ANNUAL REPORT 2016
EKF Diagnostics Holdings plc  EKF Diagnostics Holdings plc | Annual Report 2016  1
1.0 Strategic Review
1.0 Strategic Review 
Financial and Operational Highlights 2
EKF Diagnostics Holdings plc 3
Chairman’s Statement  8
Chief Executive’s Review 9
Finance Director’s Review 11
Board of Directors 13
2.0 Governance
Strategic Report 15
Report of the Directors 18
Corporate Governance Statement 22
Report of the Remuneration Committee 25
Independent Auditors’ Report 27
3.0 Financial Statements
Consolidated Income Statement 29
Consolidated Statement of Comprehensive Income 30
Consolidated and Company’s Statements of Financial Position 31
Consolidated and Company’s Statements of Cash Flows 32
Consolidated and Company’s Statements of Changes in Equity 33
Notes to the Financial Statements 35
4.0 Additional Information
Notice of Annual General Meeting 71
Company Information 73
Contents 2 Annual Report 2016  |  EKF Diagnostics Holdings plc
1.0 Strategic Review
Financial and Operational highlights
Financial Highlights
• Revenue up 28% to £38.6m (2015: £30.0m)
• Gross profit up 24% to £18.3m (2015: £14.7m)
• Adjusted EBITDA* of £6.1m (2015: loss of £0.3m) 
• Cash generated from operations of £8.8m (2015: £2.9m used)
• Cash at 31 December 2016 of £7.9m (31 Dec 2015: £2.0m), Net cash of £2.2m (31 Dec 2015: £8.8m 
Net debt)
* Excluding exceptional items and share based payments
Operational Highlights
• Successful restructuring programme focusing the business on profitability and organic sales 
growth 
• Strong organic growth delivered across all three point-of-care business areas and Central Laboratory
• 13,649 analysers and 69m tests sold worldwide in 2016
• Business stability has allowed strategically key new products to be identified for further 
development
2016 2015 +/-
Turnover (£m) £38.6 £30.0 28%
Gross profit (£m) £18.3 £14.7 24%
Adjusted EBITDA (£m) £6.1 -£0.3 -
28%
increase in  
revenues year  
on year
+59%
HEMATOLOGY  
REVENUES
+58%
DIABETES CARE  
REVENUES
+17%
MATERNAL 
& WOMEN’S 
HEALTH  
REVENUES
+39%
CENTRAL  
LABORATORY  
REVENUES
2016 at a glance  EKF Diagnostics Holdings plc | Annual Report 2016  3
1.0 Strategic Review
Our Locations
Cardiff, UK
Shanghai, China
Krakow, Poland
Barleben, Germany
San Antonio, TX
Elkhart, IN
EKF Diagnostics Holdings plc
EKF Diagnostics is a global medical diagnostics 
business with a long history in point-of-care 
testing and manufacturing reagents for use in 
central laboratories.
Our point-of-care (POC) products, most of which 
are designed and manufactured in Germany, have 
a hard earned reputation for ease of use, reliability 
and accuracy from professionals working in 
diabetes, blood banking and sports medicine.
The POC business is built around a large installed 
based of analysers each of which generates a 
regular demand for tests, often for the entire life 
cycle of the analyser. This approach – sometimes 
known as the ‘razor/razorblade’ model – permits 
a percentage of organic growth each year.
Background
Moscow, Russia
Leipzig, Germany
0 0 2.5k 15k 30k 45k 5k 65k 70k
2016 2016
2015 2015
Analysers  
sold
Tests  
sold
7.5k 10k 12.5k
13,649 69,443,757
63,351,290 12,879
2016 at a glance
6% 
growth
10% 
growth
Sold to 
111 countries
326 Distributors and  
OEM Partners
18 OEM  
Partners
15k 4 Annual Report 2016  |  EKF Diagnostics Holdings plc
1.0 Strategic Review
The hematology product range within EKF 
Diagnostics, is the largest in terms of revenues 
and the size of the installed base.
The acquisition of DiaSpect and Separation 
Technology in 2014 allowed EKF to offer an 
unparalleled range of hemoglobin and hematocrit 
point-of-care blood analysers manufactured in 
Germany and the USA.
Point of Care: Hematology
The EKF Diagnostics portfolio of hemoglobin 
and hematocrit analysers is unique within the  
point-of-care diagnostics sector. 
Sales are primarily focused around two markets 
– public health initiatives such as anaemia 
screening programmes, and private practices 
where the cost of testing is paid for by an 
insurance company or the patient.
To approach these markets EKF has two 
distinct strategies: firstly, OEM partnerships with 
international distributor/manufacturers such as 
Fresenius Kabi; and secondly agreements with 
smaller distributors who are focused on the public 
health opportunities within their own countries.
Sports medicine and veterinary medicine provide 
two additional niche sources of customer for EKF 
distributors. 
EKF believes that this portfolio can provide it with 
a competitive advantage to grow its market share.
 
Strategy
• Handheld analyser utilising 
reagentless methodology
• Benefits of speed to result 
(one second), and shelf-life of 
microcuvettes
• Successor to DiaSpect 
Hemoglobin T
• Tests serum, plasma, aqueous 
solutions or stored erythrocytes
• Estimates the degree of 
hemolysis
• Results in less than two seconds
• Reagent-free microcuvettes
• Laboratory hematocrit 
centrifuge and analyser
• Processes multiple samples
DiaSpect Tm DiaSpect Hemoglobin T Low
HemataStat II
TM
• Uses ‘gold standard’ 
methodology (reagent filled 
microcuvettes)
• Data management capability; 
provides a hematocrit 
calculation
• Proven, robust analyser sold 
worldwide
• Hematocrit analyser using 
unique ultrasound technology
• Strong presence in US blood 
banking sector
• International version also 
provides hemoglobin calculation
Hemo Control
TM
UltraCrit Plus
TM
Product portfolio  EKF Diagnostics Holdings plc | Annual Report 2016  5
1.0 Strategic Review
EKF’s diabetes range aims to provide affordable, 
easy-to-use technology that reduce the costs of 
long-term healthcare of the diabetic and pre-
diabetic population.
Diabetes has been at the core of EKF’s strategy 
for well over 10 years starting with the early 
models of the Biosen C-Line and Biosen S-Line 
glucose analysers. More recently HbA1c analysers 
have been launched that address the diabetes 
screening market.
Although they do not strictly belong within 
a point-of-care framework, clinical chemistry 
reagents such as Glycated Serum Protein and 
Beta-Hydroxybutyrate add further provenance 
to EKF’s claim to be a significant contributor to 
diabetes care worldwide.
Point of Care: Diabetes Care
Although glucose testing is the most commonly 
used method of determining glycaemic control 
within diabetics, HbA1c is the accepted long 
term barometer of patient well being and their 
compliance with the treatment regimes.
The growth in popularity of HbA1c measurement 
has seen an increasing number of entrants to 
the point-of-care HbA1c market focused on GP 
surgeries and diabetes clinics.
2016 saw the formal transfer of Quo-Test and 
Quo-Lab to EKF’s Barleben site completed.
 
The switch began in 2015 with the transfer of 
plant and knowledge-transfer to the German 
engineering team, and continued into 2016 with the 
hand-over of regulatory control for the products. 
These changes have allowed EKF Diagnostics to 
make significant operational savings through the 
centralisation of manufacturing, warehousing, 
logistics and customer service.
Strategy
Product portfolio
• HbA1c testing (Glycated 
Hemoglobin)
• Same methodology as Quo-Lab 
but fully automated
• Simple operation requires 
minimal training
Quo-Test® A1c
• HbA1c testing (Glycated 
Hemoglobin)
• Results in four minutes using a 
unique methodology
• Targeted at developing world 
markets
Quo-Lab® A1c
• Glucose and/or lactate 
measurement
• Three models, each aimed at 
different settings
• Used as the benchmark for 
blood glucose monitors in China
Biosen
TM 6 Annual Report 2016  |  EKF Diagnostics Holdings plc
1.0 Strategic Review
Maternal and Women’s Health focuses primarily 
on diagnostics used to address conditions and 
complications associated with pregnancy and 
child birth.
Sales include revenues from Creamatocrit 
centrifuges and hemoglobin meters used in 
Women and Infant Clinics, pregnancy test kits 
and HbA1c analysers used to diagnose gestational 
diabetes in pregnant women.
Point of Care: Maternal & Women’s Health
EKF’s Maternal and Women’s Health business 
unit has seen steady growth since it was created.
SensPoint is awaiting CE marking whilst the 
product team continue to work with key opinion 
leaders to educate the future target market on 
the need for a protocol in the use of lactate in 
obstetric medicine.
In parallel there is a slowly building commercial 
interest in this market in Europe. Some medical 
professionals are using the Lactate Scout+ to 
provide accurate lactate readings within ten 
seconds.
Lactate Scout+ uses the same strip system as 
SensPoint but does not include SensPoint’s data 
management functionality.
Lactate Scout+ has historically been sold into 
sports medicine, specifically endurance activities 
such as cross-country skiing, cycling and rowing. 
This market also contributes significantly to 
Biosen revenues who use the lactate testing 
function in the preparation of elite squads of 
athletes such as Premier League football teams 
and Olympians.
Strategy
Product portfolio
• Handheld lactate analyser with 
docking station
• Results in 10 seconds
• Undergoing UK evaluations at 
the time of writing
• Developed for use in maternity 
wards
SensPoint
• Cassette rapid tests
• Marketed for use in hospital 
settings
Pregnancy kits
• Small lab centrifuge used in 
Women and Infant Clinics
•  Measures the lipid concentration 
and caloric density of breast milk
•  Allows professionals to guide 
mothers with underweight 
infants
Creamatocrit Plus
TM
• Handheld lactate analyser
•  Results in 10 seconds
•  Developed for use in sports 
medicine
•  Applications in medical and 
veterinary medicine
Lactate Scout+  EKF Diagnostics Holdings plc | Annual Report 2016  7
1.0 Strategic Review
EKF, through its wholly owned subsidiary Stanbio 
Laboratory, has had a presence within central 
laboratory dating back over 50 years. During this 
time it has built a global customer base for its 
clinical chemistry reagents that can be used on 
most open-channel analyser platforms.
The Central Laboratory business also includes the 
manufacture of enzymes, manufactured at EKF 
Life Sciences in Elkhart, Indiana. 
From this facility EKF Life Sciences sells enzymes 
used in Stanbio’s clinical chemistry portfolio as 
well as providing contract manufacturing services 
for third parties.
The acquisition of Separation Technology Inc. 
provided EKF with a third element to its 
central laboratory offering. As well as being a 
manufacturer of hematology products STI has a 
heritage in manufacturing high quality, US-built, 
mini-centrifuges.
Central Laboratory
The central laboratory market continues to 
experience relatively low levels of growth. This 
is in part because sales of chemistry reagents 
are inextricably linked to the provision of the 
analysers on which the tests are performed. EKF 
Diagnostics’ approach to the clinical chemistry 
market changed in late 2015 with the launch of 
the Altair 240, a benchtop analyser calibrated to 
run the Stanbio Chemistry range of reagents.
Further opportunities continue to exist in 
niche markets. Sales of Beta-Hydroxybutyrate 
Liquicolor® reagent continue to be healthy with 
a strong performance from US distributors who 
have developed a market capitalising on the 
withdrawl of a previous method of testing for 
ketosis.
More than 1,000 US hospitals now use EKF’s Beta- 
Hydroxybutyrate reagent. A similar approach 
is being used for Procalcitonin (PCT) in Europe 
where EKF has undertaken awareness activity 
using key opinion leaders in target markets.
Strategy
Product portfolio
• Liquid reagent for the early 
detection of ketosis
• Primarily sold in USA through 
national distribution networks
Beta-Hydroxybutyrate
• Automated bench-top analyser
• Runs up to 400 tests per 
hour and can handle up to 43 
different reagents
• Calibrated to run the Stanbio 
Chemistry range of reagents 
• 2-3 week indicator of average 
blood glucose
• Complementary to HbA1c in 
diagnosis and screening of 
diabetes
Altair
TM
 240 
Glycated Serum Protein
• Liquid reagent for the detection 
of sepsis
• Targeted at European and  
Asia-Pacific markets
Procalcitonin 8 Annual Report 2016  |  EKF Diagnostics Holdings plc
1.0 Strategic Review
Chairman’s Statement
A year ago I stated that the Board intended 
to rebuild shareholder value by stabilising 
the business, growing it organically, and 
implementing further reductions in the cost base. 
The very significant progress that has been made 
so far towards fulfilling these aims is shown in 
these results.
Strategy and restructuring
Following the divestment of Selah Genomics Inc. 
in December 2015 and the mothballing of the 
UK molecular diagnostics business, the Group’s 
activities are focused on point-of-care and the 
related central laboratory reagents business, and 
it remains our intention to concentrate on these. 
Efforts to reduce cost and simplify the business 
have been and are continuing. The operations 
of DiaSpect in Sailauf have been closed and 
integrated into our main European manufacturing 
site in Barleben, Germany. In addition the STI 
site in Sanford, Florida, has been shut down 
and manufacturing and sales brought into our 
main USA site in Boerne, Texas. As a result, staff 
numbers have reduced to 299 at year end, over 
100 lower than its peak. 
The reduction in staff has resulted in large part in 
the achievement of cost savings in excess of the 
£6.7m target in 2016. These savings are expected 
to make a continuing impact in 2017.
Despite the changes resulting from restructuring, 
revenue is sharply up, with improvements coming 
across the board. In turn this has led to an 
improvement in earnings and to significant cash 
generation from operations, which, added to the 
proceeds from a share issue in June, has allowed 
the Group to move to having net cash as at 31 
December 2016.
Additional update for Shareholders
On 20 March 2017 we announced that the Directors 
are currently evaluating plans under which they 
would split the Company into two separate 
companies based on the business divisions, 
namely Point of Care and Lab Diagnostics. Whilst 
both these business divisions are valuable in their 
own right, the Directors consider that separating 
the companies out 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.
We are sympathetic to individual investors’ 
requirements and therefore in order to provide 
those shareholders that do not wish to wait for the 
completion of the restructuring and subsequent 
potential sale of the two businesses with an exit, 
the Company is evaluating the possibility of a 
share buyback offer to shareholders. This share 
buyback offer would, if completed, be prior to the 
commencement of the separation and would be 
at a price of 21.5p per share.
Results overview
Please refer to the Chief Executive’s statement 
which contains a review of the year and the 
Finance Director’s Review which provides an 
overview of the financial performance.
Board
Ron Zwanziger, Lurene Joseph, and David Evans 
left the Board during the year, and Carl Contadini 
and I both joined. Carl has worked with me for 
many years and is an expert at cost control 
and containment. The Non-Executive Directors 
waived their fees during the year.
Outlook
Much has been done very quickly to turn the 
Group around, however work continues to simplify 
the business to allow the management team to 
concentrate on making it more cost efficient so 
that we can service our growing customer base 
and build for the future. I am confident that 
shareholders will see the continuing benefits of 
this in 2017, and we are currently trading in line 
with management’s expectations.
Christopher Mills 
Non-Executive Chairman 
20 March 2017  EKF Diagnostics Holdings plc | Annual Report 2016  9
1.0 Strategic Review
Chief Executive’s Review
Operations
I am delighted to report that 2016 has been a year 
of positive transformation which has seen a strong 
performance across the Group which exceeded 
market forecasts which themselves had been 
upgraded throughout the year. We have seen a 
considerable improvement in revenue growth 
and profitability, with cash generation strong 
over the year, which coupled with a successful 
share placing in June, 2016 allowed us to move 
into a net cash position and significantly reduce 
our borrowings.
This turnaround has been achieved with quite 
remarkable speed, and all employees can be very 
proud of these results. Our plans for 2017 are 
equally as ambitious.
Structural change
Actions taken in 2016 have built upon those 
started in 2015 and before. Our small remaining 
presence in Ireland has ended and the biomarker 
business line has been sold to a third party for 
a nominal sum. The residual staff who had been 
located in the former Quotient facility in Walton-
on-Thames, UK, have also left the Group, and the 
building handed back to the landlords. The STI 
facility in Sanford, Florida was closed in Q3, and 
all activities transferred to our main US facility 
in Boerne, Texas. A small number of staff have 
transferred or are continuing to operate from 
home offices. As part of this transfer we have 
taken the opportunity to review and rationalise 
the STI product range. Finally, the DiaSpect 
facility in Sailauf, Germany has been closed down. 
Administrative, sales, and finance functions are 
now integrated into our main European factory 
in Barleben, Germany. The manufacturing 
operations have been transferred to DiaSpect’s 
long term third party sub-contractor, which has 
also taken occupancy of that part of the Sailauf 
facility they did not already occupy. We have 
therefore now concentrated operations on eight 
sites, a reduction of four. We are continuing to 
review operations to minimise costs and maximise 
efficiency.
As a result of the structural changes, the number 
of employees has reduced from a peak of 403 in 
early 2015 to 299 by December 2016. Regrettably 
much of this reduction has had to be achieved 
through compulsory redundancy, and we offer 
former employees our best wishes for the future.
Point of Care
Our point-of-care business has seen a very 
successful year. EKF’s business model is to sell 
analysers into the market and then benefit from 
the ongoing revenue stream generated by sales 
of the dedicated consumables. Over the last four 
years we have sold almost 70,000 analysers for 
use worldwide, and in 2016 we supplied almost 
70m tests for use on these, an increase of 9.8% 
over the previous year. 
i. Hematology
Sales of Hematology products have increased 
by 59% to £11.70m (2015: £7.37m), with revenues 
benefiting from the return of US HemoPoint H2 
sales to EKF control from Alere in June 2016. This 
has led to improved margin and sales, with US 
sales of HemoPoint H2 (sold as Hemo Control in 
the rest of the world) up 101% year-on-year. Sales 
of DiaSpect Tm are up 53%. 
ii. Diabetes Care
In Diabetes, revenues were up by 58% year-on-
year to £10.20m (2015: £6.46m), with a particularly 
successful year for Biosen (up 79% year-on-year) 
and Quo-Test (up 62%). We have continued to 
supply Quo-Test products to Saudi Arabia under 
the tender won in 2015, and have been awarded a 
follow up contract for 2016-17. Registration issues 
which had caused Biosen sales to China to pause 
in 2015 have now been solved, which is reflected 
in the rise in overall unit sales. Sales of STAT-Site 
M β-HB rose by 143% over the previous year.
iii. Maternal & Women’s Health
Revenues from our products that address aspects 
of maternal and women’s health increased by 17% 
to £2.88m (2015: £2.46m). This has been driven 
by an improvement in sales of our Lactate Scout+ 
product line which are up by 31%, and pregnancy 
tests sales have increased by 10%.
Central Laboratory
Our Central laboratory sales show an overall 
improvement of 39% on the previous year to 
£12.05m (2015: £8.70m), and have continued to 
be driven by our β-HB Liquicolor reagent product. 
β-HB sales were up by 76% and we have continued 
to sign up additional hospitals in the US, resulting 
in sales doubling since 2012. We have had some 
success with our Altair 240 analyser product and 
are continuing to sign up distributors especially 
in Asia and the Middle East. As a result, Clinical 
Chemistry sales, which included our first Altair 
240 sales were up 19%. Sales of our enzymes rose 
by 26% compared to last year. Our efforts in this 
segment are concentrating on building markets 
while continuing to increase penetration of our 
β-HB product.
New products
The new building at Barleben, Germany 
commenced in 2015 has now been completed 
and operations are beginning to move in. The 
building will house a number of new and updated 
production lines where we have determined that 
highly targeted capital expenditure can improve 
efficiency and capacity.
We took a conscious decision in early 2016 to 
concentrate on product development plus the 
development of technologies already owned by 
EKF. Not surprisingly this has meant that there 
has been relatively little movement in developing 
new products, with the majority of effort being 
expended on improving the quality of existing 
products. However our connectivity solutions for 
point-of-care instruments have been showcased  10 Annual Report 2016  |  EKF Diagnostics Holdings plc
1.0 Strategic Review
at distributor shows such as Medica. With cash 
flow much improved we are focussing on the 
development of our sTNFR biomarker (early 
detection of end stage renal disease in diabetic 
patients), SensPoint (maternity care) and 
the redevelopment of our Lactate Scout for 
ambulatory care (early indication of Sepsis).
Outlook
The actions taken to turn around the Group in 
2016 have had rapid and significant positive 
effects. We now have a stable platform for further 
growth based on driving the existing business 
and continuing to reduce cost.
Julian Baines 
Chief Executive Officer 
20 March 2017  EKF Diagnostics Holdings plc | Annual Report 2016  11
1.0 Strategic Review
Finance Director’s Review
Results
2015 results show Selah Genomics Inc. as a 
discontinued business.
Revenue
Revenue for the year was £38.6m (2015: £30.0m), 
an increase of 28%. Of the increase, 15.3% was 
the result of improvements in foreign currency 
exchange rates, largely because of the fall in the 
value of sterling against the US dollar and Euro in 
the second half of the year. The remainder of the 
increase comes from organic growth.
Revenue by disease state, which is presented for 
illustration purposes only, is as follows: 
Gross profit
Gross profit increased to £18.3m (2015: £14.7m). 
The gross margin percentage on sales was 47.5% 
(2015: 48.8%), a further small decrease. This was 
once again affected by additional provisions 
taken against older stock balances.
Administration costs and research and 
development costs
Administration expenses have fallen substantially 
to £18.7m (2015: £29.2m). While 2015 had 
seen a sharp rise over the previous year, the 
reduction shows the effect of the cost saving 
programmes put in place during the year. 
Excluding depreciation, amortisation, and 
exceptional items, administration expenses were 
£14.0m (2015: £16.3m), a 14.1% reduction. R & D 
costs included in administration expenses were 
£2.0m, with a further £0.6m being capitalised as 
an intangible cost. Gross R & D expenses have 
therefore reduced from £5.4m in 2015 to £2.6m 
this year.
The charge for depreciation of fixed assets and 
amortisation of intangible assets is £5.0m (2015: 
£8.1m). There have been no impairments during 
2016, following the refocusing of the business in 
late 2015 on our core products.
Exceptional items mainly relate to provisions made 
and costs incurred in the closures and relocations 
of the DiaSpect and STI manufacturing sites, 
offset by the release of an unutilised provision 
relating to EKF Molecular.
 
