Omega Diagnostics Group PLC (AIM:ODX)’s shares plunged 10% after the company warned of lower-than-expected revenues and significant back-end phasing of orders.
“Whilst demand for Omega's food sensitivity tests remains strong and the order book continues to grow, the company has faced several headwinds that have impacted the ability to fulfill orders ahead of 31 March 2023,” the company said.
As a result, a number of orders will move into fiscal year 2024 while the later receipts of orders have also left insufficient manufacturing capacity to meet the anticipated demand in the current year.
This will result in 2024 having a stronger-than-expected opening order book which is “still expected to be a year of significant revenue growth and a return to positive EBITDA”.
But for the year to March 2023, full-year revenues from the Health and Nutrition business are now expected to be in the range of £7.5mln-£8.0mln, resulting in an EBITDA loss from continuing operations of c. £1.0mln.
Year-end cash levels are expected to remain substantial and will be around £5.0mln, “more than adequate to allow Omega to deliver against its growth strategy from existing funds”.
Omega also said it is looking into partnership opportunities as it looks to expand into the US.