going for growth
omega diagnostics group plc annual report and accounts 2011
wwwomegadiagnosticscom
gmbh 
formed in 2010 omega gmbh acquired the ivd 
allergy business of allergopharma and is located 
in reinbek germany
wwwomegadiagnosticsde
omega diagnostics group plc
omega house
hillfoots business village
alva fk12 5dq
scotland
united kingdom
tel 44 01259 763030 
fax 44 01259 761853
email odlomegadiagnosticscouk
genesis diagnostics ltd
formed in 1994 genesis is one of the  
uk’s leading manufacturers of high quality  
elisa based diagnostic kits the company 
specialises in the research development  
and production of kits to aid the diagnosis  
of autoimmune and infectious diseases and  
for the detection of immune reactions to food
wwwelisacouk 
omega diagnostics ltd
formed in 1987 odl specialises  
in infectious diseases particularly  
syphilis tb and dengue fever
wwwomegadiagnosticscom
cambridge nutritional sciences ltd 
formed in 2001 cns provides clinical  
analysis to the general public clinics and  
health professionals as well as supplying  
the consumer food detective
®
 test
wwwcambridgenutritionalcom
omega diagnostics group plc annual report and accounts 2011 omega diagnostics group plc is a  
public company quoted on the alternative 
investment market aim of the london 
stock exchange omega sells a wide 
range of products primarily in the 
immunoassay invitro diagnostics ivd 
market through a strong distribution 
network in over 100 countries
our business
omega is one of the uk’s leading companies in the fast 
growing area of food intolerance testing and also specialises  
in tests for autoimmune diseases including anaemia 
connective tissue disease and renal disease and infectious 
diseases including syphilis tuberculosis dengue fever 
chagas disease and malaria the allergy business acquired 
in the year specialises in allergy tests used by doctors to 
diagnose patients with allergies
breadth
going for  
growth through…
the acquisition of the ivd business combined with  
the followon instrumentation strategy will significantly 
broaden the group’s range of products
the continued growth of food intolerance products  
along with the successful fundraising and completion of  
the acquisition of allergopharma’s ivd allergy business
food intolerance
the food intolerance division 
specialises in the research 
development and production 
of kits to aid the detection of 
immune reactions to food it also 
provides clinical analysis to the 
general public clinics and health 
professionals as well as supplying 
the consumer food detective
®
 test
read more  
on page 2
allergy and  
autoimmune testing
the allergy and autoimmune 
division specialises in the research 
development production and 
marketing of invitro allergy and 
autoimmune tests used by doctors 
to diagnose patients with allergies 
or autoimmune diseases
read more  
on page 2
infectious diseaseother
the infectious disease division 
specialises in the research 
development production and 
marketing of kits to aid the 
diagnosis of infectious diseases
read more  
on page 2
read more  
on page 4 overview
business  
review governance
financial  
statements
vision scale
the vision is to build a global allergy business by offering an 
automated instrument for a large product range to meet the 
workflow needs of larger laboratories as well as to continue  
to grow the two key product technologies the genarrayt
®
 
microarray test and food detective
®
 for food intolerance 
the scale of the group has been transformed with  
the successful acquisition of the allergy business  
and the appointment of a number of senior key people
overview
01 highlights
02 company overview
04 breadth
06 vision
08 scale
business review
10 chairman’s statement
12 chief executive’s review
14 financial review
16 strategy and kpis
18 board of directors
governance
20 directors’ report
22 directors’ remuneration report
24 corporate governance report
26 statement of directors’ responsibilities
financial statements
27 independent auditor’s report 
28 consolidated statement of comprehensive income
28 adjusted profit before taxation
29 consolidated balance sheet
30 consolidated statement of changes in equity
31 consolidated cash flow statement
32 company balance sheet
33 company statement of changes in equity
34 company cash flow statement
35 notes to the financial statements
64 notice of annual general meeting
68 advisers

27
 
sales
12 likeforlike

21
food intolerance 
revenue

8
infectious 
disease 
other revenue

30
 
gross profit
12 likeforlike
596
gross margin 
level

25 
adjusted pbt
  adjusted profit before taxation is derived by taking statutory profit before tax of £105k 2010 £210k and adding back ifrsrelated  
discount charges of £22k 2010 £95k amortisation of intangible assets of £193k 2010 £109k sharebased payment charges of  
£8k 2010 £178k acquisition costs of £412k 2010 £nil and fair value adjustments to financial derivatives of £4k 2010 £3k
01
annual report and accounts 201 1 
wwwomegadiagnosticscom
read more  
on page 6
read more  
on page 8 annual report and accounts 201 1 
wwwomegadiagnosticscom
02
company overview 
omega diagnostics currently operates  
in the fields of allergy and autoimmune  
food intolerance and infectious disease  
the acquisition of the ivd allergy  
business combined with the follow on 
instrumentation strategy will substantially  
increase the scale of the group
food intolerance
specialising in the research 
development and production  
of kits to aid the detection  
of immune reactions to food
what does this cover
certain food intolerances are caused by an immune 
response associated with a food protein detection  
of these igg antibodies can be helpful in managing  
food intolerance and associated symptoms the group’s 
products detect igg antibodies to food proteins which 
are characteristic of disease states such as celiac 
disease and crohn’s disease 
product information
tests patients for reactions to different foods provides 
clinical analysis to the general public clinics and health 
professionals as well as supply of consumer facing  
food detective
®
 kit
what does this cover
allergy testing involves initial screening to detect the 
presence of ige antibodies followed by testing against 
allergen groups to narrow down the cause of the allergic 
reaction confirmation is then obtained by carrying out  
a more detailed test against a small number of specific 
allergens to identify specific causes autoimmune 
diseases are caused by the body’s immune system 
attacking healthy cells organs or tissues in the body  
the group’s products detect antibodies produced by the 
patient in response to various disease states including 
microarterial diseases connective tissue diseases  
liver disease rheumatoid arthritis and thyroid disease
product information
supply of test kits that can test for reactions against  
more than 600 allergens as well as test kits for various 
autoimmune diseases
allergy and  
autoimmune testing
specialising in the research 
development production and 
marketing of invitro allergy  
and autoimmune tests used  
by doctors to diagnose  
patients with allergies or 
autoimmune diseases
what does this cover
the group’s products detect either the infectious  
disease agents such as bacteria or viruses antigens  
or antibodies produced in response to the infection  
the main infectious disease detected using the  
group’s products is syphilis
product information
supply of test kits to test for various infectious diseases 
including tuberculosis typhoid dengue fever chagas 
disease and malaria
infectious diseaseother
specialising in the research 
development production  
and marketing of kits to aid  
the diagnosis of infectious 
diseases overview
business  
review governance
financial  
statements
annual report and accounts 201 1 
wwwomegadiagnosticscom
03
£983k
28
£550k
19
£37k
2
£157k
24 
£406k
14
£386k
15
2011 segment adjusted profit before tax 2010
2011 segment adjusted profit before tax 2010
2011 segment adjusted profit before tax
  percentages above show segment adjusted profit before tax as a percentage of segment sales
2010
geographic  
presence
distribution
direct presence annual report and accounts 201 1 
wwwomegadiagnosticscom
04
1 2
4
7 6
3
5
going for growth with
breadth
product breakdown
£506k
£293k
£81k
£75k
£955k
allergendisc
ige elisa
other
ecp
total
the acquisition of the allergy  
business gives the group control  
of current annual revenues of €4m  
as well as access to a large bank  
of over 600 allergens
1
4
6
2 3 insects
foods
seafood
5
7
nuts
pollens
pets dust mites overview
business  
review governance
financial  
statements
annual report and accounts 201 1 
wwwomegadiagnosticscom
05
£955k 
total sales of omega 
diagnostics gmbh  
3 month trading period
case study
allergopharma
on 21 december 2010 the group acquired  
the invitro allergy business and certain assets 
from allergopharma joachim ganzer kg
the business specialises in the research 
development production and marketing  
of invitro allergy tests used by doctors to 
diagnose patients with allergies the business 
supplies test kits that can test for reactions 
against more than 600 allergens 
the product range uses elisa technology to 
test the serum of allergic patients the product 
range comprises test kits and allergen discs as 
well as allergodip a point of care assay used 
to diagnose type 1 allergies such as allergic 
asthma eczma and gastrointestinal allergies 
the production facility is based in reinbek 
hamburg germany
the acquisition of the ivd business is intended 
to increase value for shareholders through  
a two stage threepart strategy
•	 	 c u rr en t 	 i vd 	 b us i n ess 	 al l er gy 	 pr od uct s 	 w i l l	
be sold throughout the existing omega 
international distribution network
• 	 	 d e v e l o p i n g 	 a n 	 i n s t r u m e n t a t i o n 	 s t r a t e g y	 
for performing allergy diagnostics through 
an automated ‘closed system’ through an 
agreement with immunodiagnostic systems 
holdings plc – developing this automated 
instrument will offer a platform to meet the 
needs of larger laboratories and allow 
increased revenue generation
•	 	 ap p l y 	 t h e 	 gr o u p ’ s 	 e x i st i n g 	 gen arrayt
®
 
