Corporate News

Omega (AIM: ODX), the specialist medical diagnostics company focused on industry-leading Health and Nutrition products, announces its audited results for the year ended 31 March 2022.

Financial highlights

• Revenue increased by 25% to £8.5 million (2021: £6.8 million)
• Gross margin increased to 59.7% (2021: 58.6%)
• Operating loss (continuing operations) £0.9 million (2021: £0.5 million)
• Loss from discontinued Global Health operations £9.9 million (2021: £2.5 million) including:
  • loss on disposal of Alva site £0.4 million
  • impairment loss recognised on the remeasurement of Global Health assets to fair value less costs to sell £1.9 million
• Adjusted EBITDA (continuing operations) £0.2 million (2021: £0.1 million)
• Health and Nutrition division adjusted EBITDA £1.6 million (2021: £1.3 million)

Operational highlights

• Strategy now focused exclusively on profitable and cash generative Health and Nutrition products
• New executive team of Jag Grewal (CEO) and Chris Lea (CFO)
• Global Health division has been discontinued and disposed of
• Withdrawal from COVID-19, following non-progression of the DHSC contract
• Reduction in operating costs following the sale of the Alva site for £1.0 million
• Disposal of the loss-making CD4 business for up to £6.3 million completed on 31 July 2022  
• Post year end equity fund raise of £2.2 million (gross)
• Business now stabilised after the disruption caused by COVID-19

Commenting, Simon Douglas, Chairman, Omega Diagnostics said: “Last year was an extremely challenging year, dominated by the COVID-19 opportunity that ultimately did not come to fruition and which destabilised the whole Group. The actions we have taken this year to withdraw from the COVID-19 market, to dispose of the Alva site to reduce losses and, subsequent to the year end, to complete the disposal of the loss-making CD4 business, have left the Group in a much stronger position. We currently have approximately £2.5 million in the bank and fully expect to receive the £4.0 million CD4 deferred consideration later this year, which will be used to accelerate our growth plans. Our existing Health and Nutrition division is profitable and cash generative, with opportunities for expansion both geographically and in terms of product range.”

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About Omega Diagnostics Group PLC  

Omega manufactures and distributes high quality in-vitro diagnostic products for use in hospitals, clinics, laboratories and healthcare practitioners in over 70 countries and is now focused on the health and nutrition sector.
www.omegadx.com