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(Alliance News) - EKF Diagnostics Holdings PLC on Wednesday said it swung to profit in its latest year despite revenue falling.
Shares in EKF were down 1.7% at 26.20 pence late on Wednesday morning in London.
The Cardiff-headquartered medical diagnostics company reported a GBP2.1 million pretax profit for 2023, compared with the previous year's GBP8.9 million loss.
Losses from exceptional items totalled GBP2.8 million, compared with a GBP17.5 million loss in 2022.
Revenue decreased 21% to GBP52.6 million from GBP66.6 million, "in-line with market expectations". Excluding Covid-related and clinical chemistry sales, however, revenue increased slightly to GBP48.7 million from GBP48.6 million.
EKF said the reduced revenue reflects "significantly lower" Covid-related revenue; its disposal of the ADL laboratory testing business; and a GBP3.5 million one-off inventory recovery item in 2022.
For the Point-of-Care division, revenue rose 1.9% to GBP34.1 million. For the Life Sciences division, it fell 2.4% to GBP14.8 million.
"Despite the challenges during 2023, the senior management team has successfully refocused the business back to pre-pandemic levels," said Executive Chair Julian Baines.
EKF declared a final dividend of 1.2p per share for 2023, unchanged from the year before.
However, the company said it has decided to pause dividend payments, citing "the potential need for continued modest investment in the growth of our core areas". It will focus on "[enhancing] shareholder value mainly through growth" instead.
"The board will continue to review the option of recommencing dividend payments, but only if appropriate, and subject to the availability of surplus cash generation above the needs of the business," EKF added.
This year, EKF said it plans to focus on its higher-margin products and services.
"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, 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," commented Baines.
By Emma Curzon, Alliance News reporter
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