18th Aug 2015 11:12
LONDON (Alliance News) - EKF Diagnostics Holdings PLC said Tuesday it has received a non-binding preliminary proposal to acquire its point-of-care assets for USD110 million, and it expects to post a fall in adjusted earnings before interest, tax, depreciation and amortisation for the first half of 2015.
The company expects to post adjusted Ebitda of around GBP700,000, down from GBP2.2 million in the previous year, as it continues to invest in its molecular division, and it expects revenues to be flat at around GBP16.8 million as it has not benefited from any tender wins during the half year.
EKF has been undertaking a strategic review, and said that in the event that the preliminary proposal to acquire the point-of-care assets does not lead to a deal, it intends to invite shareholder Ron Zwanziger to join the board as chairman, with the current chairman to become deputy chairman, and then to spin-off its molecular diagnostics division.
In the absence of a sale it believes this is the "best way forward." The spun-out division would be led by the company's current Chairman David Evans.
"I welcome the conclusions of my non-executive colleagues and, as a board, we are well aware that we are custodians of shareholder value and as such will remain focussed on realising this value if practically possible," said Evans in a statement.
"If this cannot be achieved in the short-term I am confident that Ron Zwanziger, a shareholder and an individual with a strong history of growing point-of-care businesses, will open up a number of opportunities for the company as chairman, and that the Molecular Diagnostics division's move to become a distinct and separate business will allow us to deliver greater benefits for shareholders," Evans added.
The company said it remains confident that given the high number of opportunities it has planned for its second half, it will meet its expectations for the full year.
Shares in EKF were down 4.9% at 20.69 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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