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Omega Diagnostics to close German business as sale proves elusive
Medical diagnostics firm Omega Diagnostics is to close its German allergy business, Omega Diagnostics GmbH, after failing to find a buyer for the company, management announced on Wednesday.
Omega Diagnostics said it expects the cost of closure for the loss-making business to be less than £0.45m and has indicated that it intends to initiate insolvency proceedings through the German court system as soon as possible.
Omega GmbH achieved unaudited sales of approximately 3.2m and incurred an EBITDA loss of approximately 0.4m for the year ended 31 March.
The company's intention to close or dispose of the business was announced on 10 April, alongside plans to close a manufacturing site in Pune, India and amalgamate four UK businesses into a single entity.
The closures are projected to allow the company to return to profitability on a lower revenue base.
In early April Omega Diagnostics expected its loss before tax for the year ended 31 March to be approximately £0.7m, with turnover down 5% against the previous year at £13.6m.
As of 0830 BST, Omega Diagnostics' shares were down 7.14% at 13.00p.