10th Oct 2018 11:44
LONDON (Alliance News) - Omega Diagnostics Group PLC on Wednesday said a decision to discontinue two of its businesses during its most recent half year has resulted in a significant drop in revenue.
For the six months to September 30, the medical diagnostics company expects to post revenue of GBP5.2 million, down 27% from GBP7.1 million the year before.
Omega Diagnostics said this drop in revenue was expected after a strategic review prompted the discontinuation of two of its loss-making businesses, Omega GmbH and its infectious disease unit, with the exception of its Visitect CD4 test.
The infectious disease unit was sold for GBP2.2 million and Omega GmbH was closed, along with an Indian manufacturing facility. Like-for-like revenue, which excludes these businesses, was down 7% from GBP5.6 million.
The medical company said it has made good progress on Visitect, which tests for HIV, and has distribution agreements in a number of countries, including Colombia, Indonesia, Nigeria, Zimbabwe, and Guatemala.
Revenue from its Food Intolerance division dropped year-on-year to GBP3.8 million from GBP4.1 million but had recovered somewhat from GBP3.4 million in the six months to March. Full year-on-year growth is expected to be maintained.
Revenue from its Allergy/Autoimmune business was down at just GBP790,000 million from GBP1.6 million the year before in total, though on a like-for-like basis this was barely a decline from GBP820,000.
"We are making great progress implementing our revised strategic direction and the narrower focus is already starting to deliver in our three key areas. Overall, we believe the actions we are taking will ultimately deliver shareholder value both in the short and long term," said Omega Diagnostics Chief Executive Colin King.
Trading is expected improve in the second half of Omega Diagnostics' year compared to the first.
Shares in Omega Diagnostics were down 2.2% at 15.26 pence on Wednesday.
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