Omega revenues warning as shares fall 11%

Deputy Business Editor

Tuesday 16 October 2012

SHARES in Omega Diagnostics dipped 11% as the company warned half-year revenues would be flat amid difficult trading conditions in Germany.

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greig cameron deputy business editor

The announcement of a new distribution partnership in India for its Food Detective allergy testing kits did not help the Alva company's share price as the stock ended the day down 1.88p at 14.62p.

Delhi-based healthcare company SRL, which has more than 200 laboratories and 1300 collection centres across India, is taking on Omega's products for at least one year.

Andrew Shepherd, Omega chief executive, said: "Food Detective has great potential in India where there is increasing awareness around health and wellbeing among a growing middle-class population with rising levels of disposable income."Omega announced turnover in the six months to September 30 this year is likely to be £5.53 million.Food intolerance revenue is expected to be up by 15% to £2.12m although allergy and autoimmune will drop by 11% to £2.03m. Income from infectious disease and other products is predicted to fall by 2% to £1.38m.In Germany, the group has been affected by lower payments on laboratory tests conducted on a doctor's premises.Omega said Hamburg, where a large proportion of its sales are, was one area that had adopted reduced reimbursement rates.A wet spring and summer meant less pollen-related work while there was also an adverse exchange rate impact of £200,000.Omega is in discussions with a lender about accelerating launch plans for an HIV cell monitoring product and hopes to be able to provide commercial quantities before the end of this year. However, there has been a delay on launching allergy tests for the automated IDS-iSYS system while registration of Food Detective in China is taking longer than anticipated.

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Omega revenues warning as shares fall 11%

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