Omega Diagnostics Share Discussion Threads

[dibs61] 19/4/2018 09:08

This is what Harbinson said last July re the sale of the german property:

"We are pleased to be able to supplement our proposed fundraising from the placing and open offer with the sale proceeds from this property transaction. The timing makes good sense as we embark on our accelerated growth strategy and given where the current euro/pound exchange rate sits."

Lets just repeat that - "embark on our accelerated growth strategy"

That was clearly not true. Shareholders were misled into believing they required those funds to promote growth when they really needed them because they were cash strapped. Outrageous.

The current board have proved themselves incompetent and the appt of King as CEO is clearly NOT the solution as he presided over the failed attempt at "accelerated growth' which has simply led to accelerated decline. His days must be numbered.

[longshanks] 19/4/2018 07:38

I should think Mr Sneller just wants to get his money back at this point: that is what I want.They have some good products and businesses and easily identifiable partners/rivals who may want to buy them. Question is more whether the BoD can sell. Please excuse the mixed metaphors but it seems to me that they don't grasp painful nettles and can't sell toffee.

[jeevsje] 18/4/2018 07:48

Kieron and Jag hold pity number of shares here, despite taking £140k in salaries. Doubt they care about share price, although they should. Let's see whether Richard and other shareholders ask for a board cleaning operation,considering their failure to deliver shareholder value time and time again.

[p1nkfish] 18/4/2018 07:48

Yes, should have been EKF.

[hyperboreus] 18/4/2018 06:59

Interesting typo error around the 'witching hour' there p1nkfish!

[mirako] 18/4/2018 03:48

Does anyone have any detail about the "headwinds" in food intolerance? Competition, regulation, distribution, consumer demand? Ditching unprofitable operations only works if there's a profitable core.

[p1nkfish] 18/4/2018 00:02

Any chance ELF might want a part. Mills involved.

[arthur_lame_stocks] 17/4/2018 22:33

I would also support a break up and sale, what I wouldn't want to see is a sale of the Food Intolerance business which I think is currently the most valuable part and then the cash gradually draining away on Allersys and CD4. I don't think the major shareholders would allow this either.

I'd feel far happier if Chris Mills saw value at this price and bought some more.

[hyperboreus] 17/4/2018 21:45

No chance of an MBO as this current board are simply not up to the job and I cannot believe that Colin King is the new Messiah having joined Omega way back in August 2015.

He first commented publicly in the trading update on 27 October 2015:

"Since coming on board on 3 August, I have been encouraged by the scale of opportunities in the core business units and 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 3 to 5 year business plan with accelerated growth the key objective."

Might seem a trifle controversial but I would suggest that he might well have a lot to do with the current demise in Omega's fortunes as he seemed hell bent on 'accelerated growth' which resulted in them 'trying to do too much with too little resources.'

It would appear to me that there is every chance that Omega is likely to be under different stewardship 12 months hence.

My hope is that someone more capable such as Christopher Mills might seek to get involved here as the current incumbents have demonstrated all too clearly that they cannot deliver on their promises.

I could be wrong but I think the "For Sale' boards will be going up shortly in Alva otherwise why would David Evans put his name to this in the trading update?

'The need to demonstrate and crystallise value for shareholders over the short to medium term. There is a recognition of the challenges associated with this given the Board's belief that the sum of the individual parts at present may be substantially greater than the perceived value of the whole.'

How else can they realise value over the short to medium term without flogging off the family silver?

[arthur_lame_stocks] 17/4/2018 21:22

I very much doubt Chris Mills and Richard Sneller would sell to an MBO.

The thing i'm most disappointed with is the fall in sales at the Food Intolerance business. I only ever bought into this because I thought Food Intolerance was worth the price on its own, it seemed to be growing sales and profits modestly each year and the two blue sky opportunities were in the price for free. and this was when the price was twice what it is today.

I did actually ask Kieron Harbinson whether this business was likely to return to growth and he said that the opportunity was still there, it was just taking longer than planned. Of course I know from experience that Directors will often tell shareholders what they want to hear regardless of whether it's true or not so i'm not tempted to buy more just yet, i'll wait for some tangible news.

I wouldn't be surprised if some of the major shareholders are pushing for a breakup and sale of the whole company, the board did announce that they thought the sum of the parts was substantially greater than the whole and that was when the price was 15p.

I'm not prepared to buy more yet given some of the uncertainty, but I think it's too soon to sell.

[jeevsje] 17/4/2018 21:02

Not putting their money in but happy to suck out an average of 150k each in salaries every year.

[barrywhit] 17/4/2018 17:09

Hyperboreus, I asked the question via email to Kieron and his reply was: it is not in Omega's thinking but I simply can't answer that on behalf of external third parties..

I personally don't see an MBO as an option at present, but I have been wrong on this company for the last 5 years....

[barrywhit] 17/4/2018 14:44

An MBO is not in the company's thinking according to the FD....

[boonkoh] 17/4/2018 10:54

Wouldn't be surprised if directors attempted a MBO now that the price is so depressed, to keep the value of Visitect CD4 to themselves.

[p1nkfish] 17/4/2018 09:29

Or it's being sold off.

[boonkoh] 17/4/2018 08:56

Well, directors and clearly not putting their own money into this company, despite the big share price drop!Or there's a fundraising in progress... In which case they can't...

[jeevsje] 14/4/2018 11:50

I spoke to them as well and they confirmed the same. Mentioned that they could increase overdraft through a GOVT backed scheme for attractive rates.

[arthur_lame_stocks] 14/4/2018 11:09

I spoke to the company and they told me they shouldn't have to raise cash subject to the continued support of their bank.

That could go either way I guess.

[buywell3] 14/4/2018 10:55

Late trade friday

Time ... Price Volume Value
17:15:00 9.05 315,789 28,579


Loan note issue will likely be resolved within days I would have thought

However the new CEO needs to put together a strategy for going forwards

[arthur_lame_stocks] 14/4/2018 10:50

TBH if Chris Mills is in I wouldn't be surprised to see the company broken up and sold off, he seems to do that quite often although he probably doesn't have a large enough stake here to force it.

[p1nkfish] 13/4/2018 12:11

If Mills is in I would consider holding and hope to take part if there is a CLN. However, hold NAS so in that case might just increase NAS holding and sell here.

Made good money out of CRX and SBS when he was involved. Smaller was in CRX too and they went CLN to help with upgrades to facilities. Difference was CRX had strong free cash flow and capable management. ODX now shown as more of a gamble/a gamble and not very transparent to smaller pi's.

Need to think. IDH news would help a little.

[barrywhit] 13/4/2018 11:18

your choice longshanks......

[buywell3] 13/4/2018 11:15

We might finally agree on something then

And be friends at long last , bury the hatchet sort of