microarray test platform to ige allergy 
screening automation of the test procedure 
will allow more rapid processing of higher 
test volumes
the acquisition of the ivd business is  
intended to increase value for shareholders annual report and accounts 201 1 
wwwomegadiagnosticscom
06
vision
as part of the strategy to build a global allergy 
business the group has been successful in 
exclusively licensing the use of immunodiagnostic 
systems idsisys automated system for allergy 
testing on a global basis thus having the potential  
to offer an instrument capable of meeting the 
workflow needs of larger laboratories
the group will also adapt its inhouse microarray system to provide a broad  
screening option for allergy testing providing a choice of diagnostic approaches  
to allergy specialists and also aims to use the platform to develop a panel  
of autoimmune tests
going for growth with
significant global opportunity automated system large allergen bank overview
business  
review governance
financial  
statements
annual report and accounts 201 1 
wwwomegadiagnosticscom
07
the directors believe that there is an 
opportunity to enter the global allergy testing 
market which is currently dominated by one 
large multinational company the directors’ 
preferred approach rather than incurring 
large development costs with long timelines 
to market launch of a new instrument is to 
licence the idsisys instrument 
this is a proven instrument already 
established in immunoassay testing for 
multiple applications which the directors 
believe after discussions with ids technicians 
requires only minor modifications to produce 
a competitive working system for allergy 
testing that will be able to process a higher 
volume of tests and thereby increase 
revenues for the group 
product feature 1
the flexible idsisys system 
will bring efficiency benefits 
to the laboratory stemming 
from automated processing 
of the allergy testing 
workload
product feature 2
all assay steps will be 
carried out onboard the 
instrument eliminating  
the need for manual 
interventions barcoding 
and other automation 
features will reduce the 
potential for error
product feature 3
an extensive test menu of 
600 allergens is envisaged
case study
idsisys
assay development time will be extensive  
due to the large number of individual allergy 
tests required on the test menu and this 
requires development funding which was 
secured as part of the successful placing  
in december 2010
the agreement to licence the idsisys 
instrument was signed on 25 march 2011  
and combined with access to the large 
number of allergens through the ivd  
business provides a major opportunity  
to build a strategically coherent presence  
in the expanding allergy market
the flexible idsisys system will bring  
efficiency benefits to the laboratory
600 
an extensive test menu of  
600 allergens is envisaged annual report and accounts 201 1 
wwwomegadiagnosticscom
08
scale
omega has made key appointments  
to its senior management team
uk
12
of total group revenue
£957788 
11
allergy and autoimmune
£53544 35
food intolerance 
£590936 9
infectiousother
£313308 75
allergy and autoimmune
£1091696 522
food intolerance 
£1876106 16
infectiousother
£525135 28
europe
44
of total group revenue
£3492937 
63
allergy and autoimmune
£4319 38
food intolerance 
£159720 2
infectiousother
£102899 25
north america
3
of total group revenue
£266938 
13
going for growth with
aged 52 edward valente joined omega as allergy 
systems director in march 2011 and has responsibility 
for the development of new allergy products for the 
group he has been in the diagnostics industry for  
28 years 
after completing his studies in organic chemistry in glasgow 
his career started in 1983 at amersham international there 
he held scientific and managerial positions in clinical diagnostics 
research and development he then joined shield diagnostics 
in 1988 and held managerial positions in rd and marketing 
latterly he has been responsible for market development  
of new markers including clinical studies and design and 
development of immunoassay products on automated 
platforms for industry majors 
edward valente phd 
allergy systems director
 in the diagnostics  
industry for 28 years overview
business  
review governance
financial  
statements
annual report and accounts 201 1 
wwwomegadiagnosticscom
09
aged 50 ernst mohler joined omega diagnostics gmbh  
as interim general manager in october 2010 and has taken 
up the permanent position of managing director of the 
company with effect from 1 may 2011 he has been 
instrumental in leading the seamless integration of the  
ivd business acquired from allergopharma joachim 
ganzer kg 
he has gained extensive experience in the life science industry 
for more than 20 years after graduating with a master of 
business administration he started his career at schering ag  
in 1988 and held different positions in the international division 
controlling finance and supply chain areas 
in 1998 he joined the german subsidiary of the spanish life 
science group grupo ferrer internacional sa first as finance 
director and later as managing director in 2008 he established 
himself as an interim manager and led a postmerger integration 
project for compugroup medical ag in the middle east 
allergy and autoimmune
£3953 13
food intolerance 
£49134 95
infectiousother
£308077 3
southcentral america
5
of total group revenue
£361164 
10
allergy and autoimmune
£152062 4
food intolerance 
£467551 9
infectiousother
£733119 7
asia and far east
17
of total group revenue
£1352732 
1
allergy and autoimmune
£233631 3
food intolerance 
£415662 141 
infectiousother
£821184 6
africa and middle east
19
of total group revenue
£1470477 
24
ernst mohler mba 
managing director omega diagnostics gmbh
 gained extensive experience 
in the life science industry  
for more than 20 years
134 
allergy and autoimmune revenue 
up by 134 annual report and accounts 201 1 
wwwomegadiagnosticscom
10
chairman’s statement 
the potential for the group has been transformed  
with the successful acquisition of a leading  
germanbased allergy business
the current instrument  
systems are used in  
laboratories in germany  
and there is export  
potential through the  
omega worldwide  
distribution network
dear shareholder
i am pleased to report the progress  
we have made this year particularly  
in driving the continued growth of food 
intolerance products along with the 
successful fundraising and acquisition  
of allergopharma’s ivd allergy business
strategy
the strategy to achieve growth through 
acquisition took a major step forward in the 
year with the completion of the acquisition  
of allergopharma’s allergy business in 
december as well as gaining control of the 
existing business in germany with annual 
revenues of approximately €4m we have also 
gained access to a large bank of over 600 
allergens as part of the strategy to build a 
global allergy business we sought to expand 
the market potential by identifying the need  
to offer an automated instrument for such  
a large product range to meet the workflow 
needs of larger laboratories to this end the 
group was successful in exclusively licensing 
the use of immunodiagnostic systems’ 
idsisys automated system for allergy testing 
on a global basis whilst it will take time to 
develop tests on this platform i believe the 
combination of a large number of allergens 
and the proven capabilities of the idsisys 
system provides a major opportunity to build 
a strategically coherent presence in the 
expanding allergy market we also aim to 
adapt our inhouse microarray system to 
provide a broad screening option for allergy 
providing a choice of diagnostic approaches 
to allergy specialists and if successful we  
will also look to use the microarray platform  
to develop a panel of autoimmune tests
within our underlying business we have 
previously recognised the need for continued 
growth of the food intolerance business  
and i am pleased to report that this division 
has again delivered growth in turnover  
sales of genarrayt
®
 systems and reagents 
have continued to perform with combined 
revenues of close to £17m compared to just 
over £1m last year elsewhere our infectious 
disease business benefited from a full year  
of ownership of cotek with sales of bacterial 
suspensions of £349k versus £176k the  
year before
after the year end we also announced a 
distribution agreement with toyota for food 
detective
®
 in the united states whilst it will 
take some time to complete the regulatory 
procedures this will also be the first time the 
group has been able to initiate a strategy  
of potentially building a presence in the us
financial
turnover for the group increased to £79 
million 2010 £62 million an increase of 27 
over last year and includes three months of 
post acquisition trading from our german 
business on a likeforlike basis excluding 
the acquisition turnover has increased by 
12 over the previous year on the measure  annual report and accounts 201 1 
wwwomegadiagnosticscom
11
overview
business  
review governance
financial  
statements
of profit we consistently report on adjusted  
profit before tax so shareholders can more 
easily gauge our performance as compared 
to external market forecasts the group 
achieved an increase in adjusted profit before 
tax of 25 to £736k this figure is arrived at 
by taking statutory profit before tax of £105k 
and then adding back analystadjusted items 
including ifrsrelated discount charges of 
£22k amortisation of intangible assets of 
£193k sharebased payment charges of £8k 
acquisition costs of £412k and fair value 
adjustments to financial derivatives of £4k  
in line with revised accounting standards 
acquisitionrelated costs are now charged 
through the income statement which is a 
change over previous years 
net finance costs have reduced further to £31k 
2010 £97k as the company has continued  
to benefit from the benign environment for 
interest rates along with a continued reduction 
in loan balances and unwinding of discounts 
the group achieved an adjusted profit after 
tax of £662k being adjusted profit before tax  
of £736k less the tax charge of £74k this 
resulted in adjusted earnings per share of  
17p 2010 31p statutory profit after tax 
amounted to £31k 2010 £187k which resulted 
in earnings per share of 01p versus earnings 
per share of 10p in the previous year 
in recognition of our presence in the allergy 
market we are also amending the way we 
manage review and report the performance  
of the business into three key segments food 
intolerance allergy and autoimmune and 
infectious diseaseother where central costs 
are not allocated to any specific segment 
these are shown as corporate costs and 
excluded from the divisional reporting results
food intolerance
the food intolerance division benefited from 
the continued growth in genarrayt
®
 systems 
total systems placements reached 95 by the 
end of the year and the relatively low cost  
per system means we continue to generate 
revenue from this activity with sales this year 
of £192k 2010 £213k reagent sales grew 
substantially particularly in spain and total 
revenues reached £15 million compared to 
£08 million last year
