Omega Diagnostics Group PLC (AIM:ODX) saw strong revenue growth last year even as the boost from Covid faded away.
The in-vitro diagnostic products maker said future revenues related to Covid are expected to be minimal.
The company remains in dispute with the Department of Health and Social Care (DHSC) and has yet to receive a response to its latest correspondence sent on 8 February 2022, it told the market. At the company's request, the DHSC is making arrangements to remove the government-funded equipment from the manufacturing site in Alva; the company announced the sale of the site in February to Zhejiang Orient Gene Biotech, a major supplier of lateral flow tests.
The diagnostics specialist said its expects to report a 41% increase in revenues to £12.3mln in the year to the end of March 2022 (2021: £8.7mln).
The Health and Nutrition (H&N) division contributed £8.6mln of revenue, compared to £6.8mln the previous year, when the sales figure was skewed by a large stocking order worth around £1.2mln placed by the company's largest partner in China to seed the market in 2021. Excluding this stocking order from last year, underlying H&N sales grew by 54%, driven by strong Food Print product sales, which were up 82%. This division remains one of the key areas of strategic focus, with substantial growth opportunities in both China and the US, Omega said.
The net cash balance as at 31 March 2022 was £1.5mln. The company has an overdraft facility of £2.0mln that it has yet to draw on and continues to actively explore alternative options to generate additional funds.
Shares in Omega initially fell to 5.1p on the trading update before recovering to last night’s closing level of 5.6p.