EKF On Track to Set Fresh Records
AIM-listed point-of-care business EKF Diagnostics Holdings has reported record turnover and profits after having its most successful year to date and making a “real contribution to the fight against the Covid-19 pandemic”.
The business also announced the signing of a new multimillion-pound global supply contract and said it was confident that trading for its current financial year will be “significantly ahead of already upgraded management expectations”.
In the year to 31 December 2020, revenues across the group were up 45 per cent to more than £65m and adjusted EBITDA increased by 113 per cent to £25.5m. Profit before tax climbed by almost £10m to £15.4m.
A maiden cash dividend of £4.5m was paid to shareholders, equivalent to 1p per ordinary share.
The business said the strong performance had continued into the first quarter of 2021 and its Q1 2021 performance is set to be materially ahead of current management expectations and that of the first quarter of 2020.
A new multiyear global supply contract EKF announced will support an unnamed partner’s world-wide staff testing initiative, with orders to be fulfilled from EKF’s production sites in the UK, Germany and the United States.
The expanded global contract is expected to make a considerable contribution throughout the current financial year.
Chairman Christopher Mills said: “EKF has come through 2020 in an extremely strong position. The group has been able to make a real contribution to the fight against the Covid-19 pandemic, which sadly has been very costly for many in lives and income. In doing so, EKF has delivered on every level and our core business has held up well.
“The improvement in trading in our core business and the strong demand for Covid-19 sample collection devices has continued into the new financial year. Whilst necessarily maintaining a conservative approach to forecasting for our core business, we have already announced that our performance for the first quarter of 2021 will be materially ahead of expectations and the same quarter last year.
“This morning’s news that we have expanded a key supply agreement to become a multi-million dollar global supply contract, means that we are confident that trading for the year ending 31 December 2021 will be significantly ahead of already upgraded expectations.”