Corporate News

Omega (AIM: ODX), the specialist medical diagnostics company focused on industry-leading Health and Nutrition products, announces its audited results for the year ended 31 March 2023, a year which has overseen the final steps of restructuring a business now focused on promoting a personalised and functional approach to health.

Operational highlights

• Completion of the disposal of the CD4 business effective 31 July 2022
• CD4 sale proceeds (excluding royalties) of £5.3 million received in full
• Placing and open offer raised £2.2 million in May/June 2022
• Lower than expected production yields adversely impacted customer deliveries in the final quarter
• Successful yield recovery plan implemented post-year end
• FoodPrint® yields reach a three-year high post-year end
• Major Chinese partner re-commences deliveries
• Launch of MyHealthTracker digital app

Financial highlights

• Despite sales growing by c.80% in the UK, overall revenues decreased by 12% to £7.5m (2022: £8.5m)
• Order intake was up by 71% to £2.4m (2022: £1.4m) over the prior year due to new installations and an increase in educating consumers and driving awareness
• Gross margin decreased to 47.0% (2022: 59.7%)
• Operating loss* (continuing operations) were £3.2m (2022: £0.9m)
• Loss from discontinued Global Health operations of £0.7m (2022: £9.9 million)
• Adjusted EBITDA (continuing operations)** £2.0m (2022: £0.2m)
• Placing and open offer raised £2.2m in May/June 2022
• Cash balance of £5.0m, as at 31 March 2023 (2022: £2.8m, including a cash balance of £1.6m and additionally had an overdraft facility of £2.0m, which was undrawn)

^{* Stated after aborted relocation costs of £0.5 million}

^{** Adjusted for exceptional items and share-based payment charges, see Financial Review section}

Post-period highlights

• FoodPrint® yields reached a three-year high post-year end

Commenting, Simon Douglas, Chairman, Omega Diagnostics said: "This year has seen the final steps in the withdrawal from the Global Heath business through the divestment of the loss making CD4 business and the full relocation to our Health and Nutrition manufacturing site in Ely, Cambridgeshire. We have started our journey into the U.S. market and entered into two agreements with established testing laboratories which will be installing and validating our core food sensitivity testing product, FoodPrint®.

The year ahead will be our first full year with the focus on our Health and Nutrition business, where we can finalise our strategic objectives and start to gain momentum and create value for our shareholders. Such a change does bring its challenges, but one that is exciting and will be taken up with renewed vigour by the whole team. A new culture needs to be established, one that will allow us to focus on this core business and make it a success. Part of this change will be a new name, Cambridge Nutritional; Sciences PLC (LON:CNSL) and a resolution to change the name is proposed for the upcoming Annual General Meeting. This new name builds on our existing CNSLab brand and aligns with our goal to improve patient care through a more personalised approach to health and wellbeing."

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About Omega Diagnostics Group PLC

Omega manufactures and distributes high quality in-vitro diagnostic products for use in hospitals, clinics, laboratories and healthcare practitioners in over 70 countries and is now focused on the health and nutrition sector.

www.omegadx.com