EKF saw revenues increase 18% and EBITDA increase 57%
Companies: EKF Diagnostics Holdings plc
After a difficult two years, AIM-listed healthcare company EKF Diagnostics appears to be back as the company reported positive half-year results showing revenue up 18% YoY (£17.5m), gross profit up 10% YoY, and Adj EBITDA up 57% YoY.
EKF also reported a significant improvement in its financial situation with cash flow up 55% and debt down 50% YoY, following the company's successful June placement to repay debt and free up banking facilities.
City broker Panmure Gordon said the strong results showed a turnaround was "well underway", whilst broker N+1 Singer said the results showed its recovery is "gathering pace".
The company saw a significant 20% decline in revenue between FY15 and 16, with EBITDA collapsing 91% during the same period.
Panmure Gordon welcomed today's results, saying restructuring had resulted in a return to positive EBITDA and stating that it expected profitability to continue to improve in H2:
"We expect a Q3 trading update from EKF in October. In our view the long term outlook remains encouraging."
Broker N+1 Singer also covered the results, with analyst Chris Glasper saying the interims showed the recovery was gathering pace:
"The business has returned to growth and margins are improving as a result of the actions taken by management. The outlook is positive (management again guiding towards the top end of its £3.5-4.0m target) and we see upside potential to our forecasts, which we prudently leave unchanged for now."
Chris Mills, Non-exec Chairman of EKF, said that whilst the company had much to do and the many benefits of restructuring are still to be felt, the results provided the company with confidence in hitting the higher end of 2016 targets and achieving further growth in 2017.