food detective
®
 volumes grew following 
progress in supplying bulk components into 
china such that annual volumes reached  
over 41000 compared to over 34000 the  
year before food detective
®
 revenues fell 
marginally from £790k to £772k reflecting  
the mix towards bulk component supply but 
future growth is foreseen in countries beyond 
europe which has historically underpinned 
much of the growth to date 
overall the food intolerance division 
generated revenues of £36 million compared 
to £30 million the year before and adjusted 
profit before tax grew to approximately  
£10 million from £06 million
allergy and autoimmune
in june last year we set up omega 
diagnostics gmbh ‘omega gmbh’  
to acquire the allergy business from 
allergopharma joachim ganzer kg  
a transaction which completed on 21 
december 2010 omega gmbh incurred 
costs of approximately £90k in advance of 
acquiring the allergy business and incurred 
costs of a oneoff nature of £120k between 
the acquisition and the end of the year 
divisional turnover was approximately £15 
million versus £07 million the previous year 
reflecting three months of trading through 
omega gmbh not present last year sales of 
autoimmune products fell by 11 to £584k 
2010 £658k reflecting increased competition 
from other companies who are able to  
supply more automated solutions although 
developing our inhouse microarray system 
may in part address this issue given the 
investment costs within omega gmbh i have 
referred to the adjusted profit before tax of 
this division was £37k compared to £157k  
the year before excluding these start up 
costs underlying profitability in this division 
would have been over £200k however in  
the years ahead we see this division as having 
the potential to provide significant growth 
opportunity and i have alluded to the means 
of achieving this in the strategy section above
infectious diseaseother
our infectious disease division continues to 
operate in a price competitive environment 
across all the continental regions sometimes 
however the supply of a quality product can 
make the difference and we have seen some 
business regained particularly in russia 
where we lost out previously on price but 
have won back a customer for our syphilis 
immutrep™ product on quality and reputation 
following the acquisition of cotek in 2009 
we have also seen some growth both in our 
micropath™ range of bacterial suspensions 
particularly in africa and the middle east and 
increased supply through uk oem contracts 
overall divisional turnover was approximately 
£28 million 2010 £26 million and yielded an 
adjusted profit before tax of £406k 2010 £386k
balance sheet
following the acquisition in the year the 
group has intangible assets of £96 million 
2010 £52 million at the yearend comprised 
of goodwill of £50 million and intangible 
assets of £46 million those assets purchased 
as part of a business combination where 
capable of being separately identified are 
valued in line with current ifrs practice  
also included within intangible assets are 
paid and contracted licence fees due under 
the agreement signed with ids the group 
performs annual impairment reviews and 
remains comfortable with the carrying value 
of its intangible assets given the growth  
and results for the year just ended along  
with future prospects
further to the placing of new shares in the 
year to raise funds see below the group  
has eliminated its net debt position and now 
has net cash at the yearend of £04 million 
2010 net debt of £126 million
fund raising
in december the company successfully 
raised £775 million before expenses via the 
placing of 64583350 new ordinary shares  
to fund the acquisition of the german allergy 
business and the development of the new 
instrumentation strategy i refer to above see 
strategy section we are very grateful for the 
support of our existing and new shareholders 
and hope to deliver a growth in value based 
on our outlined strategy
board and employees
i am grateful for the work and effort of all 
employees who ensured we have again 
delivered a promising set of results i am  
also pleased to report that after the yearend 
we appointed jag grewal as group sales  
and marketing director we have also 
strengthened the senior management team 
with the appointment of mr ernst mohler as 
managing director of omega diagnostics 
gmbh and dr edward valente as allergy 
systems director and i look forward to 
working with andrew and the expanded  
team to deliver the new potential that now 
exists within the group
outlook
trading in the first quarter of the year is  
in line with management expectation and  
we are optimistic for the export potential  
of the existing allergy products having 
recently showcased these at an international 
trade show our ability to grow strategically  
in the allergy space is predicated on our 
ability to develop new tests on the idsisys 
system and the early signs from the 
development programme are cause for 
encouragement
i look forward to updating you throughout  
the year
david evans
nonexecutive chairman
1 july 2011 annual report and accounts 201 1 
wwwomegadiagnosticscom
12
chief executive’s review 
our latest acquisition of the allergy ivd business of allergopharma 
in december 2010 provides us access to the high value allergy 
testing market we believe that this acquisition together with 
two high profile instrument development programmes will  
be transformational for the group going forward which will 
significantly enhance the group’s growth prospects
i am pleased to report that the group has 
seen an increase in revenue for the year  
to £790 million some 274 ahead of last 
year’s figures 2010 £620 million with 
likeforlike sales increasing by 12 
strategy
while increasing revenue and profits through 
organic growth significant progress was 
made in the year by acquiring the business 
and certain assets of the allergy ivd business 
of allergopharma the allergy tests acquired 
complement the group’s core food intolerance 
product offering as well as the acquisition  
it was recognised that to add more value we 
would need to enhance the future product 
offering by developing two new instrument 
systems which would allow us to access higher 
volume testing laboratories see research 
and development
food intolerance
food intolerance testing has seen growth  
of 21 in the year resulting in sales of  
£356 million 2010 £295 million
for the genarrayt
®
 laboratory system and 
ongoing reagent sales we have seen good 
growth in sales to £168 million 2010 £104 
million this growth has been achieved by  
the installation of 38 new systems as well as 
increasing the number of countries active with 
genarrayt
® 
by six this now brings the total 
number of installed systems to 95 since launch 
sales of genarrayt
®
 systems fell slightly to 
£192k 2010 £212k but sales of reagent kits 
increased dramatically to £149 million 2010 
£828k this shows the pull through effect of 
promoting food intolerance testing by placing 
new instruments and promoting test usage in 
partnership with our distributors
the food detective
®
 test for food intolerance 
has seen sales fall marginally to £772k 2010 
£790k the number of countries where we 
have now sold product has continued to 
increase to 54 2010 46 with an increase in 
volumes to 41665 kits 2010 34241 these 
volumes included bulk components supplied 
to a chinese customer who assembles the 
kits locally with the effect that revenue  
has fallen marginally the process of product 
registration in china is still proceeding but  
we are still managing to secure small sales  
for market seeding and evaluation purposes 
product registration has recently been 
achieved in india for an indian specific test 
panel and the product was launched in 
february 2011 by our partner in india  
thermo fisher scientific 
the uk market for food detective
®
 has seen 
a reduction in sales to £127k 2010 £216k 
following a move to using professional 
resellers with lower transfer pricing in return 
for higher volume sales in response to this 
result we have taken steps to return to  
direct selling ourselves by using webbased 
“ we fully expect that our 
anticipated growth in  
the bric countries will  
yield major growth”
bric country information
2011 sales
£219861
£89287
£498623
£96557
£904328
brazil
russia
india
china
total
2010 sales
£146630
£12776
£479696
£64817
£703919
brazil
russia
india
china
total annual report and accounts 201 1 
wwwomegadiagnosticscom
13
overview
business  
review governance
financial  
statements
marketing activities and targeted marketing  
to key customer groups the testing services 
for food intolerance and other related tests 
have shown an increase in business to £452k 
2010 £371k which has mainly been due  
to increased sales to offshore accounts  
who send samples into the cns laboratory 
for testing
after the year end we signed an agreement 
with toyota tsusho america inc for distribution 
of food detective
®
 in the united states there 
is an anticipated timeline of approximately  
one to two years to gain clearance by the us 
food and drug administration ‘fda’ before 
we can start selling the product but we believe 
the potential market to be substantial
allergyautoimmune disease
allergy
since acquiring the allergy range in 
december 2010 sales of £955k have been 
achieved which has been dominated by sales 
to the german domestic market export sales 
to russia and poland have commenced and  
it is the growth of export sales through the 
omega distribution network that is a priority 
for the financial year ahead
autoimmune disease
sales of autoimmune tests decreased  
by 11 to £584k 2010 £658k as a direct 
result of not being able to supply a dedicated 
instrument platform in an increasingly 
automated market we see further reductions 
in this business likely unless we can offer  
an instrument platform or technology to 
compete in this market the application  
of the genarrayt
®
 microarray technology  
to autoimmune disease testing still remains  
a possibility but other options are also being 
explored
infectious diseaseother tests
sales of infectious disease and other tests 
increased to £280 million 2010 £259 million 
for the year representing an increase of 8 
which reversed the trend over recent years 
this was in part due to increased sales of the 
micropath
®
 stained bacterial suspensions 
produced by our cotek subsidiary which  
we acquired in september 2009 other 
growth came from regaining previously lost 
business and new oem contract wins with 
our immutrep
®
 syphilis product range
distribution network
growth has been recorded in most 
geographic regions of the world with the 
exception of north america which reduced  
by 13 to £267k 2010 £307k due to lost 
tenders in several markets the asiafar east 
region dropped marginally by 1 to £135 
million 2010 £136 million these reductions 
were more than offset by good growth in 
africamiddle east with sales rising by 24  
to £147 million 2010 £119 million and  
in the ukeuropean market by sales rising 
48 to £445 million 2010 £301 million  
as a result of the new additional allergy tests 
from our german subsidiary and strong 
performance with key users of the genarrayt
®
 
