EKF Diagnostics Revises Full-Year Revenue View, Shares Drop 11%
EKF Diagnostics revises full-year revenue outlook, shares drop 11%. Expects gradual revenue buildup in 2024. Appoints new CFO.
Shares in EKF Diagnostics experienced an 11% drop following the company's decision to revise its full-year revenue outlook, citing a delay in fermentation capacity. As of 0709 GMT, shares were down 2.90 pence at 23.10 pence.
The AIM-listed medical company announced on Tuesday that it would no longer provide full-year guidance for fermentation revenues due to the need for additional validation and verification, which had not been adequately factored into the current timeline.
Instead, EKF Diagnostics anticipates a more gradual revenue buildup in 2024 as capacity comes online, production projects launch, and utilization increases.
Chair Julian Baines expressed confidence in the company's long-term growth prospects with the newly expanded fermentation capacity. However, he stated that reducing short-term guidance to align with the revenue build starting in 2024 would be a prudent move.
For 2023, EKF Diagnostics expects revenue to be around £53 million ($66.3 million), compared to £66.6 million in 2022. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are projected to be approximately £10 million, down from £14.9 million in the previous year.
In a separate statement, EKF Diagnostics announced the appointment of Stephen Young as its new Chief Financial Officer, effective immediately. Young joins the company from Trellus Health, where he previously served as interim CFO.