Member Info for Okehurst1

Are we a much larger business today than 2 years ago ?

This in the interim snap shot then ;

Financial Highlights: Dec 2019
·; Revenue from continuing operations increased by 6% to £4.46m (2018: £4.22m)

·; Reported revenue, including discontinued operations, reduced by 15% at £4.46m (2018: £5.23m)

·; Significant improvement in gross margin from continuing operations - up by 5.8 percentage points to 67.5% (2018: 61.7%)

And 2 years on and £12M share holders cash invested ;

Financial Highlights:
· Revenue increased by 81% to £5.73m (H1 '20: £3.16m)

§ Health and Nutrition sales up 62% to £4.17m (H1 '20: £2.58m)

§ Global Health revenue up 170% to £1.56m (H1 '20: £0.58m)

· Gross margin decreased to 34.4% (H1 '20: 42.9%) caused by increased direct labour in anticipation of DHSC COVID-19 contract work

· Statutory loss for the period of £2.75m (H1 '20: £0.28m

So £12M raised, strip out Covid testing (£1.25M but only £600k collected ) we are not a much larger business revenue wise and our gross margin has collapsed by 50%

We do however have a load of manufacturing capacity and establishment expense sitting there doing nothing of more and our gross margin has halved.

If Omega have ‘ substantial ‘ cash then why tout yourself around the City last week to raise more of the stuff ?

They wanted to fund the ‘ white elephant ‘ of Alva and see what happens next winter, no skin off their nose the PI’s are paying for the folly.

Alva has to go, there is no commercial test to sell
Sell as a Going Concern reinvest in Cambridge

Captain,

What would NCYT have to pay ? It would have to be hostile as the current BoD would get toasted post deal

I think the Omega BoD are waiting to raise ££ so they can keep Alva open and nick another 12 months salary whilst they hope they can land a contract, if it was £5M that would be £17M of cash totally wasted on Covid testing

Covid testing has gone for Omega, Chinese operators are able to produce so cheaply and they actually have tests that have cleared regulators

We just need 1 Overseas operator who will buy the assets of Alva / TUPE the staff and it suits them to have UK. on shoring capacity

Alva has to go one way or another, we are generating no revenue of note from the site

- Negotiate with the DHSC re the £17M kit secure an option to purchase at a marked discount

- Employ consultants to market / sell Alva and it’s capacity as going concern / asset sale

Back to back both transactions

Deal to be done, they retain the tax losses / the cash from disposal/ invest in the only revenue generating part of the business in Cambridge

We need Alva sold off but the BoD appear to live in the area

Use the net proceeds to invest in the Cambridge site and focus on health / wellness which could generate £10M plus this year at historic 62% gross

Problem is as the subject header says …

Until the Company -officially - disclose/ discuss the £cash burn and substantiate ‘ what is the £value of the ‘significant’ cash available and ditto offer some strategy and direction they wish to move the business coupled with if they have ‘ significant’ cash why have they been considering as raise?Whats the raise for?

Taking the view they have already tapped the market for £12M over the last 26 months which has pretty much delivered zero share holder value then it’s not unreasonable of shareholders to want to be informed

Marik ,
It’s good to read alternative views/ ideas.

The problem is after 13 months of mismanagement the market no longer trusts the BoD hence the 31% drop just today, they no longer enjoy the benefit of doubt from their PI shareholder base

No more investors £££ into Covid Testing , don’t add to the £12M already sunk

Reinvest at Cambridge where they manufacture the Health & Wellness tests and can make a decent margin

No placing required / invest in the only division generating revenue / remove loss making division

Not too sure what compelling reason anyone would buy at 7p at the moment ?

Marik

Know you mean well and will share the information from Omega if they email you back , I look forward to the clarification via yourself

TW and myself had a debate on here about the £650k cash burn

My view at the time was that the £2M was spent on stock / materials which could be converted back to cash as the finished product was sold - Health/ Wellness products

With £900k p/m of pro rata sales at say 50% margin the cash loss per month could well be small

However as it’s now difficult to give this management team the benefit of the doubt we do need it explaining via an RNS
we can’t

Marik,

My point is Omega shouldn’t communicate price sensitive information to their shareholders via in advance to any other shareholder who then has the responsibility to inform the market - which by default would be the case in this instance

It’s just wrong as a publicly quoted company to operate this way and Omega have form communicating via this route - as the example of big jock

For ref - I know your a genuine poster and share information, my comments are not on a slant on your good self but on Omega as stated why above

Marik

We have had this problem with Omega before, we had a poster called ‘ big jock’ who Omega used to use / send sensitive information to without informing the wider market

It is really market abuse by Omega, this is sensitive information that should be released to all shareholders at the same time.

I know from your posts on Avacta your a genuine poster and you enjoy sharing information, am just pointing out that on this BB / Twitter then Omega have ‘ form ‘ for this type of communication

It’s an important issue( cash burn ) that they need to address formally, not disclose they have burnt through 50% of their cash holdings in 12 weeks with no explanation ditto their bank facilities have been reduced by 75% in that period

Coupled with within that period they advise the DHSC want £2.5M

This is not how to communicate with your shareholders who have supported the business to the tune of £12M in the past 24 months

Nb if you see something we cant see after you have studied the RNS’s , appreciate your thoughts

It’s v frustrating

Marik ( apologies finger slipped on name check )

It’s all in those 2no RNS’s

Maria

It’s cash in hand November 2021 via interims / RNS (£4m plus )
Then same less then 2 weeks ago alongside CEO leaving
(£2M plus )

The cash burn between the period was £2M but no explanation why ?

Ditto banking facility dropped from expected £8M to £2M

Plus in the mix we have the £2.5M claim from DHSC

Relatively speaking it’s big numbers for a small business with high fixed costs - Alva and no Covid sales to support - and very little cash at hand

Ditto explain the £650,000 a month cash burn
What the BoD plans actually are ?

John

That’s debatable, we don’t know what the monthly run rate on the cash is over the medium term?

Otherwise the £5M gets burnt like the £12M they have raised over the 24 months

They have no Covid test to sell , CTDA is a non runner and all they can go for is EU HUA but how long does that market last and what is the marketing budget ? Is it 16% as in Health / Nutrition

They have told us USA market for home use is not an option due to the expense

Are all sales via DAM ?if we had a test to sell in the U.K. ?
Can DAM with their chain of Covid testing shops survive ?

With cheap Chinese tests flooding the market is there a viable business going forward with Covid testing considering their net £cash receivables have been £600,000 in the last 2 years from this sector ?

Do the BoD consider these points ?

Good money after bad

Marik

We discussed this point less than 2 weeks ago

It’s either stock ? Or running costs keeping Alva open
The Company didn’t expand

This then exasperated the market as no one knows

Ditto end of November they advise they were securing an £8M banking facility, we then find out 12 days ago they only have a £2M facility … again no explanation off them.

Today was an ideal opportunity to explain, the BoD continue to confuse, the Market requires clarification on these points including the strategy for the business moving forward with no Covid test and big overheads supporting same

No one on this BB knows the answer to your question - without it being inside information

That’s the point Marik … the market has no idea what they are burning £650k a month on

They could have told us today