 
 
 
Operating profit and adjusted earnings before 
interest tax and depreciation
The Group made a small operating loss of £0.3m 
(2015: £14.3m). While this shows very considerable 
improvement, it indicates that there remains work 
to be done on increasing profitability. We continue 
to consider that adjusted earnings before 
interest, tax, depreciation and amortisation, share 
based payments and exceptional items (adjusted 
EBITDA) is a better measure of progress because 
the Board believes it gives clearer comparability 
of operating performance between periods. 
In 2016 we achieved adjusted EBITDA of £6.1m 
(2015: loss of £0.3m). The calculation of this 
non-GAAP measure is shown on the face of the 
income statement. It excludes the effect of share-
based payment charges of £1.0m (2015: £0.2m) 
and exceptional losses of £0.5m (2015: £5.7m). Of 
the increase in adjusted EBITDA of £6.4m, £1.1m 
is attributable to the effect of more favourable 
exchange rates, with the remainder being 
attributable to improved underlying performance.
Finance costs
Finance costs have continued to fall, to £0.7m 
in 2016 (2015: £1.4m). This is largely as a result 
of lower charges relating to the discounting of 
deferred consideration than in previous years. 
External debt has been reduced during 2016 
which should lead to lower debt interest in 2017 
and beyond.
Tax
There is an income tax credit of £1.2m (2015: 
£2.2m). This is largely because of a tax refund 
received in the USA relating to the carry back of 
losses against previous years.
Balance sheet
Property, plant and equipment
Additions to fixed assets were £1.3m (2016: 
£2.3m) of which £0.6m related to the completion 
of the new building at Barleben. 
Intangible assets
The increase in value of intangible assets from 
£42.9m to £46.5m is almost entirely attributable 
to foreign exchange movements as intangibles on 
consolidation are denominated in the functional 
currency of the underlying businesses, offset by 
the annual amortisation charge.
Deferred consideration
The remaining deferred consideration relates to 
the share-based payment to the former owner 
of EKF-Diagnostic GmbH. Finalisation of the 
contracts to conclude the position is expected to 
take place in 2017. 
 
 
 
 
 
 
 
FY 2016
£’000
FY 2015
£’000
+/-%
Hematology 11,704 7,371 +59%
Diabetes Care 10,203 6,463 +58%
Maternal Health 2,880 2,455 +17%
Central Laboratory 12,051 8,701 +39%
Other 1,751 5,055 -65%
Total revenue 38,589 30,045 +28% 12 Annual Report 2016  |  EKF Diagnostics Holdings plc
1.0 Strategic Review
Cash and working capital
At 31 December 2015, borrowings included 
a secured convertible loan of £3.0m from 
Zwanziger Family Ventures LLC (ZFV), a 
company associated with the Zwanziger family. 
This was repaid in April 2016 from the proceeds of 
a new loan of £3.0m from North Atlantic Smaller 
Companies Investment Trust PLC, a company 
associated with Christopher Mills. This in turn 
was repaid from the proceeds of a share placing 
which took place in June 2016, and raised £4.5m 
net of expenses. Gross cash rose in the year from 
£2.0m to £7.9m, and at the same time borrowings 
decreased from £10.8m to £5.7m. As a result the 
Group moved from having net debt of £8.8m to 
having net cash of £2.2m by the 2016 year end. 
Of the improvement in net debt, £6.5m has been 
generated internally.
Inventory has reduced to £6.0m (2015: £8.2m). 
Some of the reduction has come from efforts 
made to reduce inventory during the year and the 
remainder from increased inventory provisions.
Both receivables and payables have increased, 
reflecting increased activity during the year.
Richard Evans 
Finance Director and Chief Operating Officer 
20 March 2017   EKF Diagnostics Holdings plc | Annual Report 2016  13
1.0 Strategic Review
Board of Directors
Richard Evans
Chief Operating Officer and Finance Director (aged 59)
Richard qualified as a Chartered Management Accountant in 1983 and holds a Bachelor of Commerce 
in Business Studies and Law from Edinburgh University and an MBA from INSEAD. Before joining 
EKF, Richard was Finance Director, General Manager and finally Global Account Director at Hitachi 
Data Systems GmbH. He has also held positions at Fisher Scientific, TRW Seat Belt Systems, Maxtor 
Corporation, United Technologies Carrier and Abbott Diagnostics GmbH in Germany.
Executive Directors
Julian Baines MBE
Chief Executive Officer (aged 52)
Julian was Group CEO of BBI where he undertook a management buyout in 2000, a flotation on 
AIM in 2004 and was responsible for selling the business to Alere Inc. in 2008 for circa £85 million.  
In December 2009 Julian became CEO of the Group and has subsequently successfully  
completed fund raisings in 2010, 2011 and 2014, and the acquisition and subsequent integration of eight  
businesses in seven countries. In 2016 he was awarded an MBE for services to the life sciences industry. 14 Annual Report 2016  |  EKF Diagnostics Holdings plc
1.0 Strategic Review
Board of Directors 
Non-Executive Directors
Adam Reynolds
Non-Executive Director (aged 54)
Adam is a former stockbroker specialising in corporate finance. He has built, rescued and re-financed 
a number of public companies. He is currently Chairman of Autoclenz Group Limited, Orogen Gold 
plc, OptiBiotix Plc, Premaitha Health Plc, and Concepta Plc, and a Non-executive Director of Big Sofa 
T echnologies plc. Adam chairs the Audit Committee and is a member of the Remuneration Committee. 
Carl Contadini
Non-Executive Director (aged 68)
Carl has been a director of numerous companies throughout his career, predominately focusing on the 
healthcare and electronics sectors. He is currently a board member and past Chairman of Waterbury 
Healthcare Systems Inc., a US-based healthcare group, and an Operational Adviser to Harwood Capital 
LLP, where he assists in sourcing, evaluating and monitoring investments. Carl also holds the positions 
of Executive Chairman and Non-Executive Chairman at Utitec Holdings Inc. and Curtis Gilmour Holding 
Inc. respectively. Carl has, in the past, also been a director of Bionostics Limited and Celsis Group 
Limited. He holds an Associate of Science degree in Business Administration and Marketing from Tunix 
Community College, Connecticut and a Batchelor of General Studies degree specialising in Human 
Resources from University of Connecticut. 
Christopher Mills
Non-Executive Chairman (aged 64)
Christopher founded Harwood Capital Management in 2011, a successor from its former parent 
company J.O. Hambro Capital Management, which he co-founded in 1993. He is Chief Executive and 
Investment Manager of North Atlantic Smaller Companies Investment Trust plc and Chief Investment 
Officer of Harwood Capital LLP. He is a Non-Executive Director of several companies. Christopher was 
a Director of Invesco MIM, where he was Head of North American Investments and Venture Capital, 
and of Samuel Montagu International. Christopher is a member of the Audit Committee and chairs the 
Remuneration Committee.   EKF Diagnostics Holdings plc | Annual Report 2016  15
2.0 Corporate Governance
Strategic Report
Review of the business
A review of the business is contained in the 
Chairman’s Statement on page 8, and in the Chief 
Executive’s Review on pages 9 and 10 and the 
Finance Director’s Review on pages 11 and 12.
Risk Management
We recognise that effective risk management 
is essential to the successful delivery of the 
Group’s strategy and will help us build a world 
class in-vitro diagnostic business. As we continue 
to grow our business we believe it is important 
to develop and enhance our approach to risk 
management, and to ensure it remains fit for 
purpose. We are in the process of enhancing and 
formalising our risk management processes and 
control environment, and continuing our journey 
of maturing our approach to how we identify and 
manage risks across the Group in a consistent 
and robust manner.
Below we describe our risk management 
approach, the principal risks and uncertainties 
faced by the Group and the controls in place to 
manage them. 
Overview of risk management approach 
Each business area is responsible for identifying, 
assessing and managing the risks in their 
respective area. Risks are identified and assessed 
by all business areas on a periodic basis, and 
are measured against a defined set of criteria, 
considering likelihood of occurrence, and 
potential impact. The Executive Board members 
also conduct a strategic risk identification and 
assessment exercise to identify risks, including 
those that could impact the business model, 
future performance, solvency or liquidity. This 
risk information is combined with a consolidated 
view of the business area risks. The most 
significant risks identified are included in our 
Group Risk Profile, which is reported to the 
Executive Board for review and challenge, ahead 
of it being submitted to the Group Board for 
final review, challenge and approval. The Board 
has the overall accountability for ensuring that 
risk is effectively managed across the Group and 
therefore ensuring that it is comfortable with the 
nature and extent of the principal risks faced in 
achieving its strategic objectives.
In 2015 the Group faced a number of issues. In 
response to these the Group has reduced its risk 
profile by returning to a strategy based on point-
of-care and clinical chemistry and reducing its 
cost base.
Principal risks and uncertainties
Set out below are the principal risks which we 
believe could materially affect the Group’s ability 
to achieve its financial and operating objectives 
and control or mitigating activities adopted to 
manage them. The risks are not listed in order of 
significance.
Key employees
Lack of retention of key employees affects 
the continuity and effectiveness of on-going 
relationships with key customers and suppliers.
This risk is minimised by ensuring that a minimum 
of two individuals manage every relationship 
with key customers and suppliers. In addition, 
in retaining the key employees, incentivisation 
packages are offered through a mixture of 
sales commission, profit related bonuses and 
participation in the Group LTIP and share option 
schemes. Main Board Directors are incentivised as 
detailed in the Directors’ Remuneration Report.
Political risk
A significant proportion of the Group’s revenues 
are accounted for by agreements in developing 
countries. Any instability in these countries 
could significantly affect the operations and the 
revenue of the Group. In particular the Group 
has significant revenue from customers in Russia 
which are ultimately largely funded by the 
government.
The Group spreads the risk through seeking 
a portfolio of diversified revenue streams 
geographically with a mixture of distribution 
partners in developing and developed countries.
In 2016, following the European Union (EU) 
membership referendum, the UK Government 
indicated that it would shortly commence the 
process for the United Kingdom to withdraw 
from the EU. Although at present the Group does 
not anticipate significant issues, as the Group 
has facilities, customers, and suppliers in both 
the United Kingdom and the EU, withdrawal 
may affect the Group’s operational abilities and 
costs. The Group seeks to manage this risk by 
monitoring events and taking mitigating actions 
if necessary.
Supply chain continuity
The Group relies on third party manufacturers 
for the supply of the majority of raw materials. 
Problems with obsolescence and manufacturer 
facilities may lead to delay and disruptions in 
the supply chain which could have a significant 
negative impact on the Group.
The Group maintains a close dialogue with key 
suppliers and closely monitors its inventory 
status and customer demand to ensure that any 
problems with the supply chain can be managed, 
and back up sources of supply are maintained 
where possible.
Regulatory risk
There can be no guarantee that any of the Group’s 
products will be able to obtain or maintain the 
necessary regulatory approvals in any or all of 
the territories in respect of which applications 
for such approvals are made. Where regulatory 
approvals are obtained, there can be no guarantee 
that the conditions attached to such approvals 
will not be considered too onerous by the Group 
or its distribution partners in order to be able to 
market its products effectively.
The Group seeks to reduce this risk by 
manufacturing the products to recognised 
for the year ended 31 December 2016 16 Annual Report 2016  |  EKF Diagnostics Holdings plc
2.0 Corporate Governance
standards, by keeping appraised with changes in 
the standards geographically, by seeking advice 
from regulatory advisers, consultations with 
regulatory approval bodies and by working with 
experienced distribution partners.
Competition risk
Due to the Group’s current and future potential 
competitors, such as major multinational 
pharmaceutical and healthcare companies, 
having substantially greater resources than those 
of the Group, the competitors may develop 
systems and products that are more effective or 
economic than any of those developed by the 
Group, rendering the Group’s products obsolete 
or otherwise non-competitive.
The Group seeks to mitigate this risk by 
securing patent registration protection for its 
products, maintaining confidentiality agreements 
regarding the Group’s know-how and technology, 
monitoring technological developments and by 
selecting leading businesses in their respective 
fields as distribution partners capable of 
addressing significant competition, should it 
arise.
Intellectual property risk
The commercial success of the Group and 
its ability to compete effectively with other 
companies depends, amongst other things, on its 
ability to obtain and maintain patents sufficiently 
broad in scope to provide protection for the 
Group’s intellectual property rights against third 
parties and to exploit its products. The absence 
of any such patents may have a material adverse 
effect on the Group’s ability to develop its 
business.
The Group mitigates this risk by developing 
products where legal advice indicates patent 
protection would be available, seeking patent 
protection for the Group’s products, maintaining 
confidentiality agreements regarding Group 
know-how and technology and monitoring 
technological developments and the registration 
of patents by other parties. The commercial 
success of the Group also depends upon not 
infringing patents granted, now or in the future, 
to third parties who may have filed applications 
or who have obtained, or may obtain, patents 
relating to business processes which might inhibit 
the Group’s ability to develop and exploit its own 
products.
Foreign exchange risk
The Group has transactional currency exposures 
as the majority of revenues and expenditure 
and certain borrowings are denominated in 
foreign currencies. Fluctuations in exchange 
rates between the Group’s functional currency 
of Sterling and the currency of the overseas 
operations could adversely impact the financial 
results. In most cases the Group matches the 
currency receipts and expenditure of the overseas 
operations. The Group also endeavours to 
match the foreign currency assets of the foreign 
operations by funding through borrowings 
and loans denominated in the currency of the 
overseas operations, and to negotiate currency 
protection in major contracts. 
Reimbursement levels
There is no guarantee that the Group may be 
able to sell its products or services profitably if 
the reimbursement level from third party payers, 
including government and private health insurers, 
is unavailable or limited. Third party payers are 
increasingly attempting to contain health care 
costs through measures that could impact the 
Group including challenging the prices charged 
for health care products and services, limiting 
both coverage and the amount of reimbursement 
for new diagnostics products and services, and 
denying or limiting coverage for products that 
are approved by the regulatory agencies but are 
considered experimental by third party payers.
The Group understands that due to third party 
dependency it is extremely difficult to eradicate 
this risk. However the Group manages this risk 
with constant dialogue and educating the third 
party payers on the Group’s products and also 
developing new technologies in order to seek 
additional reimbursements.
Financial reporting and disclosure
Due to the nature of the Group there is a 
requirement to report accurate financial 
information in compliance with accounting 
standards and applicable legislation.
This risk is mitigated through the Group’s 
internal controls over the financial information 
and reporting, overseen by the local financial 
heads and then reviewed by the central finance 
team, including the Finance Director. The annual 
financial statements are also subject to audit by 
the Group’s external auditors.
Cyber security risk
The Group uses computers extensively in its 
operations and has an online presence but does 
not trade online. It is at risk of attack through 
hacking or other methods. This risk is mitigated 
by the use of robust security measures, staff 
training, and back up systems.
Review of strategy and  
business model
The Board of Directors judge the Company’s 
financial performance by reference to the internal 
budget which it establishes at the beginning of 
each financial year.
EKF’s strategy is to create a world class IVD 
business through organic growth. IVD has a 
wide spectrum, and within this spectrum we 
have chosen to concentrate on point-of-care, 
while maintaining our existing central laboratory 
business. 
We have identified and acquired businesses 
in these areas with strong product lines and 
distribution networks which can benefit from 
better, more professional management, greater 
resources, and from the synergistic benefits of 
being part of a larger group.
We sell worldwide to over 100 countries. In many 
territories we sell through local distributors, 
however where appropriate we sell direct to 
end users which include hospitals, laboratories,   EKF Diagnostics Holdings plc | Annual Report 2016  17
2.0 Corporate Governance
2.0 Governance
and government agencies. Our distributors 
are supported by a network of regional sales 
managers and by product managers who are 
specialists in our product range. We manufacture 
the majority of the products we sell ourselves, 
but also distribute a number of carefully chosen 
products on behalf of others. We have product 
support centres in the USA and Germany.
The Group works mainly on the principle of selling 
value priced instrumentation which generates 
long-term revenue streams from the subsequent 
sale of consumables. The Group has an existing 
portfolio of technologies which produce revenues 
and will add technologies which are strategically 
appropriate to this portfolio should they become 
available and providing the additions make 
economic sense.
Future outlook
The Chairman’s Statement on page 8 and the 
Chief Executive’s Review on pages 9 to 10 give 
information on the future outlook of the Group, 
including the main trends and factors likely to 
affect its future development.
Key Performance Indicators (KPIs)
The key performance indicators currently used 
by the Group are revenue, gross margin, adjusted 
EBITDA and cash resources. The Group is working 
to establish other key performance indicators 
including non-financial measures. KPIs are 
discussed in more detail in the Finance Director’s 
review on pages 11 and 12.
Environment
The Directors consider that the nature of the 
Group’s activities is not inherently detrimental 
to the environment. The Group is committed to 
minimising any effect on the environment caused 
by its operations.
Employees
The Group places value on the involvement of its 
employees and they are regularly briefed on the 
Group’s activities. The Group closely monitors 
staff attrition rates which it seeks to keep at low 
levels and aims to structure staff compensation 
levels at competitive rates in order to attract and 
retain high calibre personnel.
Disabled employees
Applications for employment by disabled persons 
are always fully considered, bearing in mind the 
specific aptitudes of the applicant involved. It is 
the policy of the Group that the training, career 
development and promotion of disabled persons, 
as far as possible, be identical with that of other 
employees.
Social, community, and  
human rights
The Board recognises that the Group has a 
duty to be a good corporate citizen and to 
respect the laws, and where appropriate the 
customs and culture of the territories in which 
it operates. The Group has donated product to 
selected appropriate charities which operate 
within its area, and encourages staff to take part 
in charitable activities which are related to our 
business areas or customers. It contributes as 
far as is practicable to the local communities in 
which it operates and takes a responsible and 
positive approach to employment practices.
The Strategic Report was approved by the Board 
on 20 March 2017 and signed on its behalf by:
Richard Evans
Finance Director and Chief Operating Officer
20 March 2017 18 Annual Report 2016  |  EKF Diagnostics Holdings plc
2.0 Corporate Governance
Report of the Directors
The Directors have pleasure in submitting this report together with the audited consolidated financial 
statements of EKF Diagnostics Holdings plc for the year ended 31 December 2016.
Corporate details
EKF Diagnostics Holdings public limited company is incorporated and registered in England and Wales 
number 4347937. The registered office is Avon House, 19 Stanwell Road, Penarth, Cardiff CF64 2EZ.
Directors
The Directors who held office during the year and as at the date of signing the financial statements 
were as follows:
• Christopher Mills (appointed 8 April 2016)
• Julian Baines
• Richard Evans
• Adam Reynolds
• Carl Contadini (appointed 11 July 2016)
• Ron Zwanziger (resigned 11 April 2016)
• Lurene Joseph (resigned 9 May 2016)
• David Evans (resigned 2 June 2016)
 
