EKF Diagnostics (EKF) H1 2026 earnings summary

Executive summary

• Delivered solid H1 2026 results with revenue of £25.0m, flat year-over-year, and performance in line with expectations, supported by improved gross margin and adjusted EBITDA growth.

• Progressed on five-year strategy, focusing on Point-of-Care and Life Sciences divisions, with strong order book and operational improvements positioning for robust H2.

• Life Sciences division showed strong growth, especially in ß-HB and Contract Manufacturing, while Point-of-Care was impacted by order timing but is expected to recover in H2.

• Basic EPS increased 26% to 0.54p, supported by share buybacks.

• Strong operational investments and new management hires support future growth.

Financial highlights

• Group revenue was £25.0m, essentially flat year-over-year; gross profit £13.3m, gross margin 53.0% (up from 50.2%).

• Adjusted EBITDA rose 2.4% to £5.9m; margin at 23.6%.

• Operating profit £3.3m, down 7.2% due to higher admin expenses and planned investments.

• Net cash flow was broadly neutral; cash and equivalents £16.0m at period end.

• Free cash flow £1.1m, down from £3.7m in H1 2025 due to higher tax and capex.

Outlook and guidance

• Confident in delivering FY 2026 results in line with expectations, with revenue and adjusted EBITDA expected at £54.6m and £13.6m, respectively.

• Anticipates strong Point-of-Care growth in H2, supported by a full order book and resolved timing issues.

• Expects double-digit ß-HB growth by year-end as order patterns normalize.

• Five-year plan targets >£80m revenue and >£20m adjusted EBITDA by 2029.

• H2 2026 expected to recover deferred Point-of-Care revenues and accelerate growth in ß-HB and Nexus Bioworks.