TIDMEKF

RNS Number : 6343L

EKF Diagnostics Holdings PLC

14 September 2021

EKF Diagnostics Holdings plc

("EKF", the "Company" or the "Group")

Half-year Report

Further upgrade to current year trading

EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care business, announces its unaudited interim results for the six months ended 30 June 2021, as well as a further upgrade to current year trading.

The strong trading from the beginning of the year continued into the second quarter of 2021. This continues to reflect improving trading in the core business and ongoing strong demand for EKF's contract manufacturing services for COVID-19 sample collection devices and associated kits. The Board is now very confident that trading for the full year will be comfortably ahead of already materially upgraded management expectations.

Financial Highlights

   --    Revenue up 46.5% to GBP38.56m (H1 2020: GBP26.33m) 
   --    Adjusted EBITDA* up 42.9% to GBP12.76m (H1 2020: GBP8.93m) 
   --    Net profit after tax up 122% to GBP9.19m (H1 2020: GBP4.14m) 
   --    Net cash generated from operations of GBP1.13m (H1 2020: GBP6.94m) 
   --    Net cash of GBP20.38m (30 June 2020: GBP16.28m) (31 December 2020: GBP21.41m) 

-- Dividend of 1.1p per ordinary share to be paid on 1 December 2021 (record date: 5 November 2021)

* Earnings before interest, tax, depreciation and amortisation adjusted for exceptional items and share-based payments

Operational Highlights

   --    Core business revenues up GBP1.21m (6%) in first six months of 2021 
   --    Life Sciences revenues including contract manufacturing for PrimeStore MTM and PBS up 142% 

to GBP18.50m

   --    Signed multi-million dollar global supply contract for phosphate-buffered saline (PBS) with 

global private sector partner, whilst also broadening customer base and reducing reliance on this single customer

-- Opened new PrimeStore MTM and PBS manufacturing facilities in Cardiff and Boerne to meet wider customer demand in UK and USA

   --    Trellus Health admitted to AIM on 28 May 2021 

Christopher Mills, Non-Executive Chairman of EKF, commented:

"The Board is very confident that trading for the year ending 31 December 2021 will be comfortably ahead of already upgraded management expectations.

"The Group remains confident that its growth strategy, as outlined to shareholders at the Annual General Meeting in May, and set out above, will create a business which, aside from any COVID-19 related revenues, is capable of generating significant double-digit growth in adjusted EBITDA over the next three to four years."

A copy of the investor presentation is available here: https://www.ekfdiagnostics.com/documents-reports.html

EKF Diagnostics will be hosting a live online presentation open to all investors on Wednesday 15 September 2021 at 5.15 pm (BST), via video conference call. If you would like to register, please contact Walbrook PR on 020 7933 8780 or email ekf@walbrookpr.com.

 
     EKF Diagnostics Holdings plc                                        www.ekfdiagnostics.com 
     Christopher Mills, Non-executive Chairman                        Tel: +44 (0) 29 2071 0570 
     Julian Baines, CEO 
     Richard Evans, FD & COO 
 
     Singer Capital Markets                                            Tel: +44 (0)20 7496 3000 
     Aubrey Powell / George Tzimas (Corporate 
      Finance) 
      Tom Salvesen (Corporate Broking) 
 
     Investec Bank plc (Joint Broker)                                  Tel: +44 (0)20 7597 4000 
     Gary Clarence / Daniel Adams 
 
     Walbrook PR Limited                        Tel: +44 (0) 20 7933 8780 or ekf@walbrookpr.com 
     Paul McManus / Lianne Cawthorne                   Mob: +44 (0) 7980 541 893 / +44 (0) 7584 
                                                                                        391 303 
 
 

BUSINESS REVIEW

The strong trading from 2020 and the beginning of the year continued into the second quarter of 2021. This continues to reflect improving trading in the core business and ongoing strong demand for our contract manufacturing services for COVID-19 sample collection devices and associated kits. The Board is now very confident that trading for the full year will be comfortably ahead of already materially upgraded management expectations.

Revenues for the six months ended 30 June 2021 were GBP38.56m (H1 2020: GBP26.33m), an increase of 46.5%. Adjusted EBITDA was up by 42.9% at GBP12.76m (H1 2020: GBP8.93m). Earnings per share have increased by 126%.

Strategy

Our aim over the next four years is to use our internally generated resources to:

1. invest in the existing core business to maximise the value of our distribution network and drive aggressive organic growth (including investment in the existing contract fermentation business);

2. continue to maximise value for EKF shareholders from our agreement with Mount Sinai Innovation Partners ("MSIP"), which allows us advanced access to innovative commercial opportunities and where we can build on the ongoing successes of Renalytix plc, Verici Dx plc and the further success that we are confident Trellus Health plc will see;

3. seek out complementary and targeted earnings-enhancing acquisitions with key strategic value to the core business;

4. deliver against these aims and allow us to continue to follow a progressive dividend policy and to generate enhanced shareholder returns; and

5. continue to maximise the opportunity to assist clients to control the impact of COVID-19, and to evolve our new contract manufacturing capabilities in this area to a broader range of diagnostic and other healthcare settings.

We have made good progress against these objectives, as set out below. Discussions are progressing as planned for a number of earnings enhancing acquisitions, and we have identified a number of potential products to expand our existing core business.

Operations

Diabetes

Sales in the diabetes segment have seen good growth in the period, reaching GBP10.18m, an increase of 8%, with improvements coming across the majority of the diabetes portfolio as our distribution partners saw growth returning. In particular, sales of <BETA>-HB (Beta-Hydroxybutyrate) were up 14% year-on-year, including a contribution from an OEM agreement with a leading distributor. Sales of Quo-Test and Quo-Lab are up 24% and 18% respectively, however sales of the STAT-Site product line have reduced following the discontinuation of STAT-Site <BETA>-HB due to obsolescence of components.

Hematology

Overall, revenues from our hematology portfolio have been flat. Within this we have seen 12% growth of our DiaSpect Tm product, primarily driven by our OEM agreements with Fresenius and McKesson. Meanwhile, global hematology screening programmes have continued to be affected by the COVID-19 pandemic, although we have seen signs of programmes beginning to come online again in the latter part of the year, and in particular our major customer in Peru has started to significantly increase their orders as the territory opens up and much needed screening programmes are coming back online.

