EKF Diagnostics’ (EKF) full-year numbers centred on four ‘Cs’: currency, cost control, cash and capital restructuring. Of the group’s 8 per cent sales growth, 6.6 per cent stemmed from favourable foreign exchange movements. That said, continuing efforts to reduce costs paid off: adjusted cash profit escalated from £6.1m to £9.2m, with currency benefits only contributing £0.6m. And, encouragingly, the company saw net cash rise from £2m to £7m, due to strong cash conversion. Meanwhile, management received approval last September to buy back up to 15 per cent of EKF’s shares – potentially lining up a significant return to investors.
Point-of-care revenue rose by 9 per cent overall to £29m, buoyed by 13 per cent growth in diabetes care to £11.5m and a 10 per cent rise for haematology to £12.9m. Diabetes benefited from rising sales of its Quo Test and Quo Lab products. Central Lab revenue rose by 5 per cent to £12.6, helped by a massive 17 per cent improvement in sales of its B-HB Liquicolor reagent.
Analysts at N+1 Singer forecast adjusted pre-tax profit of £7.5m and EPS of 1.2p for 2018, up from £7m and 1p in 2017.
| EKF DIAGNOSTICS (EKF) | ||||
| ORD PRICE: | 25p | MARKET VALUE: | £114m | |
| TOUCH: | 25-25.9p | 12-MONTH HIGH: | 28p | LOW: 17p |
| DIVIDEND YIELD: | nil | PE RATIO: | 42 | |
| NET ASSET VALUE: | 13.1p* | NET CASH: | £7m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 31.8 | 0.6 | -1.5 | nil |
| 2014 | 37.1 | -3.4 | -1.3 | nil |
| 2015 | 30.0 | -15.8 | -3.3 | nil |
| 2016 | 38.6 | -1.0 | neg | nil |
| 2017 | 41.6 | 4.3 | 0.6 | nil |
| % change | +8 | - | - | - |
| Ex-div: | nil | |||
| Payment: | nil | |||
| *Includes intangible assets of £43.6m, or 9.5p a share | ||||
