1st October 2012
EKF in talks with Welsh Government over new venture
Original article by Rhodri Evans, Wales Online. Click here to read the original article.
Healthcare company EKF Diagnostics is considering siting a new venture in Wales, its founder has revealed.
As the Penarth-based company reported a strong set of half-year results, chief executive Julian Baines said talks were underway with the Welsh Government over siting a molecular diagnostics facility here. The fast-growing field is based on identifying markers for cancer and infectious diseases within cells.
Mr Baines said the company was already looking at potential acquisitions in the area: “One of the areas we are looking to grow is molecular diagnostics,” he said yesterday.
“We have also got a conversation with the Welsh Government about that side, about maybe putting that into Wales, but that is at an early stage. We could grow and put research and development into Wales.”
“The technology has improved so much it is becoming one of the major growth areas. We do not have a presence in it at the moment but I would like us to be world class in that area.”
The company’s plans for future expansion came as it revealed interim results for the six months to June 30. But while the half-year figures were positive, more strong sales figures are expected in the second half of 2012.
The company now sells to 100 countries, but Mr Baines said he expects it to do particularly well in emerging markets in the second half of the year.
In the wake of yesterday’s announcement analyst Julie Simmonds of Canaccord Genuity estimated that EBITDA for the full year would come in at £3.1m off estimated sales of £28.3m.
“Interim results highlight the continuing strong growth in the core business, with improved performance from the high margin components of the portfolio, in particular BHB,” she said, rating the stock as a buy and setting a target price of 42p. Analyst Dr Paul Cuddon of Peel Hunt lifted his full year EBITDA forecast by 45% to £2.8m in light of the results, also rating the stock as a buy.