Medical diagnostics specialist Omega Diagnostics (ODX) delivered a mixed full-year performance. Specifically, a 13 per cent rise is sales of food intolerance-related products was offset by a 7 per cent sales fall in allergy and autoimmune products - where demand was hit by a weaker pollen season.
Still, management hopes to expand significantly through the commercialisation of Visitect CD4 - an automated assay system for HIV patients. CD4 helps determine the best time to start treatment and monitor progress for HIV patients and, since the period ended, Omega has taken a significant step forward by securing a US patent for CD4. Moreover, a successful placing since the year-end raised £4m, which will be used to scale up CD4 manufacturing and fund field valuations. The group has also undertaken feasibility work to develop a smartphone App reader.
But, while CD4 is a possible game changer, it's a potential revenue stream that will take time to develop. Accordingly, management is keen to diversify away from depressed UK and European markets - where over half of group revenue is generated - in order to focus more on emerging markets. While such business remains relatively modest, sales in Brazil rose 10 per cent to £290,000, and in China by 49 per cent to £180,000.
Broker finnCap expects adjusted pre-tax profit of £1.1m for 2014, giving EPS of 1.2p (from £0.9m and 1.3p in 2013).
| OMEGA DIAGNOSTICS (ODX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 16.25p | MARKET VALUE: | £13.8m | |
| TOUCH: | 16-17p | 12-MONTH HIGH: | 20.8p | LOW: 12.4p |
| DIVIDEND YIELD: | nil | PE RATIO: | 23 | |
| NET ASSET VALUE: | 16p* | NET DEBT: | 5% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 5.44 | 0.27 | 2.0 | nil |
| 2010 | 6.20 | 0.21 | 1.0 | nil |
| 2011 | 7.90 | 0.10 | 0.1 | nil |
| 2012 | 11.1 | 0.48 | 0.6 | nil |
| 2013 | 11.3 | 0.28 | 0.7 | nil |
| % change | +1 | -42 | +17 | - |
Ex-div: - Payment: - *Includes intangible assets of £10.3m, or 12p a share | ||||
