Penarth-based Global diagnostics firm EKF back in the black

GLOBAL diagnostics firm EKF Diagnostics has returned to profitability and posted year end revenues in line with market expectations.

Unaudited results for the year to December end, 2023, shows the Alternative Investment Marketlisted business, based in Penarth, generated revenues of £52.5m (£66.6m in 2022).

With improved margins, through reducing costs, it returned to a pretax profit position if £2.1m. This followed losses of £8.9m a year earlier. Its point-of-care division, where it provides analysers in the key areas of hematalogy and diabetes reporting a 1.9% in revenues to £34.1m.

Its life sciences division saw revenues dip 2.4% to £14.8m. Excluding Covid related and clinical sales revenues in 2023 were up £100,000 on £48.6m a year earlier.

Geographically, its two biggest markets were Germany, with sales of just over £22m and the US with £26.1m. Revenues in the UK declined by around £600,000 to £815,000 following the closure of its UK contract manufacturing facility. Russia provided increased revenues of £3.5m where EKF continues to provide essential medical products in compliance with international sanctions guidance.

On the trading outlook its Penarth-born executive chairman Julian Baines, said: “2024 will see the completion of the rationalisation process that has simplified the business, allowing us to focus on our higher margin products and services, as well as delivering further improvements to Ebitda margin and cash generation.

“EKF is a well-established business, with a core product portfolio that is steadily growing, generating cash from its operations. With a structured management team in place, a newly streamlined business, and the opening of our state-of-the-art fermentation facility in South Bend (Indiana), we have a company that is well placed to deliver growth and improved returns from many of the investments made over the last two years.”