24th Mar 2020 17:58
(Alliance News) - Healthcare products maker EKF Diagnostics PLC on Tuesday said annual profit is set to fall significantly because of a sale the year before.
EKF provided the trading update after the UK Financial Conduct Authority requested firms postpone results publications due to the uncertainty caused by Covid-19.
Revenue in 2019 is set to climb 6% to GBP44.9 million, but pretax profit is going to more than halve to GBP5.5 million from GBP12.2 million, after a gain of GBP5.8 million a year before following the spin-out of Renalytix AI PLC.
However, excluding that spin-out pretax profit fell 5.2%.
EKF still plans on paying a 1 pence per share maiden dividend, as indicated before. Payment will be this December if approved by shareholders.
"With good cash resources and a business which is growing strongly, EKF has moved into a phase where we are confident that we can provide an income for shareholders and the prospect of significant upside from our relationships with Mount Sinai Innovation Partners and others. Trading in 2020 to date has been satisfactory and in line with management expectations," said Non-Executive Chair Christopher Mills.
"Despite these difficult times, EKF is in a very strong position. We have a substantial net cash balance, continuing solid positive cash flow and the business remains robust. We see significant opportunities globally, particularly within the US. Being a medical device company focusing on tests monitoring diabetes and haemoglobin, both conditions putting patients in higher-risk categories should they contract Covid-19, EKF is well-positioned to assist the medical and scientific community," Mills said.
Shares finished 34% higher on Tuesday in London at a price of 26.50p each.
By George Collard; [email protected]
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