Half-year Report

EKF Diagnostics Holdings plc

("EKF" or the "Company", or the "Group")

Half-year Report

Record analyzer sales, continued improvement in earnings and cash generation

EKF Diagnostics Holdings plc (AIM: EKF), the AIM-quoted global diagnostics business, announces its unaudited interim results for the six months ended 30 June 2025 ("H1 2025"), a period showing record analyzer sales, further improvement in gross margins, pre-tax profit growth and cash generation, in-line with management expectations.

Guidance for the full year performance remains unchanged from the 28 July 2025 Trading Update. The Company remains on track to deliver growth at the revenue and adjusted EBITDA levels for FY 2025 in-line with market expectations2.

Financial highlights

1Earnings before interest, tax, depreciation and amortisation, excluding exceptional items.

²Management understands consensus revenue and Adjusted EBITDA forecasts for FY 2025 to be £53.6m and £12.4m respectively.

Operational highlights

* Other includes miscellaneous accessories, consumables, and repairs

Julian Baines, Executive Chair of EKF, commented: "It is pleasing to see that our five-year strategic development plan to support accelerated organic growth is already bearing fruit as we deliver continued revenue growth and improved profitability across both divisions. The key drivers of our performance have been sales of our β-HB LiquiColor® reagent and the successful ramp up in sales of our hematology analyzers, and we expect to see a further strong performance from these lead product lines in H2 2025.

"The Board is very excited about the future prospects of the Company and we remain on track to deliver growth at the revenue and adjusted EBITDA levels for FY 2025 in-line with market expectations2."

Copies of the interim results and associated investor presentation are available here:

https://www.ekfdiagnostics.com/documents-reports.html

Investor Presentation

EKF Diagnostics will be hosting a live online presentation open to all existing and potential investors on Tuesday 16 September 2025 at 10.30am (BST), via the Investor Meet Company platform. Investors can sign up to Investor Meet Company for free and add to meet EKF Diagnostics via:

https://www.investormeetcompany.com/ekf-diagnostics-holdings-plc/register-investor

Investors who already follow EKF on the Investor Meet Company platform will automatically be invited.

A recording of the presentation, a PDF of the slides used, and responses to the Q&A session will be available on the Investor Meet Company platform afterwards.

The person responsible for arranging the release of this Announcementon behalf of the Company is Gavin Jones, Chief Executive Officer.

About EKF Diagnostics Holdings plc (www.ekfdiagnostics.com)

EKF is an AIM-listed global diagnostics business focussed on:

EKF has headquarters in Penarth (near Cardiff) and operates five manufacturing sites across the US and Germany, selling into over 120 countries world-wide.

EXECUTIVE CHAIR'S STATEMENT

The implementation of our five-year strategic development plan, focussing on growing revenues from key product lines within our Point-of-Care and Life Sciences divisions, and correctly aligning our cost base to drive further margin improvement and enhance cash generation, is proving successful. In the first half we have shown further increases in both gross margins and pre-tax profit growth, and cash generation remains strong, in-line with management expectations. Cash balances continue to grow, allowing us to effectively invest in key areas of growth as part of the five-year plan, as well as to deploy surplus cash to improve earnings per share via our share buyback programme.

OPERATIONAL OVERVIEW

Total revenues (excluding discontinued product lines) for the six months ended 30 June 2025 were up 2% to £25.0m (H1 2024: £24.5m). Gross Margins improved further to 50.2% (H1 2024: 48.1%) and adjusted EBITDA increased by 7.4% to £5.8m (H1 2024: £5.4m). Profit before tax rose 16.1% to £3.6m (H1 2024: £3.1m).

The implementation of the five-year plan continues in-line with management expectations, with a strong revenue performance from the key growth areas of Hematology (8% increase year-on-year) and β-HB (12% increase year-on-year). Diabetes sales have stabilised providing a steady performance in the first half. The pipeline for contract manufacturing and fermentation opportunities is encouraging with a number of high value prospects now in the advanced stage of discussions.

* Other revenue relating to, shipping and handling recharges, repairs and other sundries.

1. Point-of-Care (POC)

EKF continues to maintain a strong position within the global market for hematology and diabetes testing, building on our sales of over 12,000 Point-of-Care analyzers and over 94 million individual test consumables in 2024.

