SHARES in life sciences company Omega Diagnostics fell by just over two per cent yesterday despite the business assuring the market that its profits for the first half of this year are likely to be in line with expectations.
In an announcement to the stock exchange the Alva-based business said that while revenues for the six months to the end of September were 27 per cent lower than in the same period last year, the reduction was expected as a result of it closing down loss-making manufacturing sites in Germany and India following a strategic review conducted by chief executive Colin King.
READ MORE: Omega shares plunge as cost of site closures bites
“Turnover is in line with expectations and expected to be £5.23m and reflects the decision to discontinue two loss-making businesses,” the company said.
“This decision was taken following the strategic review and consequently revenues declined by 27% on a headline basis and by 7% on a like-for-like basis.
“There is expected to be a minimal currency effect between revenues for this half-year period compared to the prior period. Profit before tax […] is in line with expectation at the half-year stage.”
The strategic review of the business, which also saw Omega sell its infectious diseases business to Lab 21 Healthcare in June, was carried out after Mr King became chief executive at the start of this year.
Omega Diagnostics sells its infectious disease business for up to £2.175m.
READ MORE: Omega Diagnostics sells its infectious disease business for up to £2.175m
Having joined Omega as chief operating officer in 2015, Mr King replaced founder Andrew Shepherd in the role.
Mr Shepherd, who remains at the business in the role of global ambassador - life president, established Omega in 1987.
In the year to the end of March the business made a statutory loss of £7.27m, compared with a profit of £710,000 the previous year.
The company’s shares closed at 15.25p yesterday, down from 15.6p the previous day.
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