Production on target
Omega hopeful of further Covid test orders
Omega is moving manufacturing of test kits to Alva
The Scottish medical testing firm Omega Diagnostics said it is optimistic of further orders for its rapid Covid test from the Department for Health and Social Care and other sources, both domestic and overseas, in the second half of the current financial year.
It has taken over manufacturing from partner firm Abingdon Health and has undertaken significant refurbishment works in its Alva to allow for volume manufacturing.
Omega remains on target to reach a production capacity of 300,000 lateral flow tests per week by the end of November, increasing to 500,000 tests per week by the end of December.
Due to the potential significant interest in an antigen rapid test, it is investigating further capacity expansion of the Alva site.
However, shares were down 13% at 81p after it said it is expecting half year turnover of £3.16 million, representing a 29% decrease over the prior period and an EBITDA loss of £1.3m, both in line with management’s expectations.
They reflect a predicted impact on the short-term performance of the food intolerance business due to the coronavirus pandemic as detailed in our results to 31 March 2020.
Cash at 30 September was £6.95m which was in line with expectation given the trading performance and capital investment in plant and machinery made in the period to support COVID-19 opportunities.
The board remains confident in the company’s prospects and said it has made substantial progress over recent months in positioning the business for a significantly improved performance in the second half.
Interims are announced on 30 November.