Shares rise as Omega ‘encouraged’ by prospects
Omega is working on Covid test kits
The Scottish food and drug testing company announced an anticipated loss in the first half but chairman William Rhodes said it expects to have a “significantly improved” second half performance.
Shares in Omega, which have been volatile in the wake of Covid vaccine discoveries, closed 3p (6.45%) higher at 49.5p.
“We have a number of exciting opportunities in both antigen testing and antibody testing for COVID-19,” said Mr Rhodes. “We are very encouraged by recent news with a number of vaccine candidates demonstrating efficacy in producing an immune response as we believe testing will play a crucial role in any vaccine deployment.
“We continue to make progress to significantly increase lateral flow test capacity in our manufacturing site in Alva and are on target to reach a production capacity of 500,000 tests a week by the end of December.
“Our food Intolerance division is showing early signs of recovery,” he added.
“Achieving self-test regulatory approval in China for Food Detective is a significant milestone that underpins confidence, and we expect our renewed focus on the US market to bear fruit in the next financial year.”
The loss before tax from continuing operations was in line with management’s expectation at £1.8m (2019: £409,519 loss).
Revenue from operations fell by 29% to £3.16m (2019: £4.46m) mainly due to previously flagged performance of the food intolerance division which saw revenue fall by 38% to £2.53m because of the coronavirus pandemic.