POC: Hematology

We identified hematology as the main opportunity for organic growth within the POC division and have begun the process of creating a dedicated POC sales team focused on Hemoglobin POC testing. This focus is showing early signs of success with a strong revenue performance in the first half as total sales of our hematology analyzers and consumables rose by 8% year-on-year to £7.8m (H1 2024: £7.3m). HemoControl remains the largest contributor to hematology revenues, with revenues up by over 21% year-on-year. We have particularly focussed on growing production capacity for our HemoControl product to meet strong and rising demand in Peru, Brazil, Italy and the US. H1 2025 vs H1 2024 saw an increase in HemoControl analyser build of nearly 125% and whilst we have ramped up supply capacity to meet further increased demand going into H2 2025, we expect to make further investments to grow consumable and analyser production capacity at the Barleben site by 30%. With an increase in total hematology analyser builds in H1 2025 of 60% compared to the previous period, we anticipate seeing significant growth in consumable pull-through impacting H2 2025 and beyond.

Our positive outlook was supported by the additional news post-period end that we had signed further contracts worth approximately €4.65m (c. £4.03m), for the supply of hemoglobin analysers and related consumables in Latin America and Africa over the next 12 to 24 months.

Our second largest hematology product, Diaspect Tm, has returned to growth and delivered an increase in total sales (both analysers and consumables) of just over 4%. Analyser sales have shown a significant increase in H1 2025, and this should support further consumable growth going forward. We have also won new contracts for Diaspect Tm in India and Uganda.

We believe we are well placed to increase our commercial focus on the US Hemoglobin POC testing market and will target wider adoption in blood banks, plasma centres and Women Infants & Children (WIC) centers and other Public Health settings in this key market. We are also looking to focus on under-served markets by increasing engagement with our distributor base, establishing new sales channels in LATAM, EMEA and APAC provided by infectious disease, and identifying and targeting Non-Governmental Organisations (NGOs) to drive market expansion.

POC: Diabetes

As we flagged in our 2024 full year results, there is a growing global trend to reduce the frequency of glycated haemoglobin (HbA1c) testing driven by lower reimbursement rates and the prevalence of Continuous Glucose Monitoring. This has seen a steady decline in sales from our Diabetes product portfolio over recent years. In this context broadly flat sales from the Diabetes product portfolio of £5.5m (H1 2024: £5.4m) is encouraging.

Biosen sales, our largest contributor within diabetes, rose by 3.4% and Quo-Lab revenues were up 1.1%, but these gains were balanced by a decline in Quo-Test sales of 3.4%.

2. Life Sciences

Life Sciences: β-HB

H1 2025 saw further strong sales of our β-HB LiquiColor® reagent, up 12% year-on-year to £7.1m (H1 2024: £6.3m), seeing us take more market share as our key partners widened their conversion to own brand labelled product under our white label contracts. Ongoing contract manufacture for bulk reagents and kits remains a growing source of revenue within our Life Sciences division.

Life Sciences: Fermentation & Contract Manufacturing

The pipeline for contract manufacturing and fermentation opportunities remains encouraging with a number of high value prospects now in the advanced stage of discussions. We expect to confirm at least one new significant partnership in H2 2025 and will update shareholders of our progress in growing this business.

Contract manufacturing in H1 25 primarily consists of molecular transport medium revenues.

Russia and Ukraine

EKF owns 60% of O.O.O. EKF Diagnostika, a distribution subsidiary located in Moscow which sells EKF POC products and other third-party products into Russia and neighbouring states. Sales remains impacted by the increased effect of sanctions in the region, even for essential medical supplies, and restrictions remain in place regarding the payment of foreign dividends in Russia and so this cash remains partly inaccessible. Cash held in Russia totalled £1.9m at the period end, with £0.2m of further dividends received from Russia during the period.

Outlook

It is pleasing to see that our five-year strategic development plan to support accelerated organic growth is already bearing fruit as we deliver continued revenue growth and improved profitability across both divisions. The key drivers of our performance have been sales of our β-HB LiquiColor® reagent and the successful ramp up in sales of our hematology analyzers, and we expect to see a further strong performance from these lead product lines in H2 2025.