food intolerance products sales to south
central america rose by just over 10 to 
£361k 2010 £328k
in last year’s report i mentioned the good 
growth rates being experienced in the ivd 
sector in brazil india and china in the year 
we have made efforts to concentrate on and 
expand our business in the bric group of 
countries brazil russia india and china  
and we have achieved some success in three 
out of the four target countries in brazil we 
increased sales by 50 across the group 
achieving total sales of £220k 2010 £147k  
in russia we increased sales by over 500  
to £89k 2010 £13k and in china we increased 
sales by 49 to £97k 2010 £65k only india 
showed marginal growth at 4 with sales 
rising to £499k 2010 £480k however  
with the signing of the food detective
®
 
distribution agreement with thermo fisher 
scientific in the latter part of the year we 
expect this to provide a positive impact in  
the year ahead several other initiatives are 
being explored to enhance our growth in 
these key countries
research and development
our move into the allergy testing market now 
drives our rd activity with the development 
of two new allergy instrument platforms  
both of which are being funded by the 
allergopharma acquisition fundraising
1 idsisys – in march 2011 we signed  
an exclusive licence agreement with 
immunodiagnostic systems holdings plc 
ids for the worldwide rights to develop 
and distribute allergy tests on its successful 
and us fdacleared idsisys automated 
instrument ids will supply the instruments 
and other consumables necessary to 
enable us to develop and distribute allergy 
tests through our worldwide distribution 
network although the development will 
take around one year to complete the early 
signs are encouraging
2 genarrayt
®
 – we are aiming to apply  
the expertise used to develop and produce 
the igg food intolerance microarray 
technology to routine ige allergy testing 
this requires development and adaptation 
of the existing technology so that it can be 
used on an automated testing instrument 
which will allow the test to be used in 
higher test volume laboratories initial 
feasibility studies have proven successful 
but a substantial effort is still required 
before a product and new instrument  
can be launched
work was also completed on an indian variant 
of the food detective
®
 macroarray test which 
completed its registration formalities during 
the year and was formally launched in india  
in february 2011
outlook
the outlook for the new financial year is very 
encouraging with the addition of the allergy 
test range and with other organic growth 
opportunities being actively pursued there are 
still difficulties with some eurozone countries 
but we fully expect that our anticipated growth 
in the bric countries will yield major growth 
going forward and counter any negative effects 
experienced elsewhere in the world
the recent announcement of 19 may 2011  
regarding cinven’s intended disposal of 
phadia to thermo fisher scientific on a 67x 
multiple of revenue and 166x ebitda only 
goes to show the high valuations possible in 
the world of allergy testing with our recent 
acquisition and the new development 
programmes which we have commenced in 
this year it is our ambition to add significant 
value to the group going forward we expect 
to see this reflected in a share price which 
more accurately reflects the true value of  
the group
andrew shepherd
chief executive
1 july 2011 annual report and accounts 201 1 
wwwomegadiagnosticscom
14
financial review 
the successful placing to raise £775 million  
has enabled the group to acquire a presence  
in the highly attractive allergy market
the group has reported an increase  
in adjusted profit before tax of 25 up  
to £735831 2010 £589511 the group 
reports on adjusted profit before tax 
excluding ifrsrelated items of share
based payment charges amortisation  
of intangible assets discount charges  
fair value adjustments to financial 
derivatives and acquisition costs to 
provide a better understanding of the 
results of our normal trading activities 
compared to external research forecasts 
in the year the group set up omega 
diagnostics gmbh ‘omega gmbh’  
a wholly owned subsidiary to acquire the 
ivd allergy business from allergopharma 
which completed at the end of december 
2010 the group results contain the 
results of omega gmbh which include 
costs incurred before the acquisition  
of the ivd allergy business as well as  
the contribution from three months of  
trading for the period from acquisition  
to 31 march 2011 the group is also  
now reporting across three main divisions 
comprised of food intolerance allergy
autoimmune and infectious diseaseother
trading activities
revenue
total revenue for the year grew by 27 to 
£7902036 2010 £6198742 on a likefor
like basis excluding the allergy revenue from 
omega gmbh sales grew by 12 on a 
divisional basis revenues were as follows
food intolerance
revenue for our food intolerance division 
underwent good organic growth of 21  
to £3559110 2010 £2953040 sales of 
genarrayt
®
 systems and kits had a strong 
performance particularly in certain european 
and middle eastern countries and the 
provision of consumables to an overseas 
customer to enable them to launch their own 
foodprint
®
 laboratory service has also met 
with some success
allergy and autoimmune
revenue from the allergy and autoimmune 
division was supplemented by the acquisition 
of the allergy ivd business of allergopharma 
in december 2010 allergy revenue in the 
three months of trading post acquisition 
amounted to £955153 the majority of which 
is derived in germany from sales to enduser 
doctor practices sales of autoimmune 
products decreased in the year by 11 due  
to the activity of competitors able to offer 
more automated instrumentation solutions 
particularly in italy and the uk
infectious diseaseother
the infectious disease division operates  
in the most price competitive sector of the 
ivd market despite this revenue from this 
division has grown by 8 to £2803720 
2010 £2587818 the division benefited  
from a full year of revenue through our cotek 
subsidiary which supplies products for 
bacterial infections we were also successful 
with our immutrep
®
 range of syphilis products 
in russia winning back business lost in 
previous years and in brazil gains were made 
across a range of products these increases 
in sales more than offset reductions seen  
in australia and iran 
gross profit
gross profit for the year was £4706294 
2010 £3616220 yielding a small overall 
improvement in gross margin percentage  
to 596 2010 583 however the 
performance in the second half of the year 
has shown a bigger improvement yielding  
a margin of 611 compared to 574 in the 
first half of the year this is primarily down  
to two factors firstly the benefits of higher 
margins achievable in the allergy sector and 
secondly a reflection of twice as many 
genarrayt
®
 systems being sold in the first half 
compared to the second half and on which 
lower margins are returned we expect the 
gross margin to continue to increase in the 
future as more of the divisional mix will shift  
to the higher margin allergy business
administration costs
administration costs have increased by 
£1000202 to £3508810 2010 £2508608 
the single largest rise is attributable to 
additional costs of £521102 2010 £nil 
through omega gmbh which includes 
£74155 2010 £nil of intangible asset 
amortisation and £32117 2010 £nil of 
depreciation through this entity itself also 
included are acquisitionrelated costs of 
£412045 2010 £nil following the adoption  
of ifrs3 revised which requires such costs 
to be shown through the income statement as 
opposed to the balance sheet as previously
the remaining net increase of £67055 may  
be accounted for as follows intangible asset 
amortisation at group level ie additional  
to £74155 above has increased by £10002 
reflecting a full year of ownership of cotek 
depreciation excluding gmbh has increased 
by £9251 reflecting the growth in the capital 
asset base general headcount and 
infrastructure costs have risen by £218304 in 
line with the increasing size of the group and 
sharebased payment charges have reduced 
by £170502 which reflects the end of the 
vesting period in the prior year of a large block 
of share options granted in december 2008
selling and marketing costs
selling and marketing costs have increased 
by £268395 to £1069027 which is 
predominantly down to the additional costs 
through omega gmbh 
adjusted profit before tax
as mentioned above the group reports 
adjusted profit before tax to provide 
shareholders with the measure of profit for  
a better comparison with external market 
forecasts the adjusted profit before tax  
for the year increased by 25 to £735831 
2010 £589511 there is a full reconciliation 
on page 28 between adjusted profit before 
tax highlighted here and the statutory profit 
before tax of £105124 2010 £210008
in line with the new divisional reporting 
structure the adjusted profit before tax  
of each division is summarised as follows
food intolerance
this division reported adjusted profit of 
£983285 2010 £550053 providing a net 
contribution of 28 2010 19 the growth of 
which is primarily represented by the increase 
in the higher margin genarrayt
®
 business  
in spain this division remains the largest 
segment of the group at present and continues 
to offer growth especially in bric countries 
as highlighted by andrew on page 12 annual report and accounts 201 1 
wwwomegadiagnosticscom
