Ekf Diagnostics Share Discussion Threads

[azalea] 20/3/2014 15:22

23%. A very sizeable placing

[croasdalelfc] 20/3/2014 11:50

I just reread some of the RNS and see that Diaspect have a worldwide exclusive distribution agreement with Fresinus Kabi into blood banks

[rogerrail] 20/3/2014 10:05

Board expects aquisition to be earnings enhancing from first year , can't see it myself given the big increase in share capital and the low revenue from the businesses aquired. A lot of expectations on very accelerated growth and as they don't give any details then it's a bit of a lottery for share holders at the moment


"My Board colleagues and I believe that these acquisitions will deliver an enhanced return to our shareholders and we expect the transactions to be earnings enhancing, both individually and in aggregate, from year one."

[croasdalelfc] 20/3/2014 09:35

Silverfern - I agree that profit might take a while but I also think that revenues this year will rise 50%to close to £50m.NB the Diaspect revenues are in euros not Krona and they made a decent profit in 2013 . With their new premises in Germany online they should increase margins and make over £1m profit in 2014

[silverfern] 20/3/2014 09:12

I agree (thoughT STI was in Kroner) but spot the profit!

[croasdalelfc] 20/3/2014 08:42

It's more like £6.5m between the three new acquisitions.3m for Diaspect, 2.5m from STI and maybe £1m from Saleh

[silverfern] 20/3/2014 08:00

The two major acquisitions announced today are for companies with total sales of less than £2m between them, unless I misread the figures. It has turned EKF into an R&D company inmho. No doubt there are deals in the pipeline but there are big earn outs attached and I would imagine the company remaining a loss making outfit for some time. I note Selah was only formed in 2012 - it seems to have been set up to sell once it had secured certain strategic capabilities. something I thought EKF was to do. MAybe once all the work is done to streamline the business EKF will be in a unique position and be attractive to a US company, but for now I think I'll watch from the sides

[oldnotbold] 13/3/2014 20:59

Hi Silverfern, not sure if you still read the noticeboard since you've sold, but I like the fact that you don't fall in love with a share, but sell it if it doesn't deliver.

The results were a bit disappointing, and the sales growth unremarkable given the valuation. However...

a) The loss in 2013 was largely due to one-off fair value adjustments at the finance line. These shouldn't recur.
b) About 40% of the broker estimated revenue growth in 2014 is covered by the recent acquisition of Separation Technology.
c) They have cut cartridge manufacturing costs by moving production to a single site in Germany. Gross margins should therefore recover.
d) 2014 begins with a larger installed base for Hemo Point/Hemo Control/Quo-Lab, Quo-Test and Biosen analyzers. This should increase sales of cuvettes/cartridges. This is the classic razor-blade model.
e) New markets and new products should both drive sales.
f) Existing product range being marketed in the US by Alere. Very credible partner.

What do I not like:

a) Failing to show the loss straight up in the results. Are management 'puffers'?
b) £1.1mn of capitalized development costs. Accounting 'funny'. This should just be expensed.
c) Sales likely to be delayed into second half due to timing of tenders. Is this a veiled profit warning?

All in all, one to watch but not sure I want to dive in with both feet. Any alternative views much appreciated.

Regards,

ONB

[stupidboypike] 28/2/2014 17:20

silverfern, many thanks, very sobering, I have no position except through a holding in HYGEA VCT.

Best regards SBP

[bigman] 28/2/2014 16:15

silverfern:- articulate, precise and agree, but worth watching for longer term as in time this should be a winner, but take a couple of years and far better opportunities available than having money tied up, and could well drift off as investors realise this is a long term investment which is more than fully valued on these results.

[silverfern] 28/2/2014 11:28

Consolidated Income Statement

(Loss)/profit for the year (893) 2,004
-------- ------ --------- ---------
(Loss)/earnings per Ordinary Share from continuing
and discontinued operations attributable to the
owners of the parent during the year
Continuing and discontinued operations 6 (0.41) 0.71

And elsewhere:
Diluted (loss)/earnings per share (0.41) pence 0.68 pence

Note "Finance costs have increased to GBP1.8m"
A loss is a loss and I was disappointed with the results which don't show the kind of growth I think they need to support the current market valuation. Without a profit there is no measurable p/e or PEG to go on.

Cost of sales as a % rose, even if admin cost as a % fell. They will need to have a fantastic year to justify present price imho and maybe they will have it. I think at best fairly valued right now. I have been here since day one - I sold half my holding when it spiked at 41p on 20 Jan and the rest first thing results day.

[stupidboypike] 27/2/2014 14:32

silverfern, Where is the bottom line figure a loss? Best regards SBP

[croasdalelfc] 27/2/2014 11:38

Big man - thanks for the clarification :-)Nice to see the share price hold up, anyone seen any broker reports.....

[bigman] 26/2/2014 14:36

Croasdalelfc maybe the discount was larger than you thought :-

Cash generated from operations was GBP3.1m (2012: GBP2.5m). This number is lower than would normally be expected given our earnings because our revenue figures include several large sales to Mexico totalling GBP1.7m which were completed and billed in December. Collection of the receivables due on these sales is expected to be completed in March 2014

[croasdalelfc] 26/2/2014 08:22

Then in December we supplied a further 250 instruments and 52,000 boxes of cuvettes to Mexico through a number of targeted distributors.Nb a box of cuvettes contains 100 . Therefore 5.2M sold in this deal. Normally a box is approx 150 dollars so with a big discount and free instruments it's worth about 4 million dollars?

[silverfern] 26/2/2014 08:18

It's bullish, but I note the bottom line figure is a loss

[croasdalelfc] 26/2/2014 08:02

35p is a thing of the past. And 50p must be a target this year.

[croasdalelfc] 26/2/2014 07:59

Bullish results and statement! Product launches and expanding production lines and they are prowling for new businesses and have the confidence to take on market leading competitors.

[silverfern] 25/2/2014 08:46

results tomorrow- I just topped up. I hope the results show a clear marker for growth so that we can get eps of 3-4p in 2014. That would give a p/e/ of 10-12 and springboard the share

[croasdalelfc] 29/1/2014 07:30

Pointman hopefully will be a POC blood test.The above is a similar new test but is laboratory based and I'm guessing is a tissue biopsy - more invasive and more expensive.Interesting that GE healthcare is involved here and shows the growing potential of Pointman in terms of enhancing any future sale of this company.

[croasdalelfc] 27/1/2014 07:54

12.65>13.45>14.9>16.9This is revenue growth half year on half year 2012>2013It points to revenue over 36m for 2014.It would be nice to have guidance on margins and any expected profit in 2014.

[silverfern] 27/1/2014 07:10

It's out and not bad

[silverfern] 24/1/2014 15:50

well a trading update might help too- good to see one line of blue today!

[stirfry13] 24/1/2014 15:08

silver, you are depressing me and i hope you are wrong about what would now be classed as a low ball offer but i understand where you are coming from. my hope is that strong trading and value-seeking IIs will force whoever does bid to go higher, as the story could become compelling.