Omega Diagnostics expects to report 41% revenue rise in FY21
(ODX ) said it expects to report a 41% revenue rise for the year ended 31 March 2022, with the group’s Health and Nutrition division contributing to the majority of this.
The medical diagnostics company expects to report £12.3m in revenues, up from £8.7m in 2021, with the Health and Nutrition (H&N) division contributing to £8.6m of total revenue.
Omega noted that prior year H&N sales are skewed by a large stocking order worth around £1.2m placed by the Company’s largest partner in China to seed the market back in 2021.
Excluding this stocking order from last year, underlying H&N sales grew by 54%, driven by strong Food Print® product sales, up 82%. Omega said this division remains one of the key areas of strategic focus, with substantial growth opportunities in both China and the US.
Meanwhile, the Global Health division has also seen substantial growth in the period, with revenues growing 97% to £3.8m, up from £1.9m in 2020, the company informed investors.
During the period, CD4 revenues increased to £1.0m, up from £0.1m in 2020, as further progress was made to implement CD4 testing in high HIV prevalence countries. The Group said the demand from aid agencies and non-governmental organisations continues to grow.
Order intake is also running well ahead of available production and the long-term prospects remain undiminished for the roll-out of the VISITECT® CD4 Advanced Disease test, it said.
Following on from the placing, which shareholders voted against, the Company said it continues to evaluate the strategic options for its CD4 business. While COVID-19 related revenues contributed to £2.6m in 2021, ongoing COVID income is expected to be minimal.
The Company explained to investors that while additional information requested for the CE-Mark for self-test for the VISITECT® COVID-19 antigen test was submitted prior to the 31 March 2022 deadline, not all of the data requested was available and the Company now awaits confirmation from its Notified Body as to whether the available data is sufficient.
Omega said it remains in dispute with the Department of Health and Social Care and has yet to receive a response to its latest correspondence sent in February 2022. At its request, the DHSC is making arrangements to remove government-funded equipment from the Alva site.
As at 31 March 2022, Omega had £1.5m in cash. While the overdraft facility of £2m remains in place and unutilised, the Group continues to explore options to generate additional funds.
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