Salim Hamir was appointed Company Secretary on 2 March 2016.
Principal activities
During the year the principal activities of the Group and Company were the development, manufacture 
and supply of products into the in-vitro diagnostics (IVD) market place. Future developments and 
research and development activities are discussed in the Chairman’s Statement on page 8, the Chief 
Executive’s Review on pages 9 and 10 and the Finance Director’s Review on pages 11 and 12.
Dividends
There were no dividends paid or proposed by the Company in either year.
Going concern
The Directors have considered the applicability of the going concern basis in the preparation of these 
financial statements. This included the review of internal budgets and financial results which show, 
taking into account reasonably probable changes in financial performance, that the Group should be 
able to operate within the level of its current funding arrangements.
During 2016, the convertible loan provided by the Zwanziger Family Trust in 2015 was repaid using 
a loan from the North Atlantic Smaller Companies Investment Trust plc (a company associated with 
Christopher Mills). This in turn was repaid using the proceeds of a fundraising in June 2016.
The restructuring and cost saving actions taken in late 2015 and early 2016 have allowed the Group to 
become cash generative in the second half of 2016.
Taking these changes into account, and after making enquiries, the Directors have a reasonable 
expectation that the Group has adequate resources to continue in operational existence for the 
foreseeable future. The Group therefore continues to adopt the going concern basis of preparation for 
its consolidated financial statements.
Financial risk management
Financial risk management is discussed in Note 3 of the financial statements.
Employee policies
Employee policies are discussed in the Strategic Report on pages 15 to 17.
for the year ended 31 December 2016  EKF Diagnostics Holdings plc | Annual Report 2016  19
2.0 Corporate Governance
Directors’ interests
The interests of those Directors serving at 31 December 2016 and as at the date of signing of these 
financial statements, all of which are beneficial, in the share capital of the Company were as follows:
On 31 December 2016
 Ordinary Shares of 1p each
On 31 December 2015*
 Ordinary Shares of 1p each
Christopher Mills 130,000,000 81,200,000
Julian Baines 1,855,288 1,721,955
Richard Evans 178,842 178,842
Adam Reynolds 3,318,613 3,229,724
Carl Contadini - -
*or at the date of appointment where later.
Mr Mills’ interest in the Company’s shares is held through North Atlantic Smaller Companies Investment 
Trust PLC (“NAIT”) and Oryx International Growth Fund Limited (“Oryx”). Harwood Capital LLP 
(“Harwood”) is investment manager and investment adviser to NAIT and Oryx respectively. Christopher 
Mills is a partner and Chief Investment Officer of Harwood. Christopher Mills is also a director of Oryx 
and NAIT. He holds 2.16 per cent. of the shares in Oryx in his own name as well as a further 46.44 per 
cent. of the shares in Oryx via his 25.06 per cent. shareholding in NAIT. Transactions in the Company’s 
share capital during the year by NAIT and Oryx are as follows:
Date NAIT Oryx
20 May 2016 2,450,000 350,000
7 June 2016 16,297,656 4,650,000
9 June 2016 447,666 -
17 June 2016 532,781 -
21 June 2016 4,500,000 -
23 June 2016 2,000,000 -
24 June 2016 2,613,957 -
8 July 2016 3,057,940 -
18 July 2016 9,000,000 -
20 July 2016 2,900,000 -
Carl Contadini holds no shares personally, but acts as an Operational Advisor to Harwood which acts 
as investment manager and investment adviser to NAIT and Oryx respectively.
On 7 June 2016, Julian Baines acquired 133,333 ordinary shares and Adam Reynolds acquired 88,889 
ordinary shares, both at a price of 11.25p per share.
Substantial shareholdings
As at 15 March 2017, the following interests in 3% or more of the issued Ordinary Share capital had been 
notified to the Company:
Shareholder
Number of 
shares
Percentage of issued  
share capital
The Bank Of New York (Nominees) Limited 90,858,077 19.6%
N.Y. Nominees Limited 47,851,369 10.3%
Securities Services Nominees Limited 40,025,000 8.6%
HSBC Global Custody Nominee (UK) Limited 28,244,158 6.1%
Nortrust Nominees Limited 27,051,294 5.8%
Vidacos Nominees Limited 20,497,604 4.4%
Pershing Nominees Limited 16,020,832 3.5% 20 Annual Report 2016  |  EKF Diagnostics Holdings plc
2.0 Corporate Governance
Statement of Directors’ responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in 
accordance with applicable law and regulation.
Company law requires the directors to prepare financial statements for each financial year. Under 
that law the directors have prepared the group financial statements in accordance with International 
Financial Reporting Standards (IFRSs) as adopted by the European Union and parent company financial 
statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the 
European Union. Under company law the directors must not approve the financial statements unless 
they are satisfied that they give a true and fair view of the state of affairs of the group and parent 
company and of the profit or loss of the group and parent company for that period. In preparing the 
financial statements, the directors are required to:
• select suitable accounting policies and then apply them consistently;
• state whether applicable IFRSs as adopted by the European Union have been followed for the 
group financial statements and IFRSs as adopted by the European Union have been followed for 
the company financial statements, subject to any material departures disclosed and explained in 
the financial statements;
• make judgements and accounting estimates that are reasonable and prudent; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume 
that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show 
and explain the group and parent company’s transactions and disclose with reasonable accuracy 
at any time the financial position of the group and parent company and enable them to ensure that 
the financial statements comply with the Companies Act 2006 and, as regards the group financial 
statements, Article 4 of the IAS Regulation.
The directors are also responsible for safeguarding the assets of the group and parent company and 
hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the parent company’s website. 
Legislation in the United Kingdom governing the preparation and dissemination of financial statements 
may differ from legislation in other jurisdictions.
The directors consider that the annual report and accounts, taken as a whole, is fair, balanced and 
understandable and provides the information necessary for shareholders to assess the group and 
parent company’s performance, business model and strategy.
Each of the directors, whose names and functions are listed in the Report of the Directors confirm that, 
to the best of their knowledge:
• the parent company financial statements, which have been prepared in accordance with IFRSs as 
adopted by the European Union, give a true and fair view of the assets, liabilities, financial position 
and loss of the company;
• the group financial statements, which have been prepared in accordance with IFRSs as adopted by 
the European Union, give a true and fair view of the assets, liabilities, financial position and profit 
of the group; and
• the Chairman’s Statement, Chief Executive’s Review and Finance Director’s Review include a fair 
review of the development and performance of the business and the position of the group and 
parent company, together with a description of the principal risks and uncertainties that it faces.
 
Directors’ liability insurance
The Company has entered into deeds of indemnity for the benefit of each Director of the Company 
in respect of liabilities to which they may become liable in their capacity as Director of the Company 
and of any Company in the Group. Those indemnities are qualifying third party indemnity provisions 
for the purposes of Section 234 of the Companies Act 2006 and have been in force during the whole 
of the financial year and up to the date of approval of the financial statements.
Independent auditors
PricewaterhouseCoopers LLP has expressed their willingness to continue in office as auditors and a 
resolution to reappoint them will be proposed at the forthcoming Annual General Meeting.  EKF Diagnostics Holdings plc | Annual Report 2016  21
2.0 Corporate Governance
Disclosure of information to the Auditors
The Directors who hold office at the date of approval of this report confirm that so far as they are 
each aware, there is no relevant audit information of which the Company’s auditors are unaware, and 
each Director has taken all the steps that they ought to have taken as a Director in order to make 
themselves aware of any relevant audit information and to establish that the Company’s auditors are 
aware of that information.
Corporate governance
The Company’s statement of corporate governance can be found in the Corporate Governance 
Statement on pages 22 and 23 of these financial statements. The Corporate Governance Statement 
forms part of this Report of the Directors and is incorporated into it by cross-reference.
Annual General Meeting
The resolutions to be proposed at the forthcoming Annual General Meeting are set out in the formal 
notice of the meeting, as set out on page 71.
Recommendation
The Board considers that the resolutions to be proposed at the Annual General Meeting are in the 
best interests of the Company and it is unanimously recommended that shareholders support these 
proposals as the Board intends to do in respect of their own holdings.
The report of the Directors was approved by the Board on 20 March 2017 and signed on its behalf by:
Richard Evans
Finance Director and Chief Operating Officer 22 Annual Report 2016  |  EKF Diagnostics Holdings plc
2.0 Corporate Governance
Corporate Governance Statement
for the year ended 31 December 2016
Compliance
The Directors recognise the value of the principles of the UK Corporate Governance Code (the Code). 
Although, as an AIM Company, compliance with the Code is not required, the Group seeks to apply the 
Code where practicable and appropriate for a business of its size.
The following statement describes how the Group as at 31 December 2016 sought to address the 
principles underlying the Code.
Board composition and responsibility
The Board currently comprises two Executive Directors and three Non-Executive Directors. During 
the year Ron Zwanziger stood down as Non-Executive Chairman and subsequently resigned as a 
Non-Executive Director, and David Evans and Lurene Joseph resigned as Non-Executive Directors, 
Christopher Mills was appointed Non-Executive Chairman, and Carl Contadini joined as Non-
Executive Director. The Board notes that the Combined Code guidance recommends that at least 
half the Board should comprise independent Non-Executive Directors. The Board has determined 
that Adam Reynolds is independent in character and judgement and that there are no relationships 
or circumstances which could materially affect or interfere with the exercise of his independent 
judgement. The Board considers that Christopher Mills and Carl Contadini do not meet the criteria to 
be considered independent because of their relationships with Harwood, NAIT, and Oryx. The Board is 
satisfied with the balance between Executive and Non-Executive Directors which allows it to exercise 
objectivity in decision making and proper control of the Company’s business. The Board considers its 
revised composition is appropriate in view of the size and requirements of the Group’s business and 
the need to maintain a practical balance between executives and non-executives. Due to the structure 
of the Company it is considered that it is not appropriate to make any further changes to the Board 
composition at present.
There is a division of responsibilities between the Non-Executive Chairman, who is responsible for the 
overall strategy of the Group and running the Board, and the CEO, who is responsible for implementing 
the strategy and day to day running of the Group. He is assisted by the Finance Director and Chief 
Operating Officer.
All Directors are subject to election by shareholders at the first Annual General Meeting after their 
appointment, and are subject to re-election at least every three years. Non-Executive Directors are 
appointed for a specific term of office which provides for their removal in certain circumstances, 
including under section 168 of the Companies Act 2006. The Board does not automatically re-nominate 
Non-Executive Directors for election by shareholders. The terms of appointment of the Non-Executive 
Directors can be obtained by request to the Company Secretary.
The Board’s primary objective is to focus on adding value to the assets of the Group by identifying 
and assessing business opportunities and ensuring that potential risks are identified, monitored and 
controlled. Matters reserved for Board decisions include strategic long-term objectives and capital 
structure of major transactions. The implementation of Board decisions and day to day operations of 
the Group are delegated to Management.
Board meetings
13 Board meetings were held during the year. The Directors’ attendance record during the year, along 
with the number of meetings held during their tenure is as follows:
Christopher Mills (Non-Executive Chairman) 6 (7)
Julian Baines (Chief Executive Officer) 13 (13)
Richard Evans (Chief Operating Officer and Finance Director) 13 (13)
Adam Reynolds (Non-Executive Director) 12 (13)
Carl Contadini (Non-Executive Director) 3 (3)
Ron Zwanziger (formerly Non-Executive Chairman) 5 (5)
David Evans (formerly Non-Executive Deputy Chairman) 7 (8)
Lurene Joseph (formerly Non-Executive Director) 6 (6)
Audit Committee
This comprises two Non-Executive Directors, Christopher Mills and Adam Reynolds (Chairman). Adam 
Reynolds is the Senior Independent Director and has recent and relevant finance experience. The 
principal duties of the committee are to review the half-yearly and annual financial statements before 
their submission to the Board and to consider any matters raised by the auditors.   EKF Diagnostics Holdings plc | Annual Report 2016  23
2.0 Corporate Governance
The Committee also reviews the independence and objectivity of the auditors. The terms of reference 
of the Committee reflect current best practice, including authority to:
• Recommend the appointment, re-appointment and removal of the external auditors;
• Ensure the objectivity and independence of the auditors including occasions when non-audit 
services are provided; and
• Ensure appropriate ‘whistle-blowing’ arrangements are in place.
The Non-Executive Directors may seek information from any employee of the Group and obtain external 
professional advice at the expense of the Company if considered necessary. Due to the relatively low 
number of personnel employed within the Group, the nature of the business and the current control and 
review systems in place, the Board has decided not to establish a separate internal audit department. 
The committee met once formally during 2016. There were no significant matters communicated to 
the Committee by the Auditors and no interaction with the Financial Reporting Council. During 2016 a 
tender process for the audit was completed,  as a result of which PricewaterhouseCoopers LLP were 
reappointed, subject to shareholder approval.
Remuneration Committee
The Company has established a formal and transparent procedure for developing policy on executive 
remuneration and for fixing the remuneration packages of individual Directors. No Director is involved 
in deciding his own remuneration.
The remuneration committee is made up of Christopher Mills (Chairman), and Adam Reynolds. 
The committee considers the employment and performance of individual Executive Directors and 
determines their terms of service and remuneration. It also has authority to grant options under the 
Company’s Executive Share Option Scheme.
The Committee met twice during 2016.
Board appointments
There is no formal Nominations Committee, the appointment of new Directors being considered by 
the full Board.
Internal control
The Directors are responsible for ensuring that the Group maintains a system of internal control to 
provide them with reasonable assurance regarding the reliability of financial information used within 
the business and for publication and that the assets are safeguarded. There are inherent limitations 
in any system of internal control and accordingly even the most effective system can provide only 
reasonable, but not absolute, assurance with respect to the preparation of financial reporting and the 
safeguarding of assets.
The Group, in administering its business, has put in place strict authorisation, approval and control 
levels within which senior management operates. These controls reflect the Group’s organisational 
structure and business objectives. The control system includes clear lines of accountability and covers 
all areas of the organisation. The Board operates procedures which include an appropriate control 
environment through the definition of the above organisation structure and authority levels and the 
identification of the major business risks.
The Group has continued its project to enhance and formalise its internal controls including the 
establishment of a Risk Steering Committee.
Internal financial reporting
The Directors are responsible for establishing and maintaining the Group’s system of internal reporting 
and as such have put in place a framework of controls to ensure that on-going financial performance is 
measured in a timely and correct manner and that risks are identified as early as is practicably possible. 
There is a comprehensive budgeting system and monthly management accounts are prepared which 
compare actual results against both the budget and the previous year. They are reviewed and approved 
by the Board, and revised forecasts are prepared on a regular basis. 24 Annual Report 2016  |  EKF Diagnostics Holdings plc
2.0 Corporate Governance
Relations with shareholders
The Company reports to shareholders twice a year. The Company dispatches the notice of its Annual 
General Meeting, together with a description of the items of special business, at least 21 clear days 
before the meeting. Each substantially separate issue is the subject of a separate resolution and all 
shareholders have the opportunity to put questions to the Board at the Annual General Meeting. The 
Chair(s) of the Audit and Remuneration Committees normally attend the Annual General Meeting and 
will answer questions which may be relevant to their work. The Chairman advises the meeting of the 
details of proxy votes cast on each of the individual resolutions after they have been voted on in the 
meeting.
The Chairman and the Non-Executive Directors intend to maintain a good and continuing understanding 
of the objectives and views of the shareholders.
Corporate social responsibility
The Board recognises that the Group has a duty to be a good corporate citizen and is conscious that its 
business processes minimise harm to the environment, that it contributes as far as is practicable to the 
local communities in which it operates and takes a responsible and positive approach to employment 
practices.
With effect from the financial year to 31 December 2016, the Group becomes subject to the requirements 
of the Modern Slavery Act 2015. The Group will publish the required statement on its website in due 
course.
The Corporate Governance Report was approved by the Board on 20 March 2017 and signed on its 
behalf by:
Richard Evans 
Finance Director and COO  EKF Diagnostics Holdings plc | Annual Report 2016  25
2.0 Corporate Governance
Statement of compliance
This report does not constitute a Directors’ Remuneration Report in accordance with the Directors’ 
Remuneration Regulations 2007 which do not apply to the Company as it is not fully listed. This report 
sets out the Group policy on Directors’ remuneration, including emoluments, benefits and other share-
based awards made to each Director.
Policy on Executive Directors’ remuneration
Remuneration packages are designed to motivate and retain Executive Directors to ensure the 
continued development of the Group and to reward them for enhancing value to shareholders. 
The main elements of the remuneration package for Executive Directors are basic salary or fees, 
performance-related bonuses, benefits and share option incentives.
Directors’ remuneration - Audited
The remuneration of the Directors for the year ended 31 December 2016 is shown below:
 
