Update on the Disposal of International Brand Licensing AG
EKF Diagnostics Holdings plc (AIM: EKF) announces that, further to the announcement on 27 March 2012 regarding the disposal of its Swiss subsidiary, International Brand Licensing AG ("IBL AG"), in agreement with its auditors, it will pass accumulated translation differences relating to the disposal of IBL AG through its consolidated profit and loss account in the first half of 2012, in accordance with International Accounting Standard 21 as part of the profit on disposal. These amounts had previously been taken direct to reserves.
This accounting treatment will create a profit on the disposal of IBL AG of approximately £1.5 million.
Richard Evans, Finance Director of EKF, commented:
"While it is pleasing to create a profit on the disposal of IBL AG, it is important to emphasise that this accounting entry will not affect Adjusted EBITDA, which we consider to be the most meaningful measure of EKF's financial performance. In addition, it will not affect consolidated net assets, or the Company's cash flow."
EKF Diagnostics Holdings plc was formed in July 2010 following the acquisition of EKF-diagnostic GmbH for €14.32m and refocused its strategy to one of building a substantial point of care diagnostics business. As part of this strategy, the Group has integrated three further acquisitions, Quotient Diagnostics Limited (acquired in October 2010 for a maximum of £5.41m), Argutus Medical Limited (acquired in December 2010 for £2.18m) and Stanbio Laboratory L.P. (acquired in June 2011 for a maximum of US$25.5m).
The Company, with its head office in Cardiff and operations in London, Germany, Poland, Russia, Ireland and the US, is a leading diagnostics business, focused on the development, production and distribution of chemical reagents and analysers for the testing of Glucose, Lactate, Haemoglobin, Haematocrit and HbA1c.
In May 2011 EKF entered into a distribution agreement with Alere Inc ("Alere"), a global diagnostics company, under which Alere was appointed the exclusive distributor of EKF's CLIA waived Hemo_Control device and cuvettes in the US, Canada and United Kingdom. The device is distributed in the US under the name HemoPoint H2.
For more information please visit the website: www.ekfdiagnostics.com
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