EKF Diagnostics Holdings (AIM:EKF) told investors that trading for the six months to 30 June was in line with management expectations.
Revenue held broadly flat at £25m, against £25.2m in the same period last year, reflecting a heavier weighting of sales toward the second half. Gross margin improved to 53%, up from 50% a year earlier, with adjusted EBITDA showing continued growth.
The AIM-quoted diagnostics said that its cash balance rose to £16m at the end of June, from £15.8m at the end of December, including £2.4m held in Russia.
EKF has no bank borrowings; the closing cash figure reflects £0.9m deployed so far under a £1.4m share buyback allocation, alongside continued investment tied to its five-year strategic plan.
Diabetes and Haematology delivered steady performances, with most high-volume tenders already won and scheduled for delivery in the traditionally stronger second half.
Beta-hydroxybutyrate (β-HB) revenues grew 4%, ahead of first-half expectations, while Life Sciences continued to grow at 20%, driven particularly by strong Contract Manufacturing performance.
Management said the group remains on track to deliver full-year revenue and adjusted EBITDA in line with current market expectations, understood to be £54.7m and £13.6m respectively.
EKF will report unaudited results for the first half on 15 September.
News Intelligence what this means for the company
EKF Diagnostics reported H1 revenue flat at £25m year-on-year, but gross margin expanded 300 basis points to 53% and adjusted EBITDA grew, while cash rose to £16m with no debt. The company remains on track for full-year guidance of £54.7m revenue and £13.6m adjusted EBITDA, with most high-volume tenders already secured and weighted toward H2 delivery.
Flat H1 revenue is offset by margin expansion and cash generation, supporting management's full-year outlook. The absence of bank borrowings and modest cash deployment (£0.9m of a £1.4m buyback allocation) leaves balance-sheet flexibility intact, though the £2.4m cash held in Russia introduces a localized liquidity consideration.
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