15
overview
business  
review governance
financial  
statements
allergy and autoimmune
this division reported adjusted profit of 
£36604 2010 £157058 providing a net 
contribution of 2 2010 24 the apparent 
reduction is accounted for by the setting up  
of omega gmbh prior to the acquisition of 
the german allergy business costs of 
£90420 were incurred prior to the acquisition 
to ensure key people and systems were 
organised and implemented reflecting the 
‘carveout’ nature of the transaction and the 
need to ensure the acquired business was 
functionally operational from day one a large 
element of this cost was the hiring of key 
personnel on an agency basis which provides 
for a quicker appointment but is traditionally 
more expensive than hiring on a permanent 
basis the higher level of cost continued to be 
incurred up until the yearend but we have 
been fortunate in converting two people into 
permanent positions after the year end which 
will save resources going forward
infectious diseaseother
this division reported adjusted profit  
of £405874 2010 £386102 and a net 
contribution of 14 2010 15 as noted 
above this sector is the most competitive 
sector in which the group operates and  
is the most mature by product range 
nevertheless the group has managed  
to maintain performance and will continue  
to look at niche opportunities
corporate costs
centralised costs which are regarded as not 
relating to any division in particular are treated 
as corporate costs within our segmental 
reporting as highlighted on page 40
finance costs
finance costs reduced further in the year to 
£33052 2010 £97909 principally due to lower 
discount unwinds of £72990 on the vendor loan 
note and the falling away of genesisrelated 
earnout payments which were finally settled 
last year interest on bank borrowings and 
finance leases reduced by £17069 reflecting 
the average reduction in borrowing levels and 
net gains on financial derivatives currency 
gains on us dollar borrowings reduced by 
£25202 but still showed a small gain overall  
of £16776 2010 £41978 
taxation
there is a tax charge of £73667 2010 
£22909 in the year comprising a charge for 
current tax of £125148 2010 £33177 and a 
deferred tax credit of £51481 2010 £10268 
the apparent rise in the tax charge compared 
to unadjusted profit before tax is due to the 
nondeductibility of acquisitionrelated  
costs and intangible asset amortisation for 
tax purposes prior year adjustments to the 
tax charge arise when there are differences 
between estimated figures chargeable to tax 
and final tax computations
earnings per share
adjusted earnings per share eps amounted 
to 17p 2010 31p and is arrived at by taking 
adjusted pbt of £735831 minus the tax 
charge of £73667 and dividing by 38278631 
being the weighted average number of shares 
in issue for the year the ifrs measure of 
eps amounted to 01p in the year 2010 10p
acquisitions
acquisition of ivd allergy  
business from allergopharma
during june 2010 the group set up omega 
diagnostics gmbh as a wholly owned 
subsidiary with the purpose to acquire the 
allergy business previously belonging to 
allergopharma in reinbek germany the 
transaction completed on 21 december  
2010 following the successful placing of new 
shares to raise funds to meet the acquisition 
price the group paid a cash consideration of 
£49 million after working capital adjustments 
at completion and related acquisition costs 
amounted to £11 million there is further 
detail in note 8 to the financial statements
treasury operations
currency management
the group conducts its operations in three 
main currencies being sterling euros and us 
dollars in the case of transactions in euros  
and us dollars the group may be exposed  
to fluctuations in the rates of exchange against 
sterling where possible the group operates  
a natural hedge by entering into transactions  
of both a buying and selling nature that limits 
the risk of adverse exchange rate losses the 
company continues to hold a portion of its 
borrowings in us dollars where this loan can 
be serviced from a net surplus of us dollars 
generated from its trading activities the 
exchange rate between sterling and the us 
dollar has been relatively stable throughout  
the year such that a translation gain of £16776 
2010 £41978 has been recorded on these 
borrowings offset by a loss on trading 
operations of £22108 2010 £28146 included 
within administration costs
the group’s net investment in and funding  
of omega gmbh is in euros which will give rise 
to foreign exchange variations from one period 
to another in the year a foreign exchange gain 
arose of £189009 which has been included 
within other comprehensive income
interest rate management
the group operates certain derivative 
financial instruments for its sterling and us 
dollar borrowings in the case of its sterling 
loan the group has an agreement with bank 
of scotland whereby the base rate element  
of the interest charge has been capped at 
55 for the entire remaining term in the  
case of the us dollar loan the group has  
two agreements with bank of scotland one 
to cap the interest rate based on us libor  
at 5 and one to operate a floor rate on us 
libor of 225 under ifrs these derivative 
financial instruments are required to be 
disclosed at their fair values as either assets 
or liabilities and there has been a fair value 
adjustment gain through the income statement 
of £4086 2010 £2580 accordingly at the 
balance sheet date the group had assets  
of derivative financial instruments of £nil 
2010 £196 and liabilities of derivative 
financial instruments of £3435 2010 £7717
financing
in december 2010 the group successfully 
raised £775 million of new equity finance 
before expenses of £11 million to fund the 
acquisition of allergopharma’s ivd allergy 
business for £49 million the additional 
working capital is being used to fund 
worldwide exclusive access to the fully 
automated idsisys instrument licensed from 
immunodiagnostic systems for allergy use 
the funds will also be used to develop allergy 
tests from the wide bank of allergens which we 
now have so that they may be run on this 
closedsystem platform and we also aim to 
adapt our inhouse microarray platform so that 
this too may provide a fully automated solution 
for a broad range of allergens in a single screen
the fundraising involved the issue of 
64583350 new ordinary shares to existing 
and new shareholders and we are grateful  
to the support we received in enabling the 
group to enter the exciting allergy sector  
of the ivd market
cash flow
net cash inflow for the year was £1355113 
2010 £66246 which meant that at the year 
end the group had cash and cash equivalents 
of £2054877 2010 £678800 net cash  
flow generated from operations appears  
on the face of the cash flow statement  
as £348183 2010 £212283 the change  
to adopting ifrs 3 revised requires 
acquisitionrelated costs to be expensed 
through the income statement and to be 
treated as an operating cashflow despite  
the fact that these costs would not have been 
incurred without the underlying investing 
activity of acquiring the allergy business 
excluding these acquisitionrelated costs 
cash flow generated from operations is 
£760228 with the excess of new funds 
raised over and above the outflow on the 
acquisition in the year the group has 
eliminated its net debt and had net cash of 
£446546 2010 £1258376 net debt at the 
yearend
capital management
the group funds its operations with a mixture 
of shortterm and longterm borrowings or 
equity as appropriate with a view to maximising 
returns for shareholders whilst safeguarding 
the ability to continue to operate as a going 
concern the financial performance of the 
group is measured and monitored on a 
monthly basis and the group manages its 
working capital requirements to ensure it 
continues to operate within the covenant 
limits applicable to any borrowing facilities 
the use of funds for acquisitions is closely 
monitored by the board so that existing funds 
are not adversely impacted by such activity 
and the board reviews and approves an 
annual budget to help ensure it has adequate 
facilities to meet all its operational needs
outlook
i am encouraged with the ongoing integration 
of omega gmbh into the group and trading  
in the first two months of the new financial 
year has contributed unaudited profit of 
approximately £120k in this period
k ieron harbinson
group finance director
1 july 2011 annual report and accounts 201 1 
wwwomegadiagnosticscom
16
strategy and kpis 
how do we measure  
our performance
aims and objectives progress made in 201011
key performance 
indicator 1
sales
continue to grow both organically  
and by acquisition
organic growth of 12 achieved and 
acquisition completed
key performance 
indicator 3
adjusted profit 
before tax
increase by 10 on prior year increased by 25 and contribution going 
forward from allergy acquisition 
key performance 
indicator 4
food intolerance  
– genarrayt
®
value
continue to increase instrument placements 
and enter new territories
38 new instruments installed in the year and
six new territories entered
key performance 
indicator 5
food detective
value
given significant prior year growth maintain 
revenue levels and increase number of 
countries product is sold to
sales levels marginally down on prior year 
but eight new countries with product sales
key performance 
indicator 2
gross margin
increase gross margin level gross margin increased by 13 annual report and accounts 201 1 
