Alva's Omega Diagnostics delays results but reveals new contracts

Omega Diagnostics, the Alva-based life sciences firm, today pushed back its full-year results citing “ongoing commercial discussions” as it also unveiled new orders from China and Nigeria.
The company specialises in tests for allergies, infectious diseases and food intolerance. Picture: ContributedThe company specialises in tests for allergies, infectious diseases and food intolerance. Picture: Contributed
The company specialises in tests for allergies, infectious diseases and food intolerance. Picture: Contributed

The company, which specialises in tests for allergies, infectious diseases and food intolerance, was due to release full-year results next week but has now delayed them until September.

It said it wanted “further time to gain clarity regarding certain ongoing commercial discussions and other post-balance sheet events” but did not elaborate.

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However, it reassured investors that results were as previously flagged in a trading update in April with sales from continuing operations expected to come in 5 per cent higher at £8.76 million.

Underlying earnings are expected to be £200,000 compared to a loss of £810,000 in the previous financial year.

It said the improvements reflected decisions last year to streamline the business including the closure of its German allergy business.

Omega said trading in the first quarter of the new financial year in its core business is also in line with management expectations and that it had won two orders recently totalling £500,000.

The first is from its distributor in Nigeria for 50,000 units of its Visitect CD4 HIV test, conditional on the Nigerian Ministry of Health approving it for use. It has also received a purchase order for 20,000 units of a new version of its food intolerance product aimed at the Chinese market.

Analysts at house-broker FinnCap said although the Nigerian order is conditional, it expects it to represent the beginning of the roll-out of a product range “that will ultimately be bought at scale” by non-governmental organisations (NGOs).

FinnCap is leaving its target price for shares in the company under review pending clarity over timing and full year results. However, it said the two purchase orders “provide real evidence of the opportunities that exist”.

“We believe the current valuation of £12m to be underpinned by the value in the food intolerance business, leaving substantial upside from the potentially significant opportunity that exists for Visitect CD4,” it said.

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In today’s update the firm said it had used £740,000 of its £2m overdraft facility.

Earlier this year investment banker Jeremy Millard, 47, a former partner at London-based corporate finance firm Smith Square Partners where he advised clients in the science, technology and telecommunications sectors, joined the board as a non-executive director.

Millard is the brother-in-law of Richard Sneller, who has a substantial shareholding in the company.

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