EKF Diagnostics (EKF) Trading Update summary

Financial performance highlights

• Achieved at least 20% year-on-year adjusted EBITDA growth for H1 2024, reaching at least £5.3m, in line with expectations.

• Gross margins improved due to focus on higher margin product lines and cost base reduction.

• Strong cash generation with £5.1m generated in H1 2024; net cash position rose to £9.8m from £4.7m at year-end 2023.

• Revenues remain in line with expectations but are lower year-on-year due to discontinuation of non-core, low margin products.

• Life Sciences division's fermentation business saw 41% sales growth year-on-year.

Strategic and operational developments

• Business simplification around key product lines in Point-of-Care and Life Sciences divisions drove margin and earnings improvements.

• Cost base was reduced and stabilized, supporting improved profitability.

• Non-core and low margin products were removed from the portfolio, impacting year-on-year revenue comparators.

Outlook and guidance

• Performance improvement expected to continue in H2 2024, with full year results anticipated to be in line with market expectations.

• Unaudited H1 2024 results are scheduled for release on 17 September 2024.