EKF Diagnostics trading well as it progresses fermentation investment

17th May 2023 15:46

(Sharecast News) - EKF Diagnostics reported first-quarter trading that met expectations in an update on Wednesday, following the strong growth of its point-of-care and life sciences businesses in 2022.

The AIM-traded firm, which was holding its annual general meeting, also updated shareholders on the progress of its life sciences fermentation investment, which it said presented an opportunity for rapid scaling of operational volume and potential revenue growth.

It announced the successful completion of the quality management audits for its enzyme fermentation sites in Indiana, which the board said was a significant milestone.

The company said it remained on track for operational activity from the new fermenters in the summer, as well as the completion of validation for its largest fermenter by the end of the third quarter.

EKF emphasised the importance of developing quality assurance processes to support the increased capacity, with the board satisfied with the progress made thus far.

The life sciences division's fermentation investment was described by the company's chair as an "exciting prospect", with the potential to generate significant revenue beyond current conservative guidance.

"Trading in the first quarter of 2023 has been in-line with the board's expectations, and with the expected contribution from our expanded life sciences capacity coming online over the second half of the year, we naturally expect our overall financial performance to be more second half-weighted than historically," said executive chairman Julian Baines.

"Continued growth from our 'razor, razor blade' consumable model in point-of-care is also expected to contribute to that positive momentum as we progress through the financial year."

At 1519 BST, shares in EKF Diagnostics Holdings were down 6.84% at 24.5p.

Reporting by Josh White for Sharecast.com.