The Omega Diagnostics Group Plc (LON: ODX) share price fell 10.4% after its financial results for the six months ended 30 September 2022. The company’s revenues shrunk by 18% to £3.4 million compared to the £4.2 million generated in H1 2021.
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The company’s gross margins fell to 54% from 64.4% in a similar period last year. As a result, Omega’s pretax losses rose to £0.7 million versus breaking even in H1 2021.
However, the company achieved some significant milestones, including selling its CD4 business for £6.3 million in July this year. Although the business has been sold, the firm also received positive data from the World Health Organisation (WHO) regarding its VISITECT® CD4 test.
Furthermore, Abingdon Health received the pending £4.0 million payment from Accubio, given that the amount had been deferred and placed into escrow.
The company completed the automation of its operations, improving the efficiency of its laboratories, which in turn attracted more customers to the firm. Abingdon extended the lease on its current office at Eden Research Park in Littleport.
Abingdon Health is also in the final stages of testing its My Health Tracker by Omega app, which is in the final beta testing stage and will be released to the general public soon. The company also noted that it had finished the initial expansion of its product range.
The firm has also signed heads of terms agreement to develop a bespoke microbiome test and a bespoke nutrigenomics test. Abingdon raised £2.2m million by issuing new shares and had a cash balance of £2.7 million at the end of the period compared to £4.7 million in H1 2021.
ODX shares had recouped all their losses when publishing this article.
Simon Douglas, Omega Diagnostics Chairman, said: “We are pleased to have executed our strategic decision to re-align the Group in the period, disposing of the loss-making business in Alva, reducing operating costs and focusing solely on the profitable and cash generative Health and Nutrition business and we are delighted to be notified of the impending release of the full CD4 deferred consideration of £4.0m.”
*This is not investment advice.
The Omega Diagnostics (ODX) share price.
The Omega Diagnostics share price fell 10.38% to trade at 3.54p, from Wednesday’s closing price of 3.95p.