EKF Diagnostics Holdings (EKF)

Sector:

Financials

Index:

FTSE AIM All-Share

77.00p
   
  • Change Today:
      1.50p
  • 52 Week High: 85.00
  • 52 Week Low: 60.75
  • Currency: UK Pounds
  • Shares Issued: 463.93m
  • Volume: 32,665
  • Market Cap: £357.23m
  • Beta: 0.11

EKF Diagnostics agrees acquisition of Texas-based ADL Health

By Josh White

Date: Tuesday 28 Sep 2021

LONDON (ShareCast) - (Sharecast News) - Point-of-care company EKF Diagnostics has agreed to acquire the entire issued capital of Advanced Diagnostic Laboratory (ADL Health), it announced on Tuesday.
The AIM-traded firm described ADL Health as a Texas-based PCR-focussed testing laboratory certified under the Clinical Laboratory Improvement Amendments (CLIA) for high complexity testing.

It said the acquisition would carry an initial consideration payment of $10m, payable in shares on completion, with further performance-based consideration payable over the three years thereafter.

ADL Health's CLIA-certified laboratory covers the fields of clinical, forensic and microbiological tests, with the business holding ISO 15189 Medical Laboratory accreditation, giving it recognition in 44 countries.

Using its expertise in polymerase chain reaction (PCR) testing, ADL Health also provides Covid-19 testing for "dozens" of Fortune 500 companies and government agencies.

In addition, EKF said ADL Health was expanding its range of testing capabilities across a broader suite of healthcare applications.

Under EKF's ownership, further investment was expected to support the deployment of additional equipment and personnel in order to service customer demand.

ADL Health was founded in May 2020 by a management team with more than 60 years of experience in the diagnostics field.

Unaudited management accounts for the six months ended 30 June showed revenue of $6.3m, and EBITDA of $2.6m.

ADL Health had grown "significantly" since inception, the board said, with the management teams of both companies considering that the business had "continuing, strong growth prospects" as part of the enlarged group.

While the growth of ADL Health was accelerated by revenue from Covid-19 testing, its wider testing offer, including current and planned capabilities, was considered by the EKF board to provide an "attractive platform" to both complement and broaden the group's existing diagnostics capabilities.

The ADL Health business is cash generative, the firm confirmed, with the acquisition expected to be immediately earnings-enhancing.

EKF said the initial share-based consideration remained subject to a two-year lock-up, with earnout payments subject to lock-up and orderly market arrangements.

"We are delighted to have agreed terms for the acquisition of ADL Health and believe this represents a highly attractive and earnings accretive transaction," said Mike Salter, president of EKF's Americas geography and the company's chief executive officer-designate.

"Strategically, this is an excellent move for us as it positions EKF as a leading provider of diagnostic products and services, including a testing offering that our industry partners have been looking for us to provide.

"The ability to offer testing for a wide range of diseases, combined with our existing point-of-care device, reagent, sample collection, kitting and manufacturing services, positions us as a single provider able to encompass all products and services from 'sample-to-result'."

At 1515 BST, shares in EKF Diagnostics Holdings were up 2.37% at 83.94p.

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EKF Market Data

Currency UK Pounds
Share Price 77.00p
Change Today 1.50p
% Change 1.99 %
52 Week High 85.00
52 Week Low 60.75
Volume 32,665
Shares Issued 463.93m
Market Cap £357.23m
Beta 0.11

EKF Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
84.76% below the market average84.76% below the market average84.76% below the market average84.76% below the market average84.76% below the market average
82.95% below the sector average82.95% below the sector average82.95% below the sector average82.95% below the sector average82.95% below the sector average
Price Trend
47.04% above the market average47.04% above the market average47.04% above the market average47.04% above the market average47.04% above the market average
49.28% above the sector average49.28% above the sector average49.28% above the sector average49.28% above the sector average49.28% above the sector average
Income
70.37% below the market average70.37% below the market average70.37% below the market average70.37% below the market average70.37% below the market average
71.43% below the sector average71.43% below the sector average71.43% below the sector average71.43% below the sector average71.43% below the sector average
Growth
96.60% above the market average96.60% above the market average96.60% above the market average96.60% above the market average96.60% above the market average
88.33% above the sector average88.33% above the sector average88.33% above the sector average88.33% above the sector average88.33% above the sector average

What The Brokers Say

Strong Buy 2
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 2
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

EKF Dividends

  Latest Previous
  Final Final
Ex-Div 04-Nov-21 05-Nov-20
Paid 01-Dec-21 01-Dec-20
Amount 1.10p 1.00p

Trades for 03-Dec-2021

Time Volume / Share Price
10:15 39 @ 76.20p
10:12 300 @ 74.56p
10:07 31 @ 75.35p
09:39 1,567 @ 75.54p
09:01 7,154 @ 75.49p

EKF Key Personnel

Finance Director Richard Evans
CEO David Michael Salter

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