Salary 
and fees 
£’000
Pension 
£’000
Benefits 
in kind 
£’000
Bonus 
£’000
2016 
£’000
2015 
£’000
Executive Directors
Julian Baines 245 12 12 50 319 269
Richard Evans 190 6 24 50 270 201
Tito Bacarese-Hamilton
1
- - - - - 357
Paul Foulger
1
- - - - - 229
 435 18 36 100 589 1,056
Non-Executive Directors
Christopher Mills
2
- - - - - -
Carl Contadini
2
- - - - - -
Adam Reynolds
3
- - - - - 33
David Evans
4
- - - - - 42
Ron Zwanziger
5
- - - - - -
Lurene Joseph
5
6 - - - 6 -
David Toohey
1
- - - - - 28
Doris-Ann Williams
1
- - - - - 28
Kevin Wilson
1
- - - - - 27
6 - - - 6 158
Total fees and emoluments 441 18 36 100 595 1,214
1. 2015 remuneration for Tito Bacarese-Hamilton, Paul Foulger, David Toohey, Doris–Ann Williams,  
and Kevin Wilson is shown for the period until they ceased to be a director.
2. Remuneration for Christopher Mills and Carl Contadini is shown from their date of appointment.  
Both have waived any salary for the period.
3. Adam Reynolds has waived his salary for the period.
4. David Evans’ remuneration was paid through his personal consultancy, MBA Consultancy,  
and is shown until his resignation as a director. Mr Evans waived his salary during the period.
5. Ron Zwanziger and Lurene Joseph’s remuneration is shown up to the date of their resignation.  
Mr Zwanziger waived his salary during the period.
Report of the Remuneration Committee
for the year ended 31 December 2016 26 Annual Report 2016  |  EKF Diagnostics Holdings plc
2.0 Corporate Governance
Directors’ share options and Long-Term Incentive Plan
As at 31 December 2016 the following options to Directors of the Company existed under the 
Company’s unapproved share-option scheme and Long-Term Incentive Plan:
Option Holder
Option price per 
Ordinary Share
Number of Ordinary 
Shares under option Exercise period
Julian Baines 15p 5,127,383 1 January 2014 – 31 December 2020
Richard Evans 20p 4,260,000 1 January 2014 – 31 December 2020
4,272,819 options granted to Julian Baines and all the options of Richard Evans were subject to a 
condition relating to the achievement of an Earnings Before Interest, T ax, Depreciation and Amortisation 
(EBITDA) growth target which has been met, and the options have therefore vested. 854,564 options 
granted to Julian Baines were subject to a share price condition which has also been met, and have 
therefore vested.
On 2 June 2016 two Directors were granted a cash settled share-based incentive award. The awards 
vest if a controlling interest in the Company is acquired by a third party prior to 30 June 2019. In these 
circumstances a minimum amount of £0.5m is payable to each Director, which increases by reference 
to the sale price achieved. The fair value of this award has been calculated at £2,100,000 using a 
modified form of a Black Scholes model. The fair value has been spread over the assumed vesting 
period, with a charge of £753,000 recognised in 2016. The key assumptions used in the model are 
disclosed in Note 30.  EKF Diagnostics Holdings plc | Annual Report 2016  27
2.0 Corporate Governance
Report on the financial statements
Our opinion
In our opinion:
• EKF Diagnostics Holdings Plc’s group financial statements and parent company financial 
statements (the “financial statements”) give a true and fair view of the state of the group’s and of 
the parent company’s affairs as at 31 December 2016 and of the group’s profit and the group’s and 
the parent company’s cash flows for the year then ended;
• the group financial statements have been properly prepared in accordance with International 
Financial Reporting Standards (“IFRSs”) as adopted by the European Union;
• the parent company financial statements have been properly prepared in accordance with IFRSs 
as adopted by the European Union and as applied in accordance with the provisions of the 
Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies 
Act 2006.
What we have audited
The financial statements, included within the Annual Report comprise:
• the consolidated and company’s statements of financial position as at 31 December 2016;
• the consolidated income statement and consolidated statement of comprehensive income for the 
year then ended;
• the consolidated and company’s statements of cash flows for the year then ended;
• the consolidated and company’s statements of changes in equity for the year then ended; and
• the notes to the financial statements, which include a summary of significant accounting policies 
and other explanatory information.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the 
notes to the financial statements. These are cross-referenced from the financial statements and are 
identified as audited.
The financial reporting framework that has been applied in the preparation of the financial statements 
is IFRSs as adopted by the European Union and, as regards the parent company financial statements, 
as applied in accordance with the provisions of the Companies Act 2006, and applicable law.
In applying the financial reporting framework, the directors have made a number of subjective 
judgements, for example in respect of significant accounting estimates. In making such estimates, 
they have made assumptions and considered future events.
Opinions on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the Strategic Report and the Report of the Directors for the financial year 
for which the financial statements are prepared is consistent with the financial statements; and
• the Strategic Report and the Report of the Directors have been prepared in accordance with 
applicable legal requirements.
In addition, in light of the knowledge and understanding of the group, the parent company and their 
environment obtained in the course of the audit, we are required to report if we have identified any 
material misstatements in the Strategic Report and the Report of the Directors. We have nothing to 
report in this respect.
Other matters on which we are required to report by exception
Adequacy of accounting records and information and explanations received
Under the Companies Act 2006 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the company, or returns adequate for our 
audit have not been received from branches not visited by us; or
• the company financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Directors’ remuneration
Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures 
of directors’ remuneration specified by law are not made. We have no exceptions to report arising from 
this responsibility. 
Independent auditors’ report to the members of 
EKF Diagnostics Holdings plc 28 Annual Report 2016  |  EKF Diagnostics Holdings plc
2.0 Corporate Governance
Responsibilities for the financial statements and the audit
Our responsibilities and those of the directors
As explained more fully in the Statement of Directors’ responsibilities set out on page 20, the directors 
are responsible for the preparation of the financial statements and for being satisfied that they give a 
true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with 
applicable law and International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). Those 
standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for the parent company’s members 
as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other 
purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose 
or to any other person to whom this report is shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing.
What an audit of financial statements involves
We conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence 
about the amounts and disclosures in the financial statements sufficient to give reasonable assurance 
that the financial statements are free from material misstatement, whether caused by fraud or error. 
This includes an assessment of:
• whether the accounting policies are appropriate to the group’s and the parent company’s 
circumstances and have been consistently applied and adequately disclosed;
• the reasonableness of significant accounting estimates made by the directors; and
• the overall presentation of the financial statements.
We primarily focus our work in these areas by assessing the directors’ judgements against available 
evidence, forming our own judgements, and evaluating the disclosures in the financial statements.
We test and examine information, using sampling and other auditing techniques, to the extent we 
consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence 
through testing the effectiveness of controls, substantive procedures or a combination of both.
In addition, we read all the financial and non-financial information in the Annual Report to identify 
material inconsistencies with the audited financial statements and to identify any information that is 
apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us 
in the course of performing the audit. If we become aware of any apparent material misstatements or 
inconsistencies we consider the implications for our report. With respect to the Strategic Report and 
Report of Directors, we consider whether those reports include the disclosures required by applicable 
legal requirements. 
Jason Clarke (Senior Statutory Auditor) 
for and on behalf of PricewaterhouseCoopers LLP 
Chartered Accountants and Statutory Auditor 
Cardiff 
20 March 2017  EKF Diagnostics Holdings plc | Annual Report 2016  29
3.0 Financial Statements
Notes
2016
£’000
2015
£’000
Revenue 5 38,589 30,045
Cost of sales 6 (20,267) (15,376)
Gross profit 6 18,322 14,669
Administrative expenses 6 (18,734) (29,156)
Other income   85 139
Operating loss (327) (14,348)
Depreciation and amortisation 5 (4,961) (8,052)
Share-based payments (973) (226)
Exceptional items 7 (532) (5,722)
EBITDA before exceptional items and share-based payments 5 6,139 (348)
Finance income 12 37 35
Finance costs 12 (713) (1,457)
Loss before income tax (1,003) (15,770)
Income tax credit 13 1,172 2,206
Profit/(loss) for the year from continuing operations 169 (13,564)
Loss for the year from discontinued operations attributable  
to the equity holders of the Company
- (23,369)
Profit/(loss) for the year 169 (36,933)
Profit/(loss) attributable to:
Owners of the parent (18) (37,123)
Non-controlling interest 187 190
    169 (36,933)
Loss per Ordinary Share attributable to the  
owners of the parent during the year Pence Pence
Basic
From continuing operations 14 (0.00) (3.26)
From discontinued operations 14 - (5.54)
(0.00) (8.80)
Diluted
From continuing operations 14 (0.00) (3.26)
From discontinued operations 14 - (5.54)
(0.00) (8.80)
The notes on pages 35 to 70 are an integral part of these consolidated financial statements.
The Company has elected to take the exemption under section 408 of the Companies Act 2006  
not to present the Parent Company income statement.
The loss for the Parent Company for the year was £5,474,000 (2015: loss of £31,595,000).
Consolidated Income Statement 30 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
Notes
2016
£’000
2015
£’000
Profit/(loss) for the year – continuing 169 (13,564)
Loss for the year - discontinued - (23,369)
Profit/(loss) for the year 169 (36,933)
Other comprehensive income: 
Items that may be subsequently reclassified to profit or loss
Recycling of currency translations In respect of previously held interest 
In Selah Genomics
32 - (4,479)
Currency translation differences 9,343 792
Other comprehensive gain/(loss) for the year   9,343 (3,687)
Total comprehensive gain/(loss) for the year   9,512 (40,620)
Attributable to:
Owners of the parent 9,198 (40,756)
Non-controlling interests 314 136
Total comprehensive gain/(loss) for the year   9,512 (40,620)
Items stated above are disclosed net of tax. The income tax relating to each component of other 
comprehensive income is disclosed in note 13.
The Company has elected to take the exemption under section 408 of the Companies Act 2006 not 
to present the parent company income statement.
The notes on pages 35 to 70 are an integral part of these consolidated financial statements.
Consolidated Statement of Comprehensive Income  EKF Diagnostics Holdings plc | Annual Report 2016  31
3.0 Financial Statements
Notes
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Assets
Non-current assets 
Property, plant and equipment 16 12,124 10,680 1,510 1,547 
Intangible assets 17 46,503 42,927 538 - 
Investments in subsidiaries 18 - - 30,521 30,521 
Investments 20 152 402 152 402 
Trade and other receivables 22 - - 22,016 18,550 
Deferred tax assets 28 371 340 371 340 
Total non-current assets   59,150 54,349 55,108 51,360
Current assets
Inventories 23 6,025 8,234 - -
Trade and other receivables 22 9,370 7,242 6,350 14,549
Deferred tax assets 28 13 47 - -
Cash and cash equivalents 24 7,874 2,017 2,567 11
Total current assets   23,282 17,540 8,917 14,560
Total assets   82,432 71,889 64,025 65,920
Equity attributable to owners of the parent
Share capital 29 4,643 4,221 4,643 4,221
Share premium account 29 95,393 91,276 95,393 91,276
Other reserve 32 41 41 - -
Foreign currency reserves 32 5,609 (3,607) - -
Retained earnings 31 (45,236) (45,438) (45,673) (40,419)
60,450 46,493 54,363 55,078
Non-controlling interest   521 261 - -
Total equity   60,971 46,754 54,363 55,078
Liabilities
Non-current liabilities
Borrowings 26 1,130 1,167 - -
Deferred tax liabilities 28 3,751 3,559 - -
Total non-current liabilities   4,881 4,726 - -
Current liabilities
Trade and other payables 25 9,401 8,331 4,828 4,308
Deferred consideration 27 693 485 693 485
Current income tax liabilities 1,160 1,087 - -
Deferred tax liabilities 28 738 831 - -
Borrowings 26 4,588 9,675 4,141 6,049
Total current liabilities   16,580 20,409 9,662 10,842
Total liabilities   21,461 25,135 9,662 10,842
Total equity and liabilities   82,432 71,889 64,025 65,920
The notes on pages 35 to 70 are an integral part of these financial statements.
The financial statements were approved and authorised for issue by the Board on 20 March 2017
Julian Baines     Richard Evans 
Chief Executive Officer    Finance Director and Chief Operating Officer
EKF Diagnostics Holdings plc 
Registered no: 04347937
Consolidated and Company’s Statements  
of Financial Position 32 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
Notes
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Cash flow from operating activities
Cash generated by/(used in) operations 35 8,816 (2,914) 646 (5,970)
Interest paid (496) (370) (283) (143)
Income tax received/(paid) 623 (1,001) (13) (14)
Net cash generated by/(used in) operating activities   8,943 (4,285) 350 (6,127)
Of which discontinued - (2,412) - -
Cash flow from investing activities
Sale of investments 250 - 250 -
Purchase of property, plant and equipment (PPE) (1,261) (2,296) (27) (33)
Purchase of intangibles (663) (3,096) (56) -
Proceeds from sale of PPE 35 211 42 - -
Interest received 37 35 - -
Net cash (used in)/generated by investing activities   (1,426) (5,315) 167 (33)
Of which discontinued - (136) - -
Cash flow from financing activities
Proceeds from issuance of Ordinary Shares 29 4,539 - 4,539 -
New loans 5,957 7,922 3,500 6,206
Repayments on borrowings (12,555) (3,000) (6,000) (3,000)
Dividend payment to non-controlling interest (54) (228) - -
Payment of deferred consideration - (1,425) - (1,425)
Net cash (used in)/generated by financing activities   (2,113) 3,269 2,039 1,781
Of which discontinued - 2,426 - -
Net increase/(decrease) in cash and cash equivalents 5,404 (6,331) 2,556 (4,379)
Cash and cash equivalents at beginning of year 2,017 8,346 11 4,390
Exchange gains on cash and cash equivalents 453 2 - -
Cash and cash equivalents at end of year 24 7,874 2,017 2,567 11
Consolidated and Company’s Statements  
of Cash Flows  EKF Diagnostics Holdings plc | Annual Report 2016  33
3.0 Financial Statements
Consolidated
Share
capital
£’000
Share
premium
account
£’000
Other
reserve
£’000
Foreign
currency
reserve
£’000
Retained
earnings
£’000
Total
£’000
Non- 
controlling
interest
£’000
Total
equity
£’000
At 1 January 2015 4,221 91,276 41 26 (8,541) 87,023 353 87,376
Comprehensive income
(Loss)/profit for the year - continuing - - - - (13,754) (13,754) 190 (13,564)
(Loss)/profit for the year - discontinued - - - - (23,369) (23,369) - (23,369)
Other comprehensive income
Recycling of currency translations in 
respect of previously held interest in 
Selah Genomics Inc
- - - (4,479) - (4,479) - (4,479)
Currency translation  
differences
- - - 846 - 846 (54) 792
Total comprehensive  
income/(expense)
- - - (3,633) (37,123) (40,756) 136 (40,620)
Transactions with owners
Dividends to non- 
controlling interest
- - - - - - (228) (228)
Share-based payments - - - - 226 226 - 226
Total contributions by and 
distributions to owners
- - - - 226 226 (228) (2)
At 1 January 2016 4,221 91,276 41 (3,607) (45,438) 46,493 261 46,754
Comprehensive income
(Loss)/profit for the year - - - - (18) (18) 187 169
Other comprehensive income
Currency translation  
differences
- - - 9,216 - 9,216 127 9,343
Total comprehensive  
income/(expense)
- - - 9,216 (18) 9,198 314 9,512
Transactions with owners
Proceeds from shares issued 422 4,117 - - - 4,539 - 4,539
Dividends to non- 
controlling interest
- - - - - - (54) (54)
Share-based payments - - - - 220 220 - 220
Total contributions by and 
distributions to owners
422 4,117 - - 220 4,759 (54) 4,705
At 31 December 2016 4,643 95,393 41 5,609 (45,236) 60,450 521 60,971
Consolidated and Company’s Statements  
of Changes in Equity 34 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
Company
Share
capital
£’000
Share
premium
£’000
Retained
earnings
£’000
Total
£’000
At 1 January 2015 4,221 91,276 (9,050) 86,447
Comprehensive income
Loss for the year - - (31,595) (31,595)
Total comprehensive income/(expense) - - (31,595) (31,595)
Transactions with owners
Share-based payments - - 226 226
Total contributions by and distributions to owners - - 226 226
At 1 January 2016 4,221 91,276 (40,419) 55,078
Comprehensive income
Loss for the year - - (5,474) (5,474)
Total comprehensive income/(expense) - - (5,474) (5,474)
Transactions with owners
Proceeds from shares issued 422 4,117 - 4,539
Share-based payments - - 220 220
Total contributions by and distributions to owners 422 4,117 220 4,759
At 31 December 2016 4,643 95,393 (45,673) 54,363
for the year ended 31 December 2016
Consolidated and Company’s Statements  
of Changes in Equity continued  EKF Diagnostics Holdings plc | Annual Report 2016  35
3.0 Financial Statements
for the year ended 31 December 2016
1. General information
EKF Diagnostics Holdings Plc is a company incorporated and domiciled in the United Kingdom. The 
Company is a public limited company, which is listed on the AIM market of the London Stock Exchange. 
The address of the registered office is Avon House, 19 Stanwell Road, Penarth, Cardiff CF64 2EZ.
The principal activity of the Group is the development, manufacture and supply of products and 
services into the in-vitro diagnostic (IVD) market place. The Group discontinued its service based 
molecular diagnostics business in 2015. The Group has presence in the UK, USA, Germany, Poland, 
Russia, and China, and sells throughout the world including Europe, the Americas, Asia, and Africa.
The financial statements are presented in British Pounds Sterling, the currency of the primary economic 
environment in which the Company’s headquarters is operated. The Group comprises EKF Diagnostics 
Holdings plc and its subsidiary Companies as set out in note 18.
The registered number of the Company is 04347937.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are 
set out below. The policies have been consistently applied throughout the year, unless otherwise stated.
Basis of preparation
The consolidated financial statements of EKF Diagnostics Holdings plc have been prepared in 
accordance with International Financial Reporting Standards as adopted by the European Union 
(IFRS’s), IFRIC interpretations and the Companies Act 2006 applicable to companies reporting under 
IFRS. Practice is continuing to evolve on the application and interpretations of IFRS.
The consolidated financial statements have been prepared under the historical cost convention, as 
modified by the revaluation of certain financial liabilities at fair value through profit and loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical 
accounting estimates. It also requires management to exercise its judgement in the process of applying 
the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or 
areas where assumptions and estimates are significant to the consolidated financial statements are 
disclosed in note 4.
(a) New standards, amendments and interpretations adopted by the Group. 
The following standards have been adopted by the Group for the first time for the financial year 
beginning on or after 1 January 2016. They do not materially impact on the Group results:
• Annual improvements 2010 – 2012
• Annual improvements 2012 – 2014
• Amendment to IFRS 11, ‘Joint arrangements’ on acquisition of an interest in a joint operation
• Amendment to IAS 16, ‘Property, plant and equipment’ and IAS 38, ‘Intangible assets’, on 
depreciation and amortisation
• Amendments to IFRS 10 ‘Consolidated financial statements’ and IAS 28 ‘Investments in associates 
and joint ventures’
(b)  New standards, amendments and interpretations issued but not effective for the financial year 
beginning 1 January 2016 and not early adopted.
A number of new standards and amendments to standards and interpretations have been endorsed 
for annual periods beginning after 1 January 2017 (noted below), and have not been early adopted in 
preparing these consolidated financial statements.
• IFRS 15 Revenue from contracts with customers (effective for annual periods beginning on or after 
1 January 2018)
• IFRS 9 Financial instruments (effective for annual periods beginning on or after 1 January 2018)
None of these are expected to have a significant effect on the consolidated financial statements of the 
Group, however we are undertaking a review of the Group’s contracts with customers in preparation 
of the adoption of IFRS 15.
A number of new standards and amendments to standards and interpretations have been issued but 
are not yet endorsed for annual periods beginning after 1 January 2017 (noted below), and have not 
been adopted in preparing these consolidated financial statements.
• Annual improvements 2014-2016 cycle
• Amendment to IFRS 2, ‘Share based payments’ – classification and measurement of share based 
payment transactions
• Amendment to IFRS 7, ‘Statement of cash flows’ on disclosure initiative
Notes to the Financial Statements 36 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
• Amendment to IAS 12, ‘Income Taxes’ on recognition of deferred tax assets for unrealised losses
• Amendment to IFRS 10 and IAS 28 on sale of contribution of assets (postponed)
• IFRS 16, Leases
With the exception of IFRS 16, none of these amendments are expected to have a significant effect 
on the consolidated financial statements of the Group. To prepare for the adoption of IFRS 16 we are 
undertaking a review of the Group’s leasing arrangements.
Going concern
The Group meets its day-to-day working capital requirements through the use of cash reserves and 
existing bank facilities.
The Directors have considered the applicability of the going concern basis in the preparation of these 
financial statements. This included the review of internal budgets and financial results which show, 
taking into account reasonably probable changes in financial performance, that the Group should be 
able to operate within the level of its current funding arrangements.
During 2016, the convertible loan provided by the Zwanziger Family Trust in 2015 was repaid using 
a loan from the North Atlantic Smaller Companies Investment Trust plc (a company associated with 
Christopher Mills). This in turn was repaid using the proceeds of a fundraising in June 2016.
The restructuring and cost saving actions taken in late 2015 and early 2016 have allowed the Group to 
become cash generative in the second half of 2016.
The Directors believe that the Company and the Group have adequate resources to continue in 
operation for the foreseeable future. For this reason they have adopted the going concern basis in the 
preparation of the financial statements.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and its 
subsidiary undertakings. Subsidiaries are all entities over which the Group has the power to govern 
their financial and operating policies generally accompanying a shareholding of more than fifty 
per cent of the voting rights. The existence and effect of potential voting rights that are currently 
exercisable or convertible are considered when assessing whether the Group controls another entity. 
Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are 
de-consolidated from the date that control ceases.
The Group uses the acquisition method of accounting to account for business combinations. The 
consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, 
the liabilities incurred and the equity interests issued by the Group. The consideration transferred 
includes the fair value of any asset or liability resulting from a contingent consideration agreement. 
Acquisition related costs are expensed as incurred. Identifiable assets acquired and liabilities and 
contingent liabilities assumed in a business combination are measured initially at their fair values at 
the acquisition date. On an acquisition by acquisition basis, the Group recognises any non-controlling 
interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of 
the acquiree’s net assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree 
and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of 
the Group’s share of the identifiable net assets acquired is recorded as goodwill. If this is less than the 
fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference 
is recognised directly in the income statement.
Investments in subsidiaries are accounted for at cost less impairment.
Inter-Company transactions, balances and unrealised gains on transactions between Group companies 
are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been 
changed where necessary to ensure consistency with the policies adopted by the Group.
Foreign currency translation
(a) Functional and presentational currency
Items included in the financial statements of each of the Group’s entities are measured using the 
currency of the primary economic environment in which the entity operates (the functional currency). 
The consolidated financial statements are presented in British Pounds Sterling, which is the Company’s 
functional and presentational currency.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates 
prevailing at the dates of the transactions where items are re-measured. Foreign exchange gains 
and losses resulting from the settlement of such transactions and from the translation at year-end 
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in 
the income statement within ‘administrative expenses’.  EKF Diagnostics Holdings plc | Annual Report 2016  37
3.0 Financial Statements
(c) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyper- 
inflationary economy) that have a functional currency different from the presentational currency are 
translated into the presentational currency as follows:
• assets and liabilities for each balance sheet presented are translated at the closing rate at the date 
of that balance sheet;
• income and expenses for each income statement are translated at average exchange rates; and
• all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of the net investment in foreign 
operations are taken to other comprehensive income. When a foreign operation is partially disposed 
of or sold, exchange differences that were recorded in equity are recognised in the income statement 
as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets 
and liabilities of the foreign entity and translated at the closing rate.
Segmental reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the 
chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating 
resources and assessing performance of the operating segments, has been identified as the Executive 
Directors who make strategic decisions.
Government grants
Government grants receivable in connection with expenditure on property, plant and equipment 
are accounted for as deferred income, which is credited to the income statement over the expected 
useful economic life of the related assets, on a basis consistent with the depreciation policy. Revenue 
grants for the reimbursement of costs charged to the income statement are credited to the Income 
Statement in the year in which the costs are incurred.
Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation and any 
provision for impairment. Historical cost includes expenditure that is directly attributable to the 
acquisition of the asset and bringing the asset to its working condition for its intended use.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as 
appropriate, only where it is probable that future economic benefits associated with the asset will 
flow to the Group and the cost of the asset can be measured reliably. The carrying amount of the 
replaced part is derecognised. All other repairs and maintenance are charged to the income statement 
during the financial period in which they are incurred. Any borrowing costs associated with qualifying 
property, plant and equipment are capitalised and depreciated at the rate applicable to that asset 
category.
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method or 
reducing balances method to allocate their cost to its residual values over their estimated useful lives, 
as follows:
Buildings 2%–2.5%
Fixtures and fittings 20%–25%
Plant and machinery 20%–33.3%
Motor vehicles 25%
The assets’ residual values and useful economic lives are reviewed regularly, and adjusted if appropriate, 
at the end of each reporting period.
An asset’s carrying value is written down immediately to its recoverable amount if the asset’s carrying 
amount is greater than its estimated recoverable amount.
Gains and losses on the disposal of assets are determined by comparing the proceeds with the carrying 
amount and are recognised in administration expenses in the income statement.
Intangible assets
(a) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share 
of the net identifiable assets of the acquired subsidiary at the date of the acquisition. Goodwill on 
acquisitions of subsidiaries is included in ‘intangible assets’. Goodwill has an infinite useful life and is 
tested annually for impairment and carried at cost less accumulated impairment losses. Impairment  38 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
losses on goodwill are not reversed. Gains and losses on the disposal of an entity include the carrying 
amount of goodwill relating to the entity sold.
Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is 
made to those cash-generating units or groups of cash-generating units that are expected to benefit 
from the business combination in which the goodwill arose, identified according to operating segment.
(b) Trademarks, trade names and licences
Separately acquired trademarks and licences are shown at historical cost. Trademarks and licences 
acquired in a business combination are recognised at fair value at the acquisition date. Trademarks and 
licences have a finite useful life and are carried at cost less accumulated amortisation. Amortisation 
is calculated using the straight-line method to allocate the cost of trademarks and licences over their 
estimated useful lives of between 8 and 12 years and is charged to administrative expenses in the 
income statement.
(c) Customer relationships
Contractual customer relationships acquired in a business combination are recognised at fair value at 
the acquisition date. The contractual customer relationships have a finite useful life and are carried at 
cost less accumulated amortisation. Amortisation is calculated using the straight-line method over the 
expected life of the customer relationship of between 6 and 15 years and is charged to administrative 
expenses in the income statement.
(d) Trade secrets
Trade secrets, including technical know-how, operating procedures, methods and processes, acquired 
in a business combination are recognised at fair value at the acquisition date. Trade secrets have a 
finite useful life and are carried at cost less accumulated amortisation. Amortisation is calculated 
using the straight-line method to allocate the cost of trade secrets over their estimated useful lives of 
between 6 and 15 years and is charged to administrative expenses in the income statement.
(e) Development costs
Development costs acquired in a business combination are recognised at fair value at the acquisition 
date. Development costs have a finite useful life and are carried at cost less accumulated amortisation. 
Amortisation is calculated using the straight-line method over their estimated useful lives of 15 years 
and is charged to administrative expenses in the income statement.
Expenditure incurred on the development of new or substantially improved products or processes 
is capitalised, provided that the related project satisfies the criteria for capitalisation, including the 
project’s technical feasibility and likely commercial benefit. All other research and development costs 
are expensed as incurred.
Development costs are amortised over the estimated useful life of the products with which they are 
associated, currently 4 to 5 years. Amortisation commences when a new product is in commercial 
production. The amortisation is charged to administrative expenses in the income statement. The 
estimated remaining useful lives of development costs are reviewed at least on an annual basis.
The carrying value of capitalised development costs is reviewed for potential impairment at least 
annually and if a product becomes unviable and an impairment is identified the deferred development 
costs are immediately charged to the income statement.
(f) Non-compete agreements
Non-compete agreements arising from a business combination are recognised at fair value at the 
acquisition date. Non-compete agreements have a finite life and are carried at cost less accumulated 
amortisation. Amortisation is calculated using the straight-line method to allocate the cost of non-
compete agreements over their estimated useful lives of three years and is charged to administrative 
expenses in the income statement. 
Impairment of non-financial assets
Assets that have an indefinite life such as goodwill are not subject to amortisation and are tested 
annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever 
events or changes in circumstances indicate that the carrying amount may not be recoverable. An 
impairment loss is recognised for the amount by which the carrying amount exceeds its recoverable 
amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. In 
assessing value in use, the estimated future cash flows are discounted to their present value using a 
pre-tax discount rate that reflects current market assessments of the time value of money and the 
risks specific to the asset for which the estimates of future cash flows have not been adjusted.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are 
separately identifiable cash flows. Impairment losses recognised for cash-generating units, to which 
goodwill has been allocated, are credited initially to the carrying amount of goodwill. Any remaining 
impairment loss is charged pro rata to the other assets in the cash-generating unit.  EKF Diagnostics Holdings plc | Annual Report 2016  39
3.0 Financial Statements
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating 
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying 
amount does not exceed the carrying amount that would have been determined had no impairment loss 
been recognised for the asset (cash-generating unit) in the prior period. A reversal of an impairment 
loss is recognised in the income statement immediately. If goodwill is impaired however, no reversal of 
