Half Yearly Report 2018

 19th Sep 2018

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EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care business, announces its unaudited interim results for the six months ended 30 June 2018. Despite currency headwinds the Company announces earnings marginally ahead of management expectations and continued strong cash generation.


Financial Highlights

  • Revenues in-line year-on-year on a constant currency basis at £21.20m (H1 2017: £21.50m)
    • Reported revenues of £20.36m, impacted by exchange rates
  • Adjusted EBITDA* up 7.0% to £4.90m (H1 2017: £4.58m)
  • Net profit of £0.75m generated (H1 2017: Net loss £0.2m)
  • Strong cash generation from operations of £4.35m (H1 2017: £5.00m)
  • Significant capex investments incl. Elkhart enzyme facility of £0.71m and RenalytixAI of £0.33m
  • Net cash £8.82m (30 June 2017: net cash of £4.44m) (31 December 2017: net cash of £7.00m)

* Earnings before interest, tax, depreciation and amortisation adjusted for exceptional items and share based payments


Operational Highlights (including post-period developments)

  • DiaSpect Tm has received FDA 510k CLIA clearance
  • OEM contract with McKesson-Surgical Inc. with exclusive rights for distribution of DiaSpect Tm in all US markets except blood banks, driving further US sales growth following expected November 2018 product launch, with substantial revenue and EBITDA contribution expected from this contract in 2019 and onwards
  • Significant investment in our Elkhart enzyme facility to increase capacity
  • Development of Lactate Scout 4.0 for launch in H1 2019 for clinical care and obstetrics
  • Multi-million dollar enzyme contract with Oragenics, Inc., expected to support further US revenue growth over next 2-3 years
  • Exclusive US distribution contract with Asahi Kasei Pharma Corp for FDA-cleared Glycated Albumin products
  • Quo-Test® submitted for FDA clearance
  • Spin out of sTNFR technology through RenalytixAI proceeding, with intention to distribute EKF’s residual interest to its shareholders by way of a dividend in specie, conditional inter alia on shareholder approval at a general meeting to be convened in due course


Commenting on EKF’s outlook, Christopher Mills, Non-Executive Chairman of EKF, said:

“During the first half of 2018, the Group made significant headway in delivering the strategy mentioned at the time of the 2017 results. Despite currency headwinds and reduced revenues following the completion of the Saudi tender, the Group achieved earnings in H1 which were marginally ahead of management expectations. H2 has started well with organic revenue and EBITDA improving on the same period year-on-year. 


“At the same time we undertook a number of actions to support the future performance of the business:  delaying the launch of DiaSpect Tm in the US which allowed us to complete a significant distribution agreement with McKesson; substantial investment in enlarging our Elkhart facility ahead of revenue ramp-up from our Oragenics, Inc agreement; the development of Lactate Scout 4.0 for launch in H1 2019 for clinical care and obstetrics; signing a distribution agreement for Asahi Kasei Pharma’s Glycated Albumin products; and investment in seeking FDA approval for the launch of Quo-Test next year.  We believe that these actions, alongside new contracts recently signed and a strong order book, will lead to further progress over the final months of the current year and beyond.”




EKF Diagnostics Holdings plc
Christopher Mills, Non-Executive Chairman
Julian Baines, CEO
Richard Evans, Finance Director and COO

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