Omega hails 'solid progress'

OMEGA Diagnostics is looking to expand its operations following a year of what the Scots minnow described as "solid progress".

The medical diagnostics specialist, based in Alva and listed on Aim, posted a 14 per cent increase in revenues for the 12 months to the end of March. The rise in turnover to 6.2 million was attributed to increased sales of its Genarrayt testing kit and its "food detective" screening system for food intolerances.

Pre-tax profits dipped to 210,000, down from nearly 267,000 the year before, though this included an increase in share-based payment charges, amortisation and other costs. Adjusted profits before tax - Omega's preferred measurement - were 9 per cent higher at 590,000.

Costs included nearly 81,000 related to last September's acquisition of Co-Tek, a maker of low-cost bacterial diagnostic tests.

Omega - founded by now chief executive Andrew Shepherd - is now looking for other, larger acquisition opportunities with the potential to "transform" the business by adding complementary activities such as allergy testing. Finance director Kieron Harbinson said the company was also pursuing organic growth opportunities.

"We would hope to be able to update on both strands of that strategy during the coming financial year," he said.

Harbinson added that any substantial acquisition would require Omega to return to the equity market, similar to the 1m fundraising for the Co-Tek deal.

Shepherd said customers using Food Detective, which tests for 59 intolerances, were stepping up to Genarrayt, which can detect 220 intolerances.