Omega Diagnostics dives as revenue slashed

Omega Diagnostics slumped on Monday after the company swung to an adjusted interim loss as revenue took a hit following the disposal of two of its businesses.

For the six months ended 30 September the medical diagnostics outfit sunk to an adjusted loss of £0.5m from a profit of £0.2m in the same period last year as revenue dropped by 27% to £5.2m following the business disposals.

Total pretax profit stood at £0.8m, up from £0.1m in the same period last year, due to the £1.1m sale of its legacy infectious disease business and £0.4m from the liabilities write-off of Omega’s German business.

Revenue from continuing operations dropped by 7% to £4.2m and cost of sales increased from £1.4m to £1.6m.

Speaking about the immediate future, David Evans, chairman of Omega Diagnostics, said: "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."

Evans added that the AIM traded company’s short-term outlook is “dominated” by its CD4 rapid test for HIV, which it aims to commercialise in the near future with coverage currently agreed for 11 countries and under negotiation in five more.

Omega Diagnostics’ shares were down 12.91% at 14.50p at 1214 GMT.