Ekf Diagnostics Share Discussion Threads

[wan] 16/8/2023 14:36

EKF is showcasing its products and services at Medlab Asia 2023, held in Bangkok, Thailand, between 16-18 August.

EKF delivers diagnostic technologies and biotechnology solutions that empower healthcare and medical providers to make informed clinical decisions through point-of-care testing and life sciences applications.

EKF leads the way with cutting-edge point-of-care diagnostic solutions that empower healthcare professionals and patients with rapid, accurate, and accessible testing capabilities and results. Our technologies enable informed decision-making, timely interventions, and improved patient outcomes at the point-of-care.

EKF is at the forefront of supporting life sciences applications and research through innovative biotechnology solutions. Our comprehensive portfolio equips researchers, scientists, and clinicians with powerful tools for accurate and reliable delivery and results, driving breakthrough discoveries and advancements in healthcare and medical understanding.


Explore the upcoming breakthroughs in point-of-care, life sciences, and clinical chemistry. Don't miss the chance to experience our revolutionary EKF Link platform -

Visit our team at booth #H6.B30 to find out more!

[wan] 07/8/2023 09:43

Recall 'one' of the growth prospects highlighted by EKF:

Central Laboratory (Products) -

Potential for additional private label
opportunities with major US / Global pharma
distribution / IVD companies
• Encouraging late-stage negotiations for further
private label deals
• Private label agreements would also drive
geographic expansion in LATAM and APAC
• Dominant position in area of limited
competition

I note the new private label with the major US distributor, Thermo Fisher -

Fisherbrand™ Beta-hydroxybutyrate (BHB) Liquicolor™ Reagent Kit for Beckman Synchron™ Systems (CX/LX/DX)


And for any open channel analyser -
Fisherbrand™ Beta-hydroxybutyrate (BHB) Liquicolor™ Reagent Kit
This liquid stable reagent can be used on any open channel analyzer


(Liquicolor™ is a trademark owned by Stanbio Laboratory, an EKF company)

Thermo Fisher is the world leader in serving science, with annual revenue of over $40 billion, and a global network of direct sales professionals, industry-specific catalogues, e-commerce capabilities and supply-chain management services. So in other words, including territories/countries beyond the US.

Globally, EKF was already a leading supplier for BHB, and the BHB private label for Thermo is still a big win for EKF. I thus expect to see the effect from that deal (and more) feature in the near future.

[tongosti] 26/7/2023 14:22

Trying not treating

[tongosti] 26/7/2023 14:22

Not sure what you are treating to say but thanks anyways dear

[wan] 26/7/2023 13:05

Singer Capital Markets has published a new research note on:
EKF Diagnostics Holdings plc.

H1 performance is reported to be in line, with double digit underlying growth in revenues and capacity expansion in Life Sciences on track for a Q4-23 launch. As previously flagged, results this year are expected to be more H2-weghted than usual, with the FY23 results dependent on the timing and value of new contract wins and continued growth and margin improvement elsewhere. We make no change to our forecasts at this stage, but will review more fully at the interims in late September. Irrespective of the FY23 outturn, the set up for FY24 remains on track, when the group should benefit from the first full year of growth and margin improvement initiatives and on that basis, the shares continue to look highly attractive, trading on 7x FY24 EV/EBITDA and a 6% FCF yield.

[cumnor] 26/7/2023 09:54

Looks good-buying for growth and significant re-rating from 24.

[wan] 26/7/2023 09:25

In my view, a very positive first half considering the investments made and the transitional changes implemented, all of which will have a material effect on the 2nd half, and a greater impact in 2024 in particular.

Fermentation revenue from the new facility is slated to commence in Q4, which will presumably be from the scale-up process. In other words, in all fermentation processes you start with the smaller vessels and then scale to the larger vessels and to a significant increase in production.

So, the 'additional' commercial arrangements that are advancing are probably for the increase in capacity and production from the larger vessels.

The scale up process is thus important, hence the Company will provide a further update once these are operational and generating revenue, which is expected in Q4. And hence the Boards confidence that the additional commercial arrangements for the utilisation of this capacity will be a source of significant growth from 2024 onwards.

The Boards confidence and excitement about the longer-term, and the significant growth prospects for the business, is thus very encouraging.

So, it looks like things will get quite busy, as we are set for various news flow across the 3rd and 4th quarters. Including, one assumes, and not limited to, the announcement of a new CFO, and a new CEO...watch this space!

