Penarth headquartered and world leading point-of-care diagnostics firm EKF has reported a surge in revenues and profits boosted by significant demand for its Covid sample collection devices.
The Alternative Investment Market listed firm saw revenues for 2021 climb 25% to £81.8m, with pre-tax profits up from £15.4m to £21.4m. While it said there will be a significant reduction in Covid-related manufacturing, it is on track to continue to expand under its latest growth plan to 2024.
Last September EKF acquired Texas-based Advanced Diagnostic Laboratory which it described as an “excellent strategic fit” within its existing diagnostics offering that will strengthen its offering to customers.
The firm has also announced plans for a £4m buy back of shares.
Non executive chairman of EKF. Christopher Mills, said: “2021 was a year that delivered record revenue and adjusted Ebitda performance. Our key focus remains on implementing our strategy to position our core business for sustainable future growth, utilising cash generated from short-term contract manufacturing activities. These results show that in 2021 our core business revenues were broadly in-line with these levels and we have already implemented our investment plans to support growth in our core business in 2022.
“Current trading is strong and we expect to deliver a solid first quarter performance in line with that of 2021. However, we are adopting a pragmatic view that we expect there will be a significant reduction in pandemic-related contract manufacturing activity for the remainder of the year and guiding analysts accordingly.
“The new management team is keenly focused on delivering the growth plan through to 2024 which assumes no benefit from further Covid-related manufacturing, but instead is targeting sustainable revenue growth in our expanded core operations.”
