Ekf Diagnostics Holdings Plc · LSE:EKF

Ekf Diagnostics — H1 2023 Earnings Presentation

20 slides from Ekf Diagnostics's earnings presentation, September 2023

  1. Slide 1: EKF Diagnostics Holdings plc Interim Results Presentation

    EKF Diagnostics Holdings plc Interim Results Presentation September 2023

  2. Slide 2: Agenda

    Agenda • Strategy • Operational Highlights • South Bend Update • Point-of-Care Performance • Life Sciences Performance • Financial Highlights • Financial Report • Outlook • Appendices 2

  3. Slide 3: Strategy

    Point-of-Care: Quo-Test; Quo-Lab; Hemo Control; DiaSpect Strategy Realigned the business in 2023, addressing operational costs, and enabling growth in key focus areas for 2024: Life Sciences – Enzyme Fermentation & BHB • Contribution to H1 2023 revenues was £7.5m (27.9% - excluding all COVID-related

  4. Slide 4: Investing in growth: profitable, cash-generative, global business

    Investing in growth: profitable, cash-generative, global business POINT-OF-CARE LIFE SCIENCES Portfolio of diagnostic analysers and Specialist manufacture of Enzymes and custom consumables in the key focus areas of products for use in BHB, Salicylate, Hematology and Diabetes. Acetaminophen, and othe

  5. Slide 5: Operational Highlights H1 2023

    Life Sciences: Beta-Hydroxybutyrate (BHB) Operational Highlights H1 2023 • Revenue from continuing operations of £26.9m • Adjusted EBITDA of £4.4m • Point-of-Care showing 9.9% growth versus H1 2022 • Life Sciences showing 13.6% growth versus H1 2022 (excluding COVID revenues) • South Bend ISO 9001:2

  6. Slide 6: Investing in growth: profitable, cash-generative, global business

    Investing in growth: profitable, cash-generative, global business Optimising Efficiencies - Optimising Efficiencies - Operations Portfolio • Review and reduce the cost base of the • Removal of low-margin products to help drive entire business, focusing on internal and focus on high-margin and high-p

  7. Slide 7: South Bend Update

    Life Sciences: South Bend Fermentation Facilities South Bend Update • Facility validation and verification in progress: • Performance Qualification of all fermenter volumes (65L, 300L, 1,500L, 3,000L, 14,500L) • Cleaning-In-Place System Qualification for all fermenters • Validation of Sanitization P

  8. Slide 8: Point-of-Care Performance

    Point-of-Care Performance • 9.9% growth versus H1 2022* • Strongest growth shown in strategic focus areas: Hematology: Diabetes: DiaSpect 45% Quo-Lab 18% Hemo Control (6%) Quo-Test 24% • High level of ongoing demand for DiaSpect reagent-free Hemoglobin and HbA1c products *includes Central Laboratory

  9. Slide 9: Life Sciences Performance

    Life Sciences Performance • H1 2023 shows 13.6%* growth versus the same period in 2022 • Growth has been mostly driven by sales of: • Beta-Hydroxybutyrate (BHB) 27% • Development of South Bend will lead to a greater reduction in fermentation costs moving forward • New growth incoming in 2024 as new

  10. Slide 10: Financial Highlights

    Point-of-Care: DiaSpect Tm Financial Highlights • Revenue from continuing operations of £26.9m (H1 2022: £37.5m) • Revenue growth in continuing operations, excluding largely COVID-related activities in Contract Manufacturing and Laboratory Testing of 6.8% • Adjusted EBITDA of £4.4m (H1 2022: £9.7m)

  11. Slide 11: Financial Report - Business Units

    Financial Report - Business Units £ millions H1 2023 H1 2022 +/- % Yr-onYr Continuing operations Point-of-Care 16.6 15.1 +9.9% Life Sciences 8.5 15.3 -44.4% LS-BHB & Fermentation 7.5 6.6 +13.6% LS-other Covid-related 1.0 8.7 -88.5% Other 1.8 7.1* -74.6% Total Group Revenues 26.9 37.5 -28.3% Total Gr

  12. Slide 12: Financial Report - Income Statement (Extract from P&L)

    Financial Report - Income Statement (Extract from P&L) £ '000 H1 2023 H1 2022 +/-£k 2019 (for illustration) Revenue 26,872 37,471 (10,599) 21,436 Gross Profit 11,821 16,245 (4,424) 11,532 Gross margin % 44.0% 43.3% 53.8% Overheads (11,888) (12,094) 206 (9,093) Operating profit (67) 4,151 (4,218) 2,4

  13. Slide 13: Summary

    Life Sciences: Enzyme Fermentation Summary • A realigned business • Reviewing operational costs and processes • Focus on high-margin product and services portfolio: • Life Sciences: • Enzyme Fermentation • Beta-Hydroxybutyrate (BHB) • Point-of-Care: • Hematology • Diabetes 13

  14. Slide 14: Thank You

    Thank You Interim Results Presentation September 2023 14

  15. Slide 15: Appendices

    Appendices • Non-executive Directors • Financial Report - Balance Sheet Assets • Financial Report - Balance Sheet Liabilities • Financial Report - Cash Flow • Disclaimer 15

  16. Slide 16: 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

  17. Slide 17: Financial Report - Balance Sheet Assets

    Financial Report - Balance Sheet Assets H1 2023 H1 2022 +/-£k Fixed assets 22,083 19,665 2,418 Intangible assets 31,163 43,387 (12,224) Investments 1,556 1,566 (10) Deferred tax 878 23 855 Inventories 9,414 12,969 (3,555) Receivables 7,979 12,236 (4,257) Corporation tax 13 408 (395) Cash 9,165 19,13

  18. Slide 18: Financial Report - Balance Sheet Liabilities

    Financial Report - Balance Sheet Liabilities H1 2023 H1 2022 +/-£k Payables 12,325 15,843 (3,518) Deferred consideration - 245 (245) Deferred tax 2,140 3,795 (1,655) Corporation tax 2,476 2,611 (135) Borrowings 44 222 (178) Total creditors 16,985 22,716 (5,731) Capital and reserves 64,185 85,446 (21

  19. Slide 19: Financial Report - Cash Flow

    Financial Report - Cash Flow H1 2023 H1 2022 +/-£k Cash generated from operating 2,506 8,428 activities (5,922) Net cash used in investing activities (3,424) (6,256) 2,832 Net cash used in financing activities (600) (4,972) 4,372 Net decrease in cash and cash (1,518) (2,800) equivalents 1,282 Cash a

  20. Slide 20: 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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