the impairment is recognised in the financial statements.
Investments
Investments where the Group does not have a controlling interest are initially recognised at cost. The 
carrying value is tested annually for impairment and an impairment loss is recognised for the amount 
by which the carrying amount exceeds its recoverable amount.
Financial assets
Classification
The Company classifies its financial assets in the following categories: loans and receivables and 
available-for-sale financial assets. The classification depends on the purpose for which the financial 
assets were acquired and management determines the classification of its financial assets at initial 
recognition.
(a) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that 
are not quoted in an active market. They are included in current assets, except for maturities greater 
than 12 months after the balance sheet date. These are classified as non-current assets. The Company’s 
loans and receivables comprise ‘trade and other receivables’ and cash and cash equivalents in the 
balance sheet.
(b) Available-for-sale financial assets
Available-for-sale assets are non-derivatives that are either designated in this category or not classified 
as loans and receivables. They are included in non-current assets unless the investment matures or 
management intends to dispose of it within 12 months of the end of the reporting period.
Recognition and measurement
Regular purchases and sales of financial assets are recognised on the trade date – the date on 
which the Company commits to purchase the asset. Assets are initially recognised at fair value plus 
transaction costs. Financial assets are derecognised when the risk and rewards of ownership have 
been transferred.
Loans and receivables are subsequently carried at amortised cost using the effective interest rate 
method.
Available-for-sale financial assets are subsequently carried at fair value. Gains and losses arising from 
changes in fair value are recognised in other comprehensive income until the asset is disposed at 
which time the cumulative gain or loss previously recognised in equity is included in the consolidated 
income statement for the period. If an available-for-sale investment is determined to be impaired, the 
cumulative loss previously recognised in equity is included in the income statement for the period.
Inventories
Inventories and work in progress are stated at the lower of cost and net realisable value. Cost is 
calculated on a first in and first out basis and includes raw materials, direct labour, other direct costs and 
attributable production overheads, where appropriate. Net realisable value represents the estimated 
selling price less all estimated costs of completion and applicable selling costs. Where necessary, 
provision is made for slow-moving and obsolete inventory. Inventory on consignment and their related 
obligations are recognised in current assets and payables respectively.
Trade and other receivables
Trade receivables are initially recognised at fair value, being the original invoice amount, and 
subsequently measured at amortised cost less provision for impairment. A provision for impairment is 
established when there is objective evidence that the Group will not be able to collect all amounts due 
according to the original terms of the receivable. Trade receivables that are less than three months past 
due are not considered impaired unless there are specific financial or commercial reasons that lead 
management to conclude that the customer will default. Older debts are considered to be impaired 
unless there is sufficient evidence to the contrary that they will be settled. The amount of the provision 
is the difference between the asset’s carrying value and the present value of the estimated future cash 
flows. The carrying amount of the asset is reduced through the use of an allowance account, and the 
amount of the loss is recognised in the income statement within administrative expenses. When a trade 
receivable is uncollectible it is written off against the allowance account. Subsequent recoveries of 
amounts previously written off are credited against administrative expenses in the income statement. 40 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
Cash and cash equivalents
Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term 
deposits with an original maturity of less than three months, reduced by overdrafts to the extent that 
there is a right of offset against other cash balances.
For the purposes of the consolidated cash flow statement, cash and cash equivalents consist of cash 
and short-term deposits as defined above net of outstanding bank overdrafts where there is a right 
of offset.
Share capital
Ordinary Shares are classified as equity. Proceeds in excess of the nominal value of shares issued are 
allocated to the share premium account and are also classified as equity. Incremental costs directly 
attributable to the issue of new Ordinary Shares or options are deducted from the share premium 
account.
Financial liabilities
Debt is measured at fair value, being net proceeds after deduction of directly attributable issue costs, 
with subsequent measurement at amortised cost with the exception of deferred equity consideration 
which is categorised as a financial liability at fair value through profit and loss. Debt issue costs are 
recognised in the income statement over the expected term of such instruments at a constant rate on 
the carrying amount.
Trade and other payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary 
course of business from suppliers. Accounts payable are classified as current liabilities if payment 
is due within one year or less (or in the normal operating cycle of the business if longer). If not, 
they are presented as non-current liabilities. Trade payables are recognised initially at fair value and 
subsequently measured at amortised cost using the effective interest method.
Borrowings
Borrowings are recognised initially at the fair value of proceeds received, net of transaction costs 
incurred. Borrowings are subsequently carried at amortised cost. Borrowings are classified as current 
liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 
months after the balance sheet date.
Borrowing costs are expensed in the consolidated Group income statement under the heading ‘finance 
costs’. Arrangement and facility fees together with bank charges are charged to the income statement 
under the heading ‘administrative expenses’.
Current and deferred income tax
The tax expense comprises current and deferred tax. Tax is recognised in the income statement, 
except to the extent that it relates to items recognised in other comprehensive income where the 
associated tax is also recognised in other comprehensive income.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively 
enacted at the balance sheet date in the countries where the Company and its subsidiaries operate 
and generate taxable income. Management evaluates positions taken in tax returns with respect to 
situations in which applicable tax regulation is subject to interpretation and establishes provisions 
where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred tax is recognised, using the liability method, on all temporary differences at the balance sheet 
date between the tax bases of assets and liabilities and their carrying amounts for financial reporting 
purposes. Deferred tax liabilities are recognised in respect of all temporary differences except where 
the deferred tax liability arises from the initial recognition of goodwill in business combinations.
Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused 
tax assets and tax losses, to the extent that they are regarded as recoverable. They are regarded as 
recoverable where, on the basis of available evidence, there will be sufficient taxable profits against 
which the future reversal of the underlying temporary differences can be deducted.
The carrying value of the amount of deferred tax assets is reviewed at each balance sheet date and 
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to 
allow all, or part, of the tax asset to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year 
when the asset is realised or the liability is settled, based on the tax rates (and tax laws) that have been 
substantively enacted at the balance sheet date.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset 
current tax assets against current tax liabilities and when the deferred income tax assets and liabilities 
relate to income taxes levied by the same taxation authority on either the taxable entity or different 
taxable entities where there is an intention to settle the balances on a net basis.  EKF Diagnostics Holdings plc | Annual Report 2016  41
3.0 Financial Statements
Provisions
Provisions for legal claims are recognised when the Group has a present legal or constructive obligation 
as a result of a past event and it is probable that an outflow of resources will be required to settle the 
obligation and the amount can be reliably measured.
Leases
Leases which transfer substantially all the risks and rewards of ownership of an asset are treated as 
a finance lease. Assets held under finance leases are capitalised at their fair value at the inception 
of the lease and depreciated over the estimated useful economic life of the asset or lease term if 
shorter. The finance charges are allocated to the income statement in proportion to the capital amount 
outstanding.
All other leases are classified as operating leases. Operating lease rentals are charged to the income 
statement in equal annual amounts over the lease term.
Deferred consideration
Deferred consideration is recognised at fair value. Where the value of deferred consideration is based 
on a future event, management estimate the likelihood of the consideration becoming payable. 
Deferred consideration is discounted to take account of the time value of money at rates based on 
those used for the valuation of related intangible assets. 
Employee benefits
(a) Pension obligations
Group companies operate various pension schemes all of which are defined contribution plans. A 
defined contribution plan is a pension plan under which the Group pays fixed contributions into a 
separate entity with the pension cost charged to the income statement as incurred. The Group has no 
further obligations once the contributions have been paid.
The Group no longer has any defined benefit schemes.
(b) Share-based compensation
The Group operates a number of equity-settled, share-based compensation plans, under which the 
Group receives services from employees and others as consideration for equity instruments of the 
Group. Equity-settled share-based payments are measured at fair value at the date of grant and are 
expensed over the vesting period based on the number of instruments that are expected to vest. For 
plans where vesting conditions are based on share price targets, the fair value at the date of grant 
reflects these conditions. Where applicable the Group recognises the impact of revisions to original 
estimates in the income statement, with a corresponding adjustment to equity for equity-settled 
schemes. Fair values are measured using appropriate valuation models, taking into account the terms 
and conditions of the awards.
When the share-based payment awards are exercised, the Company issues new shares. The proceeds 
received net of any directly attributable transaction costs are credited to share capital (nominal value) 
and share premium.
The Group operates a cash-settled compensation plan for certain senior employees. Cash-settled 
share-based payments are measured at fair value at the date of grant and are expensed over the 
expected vesting period. The fair value amount is recognised in liabilities.
National insurance on share options
To the extent that the share price at the balance sheet date is greater than the exercise price on 
options granted under unapproved share-based payment compensation schemes, provision for any 
National Insurance Contributions has been based on the prevailing rate of National Insurance. The 
provision is accrued over the performance period attaching to the award.
Revenue recognition
(a) Sale of goods
Revenue for the sale of medical diagnostic instruments and reagents is measured at the fair value of 
the consideration received or receivable and represents the invoiced value for the sale of the goods 
net of sales taxes, rebates and discounts. Revenue from the sale of goods is recognised when a Group 
Company has delivered products to the customer, the customer has accepted delivery of the products 
and collectability of the related receivables is reasonably assured.
(b) Sale of services
Revenue for the sale of services is measured at the fair value of the consideration received or receivable 
and represents the invoiced value for the sale of the services net of sales taxes, rebates and discounts. 
Revenue from the sale of services is recognised when a Group Company has completed the services 
and collectability of the related receivables is reasonably assured. 42 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
(c) Interest income
Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective 
interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through 
the expected life of the financial asset to that asset’s net carrying amount.
(d) Royalty and licence income
Royalty and licence income is recognised on an accruals basis in accordance with the substance of 
the relevant agreements.
Dividend distribution
Dividend distributions to the Company’s shareholders are recognised as a liability in the Group’s 
financial statements in the period in which the dividends are approved by the Company’s shareholders. 
Interim dividends are recognised when paid.
Other income
Other income includes grant income and R & D tax credits passed through income where this is 
permitted by the relevant jurisdiction.
Exceptional items
These are items of an unusual or non-recurring nature incurred by the Group and include transactional 
costs and one off items relating to business combinations, such as acquisition expenses.
3. Financial risk management
Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (foreign exchange risk and 
cash flow interest rate risk), credit risk, liquidity risk, capital risk and fair value risk. The Group’s overall 
risk management programme focuses on the unpredictability of the financial markets and seeks to 
minimise the potential adverse effects on the Group’s financial performance. The Group does not use 
derivative financial instruments to hedge risk exposures.
Risk management is carried out by the head office finance team. It evaluates and mitigates financial risks 
in close co-operation with the Group’s operating units. The Board provides principles for overall risk 
management whilst the head office finance team provides specific policy guidance for the operating 
units in terms of managing foreign exchange risk, credit risk and cash and liquidity management.
(a) Market risk
(i) Foreign exchange – cash flow risk
The Group’s presentational currency is sterling although it operates internationally and is exposed to 
foreign exchange risk arising from various currency exposures, primarily between GBP, USD, the Euro, 
Rouble, and Zloty such that the Group’s cash flows are affected by fluctuations in the rate of exchange 
between GBP and the aforementioned foreign currencies.
This exposure is managed by a natural currency hedge as the Group’s operating subsidiaries cost base 
is also denominated in USDs, Euros, Roubles, and Zloty as the Group has subsidiary businesses located 
in the USA, Germany, Russia, and Poland.
Management do not use derivative financial instruments to mitigate the impact of any residual foreign 
currency exposure not mitigated by the natural hedge within the business model. The Group does not 
speculate in foreign currencies and no operating Company is permitted to take unmatched positions 
in any foreign currency.
(ii) Foreign exchange – Fair value risk
Translation exposures that arise on converting the results of overseas subsidiaries are not hedged. Net 
assets held in foreign currencies are hedged wherever practical by matching borrowings in the same 
currency. The principal exchange rates used by the Group in translating overseas profits and net assets 
into GBP are set out in the table below.
Rate compared to GBP
Average
rate
2016
Average
rate
2015
Year end
rate
2016
Year end
rate
2015
Euro 1.229 1.376 1.170 1.359
Russian Rouble 90.826 94.362 75.550 108.480
Polish Zloty 5.365 5.766 5.193 5.808
US Dollar 1.356 1.528 1.233 1.476  EKF Diagnostics Holdings plc | Annual Report 2016  43
3.0 Financial Statements
As a guide to the sensitivity of the Group’s results to movements in foreign currency exchange rates, 
a one cent movement in the Euro and US Dollars to Sterling rate would impact annual earnings by 
approximately £8,000 and £50,000 respectively.
(iii) Cash flow and fair value interest rate risk
The Group has interest-bearing assets in the form of cash and cash equivalents and interest-bearing 
liabilities which relate to borrowings and finance lease obligations in the Group’s UK, US and German 
subsidiaries. Interest rates on cash and cash equivalents are floating whilst interest rates on certain 
borrowings have been fixed and therefore expose the Group to fair value interest rate risk. The Group 
does not speculate on future changes in interest rates.
Where overseas acquisitions are made, it is the Group’s policy to arrange any borrowings required in 
local currency.
It is the Group’s policy not to trade in financial instruments. The Group does not use interest rate 
swaps.
(b) Credit risk
Credit risk is managed on a Group basis, except for credit risk relating to accounts receivable balances. 
Each local subsidiary and operating business unit is responsible for managing and analysing the credit 
risk for each of their new clients before standard payment and delivery terms and conditions are 
offered. It is the Group policy to obtain deposits from customers where possible, particularly overseas 
customers. In addition if possible the Group will seek confirmed letters of credit for the balances due. 
Credit risk is managed at the operating business unit level and monitored at the Group level to ensure 
adherence to Group policies. If there is no independent rating, local management assesses the credit 
quality of the customer, taking into account its financial position, past experience and other factors. 
Individual risk limits are set based on internal or external ratings in accordance with limits set by the 
Board. The utilisation of credit limits is regularly monitored. Where extended credit is granted, this is 
agreed by the Finance Director.
Credit risk also arises from cash and cash equivalents, derivative financial instruments and deposits 
with banks and financial institutions, as well as credit exposures to customers.
(c) Liquidity risk
Cash flow forecasting is performed in the individual operating entities of the Group and is aggregated 
by Group finance. Group finance monitors cash and cash flow forecasts and it is the Group’s liquidity 
risk management policy to maintain sufficient cash and available funding through an adequate amount 
of cash and cash equivalents and committed credit facilities from its bankers. Due to the dynamic 
nature of the underlying businesses, the head office finance team aims to maintain flexibility in funding 
by keeping sufficient cash and cash equivalents available to fund the requirements of the Group.
The Group’s policy in relation to the finance of its overseas operations requires that sufficient liquid 
funds be maintained in each of its territory subsidiaries to support short and medium-term operational 
plans. Where necessary, short-term funding is provided by the holding company. In the UK, the working 
capital bank facility and the management of liquid funds in excess of operational needs are controlled 
centrally. Typically excess funds are placed as short-term deposits, to provide a balance between 
interest earnings and flexibility.
The table below analyses the Group’s non-derivative financial liabilities into relevant maturity 
groupings based on the remaining period at the balance sheet date to the contractual maturity date. 
The amounts disclosed in the table are the contractual undiscounted cash flows. 
Less than
one year
£’000
Between
1 and 2 
years
£’000
Between
2 and 5 
years
£’000
More than 
5 years
£’000
Total
£’000
At 31 December 2016:
Borrowings (inc. finance leases) 4,750 221 664 347 5,982
Deferred consideration 693 - - - 693
Trade and other payables 9,300 - - - 9,300
At 31 December 2015:
Borrowings (inc. finance leases) 9,917 431 573 234 11,155
Deferred consideration 485 - - - 485
Trade and other payables 8,028 - - - 8,028 44 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
(d) Capital risk management
The Group’s objectives when managing capital are to safeguard the ability to continue as a going 
concern in order to provide returns for shareholders and benefits for other stakeholders and to 
maintain an optimal capital structure to reduce the cost of capital.
The Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt 
divided by total capital. Net debt is calculated as total borrowings (including “current and non-current 
borrowings” as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital 
is the sum of net debt plus equity.
(e) Fair value estimation
The Group has no Level 1, 2 or 3 classified financial assets as at 31 December 2016 (2015: none).
4. Critical accounting estimates and judgements
In the process of applying the Group’s accounting policies, management has made accounting 
judgements in the determination of the carrying value of certain assets and liabilities. Due to the 
inherent uncertainty involved in making assumptions and estimates, actual outcomes will differ from 
those assumptions and estimates. The following judgements have the most significant effect on the 
amounts recognised in the financial statements.
(a) Going concern
The Directors believe that the Group has adequate resources to conduct normal business for the 
foreseeable future and as a result the Group continues to adopt the going concern basis of preparation 
for its consolidated financial statements.
In order to reach this conclusion, the Directors have prepared month-by-month forecasts for the 
period to 31 December 2018. These forecasts are based on estimates for sales, profitability, capital 
expenditure and other balance sheet items which the Directors consider to be reasonable. Working 
capital estimates assume that inventory levels continue to reduce during the period as a proportion 
of sales. The Directors have applied sensitivities to these forecasts to model the effect of lower sales.
(b) Legal disputes
A dispute has arisen between EKF-diagnostic GmbH and a distributor involving disputed invoices 
from the distributor, relating mainly to the period prior to the acquisition of the company by the Group. 
The dispute is not covered by any outstanding warranty from the former owner. Earlier litigation in the 
UK has been settled in EKF’s favour. Having taken legal advice the Directors believe that no provision 
is required in relation to this dispute.
A dispute has arisen with a second distributor in relation to issues with the registration of a product, 
for which the distributor is claiming damages. EKF contend that the registration was the distributor’s 
responsibility and that in any case there is no liability for damages. The dispute is likely to go to 
mediation in the UK. 
(c) Impairment of goodwill
The Group tests annually whether goodwill has suffered any impairment, in accordance with the 
accounting policy stated in note 2. The recoverable amounts of cash-generating units have been 
determined based on value-in-use calculations. These calculations require the use of estimates as set 
out in note 17.
(d) Share-based payments
A number of accounting estimates and judgements are incorporated within the calculation of the 
charge to the income statement in respect of share-based payments. These are described in more 
detail in note 30.
(e) Impairment of receivables
Trade and other receivables are carried at the contractual amount due less any estimated provision 
for non-recovery. Provision is made based on a number of factors including the age of the receivable, 
previous collection experience and the financial circumstances of the counterparty. Trade receivables 
with a gross value of £5.1m are considered to have no value, and were impaired in full in 2015 and 
written off in 2016.
(f) Deferred tax assets
Deferred tax assets are only recognised to the extent that it is probable that future taxable profits will 
be available against which deductible temporary differences can be utilised. A deferred tax asset in 
respect of tax losses relating to the Company has not been recognised as insufficient future taxable 
profit in the Company is currently forecast. The carrying amount of deferred tax assets at the balance 
sheet date was £384,000 (2015: £387,000). In addition there were £6,374,000 (2015: £2,532,000) of 
deferred tax assets not recognised, primarily relating to the UK Companies.   EKF Diagnostics Holdings plc | Annual Report 2016  45
3.0 Financial Statements
(g) Tax warranties
The Group has been assessed for and has paid taxation in Germany relating to the periods prior 
to acquisition by the Group. Under the warranties contained in the acquisition agreement EKF has 
withheld payment of part of the deferred consideration. The warranty claim effect which reduced in 
prior periods as a result of reduction in the Company’s share price, has increased during the current 
year. The increase of the potential claim is included within administration costs and has been disclosed 
as an exceptional item. The determination of the related warranty claim, is based on management 
judgement.
(h) Impairment of aged inventories
Inventories are carried at the lower of cost and net realisable value (NRV), less any estimated provision 
for impairment. When calculating the inventory provision management considers the nature and 
condition of inventory as well as applying assumptions around anticipated saleability of finished 
instruments and consumables, and future usage of raw materials. Further details are given in Note 23.
5. Segmental reporting
Management has determined the Group’s operating segments based on the monthly management 
reports presented to the Chief Operating Decision Maker (‘CODM’). The CODM is the Executive 
Directors and the monthly management reports are used by the Group to make strategic decisions 
and allocate resources.
The principal activity of the Group is the design, development, manufacture and selling of diagnostic 
instruments, reagents and certain ancillary products. This activity takes place across various countries, 
such as the USA, Germany, Poland, Russia, and the United Kingdom, and as such the Board considers 
the business primarily from a geographic perspective. Although not all the segments meet the 
quantitative thresholds required by IFRS 8, management has concluded that all segments should be 
maintained and reported, given potential future growth of the segments. The new matrix structure for 
revenue based partly on disease states introduced in 2015 has been discontinued and this structure 
has not therefore been reflected in the segmental analysis.
The reportable segments derive their revenue primarily from the manufacture and sale of medical 
diagnostic equipment. Other services include the servicing and distribution of third party company 
products under separate distribution agreements.
Currently the key operating performance measures used by the CODM are Revenue and adjusted 
EBITDA. 46 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
5. Segmental reporting continued
The segment information provided to the Board for the reportable segments for the year ended 31 December 2016 
is as follows:
2016
Germany
£’000
USA
£’000
Poland
£’000
Russia
£’000
Other
£’000
Total
£’000
Income statement
Revenue 17 ,83 5                   21,199   1,582                2,6 77              33                43,326         
Inter-segment (4,683)              1         (33)                -              (22)                (4, 7 3 7)         
External revenue 13, 15 2              21,200         1,54 9                2,6 77              11                38,58 9         
Adjusted EBITDA* 3, 0 7 4              6, 136         908                5 99              (4,5 7 8)                6, 13 9         
*Exceptional items (Note 7) (28)              (5 25)         -                -              21                (5 32)         
*Share-based payment (Note 30) -              -         -                -              (9 7 3)                (9 7 3)         
EBITDA 3, 046              5,6 11         908                5 99              (5,5 30)                4,6 34         
Depreciation (6 7 8)              (405)         (33)                (2 7)              (66)                (1,209)         
Amortisation (2, 06 3)              (1,519)         (6 1)                (29)              (80)                (3, 7 5 2)         
Operating profit/(loss) 305              3,68 7         814                543              (5,6 7 6)                (32 7)         
Net finance costs (4 7)              (155)         6                29              (509)                (6 7 6)         
Income tax 225              1,2 45         (15 7)                (126)              (15)                1, 17 2         
Retained profit/(loss) 483              4, 777         66 3                446              (6,200)                16 9         
Segment assets
Operating assets 43, 199              30,170 1,504  623 37,570 113,066 
Inter-segment assets (125)               (3,870) (528)  -  (33,985) (38,508)
External operating assets 43, 0 7 4              26,300  976  623 3,585 74,558 
Cash 1,80 3               2,192  229  959 2,691  7,874 
Total assets 44,8 77              28,492  1,205  1,582 6,276 82,432
Segment liabilities
Operating liabilities 17 ,2 77              27,463 82 137 9,290 54,249
Inter-segment liabilities (10 ,4 90)              (22,082) -  - (5,934) (38,506)
External operating liabilities 6 , 787              5,381 82 137 3,356 15,743 
Borrowings 1, 191              195 - - 4,332  5,718 
Total liabilities 7 ,978              5,576 82 137 7,688 21,461 
Other segmental information
Non-current assets – PPE 5,8 98              4,5 38         106                7 1              1,511                12, 12 4         
Non-current assets – Intangibles 29 ,3 51              15,555         329                151              1, 117                46,50 3         
PPE - additions 1,058 169 - 7 27 1,261
Intangible assets – additions 285              308         -                -              70                66 3         
* Adjusted EBITDA excludes exceptional items and share-based payments.  EKF Diagnostics Holdings plc | Annual Report 2016  47
3.0 Financial Statements
5. Segmental reporting continued
2015
Germany
£’000
US
£’000
Poland
£’000
Russia
£’000
Discont
£’000. 
Other
£’000
Total
£’000
Income statement
Revenue 15,106 16,399 1,228 2,243 - 93 35,069 
Inter-segment (4,904) (40) (20) - -  (60) (5,024)
External revenue 10,202 16,359 1,208 2,243 - 33 30,045 
Adjusted EBITDA* 1,234 2,879          544         598 - (5,603)      (348)
Exceptional items (Note 7) (351) (2,413) - - - (2,958) (5,722) 
Share based payments (Note 30) - - - - - (226) (226) 
EBITDA   883       466            544          598     -     (8,787)      (6,296)
Depreciation (586) (367) (32) (20) -  (168) (1,173)
Amortisation (1,855) (2,378) (102) (20) -  (2,524) (6,879)
Operating profit/(loss)     (1,558)       (2,279)           410            558       -      (11,479)     (14,348)
Net finance costs (95) (124) 10 12 -  (1,225) (1,422)
Income tax 1,209 574  (70) (113) -              606 2,206 
Discontinued operations - - - - (23,369) - (23,369)
Retained profit/(loss)    (444)      (1,829)           350          457     (23,369)  (12,098)  (36,933)
Segment assets
Operating assets 43,419 43,472 1,250 470 - 44,700 133,311
Inter-segment assets (455) (19) (446) (4) -  (62,515) (63,439)
External operating assets 42,964 43,453 804 466 -  (17,815) 69,872 
Cash 1,283 83 154   398 - 99 2,017 
Total assets     44,247     43,536          958          864          -    (17,716)      71,889 
Segment liabilities
Operating liabilities 13,723 18,401 96 91 - 23,231 55,542 
Inter-segment liabilities (9,348) (16,053) -  (4) -  (15,844) (41,249)
External operating liabilities 4,375 2,348  96  87 - 7,387 14,293 
Borrowings 2,540 2,070  -  1 - 6,231 10,842 
Total liabilities 6,915 4,418 96  88 - 13,618 25,135 
                                                            - 
Other segmental information
Non-current assets – PPE 5,043 4,066 127 8 - 1,376 10,680 
Non-current assets – Intangibles 26,828 13,978 348 125 - 1,648 42,927 
PPE- additions 1,768 427 2 41 - 58 2,296
Intangible assets – additions 1,225 576 - - - 1,295 3,096
*Adjusted EBITDA excludes exceptional items and share-based payments. 
*‘Other’ primarily relates to the holding company and head office costs. 48 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
5. Segmental reporting continued
Disclosure of Group revenues by geographic location of customer is as follows:
2016
£’000
2015
£’000
Americas
United States of America 15,122 10,857
Rest of Americas 3,979 3,394
Europe, Middle East and Africa (EMEA)
Germany 6,082 5,057
United Kingdom 276 238
Rest of Europe 2,761 2,637
Russia 2,687 2,259
Middle East 2,870 1,676
Africa 882 916
Rest of World
China 929 677
Rest of Asia 2,922 2,242
New Zealand/Australia 79 92
Total revenue 38,589 30,045
No single external customer represented more than 10% of revenues in either 2016 or 2015.
6. Expenses – analysis by nature
2016
£’000
2015
£’000
Inventories consumed in cost of sales 11,388 6,856 
Employee benefit expense (note 10) 14,636 20,127 
Employee costs capitalised as intangible assets (267) (837)
Depreciation and amortisation 4,961 8,052 
Transaction costs relating to business combinations (note 7) - 178 
Exceptional items 532 5,722
Research and development expenses 2,039 2,346
Foreign exchange 481 432 
Operating lease payments 477 1,263
Other expenses 4,754 393
Total cost of sales and administrative expenses 39,001 44,532
Included within the above expenses are exceptional items as set out in note 7.  EKF Diagnostics Holdings plc | Annual Report 2016  49
3.0 Financial Statements
7. Exceptional items
Included within administrative expenses are exceptional items as shown below:
Note
2016
£’000
2015
£’000
Warranty claim a 129 (349)
Business reorganisation costs b (661) (727)
Transaction costs relating to business combinations c - (178)
Impairment charges – other d - (5,948)
Release of deferred consideration provisions e - 7,353
Impairment of investment f - (750)
Bad debts written off g - (5,123)
Exceptional items   (532) (5,722)
a. Estimated warranty claim in relation to the acquisition of EKF-diagnostic GmbH increased because  
of higher share price. 
b. Restructuring costs, mainly redundancy and notice costs, associated with the closure of STI and 
DiaSpect’s Sailauf facility, the transfer of production of Quo-Test and Quo-Lab to Germany, and other 
restructuring activities.
c. Transaction costs in 2015 relate to additional costs of acquisition in the previous year.
d. Impairment of EKF Molecular Diagnostics Ltd, and the remaining value of EKF Ireland and  
capitalised R & D.
e. Reduction of carrying value of deferred contingent consideration associated with EKF Molecular  
and Stanbio.
f. Impairment of investment in DX Economix Inc.
g. Write off of bad debts associated with certain customers in Mexico.
8. Auditor remuneration
During the year the Group (including its overseas subsidiaries) obtained the following services from 
the Company’s auditor and its associates:
 
