Omega Diagnostics flags jump in sales but Covid income set to be 'minimal'

Omega Diagnostics, the medical testing developer that recently agreed to sell its Scottish manufacturing facility, has flagged higher sales but said ongoing Covid income is expected to be “minimal”.

In a trading update to investors, the firm said it expects to report a 41 per cent increase in full-year revenues to £12.3 million, compared with the year before, with its health and nutrition division contributing £8.6m of revenue, up from £6.8m.

The group’s global health division has seen “substantial growth” in the period, up 97 per cent to £3.8m, with a surge in revenues from its CD4 kits.

Bosses noted that further progress was being made to implement CD4 testing in high HIV prevalence countries while demand from aid agencies and non-governmental organisations continues to grow.

Omega Diagnostics' Visitect CD4 product enables people with HIV to test their immune systems.

Covid-19 related revenues contributed £2.6m, up from £1.7m, however ongoing Covid income is forecast to be minimal.

Omega said it remained in dispute with the UK Department of Health and Social Care and has yet to receive a response to its latest correspondence, sent on February 8. At the company’s request, the department is making arrangements to remove the government-funded equipment from the company’s Alva site.

In February, Omega announced that it was selling its Clackmannanshire manufacturing facility that employs more than 100 staff while raising millions of pounds to boost its fortunes.

The firm said it had signed a sale and purchase agreement with Accubio, a wholly-owned subsidiary of Zhejiang Orient Gene Biotech, for the Alva operation, for a cash consideration of some £1m.

Omega, which will look to relocate some production to a new plant under construction in Ely, Cambridgeshire, said losses have largely been incurred as a result of its dispute with the Department of Health and Social Care over the licensing of its Covid-19 anitgen test kits.

The manufacturing business is being sold as a going concern with 109 full-time employees based in Alva transferring across with the business.

The disposal agreement also covers the sale of certain fixed assets, including plant and equipment, excluding government-funded equipment on site, as well as the assignment of the lease for the Alva facility.

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