23rd Jul 2014 09:04
LONDON (Alliance News) - EKF Diagnostics Holdings PLC Wednesday expressed confidence in meeting market expectations for the full year, as it continued to make good progress in the half year to end-June and expects a second half weighting.
The biotechnology company said revenues for the half year were GBP16.7 million, up from GBP14.9 million, despite taking a hit from exchange rates of around GBP1 million during the period.
EKF's adjusted earnings before interest, tax, depreciation and amortisation were GBP2.2 million, up from GBP2.1 million. At constant currency adjusted EBITDA would have improved 16% compared to the previous year, EKF said.
The company completed three acquisitions during the first half which it said enhanced its product offering and are expected to make a "considerable contribution" to its future growth.
EKF's outlook for the second half is positive in terms of organic growth and growth from acquisitions. It has seen an increase in sales towards the end of the first half, with sales in June of GBP5.4 million.
Its products in diabetes and haemoglobin performed well in the first half, it said, with sales up 23%. EKF recently won an order with a new distribution partner in China. It is also confident of securing tender wins in South America and in the area of women, infants and children health programmes before the end of the year.
Sales for its clinical chemistry products in the first half were more challenging, due to the mature nature of this market, EKF said.
In its Molecular diagnostics business, recent acquisition Selah contributed sales of over GBP1.2 million. However, due to a reduced level of reimbursement for its drug metabolism enzymes panel, Selah did not achieve its first quarter gross revenue target. As a result, no earn-out merger consideration is payable to Selah for the first quarter. EKF said.
EKF said it expects to see the first contribution of revenues from its oncology biomarkers in the second half, although it expects these to be modest.
Shares in EKF were trading down 3.9% at 26.18 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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