Contract Manufacturing

Infectious disease test kits

We have continued to see strong demand for our contract manufacturing product lines across our manufacturing sites in the US, Germany, and the UK. Due to our direct relationships with major end users, we have switched towards end user customers and away from sales direct to Longhorn to the mutual benefit of Longhorn and EKF. At the same time, we have seen a change in the mix of products we are being requested to manufacture, with emphasis moving from PrimeStore MTM filled tubes towards tubes filled with Phosphate Buffered Saline (PBS) which we have introduced as a low-cost alternative to MTM. However, we continue the p roduction of PrimeStore MTM tubes for public health systems customers in the UK and Ireland, as well as the manufacture and collation of home testing kits that are distributed through the two largest high street pharmacy chains in the UK, and a new contract for supply of PrimeStore MTM to testing labs based at major UK airports.

In addition, we continue to manufacture kits for employee testing purposes as well as home testing kits including PBS and swab for distribution in US and Europe via our major industrial partner.

This business is servicing customers in the US, the UK, and Europe, including public health authorities in the UK and Ireland, universities, and private laboratories, as well as our major industrial partner. Whilst this major industrial partner represented less than half of our contract manufacturing revenues for PrimeStore MTM and PBS for the first half of the year, we have already seen a shift to a wider mix of revenues from a broader customer base. We expect to see the share of revenue contribution from other customers continue to rise as we move through the year.

In addition, with the expectation that sales of these products will continue for the foreseeable future, we are adding two further factory units to our existing site in Cardiff which was opened in January, and have added off-site manufacturing space in Boerne.

It is a measure of our success in creating and servicing this business, which we started from scratch last year, that we are now discussing the supply of products for non-COVID-19 indications, driven by demand from our customers. These products include areas such as in molecular diagnostics for which work has already started in the US. We see this as a significant growth opportunity for EKF.

Central Laboratory & Life Sciences

Our Central laboratory and Life Sciences sector combines revenues derived from Clinical Chemistry, lab analysers, contract fermentation and enzymes. Central Laboratory sales continue to be affected by the pandemic, mainly in the USA.

We continue to see a strong pipeline of opportunities to supply contract manufacturing services from our Elkhart and South Bend sites, and have committed resources to add capacity. The construction of new fermenters is in progress, work having commenced on a new fermentation facility with a total investment of $9.3m, of which $3.4m has already been paid on deposit, and the aim of delivering significant revenues by 2024. These opportunities are arising in the research and molecular enzyme areas as well as food grade fermentation digestive proteins.

Other

This category includes sales of a number of products including our Lactate Scout sports medicine product and other diagnostic tests, the most important of which is for pregnancy. With an end to the shutdown of professional sports in Europe we have seen an improvement in Lactate Scout sales which have grown by 40% year on year.

PartnerShip with Mount Sinai

Our Preferred Partnership Agreement (PPA) with Mount Sinai Innovation Partners (MSIP) provides us with advanced access to innovative commercial opportunities arising from Mount Sinai Health System owned technologies, managed by MSIP, in the field of healthcare technologies. This relationship had already lead to the successful spin-out of Renalytix plc ("Renalytix") and their subsequent spin-out of Verici Dx plc ("Verici"). Our residual holding in Renalytix is valued at GBP10.8m (as at 30 June), and our holding in Verici, received as a dividend from Renalytix, is valued at 30 June at GBP1.8m.

In May 2021, Trellus Health plc, which was formed by MSIP, EKF, and its management in 2020, successfully floated on AIM. EKF's investment in Trellus was transferred to relevant EKF shareholders in 2020.

Following the completion of his tenure as CEO of the Group, Julian Baines will take responsibility for the management of our relationship with MSIP. A pipeline of new opportunities has been identified.

Financial review

Revenue

Revenue for the period was GBP38.56m (H1 2020: GBP26.33m), an increase of 46.5%.

 
                                              Unaudited             Unaudited         +/- % 
                                         6 months ended        6 months ended 
                                           30 June 2021          30 June 2020 
                                                GBP'000               GBP'000 
 
     Hematology                                   5,856                 5,853          0.1% 
     Diabetes (including <BETA>H 
      B)                                         10,183                 9,419          8.1% 
     Central Laboratory                           2,372                 2,639       (10.1%) 
     Contract Manufacturing                      17,469                 6,459        170.5% 
     Other                                        2,679                 1,959         36.8% 
     Total revenue                               38,559                26,329         46.5% 
                                   --------------------  -------------------- 
 
 

Gross profit

Gross profit is GBP18.54m (H1 2020: GBP14.91m). The gross profit margin is 48% (H1 2020: 57%). The gross margin percentage has reduced mainly as a result of the product mix.

Administrative expenses

In H1 2021, administrative expenses have reduced to GBP7.02m (H1 2020: GBP8.25m), representing 18.2% of revenue for the period (H1 2020: 31.3%). The reduction is largely caused by a credit for share-based payments following the ending of the cash-settled share-based payment incentive scheme for two Directors. The scheme for a senior employee remained in place at the period end. Administrative expenses include research and development (R & D) costs of GBP0.61m (H1 2020: GBP0.63m). In addition, further R & D costs of GBP0.32m (H1 2020: GBP0.31m) have been capitalised. Non- exceptional administrative costs have increased by 3.4% compared to H1 2020 mainly due to increased sales volumes, as well as further expenditure on quality assurance and regulatory costs as a result of the increased regulatory burden in Europe.

To aid understanding, administrative expenses in each period are made up as follows:

 
                                                 Unaudited             Unaudited             Audited Year 
                                            6 months ended        6 months ended        ended 31 December 
                                              30 June 2021          30 June 2020                     2020 
     Non-exceptional administration 
      expenditure before R & 
      D capitalisation                               8,960                 8,668                   17,234 
     Effect of share-based payments                (1,392)                   300                    5,292 
     Less capitalised R & D                          (317)                 (308)                    (586) 
     Effect of exceptional items                     (234)                 (408)                  (1,282) 
                                      --------------------  --------------------  ----------------------- 
     Total administrative expenses                   7,017                 8,252                   20,658 
                                      --------------------  --------------------  ----------------------- 
 

The charge for depreciation of fixed assets and for the amortisation of intangibles is GBP2.83m (H1 2020: GBP2.32m).

Operating profit and adjusted earnings before interest tax and depreciation

The Group generated an operating profit of GBP11.56m (H1 2020: GBP6.72m). We consider a more meaningful measure of underlying performance is obtained by examining adjusted EBITDA, which for H1 2021 was GBP12.76m (H1 2020: GBP8.92m). This excludes the effects of a credit for share-based payments of GBP1.39m (H1 2020: charge of GBP0.30m) and exceptional profits of GBP0.23m (H1 2020: GBP0.41m). The increase in operating profit and adjusted EBITDA is caused by the substantial increase in volumes associated with sales of contract manufacturing products.

