Omega Diagnostics increases first half revenue but profit growth to be flat

Omega Diagnostics Group is expecting to report an 8% increase in its revenue for the first half of the year.

The AIM-listed medical testing company issued a trading update for the six months to 30 September on Monday, before it releases its full interim results in November.

It highlighted that total revenue is £6.15m, up 8% on the previous year and driven by a 20% increase in revenue from its food intolerance business.

The allergy and autoimmune sector was the only part of the business to see a dip in revenue, down 13% to £1.59m.

The company also noted there was an increase in gross profit which covered a rise in management costs in line with its growth plans.

However it is expecting profit before tax to be flat compared with 2014’s first half profit of £0.56m.

Chief operating officer Colin King said he’s encouraged by the scale of opportunities in the core business units.

“[I] believe we can exploit these in a more aggressive manner.

“As a result of this we have undertaken a review of each unit and are now in the process of developing a three to five year business plan with accelerated growth the key objective."