In-vitro diagnostics testing firm EKF Diagnostics (EKF:AIM) has soared over 30% to 26p as it revealed robust demand for its diabetes and haemoglobin tests amid the coronavirus outbreak.
The company said its outlook and current business prospects remain robust due to demand for the tests, which it believes to be driven in part by the fact patients who need these tests are also in the higher risk category for contracting coronavirus.
In detailed but unaudited results for the year ended 31 December, EKF also reported a 6% rise in revenue to £45m and a 4% increase in gross profit to £23.7m.
PRODUCTION SCALE-UP
EKF is an existing contract manufacturing partner of Longhorn Vaccines and Diagnostics llc, the inventor and owner of PrimeStore MTM, which deactivates pathogens in a test sample, rendering them non-infectious, allowing for safe transport and laboratory handling.
PrimeStore MTM is the first and only US Food and Drug Administration (FDA) cleared Microbial Nucleic Acid Storage and Transport Device and was designed for viral pandemics.
The company has received initial purchase orders worth around $1m and expects to see the order flow grow appreciably.
At the current time EKF has seen limited disruption to customer or supplier logistics and revenue generation has largely been unaffected.
The company goes on to state, ‘as a result of our current strong cash balances and robust business, we are confident that the business can survive even catastrophic reductions in revenue for an extended period.’
In light of the robust nature of the business, management intend to pay a dividend of 1p per share, as previously indicated.