Finance costs

Finance costs are GBP0.16m (H1 2020: GBP0.47m). The main charge results from an increase in the fair value of deferred consideration, the size of which is determined by the increase in EKF's share price.

Tax

There is a tax charge of GBP2.24m (H1 2020: GBP2.11m). The increase partly reflects the increase in profit, but also that expenses relating to the cash-settled share-based payment incentive scheme, accrued in previous years, are now deductible for tax purposes as a result of payments having been made.

Earnings per share

Basic earnings per share has increased to 1.99p (H1 2020: 0.88p), an increase of 126%. Diluted earnings per share are 1.98p (H1 2020: 0.87p)

Balance sheet

Fixed assets

We have capitalised GBP1.47m (H1 2020: GBP1.19m) of property plant and equipment. The expenditure includes continuing work on improvements to the facilities in South Bend and Elkhart in the US, further automation in Germany, and the cost of fitting out the first stage of the new manufacturing facility in Cardiff. Further expenditure in South Bend and Elkhart, in Germany, and for the second stage of the Cardiff facility is planned for the second half of the year.

Intangible assets

The value of intangible fixed assets is GBP35.13m (31 December 2020: GBP37.05m). The decrease is mainly the result of amortisation plus exchange rate movements. An amount of GBP0.62m has been capitalised.

Investments

Investments includes our holdings in Renalytix plc and Verici Dx plc. The investments are held at fair value which has been calculated based on the market value of the shares which at 30 June 2021 was GBP10.80 (31 December 2020: GBP4.875) per share for Renalytix and GBP0.685 (31 December 2020: GBP0.585) per share for Verici. The resulting unrealised gain during H1 2021 of GBP6.21m is shown as a movement in Other comprehensive income.

Deferred consideration

The remaining deferred consideration relates to the share-based payment to the former owner of EKF-Diagnostic GmbH. Finalisation of the position is expected to conclude shortly.

Cash and working capital

The gross cash position at 30 June 2021 was GBP20.78m (31 Dec 2020: GBP16.90m), and the Group had cash net of bank borrowings of GBP20.38m (31 Dec 2020: GBP16.28m).

Cash generated from operations in H1 2020 is GBP1.13m (H1 2020: GBP6.94m). Inventory levels have increased as a result of the increase in order volume but also to ensure security of component supply. Trade debtors have increased as a result of increased trading activity and because of extended terms granted to certain commercial partners. We have continued to see very little evidence to date of collection difficulties as a result of COVID-19. Payables have reduced because of payments made in relation to the cash-settled share-based payment incentive scheme.

Capital structure

We have not made any share buy backs during the period. Our authorisation to make further share buy backs remains in place and we will make further purchases if considered appropriate.

Dividend

At the Annual General Meeting in May 2021 shareholders approved the payment of a dividend of 1.1p per ordinary share, to be paid on 1 December 2021 to shareholders on the register at close of business on 5 November 2021. As this declaration is irrevocable, the value of GBP5.005m is shown as a liability with the debit shown in the statement of changes in equity.

Outlook

The Board is very confident that trading for the year ending 31 December 2021 will be comfortably ahead of already materially upgraded management expectations.

The Group remains confident that its growth strategy, as outlined to shareholders at the Annual General Meeting in May, and set out above, will create a business which, aside from any COVID-19 related revenues, is capable of generating significant double-digit growth in adjusted EBITDA over the next three to four years.

Christopher Mills

Non-Executive Chairman

14 September 2021

 
     CONSOLIDATED INCOME STATEMENT 
     FOR THE 6 MONTHSED 30 JUNE 2021 
                                                                         Unaudited 
                                                         Unaudited        6 months            Audited 
                                                          6 months           ended         Year ended 
                                                          ended 30         30 June        31 December 
                                                         June 2021            2020               2020 
                                            Notes          GBP'000         GBP'000            GBP'000 
     Continuing operations 
     Revenue                                  3             38,559          26,329             65,260 
     Cost of sales                                        (20,019)        (11,417)           (27,840) 
                                                   ---------------  --------------  ----------------- 
     Gross profit                                           18,540          14,912             37,450 
     Administrative expenses                               (7,017)         (8,252)           (20,658) 
     Other income                                               34              57                133 
                                                   ---------------  --------------  ----------------- 
     Operating profit                                       11,557           6,717             16,895 
-------------------------------------  ---------- 
     Depreciation and amortisation                         (2,830)         (2,316)            (4,611) 
     Share-based payments                                    1,392           (300)            (5,292) 
     Exceptional items                        4                234             408              1,282 
     EBITDA before exceptional 
      items and share-based payments                        12,761           8,925             25,516 
-------------------------------------  ----------  ---------------  --------------  ----------------- 
     Finance income                                             22              29                 53 
     Finance costs                                           (155)           (497)            (1,592) 
                                                   ---------------  --------------  ----------------- 
     Profit before income tax                               11,424           6,249             15,356 
     Income tax charge                        5            (2,237)         (2,108)            (3,971) 
                                                   ---------------  --------------  ----------------- 
     Profit for the period                                   9,187           4,141             11,385 
                                                   ---------------  --------------  ----------------- 
 
     Profit attributable to: 
     Owners of the parent                                    9,069           4,011             11,114 
     Non-controlling interest                                  118             130                271 
                                                             9,187           4,141             11,385 
                                                   ---------------  --------------  ----------------- 
 
 
     Earnings per ordinary share 
      attributable to the owners 
      of the parent during the 
      period                               6 
                                                     Pence        Pence        Pence 
 
     Basic                                            1.99         0.88         2.45 
 
     Diluted                                          1.98         0.87         2.42 
                                                ----------   ----------   ---------- 
 
 
 
     CONSOLIDATED STATEMENT OF COMPREHENSIVE 
      INCOME 
     FOR THE 6 MONTHSED 30 
      JUNE 2021 
 
                                                     Unaudited        Unaudited            Audited 
                                                      6 months         6 months         Year ended 
                                                      ended 30         ended 30        31 December 
                                                     June 2021        June 2020               2020 
                                                       GBP'000          GBP'000            GBP'000 
 
     Profit for the period                               9,187            4,141             11,385 
 
     Other comprehensive income/(expense): 
     Changes in fair value of equity 
      instruments at fair value 
      through other comprehensive 
      income (net of tax)                                4,040            4,445              3,276 
     Currency translation differences                  (1,334)            3,951                734 
     Other comprehensive income 
      (net of tax)                                       2,706            8,396              4,010 
                                               ---------------  ---------------  ----------------- 
     Total comprehensive income 
      for the period                                    11,893           12,537             15,395 
                                               ---------------  ---------------  ----------------- 
 
