EKF Diagnostics Holdings PLC (LON:EKF) shares jumped more than 7% on Thursday after the medical equipment manufacturer said first-half earnings were ahead of its expectations and that it was confident that it would make further progress during the remainder of 2018.
The South Wales-based point-of-care company also said it had delivered extremely strong cash conversion - £9mln in the year to June 30 compared to £4mln in the same period a year earlier.
In another positive development, EKF said that following significant investment in its Elkhart enzyme facility, it had secured a multi-million dollar enzyme contract with Oragenics, Inc. It added that it had also secured a distribution agreement with US-based McKesson Medical-Surgical for its haemoglobin analyser, DiaSpect, which recently received regulatory clearance.
In a note to clients, analysts at broker Finncap were positive on the tenders won by EKF and maintained its ‘buy’ recommendation on the stock.
Shares in EKF were up 7.6% at 39.48p in early afternoon trade.