2016
£’000
2015
£’000
Fees payable to Company’s auditor and its associates for the audit of the parent  
Company and consolidated financial statements
28 38
Fees payable to the Company’s auditor and its associates for other services:
– The audit of Company’s subsidiaries 64 87
– Other services 19 32
– Tax compliance services 11 13
  122 170
9. Directors’ emoluments
 
2016
£’000
2015
£’000
Aggregate emoluments 577 1,179
Contribution to defined contribution pension scheme 18 35
595 1,214
Retirement benefits are accruing to 2 (2015: 4) current directors under a defined contribution scheme.
See further disclosures within the Remuneration Report on page 25. 50 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
10. Employee benefit expense
 
2016
£’000
2015
£’000
Wages and salaries 11,681 16,920
Social security costs 1,763 2,663
Share based payments granted to Directors and senior management (Note 30) 973 226
Pension costs – defined contribution plans (Note 33) 219 318
  14,636 20,127
Employee costs of £0.3m (2015: £0.8m) have been capitalised as part of development costs.
11. Monthly average number of people employed
 
2016
Number
2015
Number
Monthly average number of people (including Executive Directors) employed was:
Administration 56 80
Research and development 16 35
Sales and marketing 63 87
Manufacturing, production and after sales 173 195
  308 397
The total number of employees at 31 December 2016 was 299 (2015: 365).
12. Finance income and costs
2016
£’000
2015
£’000
Finance costs:
– Bank borrowings
338 312
– Other interest
158 50
– Financial liabilities at fair value through profit or loss – losses/(gains)
208 (395)
– Deferred consideration - unwinding of discount (Note 27)
- 1,482
– Convertible debt 9 8
Finance costs 713 1,457
Finance income
– Interest income on cash and short-term deposits
37 34
– Other interest - 1
Finance income 37 35
Net finance costs 676 1,422  EKF Diagnostics Holdings plc | Annual Report 2016  51
3.0 Financial Statements
13. Income tax
Group
2016
£’000
2015
£’000
Current tax:
Current tax on loss for the year 1,602 220
Adjustments for prior periods (2,219) (76)
Total current tax (617) 144
Deferred tax (note 28):
Origination and reversal of temporary differences (555) (2,350)
Total deferred tax (555) (2,350)
Income tax credit (1,172) (2,206)
The Finance Act 2015 which was substantially enacted in 2015 included legislation to reduce the main rate of UK 
corporation tax to 19% from 1 April 2019 and the Finance Act 2016 which was substantially enacted in 2016 included 
legislation to reduce the main rate of UK corporation tax to 17% from 1 April 2020.
The tax on the Group’s loss before tax differs from the theoretical amount that would arise using the standard tax 
rate applicable to the profits of the consolidated entities as follows:
2016
£’000
2015
£’000
Loss before tax (1,003) (15,770)
Tax calculated at domestic tax rates applicable to UK standard rate of tax of 20%  
(2015: 20%)
(201) (3,154)
Tax effects of:
– Expenses not deductible for tax purposes 390 5,518
– Losses carried forward (63) (4,628)
– Adjustment in respect of prior years (2,219) 76
– Impact of different tax rates in other jurisdictions 428 (272)
– Other movements 493 254
Tax credit (1,172) (2,206)
There are no tax effects on the items in the statement of other comprehensive income.
14. Loss per share
(a) Basic
Basic loss per share is calculated by dividing the loss attributable to owners of the parent by the 
weighted average number of Ordinary Shares in issue during the year.
 
2016
£’000
2015
£’000
Loss attributable to owners of the parent (18) (37,123)
Loss from continuing operations attributable to equity holders of the company (18) (13,754)
Loss from discontinued operations attributable to equity holders of the company - (23,369)
Weighted average number of Ordinary Shares in issue 446,042,831 422,057,074
Basic loss per share (0.00) pence (8.80) pence
Basic loss per share from continuing operations (0.00) pence (3.26) pence
Basic loss per share from discontinued operations - (5.54) pence 52 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
(b) Diluted
Diluted loss per share is calculated by adjusting the weighted average number of Ordinary Shares 
outstanding assuming conversion of all dilutive potential Ordinary Shares. The Company has two 
categories of dilutive potential ordinary share: equity-based long-term incentive plans and share options. 
The potential shares are not dilutive in either 2016 or 2015 as the Group has made a loss per share.
 
2016
£’000
2015
£’000
Loss attributable to owners of the parent (18) (37,123)
Loss from continuing operations attributable to equity holders of the company (18) (13,754)
Loss from discontinued operations attributable to equity holders of the company - (23,369)
Weighted average diluted number of Ordinary Shares 446,042,831 422,057,074
Diluted loss per share (0.00) pence (8.80) pence
Basic loss per share from continuing operations (0.00) pence (3.26) pence
Basic loss per share from discontinued operations - (5.54) pence
 
2016
£’000
2015
£’000
Weighted average number of Ordinary Shares in issue 446,042,831 422,057,074
Adjustment for:
– Assumed conversion of share awards - 4,272,819
– Assumed payment of equity deferred consideration 4,043,940 4,043,940
Weighted average number of Ordinary Shares including  
potentially dilutive shares
450,086,771 430,373,833
15. Dividends
There were no dividends paid or proposed by the Company in either year. The Board’s policy is to 
enhance shareholder value mainly through the growth of the Group. The Board will consider the 
payment of dividends if and when appropriate, however the Company at present does not have 
available cash and has a significant deficit on reserves.  EKF Diagnostics Holdings plc | Annual Report 2016  53
3.0 Financial Statements
16. Property, plant and equipment
Group
Land and 
buildings
£’000
Fixtures & 
fittings
£’000
Plant and 
machinery
£’000
Motor  
vehicles
£’000
Total
£’000
Cost
At 1 January 2015 6,294 954 9,013 82 16,343
Additions 1,476 146 634 40 2,296
Disposal with subsidiaries (40) - (1,009) - (1,049)
Transfers - 57 (57) - -
Exchange differences 147 2 (260) (16) (127)
Disposals - (79) (250) (9) (338)
At 31 December 2015 7,877 1,080 8,071 97 17,125
Accumulated depreciation
At 1 January 2015 602 542 4,613 18 5,775
Charge for the year 171 152 825 25 1,173
Charge - discontinued business - - 232 - 232
Disposal with subsidiaries (9) - (299) - (308)
Transfers - 29 (29) - -
Exchange differences 18 (5) (141) (8) (136)
Disposals - (63) (225) (3) (291)
At 31 December 2015 782 655 4,976 32 6,445
Net book value at 31 December 2015 7,095 425 3,095 65 10,680
Cost
At 1 January 2016 7,877 1,080 8,071 97 17,125
Additions 623 135 496 7 1,261
Transfers 214 (13) (201) - -
Exchange differences 1,146 170 1,349 49 2,714
Disposals (31) (232) (1,027) (11) (1,301)
At 31 December 2016 9,829 1,140 8,688 142 19,799
Accumulated depreciation
At 1 January 2016 782 655 4,976 32 6,445
Charge for the year 232 168 781 28 1,209
Exchange differences 124 104 829 24 1,081
Disposals (31) (144) (876) (9) (1,060)
At 31 December 2016 1,107 783 5,710 75 7,675
Net book value at 31 December 2016 8,722 357 2,978 67 12,124
Depreciation expense of £774,000 (2015: £878,000) has been charged to cost of sales and £435,000 (2015: 
£557,000) has been charged to administrative expenses. 54 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
16. Property, plant and equipment continued
Company
Land and 
buildings
£’000
Fixtures and  
fittings
£’000
Total
£’000
Cost
At 1 January 2015 1,673 56 1,729
Additions - 33 33
At 31 December 2015 1,673 89 1,762
Accumulated depreciation
At 1 January 2015 122 31 153
Charge for the year 41 21 62
At 31 December 2015 163 52 215
Net book value 
At 31 December 2015
1,510 37 1,547
Cost
At 1 January 2016 1,673 89 1,762
Additions - 27 27
Disposals - (1) (1)
At 31 December 2016 1,673 115 1,788
Accumulated depreciation
At 1 January 2016 163 52 215
Charge for the year 40 24 64
Disposals - (1) (1)
At 31 December 2016 203 75 278
Net book value 
At 31 December 2016
1,470 40 1,510
The Company’s freehold property is in Germany and occupied by its subsidiary undertaking, EKF-diagnostic GmbH 
Germany. EKF-diagnostic GmbH is paying rental income of €13,900 (£11,880) per month to the parent Company. 
€167,000 (£142,700) (2015: €167,000 (£130,000)) was paid to the parent Company for the year.
Plant and Machinery includes the following amounts where the Group is a lessee under a finance lease 
arrangement:
Group 
2016
£’000
2015
£’000
Cost – capitalised finance leases 37 372
Accumulated depreciation (3) (71)
Net book value 34 301
The Group leases various assets under non-cancellable finance lease agreements. The lease terms are between 2 
and 6 years.
The Company has no finance lease agreements.  EKF Diagnostics Holdings plc | Annual Report 2016  55
3.0 Financial Statements
17. Intangible assets
Group
Non- 
compete 
 agreements
£’000
Goodwill
£’000
Trademarks, 
trade name and 
licences
£’000
Customer  
relationships
£’000
Trade 
secrets
£’000
Development 
costs
£’000
Total
£’000
Cost
At 1 January 2015 70 46,420 4,007 18,518 30,897 4,829 104,741
Additions - - 30 - - 3,066 3,096
Disposal - (23,541) (1,355) (5,142) (14,282) - (44,320)
Exchange differences - 839 (189) 439 263 (113) 1,239
At 31 December 2015 70 23,718 2,493 13,815 16,878 7,782 64,756
Accumulated amortisation
At 1 January 2015 41 954 702 3,344 4,977 1,201 11,219
Exchange differences - (50) (2) 50 (132) (31) (165)
Impairment charge 6 1,178 - 53 3,225 1,486 5,948
Disposal - - (194) (492) (1,366) - (2,052)
Charge for the year 23 - 872 1,600 2,162 2,222 6,879
At 31 December 2015 70 2,082 1,378 4,555 8,866 4,878 21,829
Net book value 
At 31 December 2015
- 21,636 1,115 9,260 8,012 2,904 42,927
Cost
At 1 January 2016 70 23,718 2,493 13,815 16,878 7,782 64,756
Additions - - 45 - - 618 663
Exchange differences - 3,319 514 2,561 1,747 385 8,526
At 31 December 2016 70 27,037 3,052 16,376 18,625 8,785 73,945
Accumulated amortisation
At 1 January 2016 70 2,082 1,378 4,555 8,866 4,878 21,829
Exchange differences - 146 187 844 654 30 1,861
Charge for the year - - 332 1,418 1,074 928 3,752
At 31 December 2016 70 2,228 1,897 6,817 10,594 5,836 27,422
Net book value 
At 31 December 2016
- 24,809 1,155 9,559 8,031 2,949 46,503
Amortisation charge of £34,000 (2015: Nil) has been charged to cost of sales and £3,718,000 (2015: £6,277,000) has been charged to 
administrative expenses in the income statement. 56 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
Goodwill is allocated to the Group’s cash–generating units (CGU’s) identified according to geographic operating 
segment. An operating segment-level summary of the goodwill allocation is presented below.
 
