PENARTH’S EKF DIAGNOSTICS plc MAY SPLIT AND BUY-BACK ITS OWN SHARES

EKF’s HQ is at Avon House, in Stanwell Road Penarth

EDF Diagnostics Holdings PLC – the Penarth-based stock-market quoted medical company  – may split itself into two separate business divisions and offer to buy back some of the shares in the firm which are already held by institutions and individual shareholders

EKF – which is based at Avon House in Stanwell Road, Penarth, trades internationally and has facilities in many foreign countries.

EKF Diagnostics of Penarth

Today the company reports that trading in the first quarter of the current financial year was “comfortably ahead of budget” owing  entirely  to organic growth but says whilst the Board remains optimistic about the Company’s prospects for the full year, there can be no guarantee that this will continue for the remainder of the year given the relatively short lead time on new orders.

EKF’s CEO – Penarth’s Julian Baines

Directors are continuing to evaluate plans to  split the Company into two separate legal entities  –  Point of Care and Lab Diagnostics. The firm says this  represents a better route for shareholders and one under which they are “more likely to achieve a fair reflection of the value of each separate business”.

EKF Diagnostics plc would  remain as the ultimate parent company of both legal entities and  also remain quoted on the AIM stock market [ the stock market for smaller companies] .The intention would be to spin the Lab Diagnostics business out of the EKF Group “at an appropriate point”.

The firm is also looking at the possibility of a “share buyback”  of up to 15% of the Company’s current issued share capital.

EKF stresses that there’s no guarantee that the  proposals it’s considering will actually be implemented.

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