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EKF Diagnostics Holdings plc

("EKF", the "Company" or the "Group")

Trading Update

H1 2022 performance in-line with management expectations

Strong double-digit growth in underlying (non-COVID) revenue

EKF Diagnostics Holdings plc (AIM: EKF), the AIM-listed global diagnostics business, provides the following unaudited trading update for the six months ended 30 June 2022 ("H1 2022"), a period of strong underlying (non-COVID) revenue growth, underpinning confidence in meeting full year expectations.

Trading Update

As announced in the 18 May 2022 AGM statement, trading in the first quarter of 2022 was strong. This has continued into the second quarter, where the focus remains on our strategy to position the business for long-term sustainable growth. Unaudited revenues for H1 2022 were £37.5m (H1 2021: £38.6m), including c.£3.5m of revenue arising from cash received for US inventory as reported on 13 June 2022. On an underlying basis, which excludes largely COVID-related revenue from Contract Manufacturing and Laboratory Services, the Group delivered double-digit growth compared to H1 2021.

The Company expects to report adjusted EBITDA¹ for the first half which is in line with management expectations. More recently established activities are expected to see improvements in adjusted EBITDA margin as they start to build scale from the second half and into 2023. The Company remains on track to deliver an adjusted EBITDA¹ result in line with its expectations for the full year.

Group cash, net of borrowings, as at 30 June 2022 was £18.9m. Continuing positive cash flows from operations in H1 2022 mean that, after recent corporation tax payments, movements in working capital, the completed share buyback and investment activities, the 30 June 2022 balance compares well against the 31 December 2021 figure of £19.6m.

The Board remains confident that the Company will continue to deliver on its growth strategy across all areas of the business. First half progress most notably includes:

(1)  The established Point-of-Care & Central Laboratory businesses have delivered growth compared to pre-pandemic levels and have made further progress on new product and new market initiatives.

(2)  Life Sciences had a strong H1 2022 performance from its existing fermentation capacity and the expansion plans into larger volume production remain on schedule for completion by the end of the year, with encouraging early meetings with large industrial partners who are looking to utilise this additional capacity. Revenue from this area of investment is expected to build materially in 2023 and to be a source of significant growth through to 2024.

(3)  The transition to non-COVID revenues in both Contract Manufacturing and Laboratory Services continues. The Company is bringing on new partners in the genomics and forensic space and successfully taking them through validation and pilot scale batches for products expected to be launched later in 2022 and into 2023. In addition, the Laboratory Services team recently launched a new clinical toxicology method geared toward medication adherence, developed an analysis of cannabis potency and has made major advances in establishing our capability in Non-Invasive Prenatal Testing ("NIPT"). The expansion of testing capabilities to create a broader suite of healthcare applications is proceeding well against the Company's roadmap, and it is reassuring to see early interest and new opportunities emerging as the team start to promote the new testing services.

EKF expects to announce its unaudited results for H1 2022 on 20 September 2022.

Mike Salter, CEO of EKF, commented: "It has been an encouraging start to the year and our adjusted EBITDA¹ expectations for the full year remain in line with expectations. We are excited by the growth potential from our expansion plans which will support growth through to 2024 and beyond, funded by internally generated cash resources. EKF remains on track to deliver planned expansions in capability and capacity in Life Sciences, as well as the further broadening of our Laboratory Services offering beyond COVID. The Point-of-Care and Central Laboratory businesses continue to recover well and provide steady, cash generative growth. We look forward to reporting our interim results more fully in September, as we enter the next chapter of EKF's growth with increasing confidence."

¹Earnings before interest, tax, depreciation and amortisation, excluding exceptional items and share based payments.

²Comparative data relates to the comparable period to 30 June 2021 ("H1 2021")

The persons responsible for arranging the release of this Announcement
on behalf of the Company are Mike Salter, CEO, and Marc Davies, CFO.

About EKF Diagnostics Holdings plc (www.ekfdiagnostics.com)

EKF is a leading global diagnostics business with custom manufacturing facilities across sites in the US, UK and Europe for a variety of life science products. EKF is focussed on the following areas:

EKF's growth strategy to 2024 and beyond can be summarised as:

EKF will also continue to generate enhanced shareholder value through: