Shares in former Scottish medical company Omega Diagnostics slumped yesterday after it revealed that it has insufficient manufacturing capacity at its primary facility in Cambridgeshire to meet customer demand.
While next year will be one of "significant" growth, revenues during the 12 months to the end of March will be a quarter lower than previously anticipated. Losses will also be higher.
The company sold operations at its former headquarters in Alva, Clackmannanshire, and moved to England after an ill-fated contract to produce Covid tests for the UK government fell through.
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The loss of that contract triggered a collapse in the company's share price and the departure of former chief executive Colin King in January 2022. He was replaced by Jag Grewal, under whose leadership Omega subsequently decided to exit the testing market and focus on its health and nutrition business.
In a trading update issued yesterday, Mr Grewal said Omega is working to improve its manufacturing capabilities and is also pursuing a partnership for expansion into the US market. He added that the company still "fully expects" the coming year to be one of significant revenue growth and a return to positive earnings.
Shares in Omega closed yesterday's trading 13.7 per cent lower at a price of 3.3p each.
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