 16 Americas 14 4% The growth H1 2024 vs H1 2023 was 4%*, strongly driven by an increase in β-HB sales and 12 Fermentation 10 EMEA £’m 8 (16%) The reduction H1 2024 vs H1 2023 was (16%)*, due to 6 timing of tender deliveries, Russia and realignment of product portfolio,
Slide 12: Point-of-Care
Point-of-Care Revenue 16 Focused Growth 14 10% High growth for Hemo Control H1 2024 vs H1 2023 12 due to new tender access driven by connectivity requirements 10 Product Growth £’m 8 10% New pricing and product configurations has delivered 6 10% growth in Lactate Scout revenue with an improved margi
Slide 13: Life Sciences
Life Sciences Revenue Revenue 2 7 1.8 6 Focused Growth 1.6 6% Continued trend in growing the β-HB enzyme 1.4 5 business 1.2 4 1 £’m £’m 3 Core Product Growth 0.8 12% H1 2024 saw an overall increase in the Life Sciences 0.6 2 core products business by 12% vs H1 2023* 0.4 1 0.2 Fermentation Growth 0 0
Slide 14: Outlook
Outlook Page 13
Slide 15: Outlook
Outlook • Continued CapEx investment in our focused core products will continue to drive sustainable growth • High levels of growth expected in the Hematology Point-of-Care business as we become more focused on new blood bank and tender opportunities • The product portfolio rationalisation process s
Slide 16: Financial Review
Financial Review Page 15
Slide 17: Financial Highlights
Financial Highlights • Revenues of £25.2m in line with market expectations (H1 2023: £26.9m) • Gross profit of £12.1m (H1 2023: £12.0m) • Adjusted EBITDA of £5.4m (H1 2023: £4.4m) • A return to profit before tax of £3.1m (H1 2023 Loss: £0.03m) • Cash generated from operations of Page 16 £7.9m (H1 20
Slide 18: Revenue by Business Unit
Revenue by Business Unit £ millions 2024 (interims) 2023 (Interims) +/- £k Point-of-Care 15,191 15,641 (450) Life Sciences 8,599 8,083 516 Other* 667 642 25 Revenue from core 24,457 24,366 91 02 operations Testing and UK - 1,155 (1,155) Manufacture Clinical 755 1,018 (263) Chemistry STAT-Site M - 33
Slide 19: Income Statement
Income Statement £ '000 2024 (interims) 2023 (interim) +/- £k Revenue 25,212 26,872 (1,660) Gross Profit 12,120 11,821 299 Gross Margin % 48% 44% Overheads (Excl (9,160) (10,939) 1,779 02 Exceptionals) Operating Profit/(Loss) 3,070 (67) 3,137 03 EBITDA 5,423 4,416 1,007 Page 18
Slide 20: Thank You
Thank You Interim Results Presentation September 2024 ekfdiagnostics.com Page 19
Slide 21: Appendices
Appendices Page 20
Slide 22: Appendices Contents
Appendices Contents 01 Non-executive Directors 04 Cash Flow 02 Balance Sheet – Assets 05 Disclaimer 03 Balance Sheet – Liabilities Page 21
Slide 23: Non-executive Directors
Non-executive Directors Christian Rigg - Senior Independent Non-executive Director Chris Rigg is a chartered accountant who has significant executive experience at both public and private companies. In addition to EKF he is currently a Non-executive Director of Kent Pharma. Chris previously held the
Slide 24: ESG
ESG ESG Committee established, value statement published online, EKF is committed to: Environmental: • Reducing our scope 1 and 2 absolute emissions year on year • Assessing potential opportunities for transition to utilizing renewable electricity where possible • EKF is working towards decarbonizat
Slide 25: Balance Sheet – Assets
Balance Sheet – Assets £ '000 2024 (Interim) 2023 (FY) +/- £k Fixed assets 24,908 24,775 133 Intangible assets 29,466 30,224 (758) Investments 226 276 (50) Deferred tax 17 18 (1) Inventories 8,157 8,766 (609) Receivables 6,600 6,787 (187) 02 Corporation tax 133 2,277 (2,144) Cash 9,820 7,726 2,094 0
Slide 26: Balance Sheet – Liabilities
Balance Sheet – Liabilities £ '000 2024 (Interims) 2023 (FY) +/- £k Payables 6,090 6,625 (535) Deferred tax liabilities 3,006 2,517 489 Corporation tax 296 504 (208) Borrowings - 2,986 (2,986) Total creditors 9,392 12,632 (3,240) 02 Capital and reserves 68,801 67,117 1,684 Minority interest 1,134 1,
Slide 27: Cash Flow
Cash Flow £ '000 2024 (Interims) 2023 (Interims) +/- £k Net cash generated from 7,865 2,506 5,331 operating activities Net cash (used in)/generated (1,758) (3,424) 1,666 by investing activities Net cash used in financing (4,070) (600) (3,470) activities Net (decrease)/increase in 2,037 (1,518) 3,555
Slide 28: 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 m
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