6th Aug 2018 10:38
LONDON (Alliance News) - Shares in Omega Diagnostics Group PLC dropped on Monday after the company reported swinging to an annual loss.
Shares were trading down 13% at 13.42 pence each on the back of the news.
For the twelve months to March 31, the medical diagnostics company posted a pretax loss of GBP6.9 million, compared to a GBP656,226 profit recorded a year ago.
The loss was mainly due to the closure of the company's German business Omega Diagnostics GmbH and the Pune manufacturing facility, which added GBP5.8 million in exceptional costs to Omega's balance sheet.
Revenue dipped to GBP13.6 million from GBP14.2 million in what the company described as a "tumultuous" year.
By division, the company said that revenue in its Food Intolerance unit dipped 6% to GBP7.6 million in the recent financial year, due to a "key partner's internal difficulties" alongside increased competition.
In the Allergy & Autoimmune business sales declined by 8% to GBP3.3 million as a result of decreased testing across the company's customer base.
Lastly, sales in the Infectious Disease business were flat year-on-year at GBP2.7 million.
The company said it is confident to deliver on its strategic goals in the new year.
"Ultimately, we are judged by our results, and it may end up being a rather circuitous route to success, but I do believe that after many years of famine shareholders will see some bread in their basket by this time next year. The key thereafter will be to replenish that basket. I am confident we can achieve both," Chairman David Evans said.
In a separate release, Omega said that the product it described as "the jewel in its crown", VISITECT CD4 for the treatment of advanced HIV, achieved a "key milestone" by attaining a formal design freeze.
"This significant development allows Omega to progress into the formal verification and validation phase," the company explained.
Chief Executive Officer Colin King said: "I am delighted that we have achieved this key milestone in our development programme which further demonstrates the high level of scientific skills within the Company. This development will further enhance our product offerings for CD4 and make a significant difference to people living with HIV in resource-poor environments."
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