EKF Diagnostics (EKF) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached £25.2m, with gross margin improving to 50% year-over-year and gross profit at £12.7m.

• Adjusted EBITDA increased 7.4% to £5.8m, and profit before tax rose 16.1% to £3.6m.

• Strategic focus on operational excellence, production capacity, and targeted growth markets, with new contract wins in key areas.

• Share buyback program initiated, with 4.6m shares repurchased and £1m spent.

• Continued investment in production capacity and R&D to support future growth.

Financial highlights

• Revenue stable at £25.2m, up 2.2% in constant currency to £25.8m.

• Gross profit increased to £12.7m, with gross margin rising to 50.2% from 48.1%.

• Adjusted EBITDA up 7.4% to £5.8m; profit before tax up 16.1% to £3.6m.

• Net cash from operations was £4.9m; cash and cash equivalents at period end were £16.6m.

• Share buyback of 4.6m shares completed.

Outlook and guidance

• Full-year guidance for revenue and adjusted EBITDA remains unchanged and in line with market expectations.

• Management targets over £80m revenue and £20m adjusted EBITDA by 2029.

• Focus on delivering new Life Science partnerships and consumable pull-through from record analyzer production.

• Anticipates significant consumable growth in Q2 2025 and beyond, driven by analyzer seeding.

• Share buyback program to continue into Q2 2025.