2016
£’000
2015
£’000
Germany 17,055 15,154
Poland 322 288
Russia 103 72
USA 7,329 6,122
Total 24,809 21,636
Germany includes EKF-Diagnostic, Senslab, and DiaSpect, while the USA includes Stanbio and STI.
Goodwill is tested for impairment at the balance sheet date. The recoverable amount of goodwill at 31 
December 2016 was assessed on the basis of value in use. The assessed value exceeded the carrying 
value and no impairment loss was recognised. 
The key assumptions in the calculation to assess value in use are future revenues and the ability to 
generate future cash flows. The most recent financial results and initial budgets approved by the 
Board for the next year were used and forecasts for a further four years, followed by an extrapolation 
of expected cash flows at a constant growth rate for each unit and the calculation of a terminal value 
based upon the longer term growth rates set out below. The projected results were discounted at a 
rate which is a prudent evaluation of the pre-tax rate that reflects current market assessments of the 
time value of money and the risks specific to the cash-generating units. The discount rates applied 
reflect a risk-adjusted weighted average cost of capital.
The key assumptions used in 2016 for the value in use calculations of cash generating units with 
significant goodwill are as follows:
EKF Germany DiaSpect Stanbio STI
% % % %
Longer-term growth rate 3 2 3 3
Discount rate 10 10 10 10
The impairment assessments for EKF Germany, Poland, Russia, Stanbio, and STI showed assessed 
values that exceeded the carrying values with significant headroom.
For DiaSpect, the impairment assessment has been carried out over a 5 year period with a terminal 
value based on the long-term growth rate. The Directors estimate that growth rates in the 5 year 
period from the DiaSpect products will be high because they are relatively new products that will 
bring market benefits.
In Year 1 a growth rate of 19% has been used, reflecting the current sales run-rate, followed by 20% for 
years 2-4, reflecting a combination of continuing instrumentation sales and increasing consumable 
volumes as the established instrument base increases in the market. The forecast growth rates then 
fall to 2% thereafter. The Directors believe that market benefits will allow the product to be sold at a 
margin in excess of other products sold by the Group. A one percentage point increase in the discount 
rate or a reduction in forecast revenue growth rates in year 2-4 to 18% would result in an impairment.
The remaining average useful lives of the intangibles are as follows:
Trade name 2–8 years
Customer relations 0–13 years
Trade secrets 0–13 years
Development costs  4-10 years
The Company holds capitalised development costs with a cost and net value of £1,253,000 and 
£538,000 respectively. These are amortised over their useful life and an amortisation charge of 
£317,000 has been recognised in the income statement in 2016.  EKF Diagnostics Holdings plc | Annual Report 2016  57
3.0 Financial Statements
18. Investments in subsidiaries
Company Shares in Group undertakings
2016
£’000
2015
£’000
1 January 30,521 61,043
Disposal - (28,922)
Impairment - (1,600)
31 December 30,521 30,521
The disposal in 2015 relates to Selah Genomics Inc. The impairment relates to the investment in EKF 
Molecular Diagnostics Limited.
Investments in Group undertakings are recorded at cost, which is the fair value of the consideration 
paid, less any impairment.
The subsidiaries of EKF Diagnostics Holdings plc are as follows:
Name of Company Note Proportion Held
Class of
Shareholding Nature of Business
EKF Diagnostics Limited (UK)* 1 100% Ordinary Head Office
Quotient Diagnostics Limited* 1 100% Ordinary Sale of diagnostic equipment
360 Genomics Limited* 1 100% (indirect) Ordinary Sale of diagnostic equipment
EKF Molecular Diagnostics Limited* 1 100% Ordinary
Manufacture and sale of diagnostic 
equipment
DiaSpect Medical AB 2 100% Ordinary Head office and IP licencing
DiaSpect Medical GmbH 3 100% Ordinary
Manufacture and sale of diagnostic 
equipment and consumables
EKF-diagnostic GmbH 3 100% Ordinary
Manufacture and sale of diagnostic 
equipment and consumables
Senslab GmbH 3 100% (indirect) Ordinary
Manufacture and sale of diagnostic 
equipment and consumables
EKF Diagnostyka Sp.z.o.o. 4 100% (indirect) Ordinary
Manufacture and sale of diagnostic 
equipment and consumables
000 EKF Diagnostika 5 60% (indirect) Ordinary Sale of diagnostic equipment
EKF Diagnostics Inc 6 100% Ordinary Intermediate holding company
Stanbio Laboratory LP 6 100% (indirect) Partnership 
Manufacture and sale of diagnostic 
equipment and consumables
EKF Life Sciences LP 6 100% (indirect) Partnership
Manufacture and sale of diagnostic 
equipment and consumables
Separation Technology, Inc 6 100% Ordinary
Manufacture and sale of diagnostic 
equipment and consumables
1261 N Main LP 6 100% Partnership Dormant
Stanlab Management LLC 6 100% Ordinary Dormant
1261 N Main Management LLC 6 100% Ordinary Dormant
Argutus Intellectual Property Limited 7 100% (Indirect) Ordinary Dormant
EKF Diagnostics Limited (Ireland) 7 100% Ordinary
Manufacture and sale of diagnostic 
equipment
EKF Diagnostics (Shanghai) Co. Ltd 8 100% Ordinary Dormant
Notes
1. Incorporated, registered and having its principal place of business in the United Kingdom, with its  
registered office being Avon House, 19 Stanwell Road, Penarth Vale of Glamorgan, CF64 2EZ.
2. Incorporated in Sweden. The principal place of business is in Germany. The registered address is  
Lytta Gard, 75593 Uppsala, Sweden.
3. Incorporated, registered, and having its principal place of business in Germany at Ebendorfer Chaussee 3, 
39179 Barleben, Germany. 58 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
4.  Incorporated, registered, and having its principal place of business in Poland at ul. Kazimierza Wielkiego 
58, 32-400 Myślenice, Poland.
5.  Incorporated, registered, and having its principal place of business in Russia at 117648, Moscow, PO Box: 
30, District Severnoe Chertanovo, House 2, building 207.
6. Incorporated and registered, or formed, and having its principal place of business in the United States of 
America at 1261 North Main Street, Boerne, Texas, USA 78006.
7.  Incorporated and registered in Ireland c/o Mazars, Harcourt Centre, Block 3, Harcourt Road, Dublin 2. Its 
principal place of business is in the United Kingdom.
8. Incorporated and registered in China, Suite 1202, Jin Hong Qiao International Center Building I, No. 523 
Loushan-guan Road, Changning District, Shanghai, P.R.C. 200051
All subsidiaries are included in the consolidation. The proportions of voting shares held by the parent 
Company do not differ from the proportion of Ordinary Shares held.
* All UK subsidiaries are exempt from the requirement to file audited accounts by virtue of section 
479A of the Companies Act 2006. As part of this process, the Company has provided statutory 
guarantees to these subsidiaries.
19. Financial instruments by category
(a) Assets
 
Group
2016
£’000
Group 
2015
£’000
Company
2016
£’000
Company
2015
£’000
31 December 
Assets as per balance sheet
Trade and other receivables excluding prepayments 
and corporation tax 8,481 6,403 28,286 32,970
Cash and cash equivalents 7,874 2,017 2,567 11
Total 16,355 8,420 30,853 32,981
Receivables in the analysis above are all categorised as ‘loans and receivables’ for the Group and 
Company.
(b) Liabilities
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
31 December 
Liabilities as per balance sheet
Borrowings (excluding finance lease liabilities) 5,685 10,439 4,141 6,049
Finance lease liabilities 33 403 - -
Trade and other payables 9,300 8,028 4,776 4,076
Deferred consideration 693 485 693 485
Total 15,711 19,355 9,610 10,610
Liabilities in the analysis above are all categorised as ‘other financial liabilities at amortised cost’ for the 
Group and Company, with the exception of deferred equity consideration totalling £693,000 (2015: 
£485,000) that is categorised as a financial liability at fair value through profit and loss.
(c) Credit quality of financial assets
The Group is exposed to credit risk from its operating activities (primarily for trade receivables 
and other receivables) and from its financing activities, including deposits with banks and financial 
institutions, foreign exchange transactions and other financial instruments.
The Group’s maximum exposure to credit risk, due to the failure of counterparties to perform their 
obligations as at 31 December 2016 and 31 December 2015, in relation to each class of recognised 
financial assets, is the carrying amount of those assets as indicated in the accompanying balance 
sheets.  EKF Diagnostics Holdings plc | Annual Report 2016  59
3.0 Financial Statements
Trade receivables
The credit quality of trade receivables that are neither past due nor impaired have been assessed 
based on historical information about the counterparty default rate. The Group does not hold any 
other receivable balances with customers, whose past default has resulted in the recovery of the 
receivables balances.
Cash at bank
The credit quality of cash has been assessed by reference to external credit ratings, based on reputable 
credit agencies’ long-term issuer ratings:
 
2016
£’000
2015
£’000
AA- 2,929 13
Ratings lower than AA- or unrated 4,945 2,004
Total 7,874 2,017
20. Investments
Group and Company
2016
£’000
2015
£’000
1 January 402 1,152
Disposals (250) -
Impairments - (750)
31 December 152 402
The investment consists of a 0.67% holding in Epinex Diagnostics Inc., a US based privately held 
company operating in the medical diagnostics industry; and a 19.90% holding in DX Economix, Inc., a 
Canadian based privately held company operating in the healthcare consultancy industry the value 
of which has been 100% impaired. In December 2016, the Group disposed of its investment in Arcis 
Biotechnology Holdings Limited, a UK based privately held company, at cost.
21. Disposal
On 23 December 2015 the Company disposed of all of its 100% shareholding in Selah Genomics Inc. for 
a consideration of $10. Selah Genomics Inc. filed for dissolution on 3 November 2016.
22. Trade and other receivables
 
Group
2016
Group
2015
Company
2016
Company
2015
Non-current
Amounts owed by subsidiary undertakings - - 22,016 18,550
Current
Trade receivables 5,669 9,640 - -
Less: provision for impairment of trade receivables (69) (5,575) - -
Trade receivables – net 5,600 4,065 - -
Prepayments 212 229 80 129
Amounts owed by subsidiary undertakings - - 6,233 14,376
Corporation tax receivable 677 610 - -
Other receivables 2,881 2,338 37 44
  9,370 7,242 6,350 14,549
The Directors consider that the carrying amount of trade and other receivables approximates to their 
fair value. 60 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
As of 31 December 2016, trade receivables of £818,000 (2015: £490,000) were past due but not 
impaired. These relate to a number of independent customers for whom there is no recent history of 
default. The ageing analysis of these trade receivables is as follows:
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Up to 3 months 805 266 - -
3 to 6 months 13 223 - -
6 months to 12 months - 1 - -
818 490 - -
As of 31 December 2016, trade receivables of £69,000 (2015: £5,575,000) were impaired and provided 
for. The ageing of these impaired receivables is as follows:
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Up to 3 months - - - -
3 to 6 months - 23 - -
6 months to one year 69 429 - -
Greater than one year - 5,123 - -
Total 69 5,575 - -
Movements on the provision for impairment of trade receivables are as follows:
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
At 1 January 5,575 978 - -
Provision for receivables impairment 2 5,191 - -
Receivables written off during the year as uncollectible (5,123) - - -
Unused amounts reversed (458) (178) - -
Disposal of Selah Genomics - (419) - -
Exchange differences 73 3 - -
At 31 December 69 5,575 - -
The other classes within trade and other receivables do not contain impaired assets.
The carrying amounts of the Group’s trade and other receivables denominated in foreign currencies 
were as follows:
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
UK Sterling 295 277 6,051 9,007
Euros 5,256 4,460 4,123 8,193
US dollar 3,226 2,199 18,192 15,899
Russian rouble 96 44 - -
Polish zloty 497 262 - -
 9,370 7,242 28,366 33,099  EKF Diagnostics Holdings plc | Annual Report 2016  61
3.0 Financial Statements
23. Inventories
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Raw materials 3,026 3,892 – –
Work in progress 1,019 1,466 – –
Finished goods 1,980 2,876 – –
  6,025 8,234 – –
The Directors are of the opinion that the replacement values of inventories are not materially different 
to the carrying values stated above. The carrying values above are stated net of impairment provisions 
of £3,237,000 (2015: £1,641,000).
The cost of inventories recognised as expense and included in ‘cost of sales’ amounted to £11,388,000 
(2015: £6,856,000).
The Company held no inventories.
24. Cash and cash equivalents
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Cash at bank and in hand 7,874 2,017 2,567 11
Cash and cash equivalents (excluding bank overdrafts) 7,874 2,017 2,567 11
The Directors consider that the carrying amount of cash and cash equivalents approximates to their 
fair value.
25. Trade and other payables
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Trade payables 1,198 2,090 145 489
Amounts due to subsidiary undertakings - - 2,983 2,812
Social security 101 303 52 232
Other payables 2,193 1,129 800 -
Accrued expenses and deferred income 5,909 4,809 848 775
 9,401 8,331 4,828 4,308 62 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
26. Borrowings
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Non-current
Bank borrowings 1,130 665 – –
Convertible loan - 182 – –
Finance lease liabilities - 320 – –
  1,130 1,167 – –
Current
Bank borrowings 4,364 6,592 4,141 3,049
Convertible loan 191 - - -
Other borrowing - 3,000 - 3,000
Finance lease liabilities 33 83 - -
 4,588 9,675 4,141 6,049
The maturity profile of borrowings was as follows:
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Amounts falling due
Within 1 year 4,588 9,675 4,141 6,049
Between 1 and 2 years 211 401 - -
Between 2 and 5 years 610 549 - -
More than 5 years 309 217 - -
Total borrowings 5,718 10,842 4,141 6,049
(a) Bank borrowings
Bank borrowings have maturity profiles from 2017 through to 2022 and bear an average fixed coupon 
of 2.81% annually (2015: 3.21%).
Bank borrowings are secured against certain assets of the Group. The Parent Company has also 
provided guarantees against those bank borrowings which are denominated in foreign currencies.
The Group facility, and the US Dollar and Euro denominated borrowings have covenants attached to 
them. The Group has been compliant with these covenants throughout the year.
The bank borrowings are repayable by either monthly or quarterly instalments, or at the end of a loan 
period which may be one month, two months, or six months.
The Group is not exposed to interest rate changes or contractual re-pricing dates at the end of the 
reporting period, as the borrowings are fixed in nature.
The fair value of both current and non-current borrowings equals their carrying amount, as the impact 
of discounting is not significant. 
The carrying amounts of the Group’s bank borrowings are denominated in the following currencies:
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
Euros 1,191 2,440 - -
US Dollar 3,803 4,817 3,641 3,049
GBP 500 - 500 -
Total 5,494 7,257 4,141 3,049  EKF Diagnostics Holdings plc | Annual Report 2016  63
3.0 Financial Statements
(b) Convertible loan
Andrew Webb has loaned £200,000 to EKF Molecular Diagnostics Limited in return for a convertible 
loan note. The note is redeemable on 31 December 2017 or convertible under certain circumstances 
on or before 30 November 2017 into shares representing 20% of the share capital of EKF Molecular 
Diagnostics Limited. Interest only becomes payable in the event of a default. The principal has been 
split into a debt element and an equity element. The equity element is disclosed in Other Reserves. 
The note is denominated in sterling.
(c) Finance lease liabilities
Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event 
of default.
 
2016
£’000
2015
£’000
Gross finance lease liabilities – minimum lease payments
No later than 1 year 37 99
Later than 1 year and no later than 5 years - 85
Later than 5 years - 363
37 547
Future finance charges on finance leases (4) (144)
Present value of finance lease liabilities 33 403
The present value of finance lease liabilities is as follows:
 
2016
£’000
2015
£’000
No later than 1 year 33 83
Later than 1 year and no later than 5 years - 67
Later than 5 years - 253
33 403
(d) Other borrowing
In December 2015 Zwanziger Family Ventures LLC (“ZFV”) loaned the Company £3,000,000 by way 
of a convertible loan, secured on the assets of the Group, which had a maximum term of two years 
and an interest rate of 5% above LIBOR. The ultimate beneficiaries of ZFV are the family of Ron 
Zwanziger who was at the time a director of the Company. On 10 May 2016 this loan was redeemed 
in full. At the same time North Atlantic Smaller Companies Investment Trust PLC (“NAIT”) loaned the 
Company £3,000,000 by way of a non-convertible loan secured on the assets of the Group, which 
had an interest rate of 5% above LIBOR. This loan was repayable on 30 days’ notice from NAIT. NAIT 
is a company associated with Christopher Mills, a director of the Company. On 8 June 2016 this loan 
was redeemed in full.
27. Deferred consideration
 
Group
2016
£’000
Group
2015
£’000
Company
2016
£’000
Company
2015
£’000
At 1 January 485 18,029 485 11,658
Unwinding of discount (note 12) - 1,482 - 644
Fair value adjustment 208 (395) 208 (395)
Reduction of provisions - (17,350) - (9,997)
Payments made - (1,425) - (1,425)
Exchange differences - 144 - -
At 31 December 693 485 693 485
Current portion 693 485 693 485
Non-current portion - - - - 64 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
The deferred consideration consists of 4,043,940 Ordinary Shares originally valued at £605,000 to 
be issued as part of the consideration paid for the acquisition of EKF-diagnostic GmbH Germany. 
The value of the shares has been adjusted to its fair value at 31 December 2016 of £693,000. Whilst 
agreement has been reached in principle to conclude the position, the contract amendment has not 
yet been signed.
28. Deferred income tax
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset 
current tax assets against current tax liabilities and when deferred income tax assets and liabilities 
relate to income taxes levied by the same taxation authority on either the taxable entity or different 
taxable entities where there is an intention to settle the balances on a net basis. The amounts concerned 
are as follows:
Group
2016
£’000
2015
£’000
Deferred tax assets
Deferred tax asset to be recovered within 12 months (13) (47)
Deferred tax asset to be recovered after more than 12 months (371) (340)
  (384) (387)
Deferred tax liabilities
Deferred tax liability to be recovered after more than 12 months 3,751 3,559
Deferred tax liability to be recovered within 12 months 738 831
  4,489 4,390
Deferred tax liabilities – net 4,105 4,003
The gross movement on the deferred income tax account is as follows:
 
2016
£’000
2015
£’000
At 1 January 4,003 13,731
Exchange differences 657 325
Discontinued - (7,703)
Income statement movement (note 13) (555) (2,350)
At 31 December 4,105 4,003
The movement in deferred income tax assets and liabilities during the year, without taking into 
consideration the offsetting of balances within the same tax jurisdiction, is as follows:
Deferred tax liabilities
Accelerated tax
depreciation
£’000
Total
£’000
At 1 January 2015 14,014 14,014
Credited to the income statement (2,247) (2,247)
Discontinued business (7,703) (7,703)
Exchange differences 326 326
At 31 December 2015 4,390 4,390
At 1 January 2016 4,390 4,390
Credited to the income statement (569) (569)
Exchange differences 668 668
At 31 December 2016 4,489 4,489  EKF Diagnostics Holdings plc | Annual Report 2016  65
3.0 Financial Statements
Deferred tax assets
Tax losses
£’000
Other
£’000
Total
£’000
At 1 January 2015 (45) (238) (283)
Charged to the income statement (1) (102) (103)
Exchange differences (1) - (1)
At 31 December 2015 (47) (340) (387)
At 1 January 2016 (47) (340) (387)
Charged to the income statement 45 (31) 14
Exchange differences (11) - (11)
At 31 December 2016 (13) (371) (384)
Deferred income tax assets are recognised to the extent that the realisation of the related tax benefit 
through future taxable profits is probable. The Group did not recognise deferred income tax assets 
of £6,374,000 (2015: £5,120,000) mainly in respect of tax losses amounting to £33,109,000 (2015: 
£24,381,000), primarily arising in the UK entities, that can be carried forward against future taxable 
income, as the likely timing of recovery is considered too remote.
Company
2016
£’000
2015
£’000
Deferred tax assets
Deferred tax asset to be recovered after more than 12 months 371 387
Deferred tax 371 387
29. Share capital and premium
Group and Company
Number of 
Shares
Share capital
£’000
Share premium
£’000
Total
£’000
At 1 January 2016 422,057,074 4,221 91,276 95,497
Issue of shares 42,205,707 422 4,117 4,539
31 December 2016 464,262,781 4,643 95,393 100,036
On 2 June 2016, 42,205,707 ordinary shares were issued at a price of 11.25p as a result of an equity 
placing. Transaction costs associated with the placing of £209,000 have been offset against the share 
premium account.
30. Share options and share-based payments
The share options and share incentive schemes in existence were as follows:
(a) Long-term Incentive Plans (‘LTIP’)
Number 
of notional shares
At 1 January 2016 17,091,276
Waived (6,836,510)
At 31 December 2016 10,254,766
Long-term incentive plan share awards over notional shares totalling 17,091,276 were granted to an 
Executive Director and a now former Executive Director. The key terms of the awards were revised on 
11 June 2013. On 15 June 2016 the option holders waived options over 6,836,510 shares. The conditions 
relating to the remaining grants have been met and the options have therefore vested in full. The 
remaining options have an exercise price of 15p, and can be exercised at any time before 31 December 
2020. 66 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
(b) Unapproved share option scheme
2016 2015
 