[pugugly] 26/7/2023 07:47

Trading update fair save for Russia. Will have to see how Mr Market reacts - Guess an initial mark down.
Other thoughts?

A real kick in the "you know what"
"Group cash, net of bank borrowings, was £6.73m as at 30 June 2023. This figure excludes cash held in Russia which totalled £2.39m at the period end. EKF continues to supply essential medical products to its 60%-owned Russian subsidiary, ensuring continuous compliance with international sanctions based on regular external expert advice. However, international sanctions mean that the Company remains unable to distribute cash dividends from this subsidiary and this situation is not expected to change in 2023. The Board is exploring options available to realise the value tied up in Russia and will provide a further update at the time of publication of the Half-Year Results. In addition, the RUB/GBP exchange rate is currently considerably less favourable than it was in 2022 which will have an impact on translation, as will a less favourable USD/GBP exchange rate across US revenues".

[tongosti] 25/7/2023 12:55

Wan not been posting any good for thought for a few hours. Where are you dear chap?

[hopeful holder] 25/7/2023 12:13

Currently the markets don't seem that impressed and I'm guessing, waiting for some real tangibles. 1 month chart downtrend.I am watching and waiting as once this does get rolling properly I do see a good trajectory.

[tongosti] 24/7/2023 17:15

Wan - you're alright there mate?

[wan] 24/7/2023 13:42

From the exhibitor profile -

EKF Diagnostics is a global medical manufacturer of central laboratory and point-of-care (POCT) devices and tests including hemoglobin, HbA1c and glucose/lactate tests. Our chemistry reagents can be used on the majority of analyzers found in hospital laboratories around the world. EKF offers the largest range of hemoglobin and hematocrit analyzers on the market. Our life sciences division offers custom fermentation and full contract manufacturing.

Additional Info
We will be displaying a new product or promoting a new indication/enhanced feature for an existing product in our booth?
Yes

[wan] 24/7/2023 13:33

Join us at the 2023 AACC Annual Scientific Meeting & Clinical Lab Expo.

EKF is showcasing its products and services at the 2023 AACC Annual Scientific Meeting & Clinical Lab Expo, held in Anaheim, CA, USA, between 23-27 July.

EKF delivers diagnostic technologies and biotechnology solutions that empower healthcare and medical providers to make informed clinical decisions through point-of-care testing and life sciences applications.

EKF leads the way with cutting-edge point-of-care diagnostic solutions that empower healthcare professionals and patients with rapid, accurate, and accessible testing capabilities and results. Our technologies enable informed decision-making, timely interventions, and improved patient outcomes at the point-of-care.

EKF is at the forefront of supporting life sciences applications and research through innovative biotechnology solutions. Our comprehensive portfolio equips researchers, scientists, and clinicians with powerful tools for accurate and reliable delivery and results, driving breakthrough discoveries and advancements in healthcare and medical understanding.

Visit our team at booth #2558 to find out more!

[wan] 24/7/2023 09:42

Food for thought:

Back in March, and without the upside from the new fermentation facility, EKF's 2023 revenue was forecast at £57m (of which around £40m is recurring revenue) with EBITDA forecast at £14.1m, which according to my math, and based on EKF's current valuation, results in an EBITDA multiple of 8.7 X

Although last week EKF closed 18.40% above the 52 week low of 23.10p set on May 18, 2023 (source FT.com), the shares have recently pulled back to a similar level in share price terms to that in March 2023, when (according to the Executive Chairman) EKF was being valued at 7 x 2024 EBITDA. Most would put that pullback down to the recent uncertainty surrounding the moves and change at board level.

Assuming that the performance and prospects for the business have not materially deteriorated, if that type of undervaluation/underappreciation persists beyond the anticipated results, and given how the US rates and values businesses compared to the UK, then perhaps a US listing might become a nearer term reality. In the US, companies such as EKF that can forecast and deliver profitable growth, has a high level of recurring revenue, pays a dividend, and has no long term debt, would likely be rated far more highly.

Although the link further below does not include microcaps etc, it provides at least some guidance and highlights the gaping difference between the US and the UK in terms of equity valuations.

In terms of industry/sector, EKF spans across Life Sciences Tools and Services, and Health Care Equipment and Supplies. According to Interpath, both of these industry/sectors are rated in the top 10 in terms of EBITDA multiples in the US, at 18.62 X and 17.56 X respectively, giving an average of 18X. In the UK, Health Care is pegged at 7.33 X and appears to be based only on pharmaceuticals (again highlighting an important difference).

