Omega Diagnostics Group PLC Trading Update and Notice of Interim Results (2507U)
October 23 2017 - 1:00AM
UK Regulatory
TIDMODX
RNS Number : 2507U
Omega Diagnostics Group PLC
23 October 2017
Omega Diagnostics Group PLC
("Omega" or "the Company")
Trading Update and Notice of Interim Results
Omega (AIM: ODX), the medical diagnostics company focused on
allergy, food intolerance and infectious disease, announces the
following trading update for the six months to 30 September 2017,
in advance of releasing its interim results on Thursday 14 December
2017.
Financial update
Turnover is expected to be GBP7.11m, in line with last year's
first half in constant currency terms and 4% ahead of last year's
result (2016: GBP6.83m) on an actual basis. This reflects the
weakening of sterling in the post-Brexit environment. Profit before
tax (before share-based payments, IFRS-related discount unwinds and
amortisation of intangible assets) is in line with expectation at
the half-year stage.
Segmental revenues are expected to be as follows:
Revenue to Revenue to % increase % increase
30 September 30 September CER*
2017 2016
Food Intolerance GBP4.13m GBP3.84m + 8% + 4%
Allergy/Autoimmune GBP1.67m GBP1.76m - 5% - 11%
Infectious Disease/Other GBP1.31m GBP1.23m + 7% + 5%
TOTAL GBP7.11m GBP6.83m + 4% + 1%
* Constant exchange rate ("CER") numbers have been restated to
remove the impact of foreign exchange movements in the year by
restating the performance for the six months ended 30 September
2017 using the exchange rates during the prior period.
Core business update
Food Intolerance
We continue to see strong growth in North America with our
microarray-based FoodPrint(R) test. As noted below, North America
is a priority market for us and we are focusing resource more
closely into this market. With regard to the self-test version of
Food Detective(R), the Company was able to successfully complete
the actions requested of it by Lloyds Register Quality Assurance
("LRQA") within the agreed timescale and we are awaiting LRQA's
final review outcome.
Allergy/Autoimmune
Revenue in the first half of the current financial year declined
by 8.5% in our German domestic business, compared to the previous
period. A significant amount of above-average rainfall in July was
a contributing factor but we are expecting a better performance in
the second half of the year. The reduction in euro-denominated
revenue was mitigated by the weakening in the pound/euro exchange
rate compared to last year.
Infectious Disease
This segment has started to benefit from initial sales of the
VISITECT(R) range of Malaria tests manufactured at the facility in
Pune, India. A small percentage increase in revenue in actual terms
has been positively impacted by the weaker position of sterling, as
noted above.
Accelerated growth strategy
As announced in July, the Company was successful in raising
funds from two sources:
-- GBP3.3 million (before expenses) from a placing and open offer
-- EUR0.8 million (before rent deposit) from the sale and
leaseback of its German manufacturing facility
These funds were raised to enable the Company to exploit
opportunities which it has identified to accelerate growth.
Increase FoodPrint(R) traction in the USA
As reported on 16 October 2017, the Company has signed a supply
agreement with a new partner in the US, bringing the number of
partners that the Company is currently working with in the US to
three. We continue to believe that the US market represents a key
driver for growth in what is the world's largest market for food
sensitivity testing.
Allersys(R) product range
We remain on plan to increase the number of CE-Marked allergens
that have been developed for use on the IDS instrument to 50-60
allergens by the end of the current financial year. We have had two
positive meetings recently with Immunodiagnostics Systems ("IDS")
and, subject to finalising a global distribution agreement, we are
now confident that we can commercialise our range of products
within the current financial year on terms which are beneficial to
both parties.
Visitect(R) CD4
We have successfully manufactured bulk components for three
validation batches of Visitect(R)CD4 which have passed QC testing
at external sites and have now been assembled into devices. The
first two batches of assembled devices have passed final QC testing
with external testing. A third batch will begin external testing
imminently. We have started using these validation batches to
verify performance and this programme of testing is about 50%
complete. External performance evaluations are underway at two UK
hospital sites and we expect these to be completed within the next
few weeks. The external performance evaluation in India is now
complete and the data is being fully analysed with performance as
expected on an initial review of the data. We therefore remain
confident in our ability to CE-Mark the test before the end of the
calendar year.
Outlook
We have made significant progress on a number of key objectives
including:
-- progress with validating and verifying the performance of Visitect(R) CD4
-- increasing our presence in the North American market for food sensitivity testing
-- progress with the commercialisation plan for our panel of Allersys(R) reagents
-- increasing traction with Visitect(R) Malaria sales
Trading in the first half of the current financial year was in
line with the comparative period in the prior year on a
like-for-like basis. We expect a stronger second half and the
outturn for the year remains dependent on one or more of the
objectives outlined above delivering a material contribution to our
results.
David Evans, Chairman of Omega commented: "We continue to
advance as a Company in all our key areas and the outlook over the
next twelve to eighteen months remains positive - the shorter term
is dominated by factors not wholly within our control. We continue
to be enthusiastic about prospects for Omega and we hope to
announce further progress later in the year.
The information communicated in this announcement is inside
information for the purposes of Article 7 of EU Regulation
596/2014.
Contacts:
Omega Diagnostics Group PLC Tel: 01259 763 030
David Evans, Chairman www.omegadiagnostics.com
Andrew Shepherd, Chief Executive
Kieron Harbinson, Group Finance
Director
finnCap Ltd Tel: 020 7220 0500
Geoff Nash/James Thompson (Corporate
Finance)
Mia Gardner (Corporate Broking)
Walbrook PR Limited Tel: 020 7933 8780 or omega@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Cawthorne Mob: 07584 391 303
This information is provided by RNS
The company news service from the London Stock Exchange
END
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