     Attributable to: 
     Owners of the parent                               11,779           12,456             15,235 
     Non-controlling interests                             114               81                160 
                                               ---------------  ---------------  ----------------- 
     Total comprehensive income 
      for the period                                    11,893           12,537             15,395 
                                               ---------------  ---------------  ----------------- 
 
 
     CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
     AS AT 30 JUNE 2021 
                                            Unaudited                        Unaudited                   Audited as 
                                             as at 30                         as at 30               at 31 December 
                                            June 2021                        June 2020                         2020 
                              Notes           GBP'000                          GBP'000                      GBP'000 
     Assets 
     Non-current assets 
     Property, plant 
      and equipment                            12,957                           13,331                       12,620 
     Right-of-use 
      assets                                      890                              941                        1,019 
     Intangible assets            7            35,134                           39,347                       37,051 
     Investments                               12,818                           14,345                        6,608 
     Deferred tax 
      assets                                       14                               21                           14 
     Total non-current 
      assets                                   61,813                           67,985                       57,312 
                                     ----------------              -------------------      ----------------------- 
 
     Current Assets 
     Inventories                                9,766                            8,144                        8,487 
     Trade and other 
      receivables                              16,107                           10,545                       13,182 
     Corporation tax 
      receivable                                    -                                -                          371 
     Cash and cash 
      equivalents                              20,784                           16,895                       21,913 
     Total current 
      assets                                   46,657                           35,584                       43,953 
                                     ----------------              -------------------      ----------------------- 
     Total assets                             108,470                          103,569                      101,265 
                                     ================              ===================      ======================= 
 
     Equity 
     attributable to 
     owners of the 
     parent 
     Share capital                              4,550                            4,546                        4,550 
     Share premium                                200                               95                          200 
     Other reserve                              9,394                           11,093                        5,354 
     Foreign currency 
      reserves                                  2,698                            7,210                        4,028 
     Retained earnings                         67,580                           55,637                       63,516 
                                     ----------------              -------------------      ----------------------- 
                                               84,422                           78,581                       77,648 
     Non-controlling 
      interest                                    435                              472                          552 
                                     ----------------              -------------------      ----------------------- 
     Total equity                              84,857                           79,053                       78,200 
                                     ----------------              -------------------      ----------------------- 
 
     Liabilities 
     Non-current 
     liabilities 
     Borrowings                                   310                              422                          323 
     Lease liabilities                            475                              721                          690 
     Deferred tax 
      liability                                 4,586                            2,940                        2,636 
                                     ----------------              -------------------      ----------------------- 
     Total non-current 
      liabilities                               5,371                            4,083                        3,649 
                                     ----------------              -------------------      ----------------------- 
 
     Current 
     liabilities 
     Trade and other 
      payables                                 13,152                           14,211                       14,435 
     Lease liabilities                            456                              248                          380 
     Deferred 
      consideration                             3,033                            1,840                        2,901 
     Current income tax 
      liabilities                               1,512                            3,946                        1,515 
     Borrowings                                    89                              188                          185 
                                     ----------------              -------------------      ----------------------- 
     Total current 
      liabilities                              18,242                           20,433                       19,416 
                                     ----------------              -------------------      ----------------------- 
     Total liabilities                         23,613                           24,516                       23,065 
                                     ----------------              -------------------      ----------------------- 
     Total equity and 
      liabilities                             108,470                          103,569                      101,265 
                                     ================              ===================      ======================= 
 
       CONSOLIDATED STATEMENT OF CASH FLOWS 
     FOR THE 6 MONTHSED 30 JUNE 2021 
                                                                                                                     Audited 
                                                                                             Unaudited                  Year 
                                                                    Unaudited                 6 months                 to 31 
                                                               6 months ended                 ended 30              December 
                                                                 30 June 2021                June 2020                  2020 
                                                                      GBP'000                  GBP'000               GBP'000 
     Cash flow from operating activities 
     Profit before income tax                                          11,424                    6,249                15,356 
     Adjustments for 
     - Warranty claim                                                   (251)                    (455)               (1,414) 
     - Depreciation                                                       919                      872                 1,844 
     - Amortisation and impairment charges                              1,911                    1,444                 2,767 
     - Deferred consideration (FV adjust)                                 132                      455                 1,516 
     - Foreign Exchange                                                  (40)                        -                    26 
     - Bad debt written down                                                -                        -                    45 
     - Profit/(loss) on disposal of assets                                (9)                       14                  (22) 
     - Loss on disposal of intangible 
      assets                                                                -                        -                     8 
     - Share-based payments                                           (1,392)                      300                 4,775 
     - Dividend received                                                    -                        -                  (31) 
     - Net finance costs                                                    1                       13                    23 
     Changes in working capital 
     - Inventories                                                    (1,450)                  (2,056)               (2,557) 
     - Trade and other receivables                                    (2,960)                  (1,974)               (3,426) 
     - Trade and other payables                                       (5,126)                    2,075                 1,888 
                                               ------------------------------   ----------------------      ---------------- 
     Cash generated by operations                                       3,159                    6,937                20,798 
     Interest paid                                                       (11)                     (29)                  (47) 
     Income tax paid                                                  (2,019)                    (849)               (6,942) 
                                               ------------------------------   ----------------------      ---------------- 
     Net cash generated by operating 
      activities                                                        1,129                    6,059                13,809 
     Cash flow from investing activities 
     Purchase of investments                                                -                        -               (3,810) 
     Purchase of property, plant and 
      equipment (PPE)                                                 (1,342)                  (1,187)               (1,631) 
     Purchase of intangibles                                            (623)                    (393)               (1,014) 
     Proceeds from sale of PPE                                             14                       27                    68 
     Proceeds from sale of investments                                      -                        -                 7,670 
     Interest received                                                     22                       29                    53 
                                               ------------------------------   ----------------------      ---------------- 
     Net cash used in investing activities                            (1,929)                  (1,524)                 1,336 
                                               ------------------------------   ----------------------      ---------------- 
     Cash flow from financing activities 
     Proceeds from issue of ordinary 
      shares                                                                -                      100                   209 
     Dividend                                                               -                        -               (4,550) 
     Share option buy back                                                  -                        -                   (7) 
     Repayment of borrowings                                             (89)                    (126)                 (183) 
     Principal lease payments                                           (257)                    (166)                 (469) 
     Dividends paid to non-controlling 
      interests                                                         (231)                    (210)                 (209) 
                                               ------------------------------   ----------------------      ---------------- 
     Net cash used in financing activities                              (577)                    (402)               (5,209) 
                                               ------------------------------   ----------------------      ---------------- 
     Net increase in cash and cash 
      equivalents                                                     (1,377)                    4,133                 9,936 
     Cash and cash equivalents at beginning 
      of period                                                        21,913                   12,074                12,074 
     Exchange gains on cash and cash 
      equivalents                                                         248                      688                  (97) 
                                               ------------------------------   ----------------------      ---------------- 
     Cash and cash equivalents at end 
      of period                                                        20,784                   16,895                21,913 
                                               ==============================   ======================      ================ 
 
