EKF Diagnostics announced the disposal of its subsidiary, Advanced Diagnostic Laboratory (ADL Health), on Thursday.
The AIM-traded diagnostics specialist said it had taken the decision as a result of the challenges presented by the transition of its laboratory testing business towards generating non-Covid revenues, as well as the drop in demand for Covid-19 testing worldwide since the first quarter of 2022.
In a trading update on 6 February, EKF said ADL Health would contribute to a loss in 2022, which led to the review of the business and its rationale by the management team in the context of the company’s wider strategy.
“Following the conclusion of this review, management has determined that laboratory testing will no longer form part of EKF’s core offering and, therefore, has agreed to dispose of ADL Health to Medical Management Partners, – an entity which is 100% controlled by Stan Crawford, a member of the management team of ADL Health,” the board said in its statement.
“The disposal will provide cost savings to EKF, allow management time to focus on growth initiatives in other areas, and also simplify the reporting structure of the wider group.”
At 1425 GMT, shares in EKF Diagnostics Holdings were down 1.85% at 26.01p.
Reporting by Josh White for Sharecast.com.
