EKF Diagnostics warns on profit on currency hit and lower revenue from buys
Medical group EKF Diagnostics warned on annual profits after taking a currency hit and saying revenue from newly acquired companies was likely to be lower than expected.
EKF Diagnostics Holdings
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EKF said acquisitions during the year of Diaspect, Selah Genomics and STI were set to contribute at least £6.1m to overall revenue and to collectively boost group earnings.
That was lower than anticipated for Diaspect and Selah, but EKF added: "We're confident that traction gained in the fourth quarter of 2014 has established a solid foundation for future revenue growth in the coming year."
The company expects unaudited revenues for the year to 31 December will show at least a 24% rise on the previous year to £39.5m.
The second half is expected to show a substantial improvement on the growth seen in the first half, despite the continued negative impact of exchange rates estimated at about £1.9m over the year.
Unaudited adjusted pre-tax earnings before interest, depreciation and amortisation (EBITDA) was expected to be at least 29% up on the previous year at £6.2m.
Excluding the effect of exchange rates, revenue would have been expected to be up at least 30% year-on-year and adjusted EBITDA would have been at least 37% higher, EKF said.
It added: "The company remains confident of strong growth in 2015, both from the continued strong organic growth, but also through a full-year contribution from the three recent acquisitions."
Shares fell 4.1p or 15.2% to 23p at 09:33 in London.