Particularly encouraging is the significant increase in analyzer production to meet our current order flow during H1 2025. Whilst the analyzers themselves are low margin products, the increased number of units in the field should see a significant pull through of higher margin consumables in H2 2025 and beyond. Having successfully increased supply capacity going into H2 2025, further investment will be needed to grow Hemoglobin consumable and analyser production capacity at our Barleben site by 30%, and we look forward to updating shareholders on our progress.

Now that our US sales team are able to fully concentrate on β-HB LiquiColor® sales, we are able to more effectively target acute care hospitals in the US not currently using β-HB, because they are using outdated technology or not following current Diabetic Ketoacidosis guidelines. We expect to see continued growth in this area.

By delivering against our five-year strategic development plan we believe we would be able to create a business generating in excess of £80m revenues and £20m adjusted EBITDA by 2029. We continue to target becoming number 1 in both POC hematology testing, and Ketone testing (β-HB) by 2029 and are encouraged by our progress to date.

The Board is very excited about the future prospects of the Company and we remain on track to deliver growth at the revenue and adjusted EBITDA levels for FY 2025 in-line with market expectations2.

Julian Baines

Executive Chair

FINANCIAL REVIEW

Revenue

Revenue for the period was £25.2m (H1 2024: £25.2m). On a constant currency basis using 2024 rates, revenue would have been £25.8m. In 2023 we announced that we were winding down our Clinical Chemistry business due to its low margins. Residual revenue from this business in H1 2025 was £0.2m (H1 2024: £0.7m).

Revenue by Business Unit:

* Other revenue relating to shipping and handling recharges, repairs and other sundries

Revenue from core operations (excluding clinical chemistry revenues) increased by 2.4% (H1 2024: 0.4%), particularly as a result of higher β-HB revenues.

Revenue by Geographical Segment:

Revenue in local currency showed growth of 6% in Germany, 16% in Russia, and a 2% decline in the USA, however the continuing core business in the USA without the clinical chemistry business grew by 2%.

Revenue in Germany has recovered from last year which was affected by the delayed launch of the updated Biosen.

In the USA, revenue in GBP is lower as a result of the closure of our clinical chemistry business and the effect of the US dollar exchange rate.

The Group's Russian subsidiary, which is 60% owned by the Group, is consolidated in full in accordance with accounting standards. The interest of the minority shareholders is included as a separate item in the Consolidated Income statement.

Gross profit

Gross profit was £12.7m (H1 2024: £12.1m). The gross profit margin was 50.2% (H1 2024: 48.1%), a further improvement, mainly as a result of higher β-HB revenue and the ending of clinical chemistry. The gross profit margin on an Adjusted Earnings basis (i.e. excluding depreciation, amortisation, and exceptional items included in cost of sales) was 54.1% (H1 2024: 51.5%).

Administrative expenses

In H1 2025, administration expenses (excluding exceptionals) were unchanged at £9.2m (H1 2024: £9.2m), representing 36.4% of revenue for the period (H1 2024: 36.3%, FY 2024: 36.6%). The Board expects that the continuing effect of the cost savings and efficiency measures that have been implemented will be offset by the additional cost of investments being made in line with the Group's new strategy.

The charge for depreciation of fixed assets and for the amortisation of intangibles is £2.1m (H1 2024: £2.4m).

Headcount

The Group had an average of 297 employees during H1 2025 (H1 2024: 309).

Operating profit and adjusted earnings before interest tax and depreciation

The Group generated an operating profit of £3.5m (H1 2024: £3.1m), a 16.8% improvement. We continue to consider that adjusted EBITDA gives a more meaningful measure of performance which for H1 2025 was £5.8m (H1 2024: £5.4m), a 6.5% increase.

There have been no exceptional items in H1 2025. In H1 2024 adjusted EBITDA excluded an exceptional credit of £0.03m relating mainly to the reversal of provisions against inventory originally charged to exceptional items.

Finance income

Net finance income is £0.04m (H1 2023: cost of £0.01m). The improvement is largely because of lower bank interest on loans offset by higher interest income. The Group no longer has any borrowings.