wwwomegadiagnosticscom
17
overview
business  
review governance
financial  
statements
strategy for 2012
grow sales from germany through  
export potential of allergendisc products
£79m
£62m
£54m
£35m
£2m
27
14
56
72
5
2011
2010
2009
2008
2007
increase significantly due to the effect
of german export sales noted above  
offset by increase in rd spend to  
develop allergy based offerings on the  
two automated platforms
£736k
£589k
£540k
£298k
£86k
25
8
81
446
153
2011
2010
2009
2008
2007
continue to grow sales organically assisted 
by increase in instruments placed
£1490k
£720k
£574k
£424k
80
44
35
–
–
2011
2010
2009
2008
2007
increase sales in china as well  
as export sales
£772k
£790k
£314k
£217k
2
152
44
–
–
2011
2010
2009
2008
2007
continue growth in gross margin assisted  
by acquisition of ivd business
596
583
615
409
544
13
329
71
135
04
2011
2010
2009
2008
2007
 likeforlike 12
 likeforlike 20 annual report and accounts 201 1 
wwwomegadiagnosticscom
18
board of directors 
jag grewal joined omega in june 2011 as group sales and 
marketing director jag has worked in diagnostics for 20 years 
and is past chairman and current treasurer of the british  
in vitro diagnostics association bivda
k ieron harbinson fcca
finance director 
aged 46 kieron harbinson joined omega in august 2002 as finance director he is 
responsible for finance information technology human resources and operations planning  
he joined scotia holdings plc in 1984 he qualified as an accountant in 1991 and became  
a fellow of the association of chartered certified accountants in 1997 he remained with the 
company for approximately 14 years during which time he held various roles including group 
financial controller and chief accountant these roles enabled him to acquire a broad range 
of knowledge in a highgrowth technology company plus experience in corporate acquisitions 
disposals and intellectual property matters in addition he gained experience in various debt 
and equity transactions and was involved in raising over £100 million for the company he was 
also head of tax and treasury responsible for a treasury programme of cash investments  
of over £50 million and management of currency exposures
mr harbinson then joined kymata limited a startup optoelectronics company as finance 
director over a period of 18 months he was involved in raising approximately us85 million  
of venture capital funding he was responsible for implementing financial controls and 
accounting systems and by the time he left in 2000 the company had grown to over 200 
employees the company was sold in 2001 to alcatel for €134 million
david evans ca
nonexecutive chairman 
aged 51 david evans has considerable experience within the diagnostics industry as financial 
director he was a key member of the team that floated shield diagnostics limited in 1993  
he became chief executive officer responsible for the merger of shield diagnostics group plc 
with axis biochemicals asa of norway in 1999 to create axisshield plc in addition to his role 
as nonexecutive chairman of omega he is nonexecutive chairman of immunodiagnostic 
systems holdings plc and epistem holdings plc which are both aimquoted medical groups 
operating in different industrial areas from omega
andrew shepherd bsc hons
chief executive
aged 55 andrew shepherd is the founder and managing director of omega he has been 
involved in the medical diagnostics industry for the last 35 years
he started his career in 1974 by holding technical positions at gd searle limited and 
subsequently attended university graduating with a bachelor of science in biology he then 
moved into a sales and marketing position at cambridge life sciences plc in 1981 before 
establishing his first diagnostics company cambridge biomedical limited in 1982 in 1986  
he moved to scotland to join bioscot limited and shortly afterwards established omega  
he has used his technical experience and knowledge of exporting to oversee the growth of 
omega products with exports now exceeding £69 million per annum omega now exports  
to over 100 countries around the world and he travels regularly to many of the countries in 
which omega customers are based
mr shepherd was also recently a member of the bill and melinda gates foundation’s bmgf 
global health diagnostics forum which provided guidance to bmgf in advising on technology 
and future investments in worldwide diagnostics programmes for developing countries the 
forum published a number of scientific papers in a nature magazine supplement in november 
2006 wwwnaturecomdiagnostics  annual report and accounts 201 1 
wwwomegadiagnosticscom
19
overview
business  
review governance
financial  
statements
geoff gower bsc hons
managing director 
genesis diagnostics ltd
cambridge nutritional sciences ltd 
aged 55 geoff gower joined genesis and cns as managing director in may 2009 he is 
responsible for the performance and development of both companies he has been involved 
in the medical diagnostics industry since 1983
his career in science started at unilever research in 1974 where he stayed for nine years  
and at the same time obtained a bachelor of science in applied biology in 1983 he joined 
seward laboratory and held senior production positions before joining iq bio as production 
manager in 1985 he has since held positions as operations director country manager 
general manager and managing director whilst working for novo nordisk dako and oxoid 
in 2008 he established his own consultancy company camsensia ltd
mr gower has a wealth of experience in operations and more recently in commercial and 
business development during his time at dako and oxoid this included responsibility for 
the relocation and design of a new manufacturing facility for novo nordisk diagnostics in 
1990 totalling 4270m² he was intimately involved in the growth of dako’s microbiology 
business and its subsequent sale to oxoid in 2006
jag grewal bsc hons msc mba 
group sales and marketing director
aged 42 jag grewal joined omega in june 2011 as group sales and marketing director  
he has worked in diagnostics for over 20 years having started out as a clinical biochemist  
in the nhs in 1995 he joined beckman instruments where he developed a career spanning 
15 years in sales and marketing holding a variety of positions in sales product management 
and marketing management in 2009 he left as northern europe marketing manager to join 
serco health where he helped create the first joint venture within uk pathology between 
serco and guys and st thomas’ hospital he is also past chairman and current treasurer  
of the british in vitro diagnostics association bivda
michael gurner fca
nonexecutive director
aged 66 michael gurner led the flotation of the company on aim as chairman and chief 
executive he reviewed numerous potential acquisition candidates before the company 
entered into the acquisition agreement with omega
he qualified as a chartered accountant in 1967 before embarking on a career in merchant 
banking with keyser ullmann including ma activities with the ryan group of companies and 
holding senior management positions including managing director of a fully listed company 
continuous stationery plc an acquisitive business forms manufacturer between 1986 and 
1991 during this time he was responsible for acquisitions including prontaprint the 
photographic print retail chain and led the turnaround of its performance in the ensuing  
18 months
thereafter he focused on turning around underperforming and ailing businesses  
in association with postern executive group limited ‘postern’ a leading uk turnaround 
specialist which provided management teams for troubled companies at postern’s request  
he joined the board of several companies which were successfully turned around  annual report and accounts 201 1 
wwwomegadiagnosticscom
20
directors’ report
the directors present their annual report and group financial statements for the year ended 31 march 2011 
principal activities
the principal activity of the company is as a holding company the principal activity of the group is the manufacture development and 
distribution of medical diagnostics products
results and dividends
the result for the year is a profit of £31457 2010 profit of £187099 which has been taken to reserves the directors do not propose to pay  
a dividend the results are disclosed in more detail in the chairman’s statement on pages 10 to 11 and the financial review on pages 14 to 15
the company has taken advantage of the exemption allowed under section 408 of the companies act 2006 and has not presented its own 
income statement in these financial statements the company profit for the year ended 31 march 2011 is £31021 2010 profit of £212537
business review and future development
a review of business and future development is discussed in more detail in the chairman’s statement chief executive’s review and financial 
review commencing on pages 10 12 and 14 respectively key performance indicators are disclosed and discussed on pages 16 and 17 
research and development
research and development activity has increased in the year details of research and development activity are contained in the chief 
executive’s review on pages 12 to 13 costs in the year amounted to £250055 2010 £209747 and were all expensed through the  
statement of comprehensive income
directors
the names of the directors who have served the company throughout the year are
david evans
michael gurner
kieron harbinson
andrew shepherd
geoff gower 
jag grewal appointed 30 june 2011
biographies of all directors still serving at the yearend are on pages 18 and 19
