Diagnostic firm Omega has said it was “time to deliver” on new technologies in HIV and allergy testing following a year in which turnover stagnated and pre-tax profits slipped by 22%.
The Clackmannanshire group said it would focus on emerging markets in Brazil, India, Russia and China as it seeks to improve sales over the coming year and ease pressure in struggling European markets.
But it also expects to begin the commercialisation of its CD4 and IDS-iSYS testing equipment during the current financial year, with hopes that the two development projects could lead to significant returns in the medium term.
Turnover rose by just 1%, to £11.3m, during the 12 months to the end of March, with strongest growth in the Alva-based firm’s food intolerance division, which saw a 13% hike to £4.39m.
Its Food Detective equipment recorded sales of more than £1m for the first time during the period, secured registration in the lucrative Chinese market, and posted a strong direct-selling performance in India.
Allergy and autoimmune revenues fell 7% to £4.16m, however, with infectious disease and other income dropping back 1% to £2.71m.
Adjusted pre-tax profits fell back to £780,000, with Omega putting the reduction down to increased costs at its Indian subsidiary and a reduced contribution from its German allergy business.
Chairman David Evans more than half the group’s turnover was generated in the UK and Europe.
“The economic uncertainty in this region has led to a slowdown in growth in European in vitro diagnostics markets and the ability to grow our own business is not immune from the broader landscape,” he said.
“To counter risk in these areas, we have a strategy to focus on the emerging Bric markets and our success in growing revenue in the year ahead will be dependent on whether sales into these higher growth territories can compensate for the pressures being experienced in Europe and elsewhere.
“Beyond the immediate term, our ability to drive growth will be best delivered through the successful commercialisation of the CD4 test and automated allergy tests on the IDS-iSYS instrument.”
He added: “A significant amount of progress has been made in the past year and it is now time to deliver on these strategies.”
Shares in the firm which employs 120 people worldwide, including around 30 in Alva closed yesterday down down 2.96% at 16.38p.