Tax

There is a tax charge of £1.5m (H1 2024: £0.8m). The increase largely reflects the deferred tax effect of a reduction in the anticipated US tax losses brought forward, as well as the increase in profit.

Earnings per share

Basic earnings per share from continuing operations is 0.43 pence (H1 2024: 0.46 pence), mainly as a result of the higher tax charge. There are no outstanding potentially dilutive items.

Balance sheet

Fixed assets

We have capitalised £0.5m (H1 2024: £2.0m) of property, plant and equipment including the effect of the capitalisation of new operating leases. A number of capital projects designed to improve capacity, mainly in Germany, are expected to complete in the second half of 2025.

Intangible assets

The value of intangible fixed assets is largely unchanged at £28.8m (31 December 2024: £28.9m), as additions and amortisation have offset. An amount of £0.5m (H1 2024: £0.3m) has been capitalised during the first half, largely for R & D expenses. We have started the process of aligning our R & D programmes more closely with our strategy, with a focus on continuous improvement and cost reduction of core products.

Investments

Investments are held at fair value which has been calculated based on the market value of the shares for Verici Dx. The Group did not participate in Verici's July 2025 fundraising.

Cash and working capital

The gross and net cash position at 30 June 2025 was £16.6m (31 Dec 2024: £14.3m).

Cash generated from operating activities in H1 2025 is £4.9m (H1 2024: £7.9m). The reduction is to a large extent related to tax in the USA, In 2024 a tax repayment of £2.1m was received, while in 2025 we have now returned to making payments on account.

The undrawn loan facility of £3m with HSBC was cancelled during the period because of the strong cash generation, and to save cost.

Cash and cash equivalents held by the Russian subsidiary as at 30 June 2025 totalled £1.9m (31 Dec 2024: £1.3m). These balances are subject to regulatory restrictions, and therefore may not be available for general use by the other entities within the Group. We have been able to organise further dividends from Russia during the period of £0.2m which have limited our exposures.

Share capital

During the period a share buy back was completed. 4,636,774 ordinary shares were acquired at a net cost of £996,000. These shares plus the 1,200,000 already held in treasury have subsequently been cancelled. We have maintained shareholder authority to buy back further shares, and will do so if appropriate.

Dividend

Based on the need for continued investment in our core areas the Board has decided that it would be prudent to discontinue dividend payments. The Board will however consider recommencing the payment of dividends if and when appropriate.

Going concern

The Directors have considered the applicability of the going concern basis in the preparation of these financial statements. This included the review of internal budgets and financial results which show, taking into account reasonably plausible changes in financial performance, that the Group will be able to operate within the level of its current funding arrangements.

The Group has revenues from customers in Russia which are serviced by our entity based in Moscow. As a result of the continuing sanctions imposed on Russia by the EU, the USA and other countries, there are enhanced risks in respect of our Russian entity, including regulatory restrictions and credit risk to cash balances, its ability to collect debtors, and EKF's ability to import products into Russia. In addition, while we have been able to make some dividend payments out of Russia, action by the Russian Government continues to restrict the Russian entity's ability to pay dividends to its shareholders. In preparing a downside going concern forecast we have discounted future sales and cash from this region entirely.

The strength of the Group's balance sheet aligned to the continuing performance of the business gives the Directors confidence that the business can continue to meet its obligations as they fall due, even under our worst-case scenarios, for at least the next 12 months. The Group has cash resources and an unutilised facility of £3m from the North Atlantic Smaller Companies Investment Trust, which is available until 2026, and which can be drawn down if necessary. Accordingly, the Directors are satisfied they can prepare the accounts on a going concern basis.

Stephen Young

Chief Financial Officer

16 September 2025

*including restricted cash of £1,947,000 (June 2024: £2,229,000, December 2024: £1,289,000)

As at 30 June 2025 cash and cash equivalents totalling £1.9m (June 23: £2.2m, December 2024: £1.3m) are held by the Group's 60% owned Russian subsidiary. As a result of action by the Russian Government following international sanctions being imposed on Russia, access to this cash is currently restricted.

NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS

1. General information and basis of presentation

EKF Diagnostics Holdings Plc is a company incorporated and domiciled in the United Kingdom. The Company is a public limited company, which is listed on the Alternative Investment Market of the London Stock Exchange. The address of the registered office is Avon House, 19 Stanwell Road, Penarth, Cardiff CF64 2EZ.