 
 
     CONSOLIDATED STATEMENT OF CHANGES 
      IN EQUITY 
     FOR THE 6 MONTHSED 30 JUNE 
      2021 
                               Share          Share         Other        Foreign            Retained         Total       Non-controlling         Total 
                             Capital        Premium       Reserve       Currency            earnings                            interest        equity 
                                                                         Reserve 
                             GBP'000        GBP'000       GBP'000        GBP'000             GBP'000       GBP'000               GBP'000       GBP'000 
 
     At 1 January 
      2020                     4,541              -         6,648          3,183              56,199        70,571                   601        71,172 
     Comprehensive 
     income 
     Profit for the 
      period                       -              -             -              -               4,011         4,011                   130         4,141 
     Other 
     comprehensive 
     income 
     Changes in fair 
      value of equity 
      instruments at 
      fair 
      value through 
      other 
      comprehensive 
      income                       -              -         4,445              -                   -         4,445                     -         4,445 
     Currency 
      translation 
      differences                  -              -             -          4,027                (27)         4,000                  (49)         3,951 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     Total 
      comprehensive 
      income                       -              -         4,445          4,027               3,984        12,456                    81        12,537 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     Transactions 
     with 
     owners 
     Dividends to 
      non-controlling 
      interest                     -              -             -              -                   -             -                 (210)         (210) 
     Dividend 
      declared 
      but not paid                 -              -             -              -             (4,546)       (4,546)                     -       (4,546) 
     Issue of 
      ordinary 
      shares                       5             95             -              -                   -           100                     -           100 
     Total 
      contributions 
      by and 
      distributions 
      to owners                    5             95             -              -             (4,546)       (4,446)                 (210)       (4,656) 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     At 30 June 2020           4,546             95        11,093          7,210              55,637        78,581                   472        79,053 
     Comprehensive 
     income 
     Profit for the 
      period                       -              -             -              -               7,103         7,103                   141         7,244 
     Other 
     comprehensive 
     income 
     Changes in fair 
      value of equity 
      instruments at 
      fair 
      value through 
      other 
      comprehensive 
      income                       -              -          (97)              -                   -          (97)                     -          (97) 
 
       Transfer of 
       gain 
       on disposal of 
       equity 
       investments 
       at fair value 
       through other 
       comprehensive 
       income to 
       retained 
       earnings                    -              -       (5,642)                              5,642             -                     -             - 
 
       Taxation on 
       profit 
       on disposal 
       of equity 
       instruments 
       at fair 
       value                       -              -             -              -             (1,072)       (1,072)                     -       (1,072) 
 
       Currency 
       translation 
       differences                 -              -             -        (3,182)                  27       (3,155)                  (62)       (3,217) 
     Total 
      comprehensive 
      income                       -              -       (5,739)        (3,182)              11,700         2,779                    79         2,858 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     Transactions 
     with 
     owners 
     Share 
      cancellation                 -              -             -              -                 (7)           (7)                     -           (7) 
     Proceeds from 
      share 
      issue                        4            105             -              -                   -           109                     -           109 
     Dividend to 
      owners                       -              -             -              -             (3,814)       (3,814)                     -       (3,814) 
     Dividends to 
      non-controlling 
      interest                     -              -             -              -                   -             -                     1             1 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     Total 
      contributions 
      by and 
      distributions 
      to owners                    4            105             -              -             (3,821)       (3,712)                     1       (3,711) 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     At 31 December 
      2020                     4,550            200         5,354          4,028              63,516        77,648                   552        78,200 
     Comprehensive 
     income 
     Profit for the 
      period                       -              -             -              -               9,069         9,069                   118         9,187 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     Other 
     comprehensive 
     income 
     Changes in fair 
      value of equity 
      instruments at 
      fair 
      value through 
      other 
      comprehensive 
      income                       -              -         4,040              -                   -         4,040                     -         4,040 
     Currency 
      translation 
      differences                  -              -             -        (1,330)                   -       (1,330)                   (4)       (1,334) 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     Total 
      comprehensive 
      income                       -              -         4,040        (1,330)               9,069        11,779                   114        11,893 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     Transactions 
     with 
     owners 
     Dividends to 
      owners                       -              -             -              -             (5,005)       (5,005)                     -       (5,005) 
     Dividends to 
      non-controlling 
      interest                     -              -             -              -                   -             -                 (231)         (231) 
     Total 
      contributions 
      by and 
      distributions 
      to owners                    -              -             -              -             (5,005)       (5,005)                 (231)       (5,236) 
                       -------------  -------------  ------------  -------------  ------------------  ------------  --------------------  ------------ 
     At 30 June 2021           4,550            200         9,394          2,698              67,580        84,422                   435        84,857 
                       =============  =============  ============  =============  ==================  ============  ====================  ============ 
 

NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS

   1.              General information and basis of presentation 

EKF Diagnostics Holdings plc is a public limited company incorporated in the United Kingdom (Registration Number 04347937). The address of the registered office is Avon House, 19 Stanwell Road, Penarth, CF64 2EZ.

The Group's principal activity is the development, manufacture, and supply of products into the in-vitro diagnostics (IVD) market place. Within this area, the Group has a growing business in contract manufacturing.

The financial information in these interim results is that of the holding company and all of its subsidiaries. It has been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 ("IFRS"). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2020 and which will form the basis of the 2021 financial statements except for a number of new and amended standards which have become effective since the beginning of the previous financial year. These new and amended standards are not expected to materially affect the Group.

Certain statements in this announcement constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, amongst other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast.

The financial information presented herein does not constitute full statutory accounts under Section 434 of the Companies Act 2006 and was not subject to a formal review by the auditors. The financial information in respect of the year ended 31 December 2020 has been extracted from the statutory accounts which have been delivered to the Registrar of Companies. The Group's Independent Auditor's report on those accounts was unqualified, did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial information for the half years ended 30 June 2021 and 30 June 2020 is unaudited and the twelve months to 31 December 2020 is audited.

These interim accounts have not been prepared in accordance with the UK-adopted International Accounting Standard 34, "Interim Financial Reporting".

