3rd Dec 2018 09:59
LONDON (Alliance News) - Omega Diagnostics Group said on Monday it saw a drop in revenue for the first half of its financial year, following the discontinuation of two of its businesses.
For the six months to the end of September, the medical diagnostics company reported a pretax profit of GBP849,466, up from GBP99,262 the year before.
This was due to the one-off gain of GBP1.1 million from the sale of its legacy infectious disease business, and GBP358,819 from the liabilities write-off of Omega's German business, Omega GmbH.
On an adjusted basis, however, the group sunk to a loss of GBP506,702 from a profit of GBP217,921 the prior year.
In April, Omega completed a strategic review, resulting in decision to focus on its Visitect CD4 advanced disease teast, as well as its allergy and food intolerance businesses, reducing its cost base significantly.
In line with this, Omega sold off its infectious disease unit for GBP2.2 million. Omega GmbH in Germany was closed, as was the Pune manufacturing facility in India.
Revenue for the period dropped by 27% to GBP5.2 million from GBP7.1 million the year before, as a result of reduced contributions from the sold businesses. However, there also was reduced revenue from Omega's continued operations.
Food Intolerance devision revenue fell by 7% to GBP3.8 million from GBP4.1 million, as an ongoing regulatory issue hampered sales of the retail kit version of product Food Detective.
In addition, revenue from the Allergy Autoimmune business fell by 53% due to the divestment and closure decisions made during the period.
"Our short-term outlook is dominated by our efforts to realise value for shareholders whilst at the same time successfully accelerating our efforts to commercialise our CD4 offering. The challenges are not inconsequential, but I remain confident that in those areas where we can control our own destiny that we will succeed in delivering our objectives. In those areas where we are not masters of our own destiny then, by definition, the outcome will always be less certain," said Chairman David Evans.
Shares in Omega Diagnostics were down 9.9% at 15.00 pence on Monday.
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