EKF Diagnostics Holdings plc (AIM: EKF), the AIM listed point-of-care, central lab devices and chemistry reagents business, confirms that continued strong trading will result in its performance for the financial year ended 31 December 2021, including adjusted EBITDA, being ahead of already upgraded market expectations.
Trading in EKF's core business in the final quarter continued to be robust and ongoing demand for sample collection kits and testing remained strong through to the end of the year. The Group announces that core business revenues grew over 13% compared with the previous financial year. The Group's cash, net of borrowings, at 31 December 2021 was £19.6m (31 December 2020: £21.4m), reflecting further strong operational cash generation offset by substantial investment in the business, some working capital expansion to support anticipated growth, and the payment of the 1.1p per ordinary share cash dividend in December 2021 in line with the Company's progressive dividend policy.
During the year, and as part of the Group's strategy, significant investment was made to expand fermentation capabilities and contract manufacturing to drive further organic growth. Further investment in enzyme fermentation is scheduled for FY22 in this key strategic growth area. Growth and investment in the core business is complemented by a strategy to exploit expanded capabilities to meet the demand for contract manufacturing services. Advanced Diagnostic Laboratory LLC, the CLIA-certified lab testing business acquired in October 2021 is integrating well and has begun diversifying into non-COVID testing, as evidenced by the recent partnership relating to the provision of a non-invasive prenatal testing service.
EKF will give further guidance on current trading and the outlook for FY22 and beyond when it reports its audited full year results.