   2.               Significant accounting policies 

Going concern

The Group meets its day-to-day working capital requirements through the use of cash reserves and existing bank facilities.

The Directors have considered the applicability of the going concern basis in the preparation of these financial statements. This included the review of internal budgets and financial results which show, taking into account reasonably probable changes in financial performance, that the Group should be able to operate within the level of its current funding arrangements. While we have seen some disruption to our core business as a result of the COVID-19 pandemic, current trading suggests that our base case forecasts are still applicable. In addition, our range of COVID related products has been highly successful, bringing significant benefits to the Group, including higher revenue, profits, and cash balances. We believe the Group is in a strong position, however it is difficult to assess reliably whether there will be any material disruption in the future, and for how long our COVID range will remain relevant. We have modelled a number of scenarios covering reductions in revenue of 10% and 50%, without taking into account the potential benefits of any mitigation strategies such as potential cost savings or insurance claims. While the eventual severity and length of the economic disruption stemming from the pandemic is impossible to forecast these models give the Directors reasonable confidence that the business can survive our worst case scenarios for reductions in revenue for at least the next 12 months.

After making enquiries, the Directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. For this reason the Group continues to adopt the going concern basis in the preparation of the financial statements.

   3.              Segmental reporting 

Management has determined the Group's operating segments based on the monthly management reports presented to the Chief Operating Decision Maker ('CODM'). The CODM is the Executive Directors and the monthly management reports are used by the Group to make strategic decisions and allocate resources.

The principal activity of the Group is the design, development, manufacture and selling of diagnostic instruments, reagents and certain ancillary items. This activity takes place across various countries, such as the USA, Germany, Russia, and the United Kingdom, and as such the Board considers the business primarily from a geographic perspective. Although not all the segments meet the quantitative thresholds required by IFRS 8, management has concluded that all segments should be maintained and reported.

The reportable segments derive their revenue primarily from the manufacture and sale of medical diagnostic equipment. Other services include the servicing and distribution of third party company products under separate distribution agreements.

Currently the key operating performance measures used by the CODM are Revenue and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation, adjusted for exceptional items and share-based payments).

The segment information provided to the Board for the reportable geographic segments is as follows:

Period ended 30 June 2021 unaudited

 
                                                Germany             USA        Russia          Other           Total 
                                                GBP'000         GBP'000       GBP'000        GBP'000         GBP'000 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Income statement 
     Revenue                                     17,288          19,772         1,384          4,481          42,925 
     Inter-segment                              (2,746)         (1,616)             -            (4)         (4,366) 
     External revenue                            14,542          18,156         1,384          4,477          38,559 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Adjusted EBITDA*                             5,326           7,521           364          (450)          12,761 
     Share-based payment                              -               -             -          1,392           1,392 
     Exceptional items                              251               -             -           (17)             234 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     EBITDA                                       5,577           7,521           364            925          14,387 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Depreciation                                 (342)           (246)          (11)          (320)           (919) 
     Amortisation                                 (438)            (61)             -        (1,412)         (1,911) 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Operating 
      profit/(loss)                               4,797           7,214           353          (807)          11,557 
     Net finance costs                              (8)               5            16          (146)           (133) 
     Income tax                                   (692)         (1,464)          (75)            (6)         (2,237) 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Profit/(loss) for the 
      period                                      4,097           5,755           294          (959)           9,187 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Segment assets 
     Operating assets                            41,595          67,395           432          (618)         108,804 
     Inter-segment assets                         (143)        (16,480)             -        (4,495)        (21,118) 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     External operating 
      assets                                     41,452          50,915           432        (5,113)          87,686 
     Cash and cash 
      equivalents                                 4,382           6,177           966          9,259          20,784 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Total assets                                45,834          57,092         1,398          4,146         108,470 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Segment liabilities 
     Operating liabilities                        5,714          21,240           230         17,148          44,332 
     Inter-segment 
      liabilities                                 (446)        (17,794)             -        (2,878)        (21,118) 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     External operating 
      liabilities                                 5,268           3,446           230         14,270          23,214 
     Borrowings                                     399               -             -              -             399 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Total liabilities                            5,667           3,446           230         14,270          23,613 
--------------------------  ---------------------------  --------------  ------------  -------------  -------------- 
     Other segmental 
     information 
     Non-current assets - 
      PPE                                         5,796           5,014            82          2,065          12,957 
     Non-current assets - 
      Right-of-use 
      assets                                         78             585             2            225             890 
     Non-current assets - 
      Intangibles                                24,376          10,416            77            265          35,134 
     Intangible assets 
      -additions                                    366             120             -            137             623 
     PPE - additions                                456             679             -            206           1,341 
     Right-of-use assets - 
      additions                                      44            (35)            15            103             127 
 
 

Year ended December 2020 audited

 
                                             Germany            USA        Russia          Other          Total 
 
                                             GBP'000        GBP'000       GBP'000        GBP'000        GBP'000 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     Income statement 
     Revenue                                  25,637         39,459         2,904          4,432         72,432 
     Inter-segment                           (5,351)        (1,767)             -           (54)        (7,172) 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     External revenue                         20,286         37,692         2,904          4,378         65,260 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     Adjusted EBITDA*                          7,343         20,094           883        (2,754)         25,516 
     Share-based payment                           -              -             -        (5,292)        (5,292) 
     Exceptional items                           877              -             -            405          1,282 
     EBITDA                                    8,220         20,094           833        (7,641)         21,506 
     Depreciation                              (787)          (511)          (24)          (522)        (1,844) 
     Amortisation                            (1,646)        (1,120)           (1)              -        (2,767) 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     Operating profit/(loss)                   5,787         18,463           808        (8,163)         16,895 
     Net finance costs                          (24)             13            39        (1,567)        (1,539) 
     Income tax                                (820)        (3,497)         (171)            517        (3,971) 
     Profit/(loss) for the year                4,943         14,979           676        (9,213)         11,385 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     Segment assets 
     Operating assets                         39,961         36,899           355         30,529        107,744 
     Inter-segment assets                      (112)       (11,427)             -       (16,853)       (28,392) 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     External operating assets                39,849         25,472           355         13,676         79,352 
     Cash and cash equivalents                 3,130          7,459         1,257         10,067         21,913 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     Total assets                             42,979         32,931         1,612         23,743        101,265 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     Segment liabilities 
     Operating liabilities                     7,135         17,836           158         25,820         50,949 
     Inter-segment liabilities               (1,332)       (14,915)             -       (12,145)       (28,392) 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     External operating liabilities            5,803          2,921           158         13,675         22,557 
     Borrowings                                  508              -             -              -            508 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     Total liabilities                         6,311          2,921           158         13,675         23,065 
--------------------------------------  ------------  -------------  ------------  -------------  ------------- 
     Other segmental information 
     Non-current assets - PPE                  5,912          4,632            93          1,983         12,620 
     Non-current assets - ROU 
      assets                                       -              -             -          1,019          1,019 
     Non-current assets - Intangibles         24,039         10,979            77          1,956         37,051 
     Intangible assets -additions                679            335             -              -          1,014 
     ROU assets - additions                        -              -             -            518            518 
     PPE - additions                             779            575            54            223          1,631 
 