directors’ interests
the beneficial interests of directors who have served throughout the year are listed in the directors’ remuneration report on pages 22 and 23 
there are no nonbeneficial interests held by directors there have been no changes to any director’s interests in the shares of the company 
between 31 march 2011 and the date of this report
major interests in shares
as at 13 june 2011 the company had been notified that the following shareholders held more than 3 of the company’s issued ordinary  
share capital
     number of 4p 
     ordinary shares percentage
legal  general investment management     15300000 1795
matrix vct plc     12499900 1467
octopus investments     11196870 1314
brewin dolphin securities     5236502 614
unicorn aim vct plc     4266650 501
williams de broe     4118601 483
jm finn nominees limited     3821000 448
david evans     2870134 337
hargreave hale nominees limited     2836244 333
supplier payment policy
it is the company’s policy to agree the terms of payment with its suppliers to ensure its suppliers are made aware of those terms and to pay  
in accordance with them
trade creditors of the company at 31 march 2011 were equivalent to 57 days 2010 61 days based on the average daily amount invoiced by 
suppliers during the year  annual report and accounts 201 1 
wwwomegadiagnosticscom
21
overview
business  
review governance
financial  
statements
employees
the company encourages communication with its employees and favours an environment where staff can put forward their ideas suggestions 
and concerns on any matter that involves them the company gives full and fair consideration to applications for employment made by disabled 
people having regard to their particular aptitudes and abilities where an employee becomes disabled in the course of their employment where 
possible arrangements will be made for appropriate retraining to match their abilities with their duties
principal risks and uncertainties
the board meets regularly to review operations and to discuss risk areas the corporate governance report contains details of the group’s 
system of internal control note 23 to the financial statements contains details of financial risks faced by the group
the board is also aware of nonfinancial risk areas including
general economic conditions
the group may be faced with changes in the general economic climate in each territory in which it operates that may adversely affect the 
financial performance of the group factors which may contribute include the level of direct and indirect competition against the group 
industrial disruption rate of growth of the group’s sectors and interest rates the group seeks to mitigate this risk by conducting operations  
on a broad geographic basis and by introducing new technologies to remain innovative
regulatory risk
the manufacturing marketing and use of the group’s products are subject to regulation by government and regulatory agencies in many 
countries of particular importance is the requirement to obtain and maintain approval for a product from the applicable regulatory agencies  
to enable the group’s products to be marketed approvals can require clinical evaluation of data relating to safety quality and efficacy  
of a product the group seeks to mitigate regulatory risk by conducting its operations within recognised quality assurance systems and 
undergoes external assessment to ensure compliance with these systems
acquisition risk
the success of the group depends upon the ability of the directors to assimilate and integrate the operations personnel technologies and 
products of acquired companies the group seeks to mitigate this risk by selecting companies which meet certain selection criteria and by 
conducting a detailed due diligence review
donations
the company made no charitable donations in the year 2010 £nil nor any political donations 2010 £nil
auditors
the auditors ernst  young llp have indicated their willingness to continue in office and a resolution for their reappointment will be proposed 
at the forthcoming annual general meeting
directors’ statement as to disclosure of information to auditors
the directors who were members of the board at the time of approving the directors’ report are listed on page 20 having made enquiries  
of fellow directors and of the company’s auditors each of these directors confirms that
to the best of each director’s knowledge and belief there is no information that is information needed by the group’s auditors in connection •	
with preparing their report of which the company’s auditors are unaware and
each director has taken all the steps a director might reasonably be expected to have taken to be aware of relevant audit information and  •	
to establish that the company’s auditors are aware of that information
by order of the board
k ieron harbinson
company secretary
1 july 2011 annual report and accounts 201 1 
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directors’ remuneration report
as an aimquoted company the group is not required to produce a remuneration report that satisfies all the requirements of the companies 
act however the directors are committed to providing information on an open basis and present their remuneration report as follows
remuneration committee
the remuneration committee is comprised of michael gurner as chairman and david evans the committee meets as and when required to 
determine and agree with the board the policy for the remuneration of the company’s chief executive chairman executive directors and the 
company secretary the objective of this policy shall be to ensure that members of the executive management of the company are provided 
with appropriate incentives to encourage enhanced performance and are in a fair and reasonable manner rewarded for their individual 
contributions to the success of the company no director or manager shall be involved in any decisions as to their own remuneration
remuneration policy
the company’s policy is that the remuneration arrangements including pensions for subsequent financial years should be sufficiently 
competitive to attract retain and motivate high quality executives capable of achieving the company’s objectives thereby enhancing 
shareholder value
incentive schemesshare option schemes
no director was issued with any options in the current year in the prior year on 5 may 2009 geoff gower was issued with an option over 
20000 ordinary shares of the company under the company’s emi share option scheme which was prior to his appointment as an executive 
director on 22 december 2009
directors’ service contracts
andrew shepherd entered into a service contract with the company on 23 august 2006 under which he was appointed as chief executive on 
an annual salary of £85000 his salary was increased to £131250 per annum from 1 april 2009 the agreement will continue until terminated  
by either party giving to the other not less than 12 months’ notice in writing
kieron harbinson entered into a service contract with the company on 23 august 2006 under which he was appointed as finance director  
and company secretary on an annual salary of £72500 his salary was increased to £94500 per annum from 1 april 2009 the agreement  
will continue until terminated by either party giving to the other not less than three months’ notice in writing
david evans was appointed a nonexecutive director of the company on 19 september 2006 and was entitled to an annual fee of £25000 from 
1 april 2008 the agreement will continue until terminated by either party giving to the other not less than one month’s notice in writing
michael gurner was appointed a nonexecutive director of the company on 19 september 2006 and he was entitled to an annual fee of £15000 
this fee was increased to £20000 per annum from 1 january 2009 the agreement will continue until terminated by either party giving to the 
other not less than one month’s notice in writing
geoff gower entered into a service contract with the company on 22 december 2009 under which he was appointed as an executive director 
on an annual salary of £80000 the agreement will continue until terminated by either party giving to the other not less than three months’ 
notice in writing 
andrew shepherd kieron harbinson and geoff gower received bonuses within the year of £19688 £23625 and £2000 respectively these 
were noncontractual and calculated at 15 25 and 25 of their basic annual salaries based on the successful acquisition of the allergy 
business and certain assets of allergopharma joachim ganzer kg
in the prior year andrew shepherd and kieron harbinson received bonuses of £19688 and £14175 respectively these were noncontractual 
and calculated at 15 of their basic annual salaries on the successful acquisition of cotek south west ltd
directors’ emoluments
  feesbasic  benefits total total 
  salary bonuses in kind 2011 2010 
consolidated  £ £ £ £ £
executive
andrew shepherd  131250 19688 – 150938 150938
kieron harbinson  94500 23625 1238 119363 108675
geoff gower  76667 2000 1516 80183 22285
nonexecutive
david evans  25000 – – 25000 25000
michael gurner  20000 – – 20000 20000 annual report and accounts 201 1 
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overview
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review governance
financial  
statements
the amounts paid in the year towards directors’ pension contributions were as follows
directors’ pension contributions
     2011 2010 
     £ £
andrew shepherd     6562 6562
kieron harbinson     4613 4500
geoff gower     7333 1783
 
