EKF Diagnostics Hldg - Trading update and performance bonuses
This announcement contains inside information
for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).
("EKF" or the "Company")
Trading update and performance bonuses
The Company is pleased to announce that on current trading, revenues and adjusted EBITDA for the year ended
As previously stated, the Board remains confident that EKF will achieve further progress over the balance of the year. Following a period of investment in facilities and other initiatives, cash generation in the business has continued to be very strong with further upside available from the OEM contract with
The Company operates a cash-settled, share based incentive (the "Incentive") for the Company's CEO and Finance Director (the "Executive Directors"), which is designed to pay-out in the event that the Company is acquired by a third party (an "Exit"). Since the date of implementation of the Incentive in
Reflecting this delivery of value to shareholders by the Executive Directors, EKF's Remuneration Committee ("RemCo") has determined that it is now appropriate to distribute, as performance-related pay, a portion of amount that would otherwise be payable under the Incentive on an Exit. This determination recognises the delivery by Executive Management in the absence of any other performance-related pay mechanism and substitutes value creation to date for an Exit as the relevant trigger for payment on this portion of the Incentive. The determination by RemCo follows consultation with holders representing over 60% of the total voting rights in the Company, who were in support of RemCo's proposed action.
The RemCo determination means that the Executive Directors will each receive an equal payment of approximately
Following the above payments, RemCo considers that the remaining unpaid amounts under the Incentive continue to provide strong motivation to the Executive Directors, who will receive a further potential variable reward in the event of an Exit, equal to 5% of the excess value obtained over
For the avoidance of doubt, any future amounts payable to the Executive Directors under the Incentive in the event of an Exit shall be reduced by all previously paid amounts, including the payment of
Further disclosure will be made in the Company's next Annual Report as to the independent assessment of the carrying value of the Inventive arrangement following the above payment.
The performance-related payment is expected to be made to the Executive Directors in November. The EKF Board's previously stated intention to recommend a dividend of 1p per share in respect of the financial year ended 2019, subject to shareholder approval at Annual General Meeting ("AGM") to be held in H1 2020, remains unaltered.
The payments to the Executive Directors are considered to represent a related party transaction under the AIM Rules for Companies. The Non-executive Directors, having consulted with N+1 Singer as the Company's nominated adviser, consider the terms of these payments to be fair and reasonable in so far as shareholders are concerned.
The person responsible for making this announcement on behalf of the Company is
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Tel: 029 2071 0570
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N+1 Singer (Nomad & Broker)
Tel: 020 7496 3000
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Walbrook PR Limited
Tel: 020 7933 8780 or [email protected]
Paul McManus/ Lianne Cawthorne
Mob: 07980 541 893 / 07584 391 303
EKF is a leading point-of-care diagnostics and central laboratory assay manufacturer with an estimated 80,000 hemoglobin, hematocrit, HbA1c, glucose and lactate analyzers in regular use across more than 100 countries. EKF specializes in developing tests for use in anemia and diabetes diagnosis and management, as well as providing a portfolio of reagents for use in clinical chemistry analyzers.
This information is provided by RNS, the news service of the
Quick facts: EKF Diagnostics
Market Cap: £136.68 m
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