Omega Diagnostics Group PLC Trading Update (3409W)
April 17 2023 - 1:00AM
UK Regulatory
TIDMODX
RNS Number : 3409W
Omega Diagnostics Group PLC
17 April 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE UK VERSION OF THE MARKET ABUSE REGULATION (EU)
NO.596/2014, WHICH FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN
UNION (WITHDRAWAL) ACT 2018 ("UK MAR").
OMEGA DIAGNOSTICS GROUP PLC
("Omega", the "Company" or the "Group")
Trading update
Omega (AIM: ODX), the specialist medical diagnostics company
focused on promoting a personalised and functional approach to
health and nutrition, provides the following trading update for the
year ended 31 March 2023.
The Company expects to report revenues of GBP7.5m from
continuing operations (2022: GBP8.6m), in line with the expected
revenue range provided in the 18 January 2023 update. With
lower-than-expected production yields and higher raw material
costs, the EBITDA loss for FY23 is now expected to be approximately
GBP2.0m. The year-end cash position was GBP5.0m, in-line with
expectations, and more than adequate to allow Omega to deliver
against its growth strategy from existing funds.
Demand for Omega's food sensitivity tests moving into the new
financial year remains strong with an opening order book for FY24
of GBP2.4m, and the Company is taking action to improve operational
efficiency and manufacturing capability in the near term. Chartwell
Consulting, a global specialist in delivering operational
performance improvements in healthcare manufacturing, was appointed
in February and over the coming months will continue to work with
Omega to deliver additional production yield improvements whilst
reducing the FoodPrint(R) slide manufacturing cycle time. Whilst
the Company remains confident that FY24 will be a year of
significant revenue growth and an improving EBITDA performance,
guidance on FY24 is under review until the results of the
production improvement plan are known.
The Company also confirms that the new, purpose-built facility
in Ely, Cambridgeshire, has yet to be delivered by the landlord and
the Company has rejected the terms of the landlord's current
proposal for delivery of the site. The Company continues to
consider all of its options in this regard. As previously
confirmed, an agreement has been reached to extend the Littleport
lease to June 2025, thus providing sufficient time to resolve the
outstanding issues and facilitate an orderly relocation in due
course.
The Group remains in an ongoing dispute with the Department of
Health and Social Care regarding the potential repayment of a
pre-production payment of GBP2.5m 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.
In March 2023, Omega successful launched its, MyHealthTracker, a
health and wellbeing tool designed to be used alongside a trained
healthcare professional, allowing the patient to receive laboratory
test results direct to their smartphone thereby helping the patient
make personalised changes to their diet for optimal health. Access
is by invitation only from an approved healthcare professional with
its main goal to elevate patient care by way of a more personalised
approach to health and wellbeing.
Following the two heads of term agreements already announced on
26 October 2022 and 14 November 2022 respectively, the bespoke
microbiome and nutrigenomic test reports are on track to be
finalised for launch early in Q2 FY24. For a modest initial outlay,
these tests have the potential to generate more than GBP0.5m in
additional revenue in the year ending 31 March 2024.
Omega remains confident about growth plans on the US market, the
largest market for food sensitively testing globally, and further
to the announcement of the first US purchase order ("PO") on 6
January 2023, the Company has now received an additional PO for its
FoodPrint(R) system from a second US customer.
Jag Grewal, Chief Executive Officer of Omega, said: " As an
international diagnostic testing business that is passionate about
improving lives around the world by accurately informing health
decisions, t he recent launch of our MyHealthTracker app helps our
reach and connects us to our customers globally while giving us a
better understanding of gut health data and trends. It also
empowers people, via a healthcare practitioner, to become more
proactive about managing their health straight from their phone,
which we believe is an important step forward.
"Whilst it's disappointing to have challenges regarding the
lower-than-expected production yields, we have taken swift action
to bring in consultants to oversee a number of process improvements
and are confident the actions being taken will deliver a material
improvement in yield in the near term. The demand for our food
sensitivity tests continues to be strong and the order book is
holding up well. We remain excited and confident for our prospects
in the US as we continue to build a wider menu of complementary gut
health tests to sell via our established channels and we look
forward to updating shareholders at our results in July. "
Contacts:
Omega Diagnostics Group PLC www.omegadx.com
Jag Grewal, Chief Executive Officer via Walbrook PR
Chris Lea, Chief Financial Officer
finnCap Ltd Tel: 020 7220 0500
Geoff Nash/Edward Whiley/George Dollemore (Corporate
Finance)
Alice Lane/Harriet Ward (ECM)
Walbrook PR Limited Tel: 020 7933 8780 or omega@walbrookpr.com
Paul McManus Mob: 07980 541 893
Lianne Applegarth Mob: 07584 391 303
Sam Allen Mob: 07502 558 258
About Omega Diagnostics Group PLC
Omega (AIM: ODX) is a specialist medical diagnostics company
focused on promoting a personalised and functional approach to
health and nutrition .
www.omegadx.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFLESFIRLIV
(END) Dow Jones Newswires
April 17, 2023 02:00 ET (06:00 GMT)
Omega Diagnostics (LSE:ODX)
Historical Stock Chart
From Apr 2024 to May 2024
Omega Diagnostics (LSE:ODX)
Historical Stock Chart
From May 2023 to May 2024