The principal activity of the Group is the development, manufacture, and supply of products and services into the in-vitro diagnostic (IVD) market place. The Group has presence in the UK, USA, Germany, and Russia, and sells throughout the world including Europe, the Middle East, the Americas, Asia, and Africa.

The financial statements are presented in British Pounds Sterling, the currency of the primary economic environment in which the Company's headquarters operates. The consolidated financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial liabilities at fair value through profit and loss and certain financial assets measured at fair value through other comprehensive income.

The financial information in these interim results is that of the holding company and all of its subsidiaries as at 30 June 2025. It has been prepared in accordance with UK-adopted International Accounting Standards and the Companies Act 2006 as applicable to companies reporting under those standards. The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2024 and which will form the basis of the 2025 financial statements except for a number of new and amended standards which have become effective since the beginning of the previous financial year. These new and amended standards are not expected to materially affect the Group. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. There has been no material change either in relation to the critical accounting estimates used or the judgement required.

Certain statements in this announcement constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, amongst other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast.

The financial information presented herein does not constitute full statutory accounts under Section 434 of the Companies Act 2006 and was not subject to a formal review by the auditors. The financial information in respect of the year ended 31 December 2024 has been extracted from the statutory accounts which have been delivered to the Registrar of Companies. The Group's Independent Auditor's report on those accounts was unqualified, did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial information for the half years ended 30 June 2025 and 30 June 2024 is unaudited and the twelve months to 31 December 2024 is audited. These interim accounts have been prepared in accordance with IAS 34 "Interim Financial Statements".

2. Significant accounting policies

Going concern

The Directors have considered the applicability of the going concern basis in the preparation of these financial statements. This included the review of internal budgets and financial results which show, taking into account reasonably plausible changes in financial performance, that the Group will be able to operate within the level of its current funding arrangements.

The Group has revenues from customers in Russia which are serviced by our entity based in Moscow. As a result of the continuing sanctions imposed on Russia by the EU, the USA and other countries, there are enhanced risks in respect of our Russian entity, including regulatory restrictions and credit risk to cash balances, its ability to collect debtors, and EKF's ability to import products into Russia. In addition, while we have been able to make limited dividend payments out of Russia, action by the Russian Government continues to restrict the Russian entity's ability to pay dividends to its shareholders. In preparing a downside going concern forecast we have discounted future sales and cash from this region entirely.

The strength of the Group's balance sheet aligned to the continuing performance of the business gives the Directors confidence that the business can continue to meet its obligations as they fall due, even under our worst-case scenarios, for at least the next 12 months. The Group has unutilised facilities of £3m from the North Atlantic Smaller Companies Investment Trust, which is available until 2026, which can be drawn down if necessary. Accordingly, the Directors are satisfied they can prepare the accounts on a going concern basis.

3. Segmental reporting

Management has determined the Group's operating segments based on the monthly management reports presented to the Chief Operating Decision Maker ('CODM'). The CODM is the Executive Directors and the monthly management reports are used by the Group to make strategic decisions and allocate resources.

The principal activity of the Group is the design, development, manufacture and sale of diagnostic instruments, reagents and certain ancillary products, primarily into the in-vitro diagnostic (IVD) market. This activity takes place across various countries, such as the USA, Germany, Russia, and the UK, and as such the Board considers the business primarily from a geographic perspective. Although not all the segments meet the quantitative thresholds required by IFRS 8, management has concluded that all segments should be maintained and reported. In addition, the CODM considers the segmental revenue performance of business segments.

The reportable segments derive their revenue primarily from the manufacture and sale of medical diagnostic equipment and reagents. Other services include the servicing and distribution of third party company products under separate distribution agreements. Transactions between segments consist of the sale of products for resale. The basis of accounting for these transactions is the same as for external revenue.

Currently the key operating performance measures used by the CODM are Revenue and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation, adjusted for exceptional items and share-based payments).

The segment information provided to the Board for the reportable geographic segments is as follows:

Period ended 30 June 2025 unaudited

Year ended December 2024 audited