Readers can apply what they think is an appropriate multiple and do the maths using EBITDA of £14.1m for 2023 and circa £18m for 2024 in order to arrive at a notional/potential market capitalisation, and the same with regard to a notional/potential share price (in round figures, EKF has 455m shares in issue).

Although the following does not include microcaps or AIM stocks etc, it provides at least some guidance as to the gaping difference from a sophisticated comparison of sector and industry on how UK and US companies are valued, and highlights the material difference between the US and the UK in terms of valuation multiples for industry/sectors -

Interpath
Valuation Multiples by Industry 24 May 2023



In any regard, the difference is notable, and no wonder then that the UK is fertile hunting ground for US companies! And perhaps highlighting the apparent threats to, or the assumption that the UK holds a leading position as a global and vibrant financial centre (although reforms are afoot aimed at making London a more attractive place to list).

In the meantime, the Trading Update may well provide some guidance as to how far out, or not, the market is in terms of valuing EKF's persistent, reliable recurring revenues, and its significant growth prospects.

[tongosti] 21/7/2023 18:16

Wan has always been writing nonsense am afraid. It's just that folks (sorry, the gambling community) did not want to think about that at 80+. Amazed how board perceptions change once share prices collapse :)Nothing changes sentiment like price!

[wan] 21/7/2023 08:11

While some worry about EKF's health, not without some justification, the global market for diagnostics is healthy and growing, with Abbott reporting the following yesterday -

Excluding COVID-19 test sales, Diagnostics revenues grew 7 percent organically.

Global COVID-19 testing sales were $263 million in the second quarter of 2023, compared to $2.32 billion in the year-ago period, the firm said. The Diagnostics segment is showing "good recovery here as the health systems are opening up, [and] you're seeing routine testing come back," Abbott CEO Robert Ford said on a conference call to discuss the firm's financial results. In both the diagnostics and medical devices segments, the base business growth reflected improving market conditions, including hospital systems that are addressing previous bottlenecks.

The growth in diagnostics – excluding COVID-19 testing – "reflects the increased demand for routine diagnostic testing globally," Ford said.
Full story -

[james188] 20/7/2023 23:00

I fear that you may be right. The company needs to sort itself out - and quickly.

[faz] 20/7/2023 20:40

I dont need to wonder who on this thread has no experience over wokring at senior level in SMEs or FTSE 100 companies? Having dipped in here and found the CFO is departing I am amazed that some continue to pump nonsense about the company's health. I was lucky with this one but I wouldnt touch it with anything now. CFOs and ex CEOs dont jump unless they want to, and to sack one now reeks of panic. "Bye boys you're going to be a huge success!" TIme to buy then?

[wan] 20/7/2023 14:36

Volumes duly noted, but I remain optimistic regarding EKF's overall outlook and prospects during this traditionally quite period, albeit a trading update is due in late July/early August.

[chrysalis99] 20/7/2023 12:29

Does anyone have Level 2. There's heavy selling again.

[wan] 11/7/2023 14:10

Mike Salter announced on his LinkedIn page today that he is starting a new role as President and CEO of Jumpcode Genomics based in San Diego.

He also responded to another that EKF Life Sciences is going to be a huge success. And that he will be staying close to EKF for the next few months as a consultant

I have highlighted Jumpcode a number of times on here, but there is not much doubt though that therein lies the reason for the recent share price weakness.

[tongosti] 10/7/2023 23:03

How do you think it ties in with your perpetual bullish thesis?

[wan] 07/7/2023 07:34

I note the very large volume recorded yesterday.

[wan] 30/6/2023 07:21

Staying with driving forward the frontiers of biotechnology, recent news -

New Study Shows Improved Genotyping by Sequencing with in vitro Repeat Depletion
June 20, 2023

According to the study’s co-lead author, University of Verona Associate Professor Marzia Rossato, “This method has the potential to accelerate the genetic analysis of crops and other organisms with genomes where such large repeat content increases the cost and complexity of analysis.”

The implications of this study are far-reaching, as high-throughput genotyping enables the large-scale analysis of genetic diversity in population genomics and genome-wide association studies that combine the genotypic and phenotypic characterization of large collections of accessions.

“As the scale and complexity of genetic analysis increases over time, better tools are needed to cut through the noise and help studies maximize useable data. We are excited to see our depletion technology have another meaningful impact in genomics,” said Yaron Hakak, CEO of Jumpcode.

Full release -