Period ended 30 June 2020 unaudited

 
                                                  Germany            USA        Russia          Other          Total 
                                                  GBP'000        GBP'000       GBP'000        GBP'000        GBP'000 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Income statement 
     Revenue                                       10,713         17,160         1,360            100         29,333 
     Inter-segment                                (2,981)           (23)             -              -        (3,004) 
     External revenue                               7,732         17,137         1,360            100         26,329 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Adjusted EBITDA                                2,827          7,575           395        (1,872)          8,925 
     Share-based payment                                -              -             -          (300)          (300) 
     Exceptional items                                451              -             -           (43)            408 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     EBITDA                                         3,278          7,575           395        (2,215)          9,033 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Depreciation                                   (452)          (201)          (10)          (209)          (872) 
     Amortisation                                   (403)           (52)             -          (989)        (1,444) 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Operating profit/(loss)                        2,423          7,322           385        (3,413)          6,717 
     Net finance costs                                (7)              7            21          (488)          (467) 
     Income tax                                     (376)        (1,563)          (80)           (90)        (2,109) 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Profit/(loss) for the 
      period                                        2,040          5,766           326        (3,991)          4,141 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Segment assets 
     Operating assets                              40,718         28,894           608         26,138         96,358 
     Inter-segment assets                           (288)              -             -        (9,396)        (9,684) 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     External operating 
      assets                                       40,430         28,894           608         16,742         86,674 
     Cash and cash 
      equivalents                                   3,375          5,337           798          7,385         16,895 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Total assets                                  43,805         34,231         1,406         24,127        103,569 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Segment liabilities 
     Operating liabilities                          8,062         14,026           137         11,366         33,591 
     Inter-segment 
      liabilities                                 (2,222)        (7,463)             -              -        (9,685) 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     External operating 
      liabilities                                   5,840          6,563           137         11,366         23,906 
     Borrowings                                       610              -             -              -            610 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Total liabilities                              6,450          6,563           137         11,366         24,516 
----------------------------  ---------------------------  -------------  ------------  -------------  ------------- 
     Other segmental 
     information 
     Non-current assets - 
      PPE                                           6,370          5,425           111          1,425         13,331 
     Non-current assets - 
      Right-of-use 
      assets                                           93            634             -            214            941 
     Non-current assets - 
      Intangibles                                  26,700         12,431            88            128         39,347 
     Intangible assets 
      -additions                                      343             50             -              -            393 
     PPE - additions                                  333            609            51            115          1,108 
     Right-of-use assets - 
      additions                                        58              4             -             17             79 
 
 

* Adjusted EBITDA represents earnings before interest, tax, depreciation and amortisation adjusted for exceptional items and share-based payments

'Other' primarily relates to the holding company and head office costs.

Disclosure of Group revenues by geographic location

 
                                              Unaudited        Unaudited            Audited 
                                               6 months         6 months         Year ended 
                                               ended 30         ended 30        31 December 
                                              June 2021        June 2020               2020 
                                                 GBP000           GBP000             GBP000 
 
     Americas 
     United States of America                    16,016           14,702             33,474 
     Rest of Americas                             1,026            1,390                568 
     Europe, Middles East and Africa 
      (EMEA) 
     Germany                                      4,286            2,984              5,873 
     United Kingdom                               4,621              242              4,522 
     Ireland                                      4,384                2              5,408 
     Rest of Europe                               2,920            1,621              3,127 
     Russia                                       1,384            1,360              2,904 
     Middle East                                    661              572              1,261 
     Africa                                         939            1,623              2,553 
     Rest of World 
     China                                          424              338                767 
     Rest of Asia                                 1,861            1,448              2,883 
     New Zealand/Australia                           37               46                 97 
                                        ---------------  ---------------  ----------------- 
     Total Revenue                               38,559           26,328             65,260 
                                        ===============  ===============  ================= 
 

Revenue by disease state, which is presented for illustrative purposes only, is as follows:

 
                                            Unaudited        Unaudited         +/- % 
                                             6 months         6 months 
                                             ended 30         ended 30 
                                            June 2021        June 2020 
                                              GBP'000          GBP'000 
 
     Hematology                                 5,856            5,853          0.1% 
     Diabetes (including <BETA>H B)            10,183            9,419          8.1% 
     Central Laboratory                         2,372            2,639       (10.1%) 
     Contract Manufacturing                    17,469            6,459        170.5% 
     Other                                      2,679            1,959         36.8% 
     Total revenue                             38,559           26,329         46.5% 
                                      ---------------  --------------- 
 
 
   4.              Exceptional items 

Included within administration expenses and cost of sales are exceptional items as shown below:

 
                                                   Unaudited       Unaudited         Audited 
                                                    6 months        6 months           year 
                                                     ended           ended             ended 
                                                    30 June         30 June         31 December 
                                                      2021            2020             2020 
                                       Note           GBP000          GBP000             GBP000 
 
     Exceptional items include: 
     - Business reorganisation 
      costs                            a                (17)            (15)               (58) 
     - Warranty claim                  b                 251             455              1,414 
     - Trellus                         c                   -            (32)               (74) 
     Exceptional items                                   234             408              1,282 
                                              --------------  --------------  ----------------- 
 
   (a)             Costs associated with the restructuring of the business 

(b) Increase in the value of an estimated warranty claim in relation to the acquisition of EKF-diagnostic GmbH. The increase is a result of a higher share price.

   (c)              Start-up costs associated with the set-up of Trellus Healthcare Limited 
   5.   Income tax 
 
                                            Unaudited        Unaudited            Audited 
                                             6 months         6 months         Year ended 
                                             ended 30         ended 30        31 December 
                                            June 2021        June 2020               2020 
                                               GBP000           GBP000             GBP000 
     Current tax 
     Current tax on profit for 
      the period                              (2,387)          (1,885)            (3,913) 
     Adjustments for prior periods                (4)             (87)               (89) 
                                      ---------------  ---------------  ----------------- 
     Total current tax                        (2,391)          (1,972)            (4,002) 
                                      ---------------  ---------------  ----------------- 
 
     Deferred tax 
     Origination and reversal of 
      temporary differences                       154            (136)                 31 
     Total deferred tax                           154            (136)                 31 
                                      ---------------  ---------------  ----------------- 
     Income tax charge                        (2,237)          (2,108)            (3,971) 
                                      ===============  ===============  ================= 
 
   6.   Earnings per share 

Basic earnings per share is calculated by dividing the profit attributable to equity holders of the parent by the weighted average number of ordinary shares in issue during the period.

