13th September 2016

EKF reports growth following restructure

EKF Diagnostics, the Cardiff-headquartered medical diagnostics business, has benefited from a restructuring programme in the first half of its financial year.

According to the listed company’s results for the six months to 30 June 2016, revenue grew to £17.51m from a restated figure of £14.86m in the same period of 2015.

It slipped to a pre-tax loss of £1.19m, compared to a profit of £6.69m the year before. However, adjusted earrnings (EBITDA), before exceptional items and share-based payments, increased to £2.02m from £1.29m.

EKF completed a restructuring programme during the period, with its headcount reducing by 85 to 315 and its sites in Walton-on-Thames and Dublin closed. It also sold its US-based molecular diagnostics subsidiary Selah Genomics back to its founders.

The company said it had achieved organic growth across its three point-of-care business units and central laboratory. It also sold 7,000 analysers and 35.3 million tests worldwide during the first half of 2016.

EKF chief executive Julian Baines told Insider: “As part of our refocus on our point-of-care business we have closed a number of sites and restructured. As a result, revenue has grown by 18 per cent compared to last year.

“The restructuring has largely gone as expected, maybe slightly better. The speed with which we were able to act has led to significant cost savings and we were able to exceed market expectations in the first half.

“We think it will be a 12 to 18 month programme but we’re pleased with the results considering the exceptional costs.”

Baines added that the result of the EU referendum had initially been positive for the business.

“Brexit has actually been very positive for the company as we do most of our business outside of the UK. In the first few months we have seen an FX (foreign exchnage) gain,” he said.

“Over the next six months the pound might stabilise but we should still see a gain.”