Medical testing kit maker Omega Diagnostics said today that it was focusing on emerging markets after blaming the sluggish European economy for a 22 per cent slump in profits.
The Scottish company reported adjusted profit before tax of £780,000 in the 12 months to 31 March, down from £1 million the year before. Turnover was 1 per cent higher at £11.3m.
Chairman David Evans said: “More than half of group turnover is generated in the UK and Europe, predominantly through the food intolerance and allergy/autoimmune divisions. The economic uncertainty in this region has led to a slowdown in growth in European in vitro diagnostics markets and the ability to grow our own business is not immune from the broader landscape.
“To counter risk in these areas, we have a strategy to focus on the emerging BRIC markets and our success in growing revenue in the year ahead will be dependent on whether sales into these higher growth territories can compensate for the pressures being experienced in Europe and elsewhere.”
He added that new tests being developed by the company would be the main driver of growth in the longer term, and that the group had made “a significant amount of progress” on its research in recent months.