Diluted profit per share is calculated by adjusting the weighted average number of ordinary shares outstanding assuming conversion of all dilutive potential ordinary shares. The Company has one category of dilutive potential ordinary share, being share options.

 
 
                                              Unaudited           Unaudited 
                                               6 months            6 months            Audited 
                                               ended 30               ended         year ended 
                                              June 2021             30 June        31 December 
                                                                       2020               2020 
                                                GBP'000             GBP'000            GBP'000 
     Profit attributable to owners 
      of the parent                               9,069               4,011             11,114 
     Weighted average number of 
      ordinary shares in issue              454,993,227         454,247,073        454,524,101 
     Effect of dilutive potential 
      ordinary shares                         4,056,090           4,290,848          4,278,975 
                                                                             ----------------- 
     Weighted average number of 
      ordinary shares - diluted             459,049,317         458,537,921        458,803,076 
                                                         ------------------  ----------------- 
 
                                                  Pence               Pence              Pence 
     From continuing operations 
     Basic                                         1.99                0.88               2.45 
 
     Diluted                                       1.98                0.87               2.42 
 
   7.   Intangible Fixed Assets 
 
     Group 
                                                           Trademarks 
                                                          trade names              Customer                                                         Software 
                                         Goodwill          & licences         relationships         Trade secrets         Develop-ment costs                                 Total 
                                          GBP'000             GBP'000               GBP'000               GBP'000                    GBP'000         GBP'000               GBP'000 
                                 ----------------  ------------------  --------------------  --------------------  -------------------------  --------------  -----  ------------- 
     Cost 
     At 1 January 2020                26,371                    2,799                15,580                18,436                      9,060             299                  72,545 
     Disposal                              -                     (19)                     -                     -                    (1,419)               -                 (1,438) 
     Additions                             -                       62                     -                     -                        308              23                     393 
     Exchange differences              1,570                      654                 1,081                   894                        505            (10)                   4,694 
     At 30 June 2020                  27,941                    3,496                16,661                19,330                      8,454             312                  76,194 
     Additions                             -                       84                     -                     -                        278             259                     621 
     Disposals                             -                       19                     -                     -                    (4,063)               -                 (4,044) 
     Exchange differences              (938)                    (282)               (1,120)                 (274)                      (216)              22                 (2,808) 
     At 31 December 2020              27,003                    3,317                15,541                19,056                      4,453             593                  69,963 
     Additions                             -                      238                     -                     -                        317              68                     623 
     Disposal                              -                      (2)                     -                     -                          -               -                     (2) 
     Exchange differences              (718)                      275                 (338)                 (498)                      (116)            (14)                 (1,409) 
                                 -----------  -----------------------  --------------------  --------------------  -------------------------  --------------  -----  --------------- 
     At 30 June 2021                  26,285                    3,828                15,203                18,558                      4,654             647                  69,175 
                                 -----------  -----------------------  --------------------  --------------------  -------------------------  --------------  -----  --------------- 
 
     Amortisation 
     At 1 January 2020                 2,550                    2,389                10,358                13,141                      6,340               -                  34,778 
     Exchange differences                 87                      373                   700                   592                        311               -                   2,063 
     Disposal                              -                     (19)                     -                     -                    (1,419)               -                 (1,438) 
     Reclassification/transfer             -                        -                     -                     -                          -               -                       - 
     Charge for the period                 -                      144                   681                   469                        129              21                   1,444 
                                 -----------  -----------------------  --------------------  --------------------  -------------------------  --------------  -----  --------------- 
     At 30 June 2020                   2,637                    2,887                11,739                14,202                      5,361              21                  36,847 
     Exchange differences               (32)                    (172)                 (747)                 (191)                       (80)               -                 (1,222) 
     Disposal                              -                       19                     -                     -                    (4,055)               -                 (4,036) 
     Charge for the period                 -                      213                   564                   450                        117            (21)                   1,323 
     At 31 December 2020               2,605                    2,947                11,556                14,461                      1,343               -                  32,912 
     Exchange differences               (54)                     (84)                 (251)                 (362)                       (30)               -                   (781) 
     Disposal                              -                      (1)                     -                     -                          -               -                     (1) 
     Impairment                            -                        -                     -                     -                        (8)               -                     (8) 
     Charge for the period                 -                     (52)                   588                 1,234                        107              42                   1,919 
                                 -----------  -----------------------  --------------------  --------------------  -------------------------  --------------  -----  --------------- 
     At 30 June 2021                   2,551                    2,810                11,893                15,333                      1,412              42                  34,041 
                                 -----------  -----------------------  --------------------  --------------------  -------------------------  --------------  -----  --------------- 
 
 
 
     Net book value 
     30 June 
      2021             23,734         1,018         3,310       3,225         3,242         605         35,134 
                -------------  ------------  ------------  ----------  ------------  ----------  ------------- 
     31 
      December 
      2020             24,398           370         3,985       4,595         3,110         593         37,051 
                -------------  ------------  ------------  ----------  ------------  ----------  ------------- 
     30 June 
      2020             25,304           611         4,922       5,127         3,093         290         39,347 
                -------------  ------------  ------------  ----------  ------------  ----------  ------------- 
 
 
   8.            Dividends 

A dividend to shareholders of the holding company of 1.1p per ordinary share has been provided during the period following shareholder approval at the Annual General Meeting of the Company in May 2021 (six months to 30 June 2020 and year to 31 December 2020: both 1p). It will be paid on 1 December 2021 to shareholders on the register of members at the close of business on 5 November 2021.

   9.            Availability of this announcement 

This announcement is available from the Company's website, www.ekfdiagnostics.com . If you would like to receive a hard copy of the interim report, please contact the EKF Diagnostics Holdings plc offices on +44 (0) 29 2071 0570 to request a copy.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR BCGDCBGBDGBX

(END) Dow Jones Newswires

September 14, 2021 02:00 ET (06:00 GMT)

Ekf Diagnostics (LSE:EKF)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024 Haga Click aquí para más Gráficas Ekf Diagnostics.
Ekf Diagnostics (LSE:EKF)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024 Haga Click aquí para más Gráficas Ekf Diagnostics.