LONDON (ShareCast) - (Sharecast News) - 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.

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