Trading Update

RNS Number : 4935L

EKF Diagnostics Holdings PLC

05 September 2012

 



EKF Diagnostics Holdings plc

("EKF" or the "Company")

Trading Update

EKF Diagnostics Holdings plc (AIM: EKF), a worldwide manufacturer of point of care in-vitro diagnostic devices, provides the following trading update for the six months ended 30 June 2012.

Adjusted EBITDA for the period is expected to be well ahead of market expectations, due to the Company's decision to increase its sales focus on its higher margin products, in particular Beta-Hydroxybutyrate (BHB) liquid reagents and the Board is confident that the Company is on track to meet or exceed current earnings expectations for the full year. Cash at 30 June 2012 was £3.2 million, with a net cash position of around £0.6 million.

Unaudited revenues for the period are expected to be approximately £12.65m. Whilst a little lower than market estimates for the first half, this is  due to a combination of a conscious decision to delay the launch of Quo-Lab, a low cost HbA1c analyser for developing markets, as well as a delay in the launch of HemoPoint H2 instruments and cuvettes through Alere in the US. Both of these products are now launched and with strong initial sales we are confident that second half revenues will be significantly higher than H1.

Even though the HemoPoint H2 was only officially launched by Alere in the North American market in mid April they have already ordered in excess of the guaranteed first year minimum of 1,400 analysers in the last 4 months alone. In addition to this Quo-Lab was launched later than expected in early July and we have already sold over 290 units with c. 70,000 accompanying tests ordered for these units demonstrating the opportunity for this product in emerging markets and the strong consumable pull-through associated with it.

Julian Baines, CEO of EKF commented: "Whilst we expect strong revenue performance in the second half through the growing contribution of HemoPoint H2 sales through Alere and Quo-Lab sales in emerging markets we expect that full year revenues will be slightly below market expectations. However following our conscious decision to focus on higher margin products, this has been more than compensated by a stronger earnings performance in the first half, above market expectations, and this gives us confidence that we will at least meet or exceed current earnings expectations for the full year."

The Company will announce its interim results for the six months ended 30 June 2012 on [Monday, 24] September 2012.

Enquiries:

EKF Diagnostics Holdings plc	Tel: [phone]
David Evans, Executive Chairman
Julian Baines, CEO  Richard Evans, CFO
Canaccord Genuity Limited	Tel: [phone]
Jamie Adams / Mark Dickenson / Lucy Tilley
Walbrook PR Limited	Tel: [phone]
Paul McManus	Mob: [phone] or [e-mail]
Paul Cornelius	Mob: [phone] or [e-mail]

About EKF Diagnostics Holdings plc

EKF Diagnostics Holdings plc was formed in July 2010 following the acquisition of EKF-diagnostic GmbH for €14.32m 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 October 2010 for a maximum of £5.41m), Argutus Medical Limited (acquired in December 2010 for £2.18m) and Stanbio Laboratory L.P. (acquired in June 2011 for a maximum of US$25.5m).

The Company, with its head office in Cardiff and operations in London, Germany, Poland, Russia, Ireland and the US, is a leading diagnostics business, focused on the development, production and distribution of chemical reagents and analysers for the testing of Glucose, Lactate, Haemoglobin, Haematocrit and HbA1c.

In May 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. 

For more information please visit the website: www.ekfdiagnostics.com

 

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