There was, this morning, what I felt was a very positive Trading Update from EKF. One that was seemingly also welcomed and embraced by the majority of other holders.
As always of course, there are some that are in some way disappointed, perhaps expect more and as a result elect to take a profit and move on.
Nothing wrong in that of course as it leaves something for the next man, where in EKF's case, I believe that there is indeed more upside to follow.
Most followers will be familiar with the release this morning which sees the company stressing that trading is in-line with previously upgraded guidance which has been a familiar theme throughout the year.
Whilst that confirmation is certainly fine by me, I do think it is worth delving deeper beneath the surface and eyeing the full statement, which can then be aligned to other facts that we know of and which may suggest that we may not be too far off another increase in the numbers.
In the release earlier today, the company stated that October was on track for a record monthly performance, with positive contributions from both PrimeStore MTM and the core business, the latter of which has seemingly recovered well from an earlier Covid enforced squeeze.
Key for me here though, is that the current expectations do not as we know include any revenue from PrimeStore in the month highlighted or beyond and where it appears, rather than slowing down after a very busy period, demand seems as strong as ever, if not increasing.
EKF does add that it expects to update the market again early next month, whilst broker N+1 Singer, although holding with the current forecasts for now, adds that it will revisit next month as it sees "sensitivity to the upside".
Given the current prevailing climate and the recent glowing endorsement for PrimeStore from Public Health England along with likely sales across Europe and continued business in the US, then the prospects for the remainder of the year do look significantly skewed to the upside.
It is also worth recapping on my previous coverage, where CEO Julian Baines had confirmed that EKF was now also involved in bulk production in the US with Longhorn for something other than PrimeStore MTM.
Nothing confirmed as yet, but the signs look positive for the subject in question being PrimeStore ATM which has been hailed as a potential game changer that could revolutionise antigen and molecular testing.
It was expected to be filed for emergency use with the US FDA last month, so it is an area to keep a close eye on for further developments, that if confirmed from EKF it would also provide additional upside on the revenue and profit front.
Although some will no doubt point to the success of PrimeStore and the significant revenue generation as only being a short term driver, many in the field argue that ongoing testing for the next year or two at least will be the norm and quite possibly for a longer extended period.
EKF isn't a one trick pony though, where as highlighted before, it has excellent prospects within its core business going forward along with the investments in Renalytix and more latterly Trellus which provide for additional gains to investors.
The shares have thus far today held around the levels of recent days circa 60p which as a holder I am content with, as the next update and most likely a more in depth release for further clarity isn't too far away.
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