EKF Diagnostics Holdings PLC Update on trading and COVID-19 related contract (9838M)

TIDMEKF

RNS Number : 9838M

EKF Diagnostics Holdings PLC

15 May 2020

This announcement contains inside information

for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR)

EKF Diagnostics Holdings plc

("EKF", the "Company" or the "Group")

Update on trading and COVID-19 related manufacturing contract

Further increase in expected orders for PrimeStore MTM sample collection devices

Orders received for the two months ending July totalling $9.4m

EKF Diagnostics Holdings plc (AIM: EKF), the AIM quoted point-of-care business, provides an update on the further increase in manufacturing demand from Longhorn Vaccines and Diagnostics LLC ("Longhorn") in the US, for their FDA-approved PrimeStore MTM sample collection device, which deactivates viruses, bacteria, fungi and mycobacterium tuberculosis allowing safe sample handling and transport, greatly reducing risk of infection.

The Company announced on 27 April 2020 that it expected further orders worth over $3m for May and that it was in the process of doubling capacity at its Boerne, Texas site for the reagent used in the manufacture of the Primestore MTM device, in order to fulfil those orders and anticipated additional future orders. EKF now confirms that it has received further orders from Longhorn totalling $9.4m for the two months ending July. The majority of these further orders will be for the same core reagent manufactured by EKF.

The additional contribution now indicated for June under the Longhorn manufacturing contract means that the Company expects to further exceed the overall management budgets for H1 2020 more confidently than was noted on 27 April. EKF now expects to deliver Group revenues of at least GBP25m for the six months ended 30 June 2020 (H1 2019: GBP21.44m) and adjusted EBITDA of at least GBP7.5m, a 34% increase on the same period last year (H1 2019: GBP5.58m).

EKF is substantially increasing its manufacturing capacity to meet the demand for the Primestore MTM Device. The Company's facility in Wales is now operational and shipped its first product this week and EKF has begun the process to start manufacturing in Germany. The Company also expects to expand capacity in the United States in the very near future due to an acceleration in its capital expenditure programme.

Sadly, the pandemic is still gaining momentum in most areas of the United States. The US Administration is emphasizing testing as the most appropriate means to contain the virus. In these circumstances, the Board expects the second half of the year will see continued momentum and the full year results will exceed, perhaps considerably, its recently upgraded expectations.

 
     EKF Diagnostics Holdings plc                                        www.ekfdiagnostics.com 
     Christopher Mills, Non-executive Chairman                        Tel: [phone] 
     Julian Baines, CEO 
     Richard Evans, FD & COO 
 
     N+1 Singer                                                              Tel: [phone] 
     Aubrey Powell / George Tzimas (Corporate 
      Finance) 
      Tom Salvesen (Corporate Broking) 
 
     Walbrook PR Limited                        Tel: [phone] or [e-mail] 
     Paul McManus / Lianne Cawthorne                   Mob: [phone] 
                                                                                        391 303 
 
 

About EKF Diagnostics Holdings plc ( www.ekfdiagnostics.com )

EKF is a leading point-of-care diagnostics and central laboratory assay manufacturer with an estimated 80,000 hemoglobin, hematocrit, HbA1c, glucose and lactate analyzers in regular use across more than 100 countries. EKF specializes in developing tests for use in anemia and diabetes diagnosis and management, as well as providing a portfolio of reagents for use in clinical chemistry analyzers.

About PrimeStore MTM

Global demand for the PrimeStore MTM sample containment device has increased significantly due to COVID-19. The device was invented in 2006 in preparation for a worldwide pandemic and is designed to de-activate pathogen rapidly and stabilise the RNA for up to four weeks with no requirement for cold storage. This approach also allows samples to be tested by a greater number of laboratories, as the handling risks for the deactivated virus are reduced.

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May 15, 2020 02:00 ET (06:00 GMT)