EKF diagnosing big profits

EKF Diagnostics, the diagnostic company that produces tests for glucose and lactate amongst other substances, has had a storming morning on the markets.

It's 17% surge by 11:00 in London, was driven by an update which said adjusted operating earnings for 2011 will come in significantly ahead of market expectations.

Those earnings will be made on the back of unaudited revenues hovering around the £21.6m figure for the full year. The net cash position for the end of the year was £2.8m.

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The firm has benefited from a strong second half of the year, including a big order for its "Hemo Control" hemoglobin testing device from the Mexican Institute of Social Security. There was also a sales success in Peru where EKF's cuvettes (liquid sample holders) are needed for an infant malnutrition programme.

EKF says it is in a very strong position heading into 2012 and continues to evaluate acquisition opportunities.

Despite today's rise EKF shares are still 16% down on their level at this point in 2011.

BS