Clackmannanshire diagnostic firm Omega yesterday said it expects to post a “significant” hike in pre-tax profits when it announces year-end results inJune.
The group revealed how an 18% climb in revenues from its food intolerance business had helped offset falling income elsewhere while it continues in-the-field trials of what could prove to be a game-changing HIV test kit.
Omega said it was readying itself to post revenues of £11.6m for the 12 months to the end of March, an increase of 3% overall. Pre-tax profit of £1.1m is anticipated, before deductions and exceptional costs.
Much of the company’s update was focused on the potential of its Visitect CD4 HIV test, which is undergoing testing in India and Kenya.
The highly-portable test which is backed by big name aid agencies and charity organisations can produce results inside 40 minutes and could benefit millions of people in rural areas away from more traditional, clinic-based testing services.
Omega said 60 patient samples had so-far been run in India, with an additional 200 under testing in Kenya.
Initial feedback from operators in the field confirms that the evaluations, which include testing of a smartphone reader in Kenya, are “progressing well”.
It is expected that the initial studies will lead to the roll-out of validation efforts in other countries.
Meanwhile, claim-support studies designed to allow the CE marking of the product have also begun.
Omega said both strands remained “on-track” and stressed that it was seeking to market Visitect to aid and procurement agencies in advance of full commercialisation.
“The board remains very confident that Visitect CD4 will deliver significant shareholder value,” the company added.
Chief executive Andrew Shepherd said the company was pleased with its performance, which had been helped by a strong showing in Omega’s food testing arm during the second half of the year.
“Trading in the second half of the year has been stronger than in the first half and has enabled the group to meet market expectation from the core business prior to a contribution from Visitect CD4,” the firm’s trading update said.
“The performance of the food intolerance division has mitigated challenges in other parts of the business, and prospects for this division remain encouraging for the new financial year.”
Mr Shepherd said profitability had increased “significantly ahead of the growth in revenue”.
Progress is also being made on Omega’s IDS-iSYS allergy testing instrument, giving the firm “increased confidence” in its commercialisation efforts.
House broker finnCapp said Omega, which is headquartered at Alva’s Hillfoots Business Park, had seen “fast progress”.
“We see scope for a significant increase in our target price in response to further positive newsflow,” it added.
In February, the group, which expects “substantial” demand for its HIV product, announced plans to build a second manufacturing plant in India. Its Alva facility is already capable of making around seven million test kits a year at full production.