Av. Exercise
price per share
(£)
Options
(Number)
Av. Exercise
price per share
(£)
Options
(Number)
At 1 January 0.254 10,510,000 0.27 10,210,000
Granted 0.15 6,600,000 0.218 1,800,000
Expired 0.278 (3,600,000) 0.3175 (1,500,000)
At 31 December 0.197 13,510,000 0.254 10,510,000
The unapproved share options include the following:
• 4,260,000 options were in issue at an exercise price of 20p per share subject to certain non-market 
based performance conditions. These conditions have now been met and the options have vested 
in full.
• 200,000 options were in issue to a senior employee of the Group at an exercise price of 25.25p per 
share subject to certain non-market based performance conditions. These conditions have now 
been met and the options have vested in full.
• 650,000 options were issued on 7 July 2013 to senior employees at an exercise price of 27.25p per 
share. These options are exercisable from the third anniversary of grant with a maximum term of 
10 years. These vested during the year.
• 1,300,000 options were issued on 21 January 2014 to senior employees at an exercise price 
of 37.625p per share. These options are exercisable from the third anniversary of grant with a 
maximum term of 10 years.
• 500,000 options were issued to a third party on 17 May 2015 at an exercise price of 23.5p. The 
shares will vest from 6 April 2016 subject to the completion of certain contractual obligations, and 
to the Company’s mid-market closing share price attaining 35p or higher. The maximum term is 10 
years from grant.
• On 12 September 2016, 6,600,000 options were issued to senior employees at an exercise price 
of 15p, subject to certain non-market conditions. These options are exercisable from the third 
anniversary of grant with a maximum term of 10 years.
All share option awards are equity settled. Out of the 13,510,000 (2015: 10,510,000) outstanding 
options 5,110,000 (2015: 8,060,000) were exercisable.
Share options outstanding at the end of the year have the following expiry date and exercise prices:
2016 2015
Expiry Date
Exercise 
price per share
(£)
Options
(Number)
Exercise 
price per share
(£)
Options
(Number)
31.12.2016 - - 0.35 1,300,000
31.12.2016 - - 0.225 1,300,000
16.06.2021 0.200 4,260,000 0.200 4,260,000
28.09.2021 0.252 200,000 0.252 1,200,000
07.07.2023 0.2725 650,000 0.2725 650,000
21.01.2024 0.37625 1,300,000 0.37625 1,300,000
06.04.2025 0.200 500,000 0.200 500,000
12.09.2026 0.150 6,600,000 - -
  13,510,000 10,510,000  EKF Diagnostics Holdings plc | Annual Report 2016  67
3.0 Financial Statements
The weighted average fair value of options granted during 2016 determined using the Black-Scholes 
valuation model was £0.127 (2015: £0.048). The significant inputs into the model are detailed below:
  2016 2015
Weighted average share price 15.9p 13.7p
Weighted average option exercise price 15.0p 21.8p
Expected volatility 86.4% 76.8%
Risk-free interest rate 0.25 0.50
Expected option life 10 years 3.5 years
Dividend yield - -
Expected volatility was determined by calculating the volatility in the historic share price over a period 
of one year. This level of volatility has then been benchmarked by comparing the level of share price 
volatility for other quoted medical diagnostic businesses over a three to ten year period.
On 2 June 2016 two Directors were granted a cash settled share-based incentive award. The awards 
vest if a controlling interest in the Company is acquired by a third party prior to 30 June 2019. In 
these circumstances a minimum amount of £0.5m is payable to each Director, which increases by 
reference to any sale price achieved. The fair value of this award has been calculated at £2,100,000 
using a modified form of a Black Scholes model. The key assumptions in the model included expected 
volatility of 60.2%, a risk free rate of (0.03%) and an assumed acquisition premium and option life. 
£753,000 has been recognised as an expense in administrative expenses in the current year, and is 
shown as a liability on the balance sheet at 31 December 2016 within trade and other payables.
31. Retained earnings
Group
£’000
Company
£’000
At 1 January 2015 (8,541) (9,050)
Loss for the year (37,123) (31,595)
Share-based payment 226 226
At 31 December 2015 (45,438) (40,419)
At 1 January 2016 (45,438) (40,419)
Loss for the year (18) (5,474)
Share-based payment 220 220
At 31 December 2016 (45,236) (45,673)
32. Other reserves
Group
Foreign  
currency
£’000
Other
£’000
Total
£’000
At 1 January 2015 26 41 67
Currency translation differences 846 - 846
Recycling of reserves in respect of previously held interest in Selah 
Genomics
(4,479) (4,479)
At 31 December 2015 (3,607) 41 (3,566)
At 1 January 2016 (3,607) 41 (3,566)
Currency translation differences 9,216 - 9,216
At 31 December 2016 5,609 41 5,650
In return for a payment of £200,000, Andrew Webb has been granted a loan note convertible into 
equity in EKF Molecular Diagnostics Limited. The equity element has been included in Other Reserves. 
The debt element is included in borrowings. 68 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
33. Retirement benefit obligations
Pension benefits
The Company operates defined contribution pension schemes the assets of which are held separately 
from those of the Company in independently administered funds. The pension cost for the year 
represents contributions made by the Company to the funds and amounted to £219,000 (2015: 
£318,000).
34. Commitments
(a) Capital commitments
The Group has contracted £nil (2015: £606,000) capital expenditure at the end of the reporting period 
that had not yet been incurred.
(b) Operating lease commitments
The Group leases various offices and manufacturing buildings under non-cancellable operating lease 
agreements. The lease terms are between one and five years.
The Group also leases various office equipment and assets under non-cancellable operating lease 
agreements. The lease terms are between one and five years.
The future aggregate minimum lease payments under non-cancellable operating leases are as follows:
Group
Land and buildings Other
2016
£’000
2015
£’000
2016
£’000
2015
£’000
No later than 1 year 149 219 80 114
Later than 1 year and no later than 5 years 23 661 124 146
Later than 5 years - 123 - -
Total 172 1,003 204 260  EKF Diagnostics Holdings plc | Annual Report 2016  69
3.0 Financial Statements
35. Cash used in operations
Group Company
2016
£’000
2015
£’000
2016
£’000
2015
£’000
Loss before tax (1,003) (15,770) (5,492) (27,791)
Adjustments for:
– Depreciation 1,209 1,173 64 62
– Amortisation 3,752 6,879 317 -
– Impairment of intangibles, excluding discontinued business - 5,948 - -
– Impairment of investment - 750 - 750
– Warranty claim (129) 349 - -
– Loss on disposal of fixed assets 30 5 - -
– Restructure of operations (360) (2,055) - 18,088
– Share-based payments 220 226 220 226
– Release of deferred consideration - (7,353) - -
– Fair value adjustment 208 (395) 208 (395)
– Foreign exchange 481 432 (5,221) 141
– Bad debt written down - 5,123 8,717 -
– Net finance costs/(income) 468 1,817 (1,366) (634)
Changes in working capital
– Inventories 2,767 (2,760) - -
– Trade and other receivables (1,127) 1,901 2,679 3,033
– Trade and other payables 2,300 816 520 550
Net cash generated by/(used in) operations 8,816 (2,914) 646 (5,970)
In the statement of cash flows, proceeds from the sale of property, plant and equipment comprise:
Group
2016
£’000
2015
£’000
Net book value 241 47
Loss on disposal of property, plant and equipment (30) (5)
Proceeds from disposal of property, plant and equipment 211 42
Non-cash transactions
The principal non-cash transactions are; movements on deferred consideration provisions; the fair 
value adjustment relating to the deferred equity consideration in respect of EKF Germany, the warranty 
claim, and release of accruals no longer required.
36. Related Party Disclosures
Directors
Ron Zwanziger is a substantial shareholder in Lumira Diagnostics Limited (“Lumira”) and in the 
Company, through the Zwanziger Family Trust. Between January 2016 and April 2016 the Group 
shared certain human resources and their associated costs with Lumira totalling £47,000. In December 
2015 The Zwanziger Family Trust lent £3,000,000 to the Group, secured by a debenture. This loan was 
repaid in April 2016. Interest charges for the period of the loan were £66,000.
Christopher Mills controls 28% of the Company’s share capital through North Atlantic Smaller 
Companies Investment Trust PLC (“NAIT”) and Oryx International Growth Fund Limited (“Oryx”). 
Harwood Capital LLP (“Harwood”) is investment manager and investment adviser to NAIT and Oryx 
respectively. Christopher Mills is a partner and Chief Investment Officer of Harwood. Christopher Mills 
is also a director of Oryx and NAIT. He holds 2.16 per cent. of the shares in Oryx in his own name as 
well as a further 46.44 per cent. of the shares in Oryx via his 25.06 per cent. shareholding in NAIT. In  70 Annual Report 2016  |  EKF Diagnostics Holdings plc
3.0 Financial Statements
April 2016 NAIT loaned £3,000,000 to the Group on commercial terms, secured by a debenture. This 
loan was repaid in June 2016. Interest charges were £14,000.
The Group was invoiced £18,000 (2015: £18,000) by J & K (Cardiff) Limited for property rent. Julian 
Baines is a Director of J & K (Cardiff) Limited.
Carl Contadini acts as an Operational Advisor to Harwood which acts as investment manager and 
investment adviser to NAIT and Oryx respectively.
Directors’ emoluments are set out in the Remuneration Committee report and in note 9.
Other related party transactions
Sergey Kots who is Chief Executive of OOO EKF Diagnostika (“EKF Russia”), owns 20% of the 
subsidiary’s share capital. During the year EKF Russia invoiced £656,000 (2015: £589,000) to OOO 
Laboratory Diagnostic Systems, a company of which Mr Kots’ brother is a director. 
Andrzej Biedron is the Chief Executive of EKF Diagnostyka Sp. z.o.o (“EKF Poland”). Mr Biedron is a 
shareholder and director of P.H.P.U. Allmed (”Allmed”). During the year the Group invoiced £237,000 
(2015: £212,000) to Allmed. In addition the Group paid £40,000 for consulting services to Firma 
Laser-med, a company owned by Mr Biedron’s partner, and was invoiced £50,000 (2015: £50,000) for 
property rent by A.B Inwestycje Sp.z.o.o., a company of which Mr Biedron is part owner.
Key management compensation
Key management compensation for the year was as follows:
2016
£’000
2015
£’000
Salaries and other short-term employee benefits 577 1,179
Share-based payments 753 116
Employer contribution to pension scheme 18 35
  1,348 1,330
Key management includes the Directors of the Company only.
The Company
During the year the Company invoiced management charges of £2,268,000 (2015: £1,799,000) and 
interest of £1,649,000 (2015: £1,421,000) to its subsidiary companies. It purchased goods and services 
from subsidiaries totalling £120,000 (2015: £228,000). At 31 December 2016 the Company was owed 
£28,249,000 (2015: £32,926,000) by its subsidiaries and owed £2,983,000 (2015: £2,812,000) to other 
subsidiaries.  EKF Diagnostics Holdings plc | Annual Report 2016  71
4.0 Additional information
NOTICE IS HEREBY GIVEN that the Annual General Meeting (Meeting) of EKF Diagnostics Holdings 
plc (Company) will be held at the offices of Harwood Capital LLP, 6 Stratton Street, Mayfair, London, 
W1J 8LD on 10 May 2017 at 11.00 a.m. for the following purposes:
Ordinary Resolutions
1. To receive and adopt the statement of accounts for the year ended 31 December 2016 together with the 
reports of the Directors and the auditors thereon.
2. To re-elect Julian Baines, who retires by rotation, as a Director.
3. To re-elect Carl Contadini, who has been appointed since the previous Annual General Meeting, as a 
Director.
4. To re-appoint Messrs PricewaterhouseCoopers LLP as auditors to act as such until the conclusion of the 
next General Meeting of the Company at which the requirements of section 437 of the Companies Act 
2006 are complied with and to authorise the Directors of the Company to fix their remuneration.
5. That in substitution for any existing such authority, the Directors be and are hereby generally and  
unconditionally authorised pursuant to section 551 of the Companies Act 2006 (the “2006 Act”) to allot 
Relevant Securities of the Company:
 (i) up to a maximum nominal amount of £237,647.66 (in pursuance of the exercise of outstanding share 
options granted by the Company but for no other purpose)
(ii) up to an aggregate nominal amount of £464,262.78 (in addition to the authorities conferred in 
sub-paragraphs (i) above) representing approximately 10% of the Company’s Issued Share Capital, 
such authorities (unless previously renewed, revoked or varied) to expire at the conclusion of the next 
Annual General Meeting of the Company to be held in 2018, save that the Company may, before such  
expiry, make an offer or agreement which would or might require Relevant Securities to be allotted after 
such expiry and the directors may allot Relevant Securities in pursuance of such an offer or agreement as 
if the authority conferred hereby had not expired.
Special Resolution
6. That, subject to the passing of the above Resolution the Directors be given the general power to allot 
equity securities (as defined in section 560 of the 2006 Act) pursuant to the authority conferred by the 
Resolution above as if section 561(1) of the 2006 Act did not apply to any such allotments provided that 
this power shall be limited to: 
 
 (i) the allotment of equity securities on the exercise of the share options granted by the Company; 
 (ii) the allotment of equity securities (otherwise than pursuant to sub-paragraphs (i) above) for cash in 
connection with any rights issue or pre-emptive offer in favour of holders of equity securities generally; and 
(iii) the allotment (otherwise than pursuant to sub-paragraphs (i) and (ii) above) of equity securities 
for cash up to an aggregate nominal amount of £464,262.78 representing approximately 10% of the 
Company’s Issued Share Capital, 
  provided that such power (unless previously renewed, revoked or varied) shall expire at the conclusion of 
the Annual General Meeting of the Company to be held in 2017, save that the Company may, before such 
power expires, make an offer or enter into an agreement which would or might require equity securities 
to be allotted after such power expires and the Directors may allot equity securities in pursuance of any 
such offer or agreement notwithstanding that the power conferred by this resolution has expired.
Registered Office BY ORDER OF THE BOARD
Avon House 
19 Stanwell Road     
Penarth  
CF64 2EZ   
20 March 2017
Salim Hamir 
Company Secretary
  
Notice of Annual General Meeting
EKF Diagnostics Holdings PLC (Company) 72 Annual Report 2016  |  EKF Diagnostics Holdings plc
4.0 Additional Information
Notes:
1. The Company specifies that only those members registered on the Company’s register of members at 
close of business on 8 May 2017 or if this general meeting is adjourned, at close of business  on the day 
two days prior to the adjourned meeting shall be entitled to attend and vote at the General Meeting.
2. If you are a member of the Company at the time set out in note 1 above, you are entitled to appoint 
a proxy to exercise all or any of your rights to attend, speak and vote at the General Meeting and you 
should have received a Proxy Form with this notice. You can only appoint a proxy using the procedures 
set out in these notes and the notes to the Proxy Form.
3. A proxy does not need to be a member of the Company but must attend the Annual General Meeting to 
represent you. Details of how to appoint the chairman of the Annual General Meeting or another person 
as your proxy using the Proxy Form are set out in the notes to the Proxy Form. If you wish your proxy to 
speak on your behalf at the Annual lGeneral Meeting you will need to appoint your own choice of proxy 
(not the chairman) and give your instructions directly to them.
4. You may appoint more than one proxy provided each proxy is appointed to exercise rights attached to 
different shares. You may not appoint more than one proxy to exercise rights attached to any one share. 
To appoint more than one proxy, please contact the Company’s registrars at the address set out in note 5.
5. The notes to the Proxy Form explain how to direct your proxy how to vote on each resolution or withhold 
their vote.
6. To appoint a proxy using the Proxy Form, the Proxy Form must be:
i. completed and signed;
ii. sent or delivered to Capita Asset Services, The Registry, 34 Beckenham Road, Kent BR3 4TU; and
iii. received by Capita Asset Services, at the address provided in paragraph 5(b) above no later than 
11.00 a.m. on 8 May 2017.
7.  In the case of a member which is a company, the Proxy Form must be executed under its common seal or 
signed on its behalf by an officer of the company or an attorney for the company.
8. Any power of attorney or any other authority under which the Proxy Form is signed (or a duly certified 
copy of such power or authority) must be included with the Proxy Form. In the case of joint holders, 
where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by 
the most senior holder will be accepted. Seniority is determined by the order in which the names of the 
joint holders appear in the Company’s register of members in respect of the joint holding (the first-named 
being the most senior).
9. To change your proxy instructions simply submit a new proxy appointment using the methods set out 
above. Note that the cut-off time for receipt of proxy appointments (see above) also apply in relation to 
amended instructions; any amended proxy appointment received after the relevant cut-off time will be 
disregarded.
10.  Where you have appointed a proxy using the hard-copy proxy form and would like to change the instructions 
using another hard-copy proxy form, please contact Capita Registrars at the address noted in note 5 above.
11.  If you submit more than one valid proxy appointment, the appointment received last before the latest 
time for the receipt of proxies will take precedence.
12. In order to revoke a proxy instruction you will need to inform the Company by sending a signed hard copy 
notice clearly stating your intention to revoke your proxy appointment to Capita Asset Services   PXS, 
34 Beckenham Road, Kent, BR3 4TU. In the case of a member which is a company, the revocation notice 
must be executed under its common seal or signed on its behalf by an officer of the company or an  
attorney for the company. Any power of attorney or any other authority under which the revocation notice 
is signed (or a duly certified copy of such power or authority) must be included with the revocation notice.
13.  The revocation notice must be received by Capita Asset Services no later than 11.00 a.m. on 8 May 2017.
14.  If you attempt to revoke your proxy appointment but the revocation is received after the time specified 
then, subject to the paragraph directly below, your proxy appointment will remain valid.
15. Appointment of a proxy does not preclude you from attending the general meeting and voting in person. 
If you have appointed a proxy and attend the general meeting in person, your proxy appointment will 
automatically be terminated.
16. A corporation which is a member can appoint one or more corporate representatives who may exercise, 
on its behalf, all its powers as a member provided that no more than one corporate representative  
exercises power over the same share.
17. Voting on all resolutions will be conducted by way of a poll rather than on a show of hands.
18. As at 5.00 p.m. on the day immediately prior to the date of posting of this notice, the Company’s issued 
share capital comprised 464,262,781 Ordinary Shares of 1p each. Each ordinary share carries the right to 
one vote at a general meeting of the Company and, therefore, the total number of voting rights in the 
Company as at 5.00 p.m. on the day immediately prior to the date of posting of this notice is 464,262,781.  EKF Diagnostics Holdings plc | Annual Report 2016  73
4.0 Additional Information
Company Information
Directors:
Christopher Mills 
(Non-Executive Chairman)
Julian Baines MBE 
(Chief Executive Officer)
Richard Evans 
(Chief Operating Officer and Finance Director)
Carl Contadini 
(Non-Executive Director)
Adam Reynolds 
(Non-Executive Director)
Company Secretary:
Salim Hamir
Registered Office and Head Office:
Avon House 
19 Stanwell Road 
Penarth
Cardiff 
CF64 2EZ
Place of incorporation:
England and Wales
(Company number – 4347937)
Independent Auditors:
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
One Kingsway
Cardiff
CF10 3PW
Nominated Advisor and Broker:
N+1 Singer
1 Bartholomew Lane
London EC2N 2AX
Solicitors to the Company:
Berry Smith LLP
Haywood House
Dumfries Place
Cardiff, CF10 3GA
Registrars:
Capita Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU
If you have a query regarding your shareholding 
please call (from inside the UK) 0871 664 0300 
(calls cost 12p per minute plus network extras), 
or (from outside the UK) +44 371 664 0300 
or e-mail: 
shareholder.services@capitaregistrars.com
Financial public relations:
Walbrook PR Limited
4 Lombard Street
London
EC3V 9HD
Investor relations email:
investors@ekfdiagnostics.com EKF Diagnostics Holdings plc
Avon House
19 Stanwell Road
Penarth
Cardiff, CF64 2EZ
T el: +44 (0) 29 20 710570
Fax: +44 (0) 29 20 705715
Email: investors@ekfdiagnostics.com
ekfdiagnostics.com