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EKF Diagnostics (LON:EKF) shares crashed as it warned of significant impairment charges following a review of the business by its new chairman.
Ron Zwanziger, a veteran of many medical companies and who took over two weeks ago, said full year revenues will be approximately £32mln, but results will be affected by a number of one-offs.
These include the partial or complete impairment of the molecular division, bad debt write-offs and closure costs of its Sanford site.
EKF’s molecular division includes its most high profile development, Pointman, a diagnostic biomarker used to analyse cells and that had been featured most recently in a study for lung cancer patients.
Broker finncap previously had expected revenues of £45.9mln in the current year after it turned over £40.1mln in 2014.
Zwanziger has also recommended a slimmed down board consisting of two executives and five non-executives including some external additions.
David Evans has now been appointed chair of the Audit Committee following the death last week.
Shares fell 25% to 11p.