2nd Dec 2019 10:39
(Alliance News) - Omega Diagnostics Group PLC said Monday it swung to an interim loss on a reduction in revenue and the lack of a gain on the sale of its legacy infectious disease business the year before.
Also on Monday, the medical diagnostics company said it has received an order for its VISITECT CD4 350 test from Nigeria.
The order is for the 200,000 tests, with 50,000 to be conducted in January, another 50,000 in February and 100,000 in March.
The order is in addition to the first purchase order for 50,000 tests in August. Both orders are conditional on the Nigerian Ministry of Health approving the VISITECT CD4 350 test into its national HIV policy.
For the six months to the end of September, Omega Diagnostics reported a pretax loss of GBP330,819, compared to a profit of GBP1.1 million the prior year.
This was due to the prior year's profit being lifted by a 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 reported a narrowed loss of GBP409,312 from GBP529,180.
Total revenue declined by 15% to GBP4.5 million from GBP5.2 million, mainly due to the divestment of its legacy unit and the closure of its German and Indian manufacturing facilities.
Revenue from continuing operations however increased by 6% from GBP4.2 million, lifted by a stronger performance from Omega's Food Intolerable division, on higher sales of its FoodPrint laboratory reagents.
"I am encouraged that we continue to make progress across all three divisions. Our financial performance was aligned to our expectations and is further indication that the restructuring we undertook in the prior year is having a positive impact," said Interim Chair William Rhodes.
"In summary, we have continued to make progress against our plans, and are well positioned for near term growth in both our food intolerance and CD4 business units," Rhodes added.
Shares in Omega Diagnostics - which is headquartered in Alva, Scotland - were up 4.3% at 10.43 pence on Monday in London.
By Dayo Laniyan; [email protected]
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