Omega Diagnostics Group PLC – Final Results

Omega Diagnostics Group PLC – Final Results

Omega (AIM: ODX), the medical diagnostics company focused on allergy, food intolerance and infectious disease, announces its audited results for the year ended 31 March 2019.

 

Omega provide high quality in-vitro diagnostics products for use in hospitals, clinics, laboratories and healthcare practitioners in over 75 countries and specialise in the areas of allergy and autoimmune, food intolerance and infectious disease. These results reflect the actions taken last year as part of the Board’s strategic review to divest the non-core infectious disease business and to close the German allergy business.

Financial Highlights:

·      Like for like revenue of continuing operations increased by 5% to £8.75m (2018: £8.33m)

·      Reported revenues down 28% to £9.76m (2018: £13.55m) reflecting the divestitures noted above

·      Exceptional gains of £1.66m (2018: Exceptional charges of £6.51m) as detailed in the Financial Review below

·      Statutory profit for the year of £0.97m (2018: loss of £7.27m)

·      Adjusted loss before tax* of £0.30m (2018: loss of £0.73m)

·      EBITDA from continuing operations of £0.20m (2018: loss of £0.8m)

·      Adjusted EPS (0.2p) (2018: (0.4p))

·      Positive cashflow generated from operating activities, with cash inflow of £0.37m (2018: £0.83m outflow)

 

* Adjusted for exceptional items, amortisation of intangible assets and share based payment charges.

 

Operational & Post-Period End Highlights:

 

·      Closure of Germany and Pune sites eliminating associated losses

·      Disposal of legacy Infectious disease business to Novacyt SA for proceeds of £1.975m

·      IDS officially launch allergy range and first stocking orders are received

·      62 allergens CE marked to run on the fully automated IDS system

·      VISITECT® CD4 Advanced Disease test achieves CE mark and first orders received for both VISITECT® CD4 350 cut off test and Advanced Disease test

·      VISITECT® CD4 Advanced Disease test added to Global Fund procurement list following review by Expert Review Panel for Diagnostics

·      Food intolerance division returns to growth and makes progress with partner in China

·      £0.64m raised in May 2019 via direct subscription from key shareholders

·      Placing and subscription for £1.7m, announced separately today, to ensure the Group has access to sufficient working capital to continue to develop the commercialisation of both versions of the VISITECT® CD4 test

 

Commenting, William Rhodes, Interim Non-executive Chairman, said: “We have made substantial, industry-leading advances in the area of CD4 testing, having achieved commercial launch of the first, and still only, handheld, lateral flow CD4 test and have rapidly progressed the Advanced Disease test to commercial launch as well. We are confident that we will receive the necessary approvals for CD4 but note the existence of material uncertainties  with respect to timing of approvals and receipt of significant purchase orders and the resulting impact on short term working capital requirements

 

In recognising the existence of material uncertainties, we are encouraged as:

 

·      our existing and new shareholders have committed to invest £1.7m subject only to approval at the forthcoming general meeting;

·      our VISITECT® CD4 Advanced Disease test has received ERPD approval;

·      our new Chinese partner for Food Detective® has placed two significant purchase orders;

·      our partner, IDS, has committed resources and trained its sales personnel, with Omega’s involvement, to focus on and build the market for our allergy tests; and

·      we continue to explore unlocking the value within our three business units, whilst still managing to progress all three of them, namely, CD4 testing, allergy and food intolerance testing.

 

Until such time as we have recruited a new Chairman, I look forward to continuing to serve as Interim Chairman, working with the Board and management to ultimately achieve significant shareholder value.”

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