Omega Diagnostics FY revenues contract

17th Apr 2023 10:17

(Sharecast News) - Medical diagnostics company Omega said on Monday that revenues had contracted in the twelve months ended 31 March.

Omega expects to report annual revenues of £7.5m from continuing operations, down from £8.6m a year earlier. However, with lower-than-expected production yields and higher raw material costs, the group also expects to post an underlying loss of approximately £2.0m.

Whilst Omega stated it remains confident that the new trading year will be one of "significant revenue growth" and an "improving EBITDA performance", it kept its full-year guidance under review until the results of Chartwell Consulting's production improvement plan are known.

Elsewhere, the AIM-listed group highlighted that its new, purpose-built facility in Cambridgeshire has yet to be delivered by the landlord, with the company rejecting the terms of the landlord's current proposal for the delivery of the site and continuing to consider all of its options in this regard.

On another note, Omega added that it remains in an ongoing dispute with the Department of Health and Social Care regarding the potential repayment of a pre-production payment of £2.5m under a contract to manufacture Covid-19 lateral flow tests and a "substantial counterclaim" made in favour of the company.

"A formal mediation meeting is scheduled to take place in late April, although it is not clear what the outcome of this meeting will be or whether the outcome will be disclosable due to confidentiality arrangements," noted Omega.

As of 1415 BST, Omega shares were down 5.86% at 2.73p.

Reporting by Iain Gilbert at Sharecast.com