EKF Diagnostics Holdings PLC Trading update & potential Board appointment (9782Z)
December 17 2014 - 2:00AM
UK Regulatory
TIDMEKF
RNS Number : 9782Z
EKF Diagnostics Holdings PLC
17 December 2014
EKF Diagnostics Holdings plc
("EKF", the "Company")
Trading update and potential Board Appointment
EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed
point-of-care, central laboratory and molecular diagnostics
business, provides the following trading update for the year ended
31 December 2014.
Trading for year ended 31 December 2014
Despite being a year of substantial progress for the business
with the establishment of a solid platform for further growth in
2015, the financial results for the year ended 31 December 2014 are
expected to be below consensus expectations. The Company expects
that unaudited revenues for the year to 31 December 2014 will show
at least an increase of 24% on the previous year to GBP39.5m (2013:
GBP31.8m). The second half is expected to show a substantial
improvement on the growth seen in the first half of the year,
despite the continued negative impact of exchange rates which is
estimated at c. GBP1.9m over the year. Unaudited adjusted EBITDA is
expected to be at least 29% up on the previous year at GBP6.2m
(2013: GBP4.8m). Excluding the effect of exchange rates, revenue
would have been expected to be up at least 30% year on year and
adjusted EBITDA would have been expected to be up at least 37%.
The cash position of the Company remains strong, with unaudited
cash balances as at 31 December 2014 expected to be in excess of
GBP8.5m, with a net cash position of around GBP3.0m (30 June 2014:
net cash of GBP5.2m).
The acquisitions made during the year (DiaSpect, Selah Genomics
and STI) are expected to contribute at least GBP6.1m to overall
revenues and to collectively contribute to earnings; this is lower
than expected for DiaSpect and Selah Genomics but we are confident
that traction gained in Q4 2014 has established a solid foundation
for future revenue growth in the coming year. Despite the impact of
exchange rates, the Company expects to record organic revenue
growth in the rest of the business of at least 5% over the whole
year and at least 13% growth in the second half of 2014 compared to
H2 2013.
Outlook and potential Board Appointment
The Company remains confident of strong growth in 2015, both
from the continued strong organic growth, but also through a full
year contribution from the three recent acquisitions.
2015 will see the additional benefits of revenues from tender
orders that were expected to complete before the current year end,
the increased contribution from newly launched test panels from the
Molecular Diagnostics division, and additional revenues in Asia
following regulatory approval for products in China and Japan. The
Company will also benefit from a full year of operational savings
following the transfer of production of Quo-Test and Quo-Lab
instruments and reagents cartridges to the Barleben manufacturing
site.
As announced on 11 November 2014 Ron Zwanziger, founder and
ex-CEO of Alere Inc., has established a significant shareholding in
the Company. Discussions are ongoing with a view to him joining the
Board in the near future as Non-Executive Chairman. David Evans
would remain on the Board as Executive Deputy Chairman. A further
announcement will be made regarding the prospective appointment in
due course.
EKF will provide a more detailed year end trading update before
the end of January 2015 and will announce its preliminary results
for the year ended 31 December 2014 in March 2015.
Julian Baines, CEO of EKF commented: "We are expecting to
deliver a solid performance over the year with earnings still
expected to be up by nearly a third. In particular, the final
quarter revenues of 2014 are expected to be at least GBP14.2m, by
far our strongest performing quarter ever and this is a good
indication of the momentum that we are building across the Company.
We are now well placed to drive further growth in the next
financial year and I look forward to providing a further update
following the year end."
Enquiries:
EKF Diagnostics Holdings plc Tel: 029 2071 0570
David Evans, Executive Chairman Mob: 07740 084 452
Julian Baines, CEO Mob: 07788 420 859
Paul Foulger, CFO Mob: 07710 989 255
Canaccord Genuity Limited Tel: 020 7523 8350
Nominated Adviser/Corporate
Broking
Lucy Tilley /Julian Feneley /Henry Fitzgerald-O'Connor
/Cara Griffiths
Walbrook PR Limited Tel: 020 7933 8780 or ekf@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
About EKF Diagnostics Holdings plc - www.ekfdiagnostics.com
EKF Diagnostics Holdings plc was formed in July 2010 following
the acquisition of EKF-diagnostic GmbH for EUR14.32m and refocused
its strategy to one of building a substantial point of care
diagnostics business. As part of this strategy, the Group has
integrated three further acquisitions, Quotient Diagnostics Limited
(acquired in September 2010), Argutus Medical Limited (acquired in
December 2010) and Stanbio Laboratory L.P. (acquired in June 2011).
In 2013 EKF established a new subsidiary, EKF Molecular Diagnostics
Ltd, to focus on molecular and companion diagnostics and acquired
360 Genomics Ltd, a business that owns diagnostics technologies for
cancer gene detection.
The Company, with its head office in Cardiff and operations in
London, Germany, Poland, Russia, Ireland and the US, is a leading
diagnostics business, focussing on the development, production and
distribution of chemical reagents and analysers for the testing of
Glucose, Lactate, Haemoglobin, Haematocrit and HbA1c.
In March 2011 EKF entered into a distribution agreement with
Alere Inc ("Alere"), a global diagnostics company, under which
Alere was appointed the exclusive distributor of EKF's CLIA waived
Hemo Control device and cuvettes in the US, Canada and United
Kingdom. The device is distributed in the US under the name
HemoPoint H2.
In March 2014, EKF acquired Separation Technology, Inc., a
Florida based manufacturer of in vitro diagnostics devices for the
haematology testing market. In April 2014, EKF completed the
acquisitions of Selah Genomics Inc., a US based developer of
molecular diagnostics for personalised medicine and DiaSpect
Medical AB., a Swedish based manufacturer of point-of-care
haemoglobin analysers.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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