ODX.L Share News (ODX)

(Sharecast News) - Medical diagnostics company Omega Diagnostics reported a 6% improvement in revenue from continuing operations in its first half on Monday, to £4.46m.
The AIM-traded firm said reported revenue, including discontinued operations, was down 15% year-on-year for the six months ended 30 September, at £4.46m.

It said it saw a "significant improvement" in its gross margin from continuing operations, which rose 5.8 percentage points to 67.5%.

The company made a statutory loss for the period of £0.29m, swinging from a profit of £1.04m a year earlier, while its adjusted loss before tax narrowed to £0.35m from £0.51m.

It said its EBITDA from continuing operations totalled £0.25m for the period, compared to a loss of £0.22m in the first half of 2018, while its adjusted losses per share shrank to 0.2p from 0.5p.

On the operational front, the board noted the placing and subscription for £1.7m, which was completed on 10 October, and said a total of 65 allergens were CE-marked during the period to run on its 'IDS' automated instrument including first screening assay.

It received the first order for 20,000 'food detective' tests, which was shipped to its strategic partner in China during the half-year.

A second order for 30,000 Food Detective tests would be shipped to the strategic partner in November.

The 'VISITECT CD4' 350 cut-off test evaluation report was written and submitted to the Nigerian Ministry of Health during the period, and post-period end, the company said a second conditional order of 200,000 CD4 350 tests was received.

It also noted that the 'VISITECT CD4 Advanced Disease' test, utilising a lower 200 cut-off, had received ERPD approval.

"I am encouraged that we continue to make progress across all three divisions," said interim chairman William Rhodes.

"Our financial performance was aligned to our expectations and is further indication that the restructuring we undertook in the prior year is having a positive impact."

Rhodes said that the recent fundraise also provided the firm with sufficient funding to implement its short term strategies.

"In summary, we have continued to make progress against our plans, and are well-positioned for near term growth in both our food intolerance and CD4 business units."

At 0821 GMT, shares in Omega Diagnostics were up 4.3% at 10.43p.