EKF Diagnostics (EKF) H2 2024 earnings summary

Executive summary

• Revenue reached £50.2 million, reflecting the removal of legacy products and a focus on higher-margin offerings.

• Gross margin improved to 48% from 45% year-over-year, driven by portfolio optimization and cost base realignment.

• Adjusted EBITDA increased to £11.3 million, ahead of forecast and up 9.2% year-over-year.

• Profit before tax rose to £6.3 million from £2.1 million year-over-year.

• Cash generated from operations was £12.2 million, with year-end cash at £14.3 million, supporting future capital deployment and share buybacks.

Financial highlights

• Adjusted EBITDA grew by £0.9 million year-over-year despite lower revenues.

• Cost base reduced by £1.6 million in 2024, supporting margin expansion.

• Over 13,000 point-of-care instruments sold, near record levels.

• Over 100 million point-of-care tests sold, with 74 million in EMEA, 20 million in APAC, and 11 million in the Americas.

• Beta-hydroxybutyrate (BHB) saw 7% growth, while haemoglobin testing grew 17% in Africa and 45% in APAC.

Outlook and guidance

• Expectation to return to growth in 2025, driven by strong demand for haemoglobin analyzers and a robust product pipeline.

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

• Focus on organic growth, especially in haemoglobin, fermentation, and BHB segments.

• Share buyback program to be implemented soon to enhance EPS.

• Production capacity to be increased to meet rising Hematology demand.