EKF Diagnostics Holdings plc

Group revenue was GBP 25 million, down 1% year over year versus GBP 25.2 million last year. Gross profit rose 4.8% to GBP 13.3 million and gross margin improved by 3 percentage points to 53%. Adjusted EBITDA increased 2.4% to GBP 5.9 million, EBITDA margin rose to 23.6%, and basic EPS increased 26% to 0.54 pence from 0.43 pence. Operating cash flow was GBP 3.3 million and free cash flow was GBP 1.1 million; the company ended H1 with GBP 16 million of cash. Management said H2 should be stronger as Point-of-Care orders already in hand convert, BHB normalizes, and the company remains confident full-year 2026 will be in line with expectations.

Gavin Jones framed the half year as solid and strategically important, emphasizing progress against the five-year plan rather than just the flat top line. He said Point-of-Care revenue weakness was timing-related, with deferred tender deliveries and lactate production issues now fixed, and he expects a strong rebound in H2. He also highlighted strategic milestones including the Blood Centers of America agreement, the Beep Insights acquisition, and the Nexus Bioworks rebrand as evidence that the business is becoming bigger, more profitable, and more diversified.

Helen Jones said the first half was resilient, with revenue of GBP 25 million, gross margin at 53%, adjusted EBITDA of GBP 5.9 million, and basic EPS up 26% to 0.54 pence. She noted operating cash flow of GBP 3.3 million, free cash flow of GBP 1.1 million, and cash of GBP 16 million, while explaining that higher U.S. tax payments and GBP 0.9 million of higher CapEx reduced cash generation versus last year. She also pointed to GBP 0.3 million of exceptional charges for the Elkhart lease exit, GBP 10.3 million of working capital, and planned investment including about GBP 4 million for a 30% Hemo Control production-line expansion and about GBP 2 million for a new sensor line over the next 18 months.

Analysts asked about operating leverage as Point-of-Care revenue recovers, the amount of recurring revenue, and the size of the U.S. blood bank opportunity. Management said leverage should improve as higher H2 volumes flow through manufacturing, estimated recurring revenue at roughly 50% while noting tender-driven volatility, and said the U.S. blood bank market is around USD 60 million, with about 40% already held by the American Red Cross and the remainder largely within the BCA umbrella. Management also said there were no additional questions, which suggests investor focus was on H2 conversion and the durability of revenue.