LONDON, UK: EKF Diagnostics Holdings (AIM: EKF), the AIM-listed global diagnostics business, has disposed of its subsidiary, Advanced Diagnostic Laboratory LLC (ADL).
As announced in the Company’s trading update on 6 February 2023, the transition of the Laboratory Testing business towards generating non-COVID revenues has presented certain challenges following the rapid drop in demand for COVID testing worldwide since Q1 2022. ADL Health will contribute a loss in 2022, which has led to EKF’s management team (“Management”) reviewing the business and its rationale in the context of the Company’s wider strategy despite a recent improvement in revenue.
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, LLC, an entity which is 100% controlled by Stan Crawford, a member of the management team of ADL Health. 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.