LONDON (Alliance News) - EKF Diagnostics Holdings PLC on Wednesday reported "significantly" improved annual revenues, earnings, and cash as a result of its cost reduction programme.
The point-of-care medical devices firm reported a pretax profit of GBP4.3 million in 2017 after a loss of GBP1.0 million the year prior, due to reduced costs and improved efficiency.
Revenue rose 8% to GBP41.6 million from GBP38.6 million in 2016, mostly as a result of currency movements including the fall in the value of sterling against the US dollar and euro in the first half of 2017.
EKF closed its manufacturing facility in Poland during the year, moving business to Barleben, Germany. It now has seven sites in total, down from a previous peak of 12.
The company also paid all loans in the UK and the USA, reducing its borrowings to GBP1.2 million compared with GBP5.7 million in 2016.
Administration expenses fell to GBP18.2 million from GBP18.7 million the year before, but this was partly offset by research and development expenses, which grew to GBP2.9 million from GBP2.7 million.
EKF performance improved across all of its business areas. Haematology sales rose 10% to GBP12.9 million from GBP11.7 million the year before, helped by 23% growth in sales of its DiaSpect haemoglobin analyser product.
Sales in its Diabetes business increased 13% to GBP11.5 million from GBP10.2 million the prior year, driven by a 14% increase in Quo Test and Quo Lab products sales.
Sales in its Central Laboratory segment grew 5% to GBP12.6 million from GBP12.1 million the year earlier, due to strong sales of its beta-hydroxybutyrate liquicolor reagent, up 17%.
The company said its cash generation has been "very strong", with cash growing to GBP7.0 million during the year from GBP2.2 million the prior year.
EKF Diagnostics Non-Executive Chairman Christopher Mills said: "Trading in 2017 has been positive and this has continued into the early part of 2018. We are currently trading in line with management's expectations."
EKF Diagnostics shares were down 4.0% at 25.20 pence per share on Wednesday.
Ekf Diagnostics (EKF)