EKF issues an update on its demerger plans

EKF Diagnostics has said trading has been “comfortably ahead of budget” in the first quarter of the financial year (Insider Media, 2017). The Penarth-based medical diagnostics business has also issued an update on its plans to demerge its two divisions.

In a trading update for the three months to March 31st 2017, the directors said the strong start to the financial year was “entirely attributable to organic growth”. They added that they were “optimistic” on the prospects for the remainder of the year.

In March, EKF revealed plans were being evaluated to split the group into two separate businesses based on the point of care and lab diagnostics divisions. The directors are still working on the plans and said the demerger represented “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.”

The demerger is now expected to occur at subsidiary level, with the two divisions being split into separate entities under the ultimate control of the EKF group. The board is also considering a buyback offer of up to 15% of the company’s current issued share capital.

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