directors’ interests in the 4p ordinary shares of omega diagnostics group plc
    
     31 march 2011 31 march 2010
david evans     2870134 110000
michael gurner     246671 121671
kieron harbinson     204150 58317
andrew shepherd     1955530 1319830
geoff gower     500000 –
the directors have no interest in the shares of subsidiary companies
directors’ share options      
   
  at granted lapsed exercised at   earliest  
  1 april during during during 31 march option date of exercise expiry 
  2010 the year the year the year 2011 price grant date date
david evans  390822 – – – 390822 19p 10122008 10122009 10122018
andrew shepherd  703480 – – – 703480 19p 10122008 10122009 10122018
kieron harbinson  468987 – – – 468987 19p 10122008 10122009 10122018
geoff gower  20000 – – – 20000 19p 552009 552010 552019
 
david evans was issued with an option under the unapproved option scheme and andrew shepherd kieron harbinson and geoff gower  
were issued with options under the company’s emi option scheme 
the share price at 31 march 2011 was 145p the highest and lowest share price during the year was 285p and 145p respectively
          
under the terms of a warrant michael gurner was entitled to subscribe for 45835 ordinary shares of 4p each between 1 april 2008 and  
19 september 2009 at an exercise price of 80p per share the warrant lapsed on 19 september 2009 
approved by the board
michael gurner
nonexecutive director
1 july 2011 annual report and accounts 201 1 
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corporate governance report
as an aimquoted company the group is not required to produce a corporate governance report that satisfies all the requirements of the 
combined code however the directors are committed to providing information on an open basis and present their corporate governance 
report as follows
the board of directors
the board currently comprises one nonexecutive chairman one nonexecutive director and four executive directors who are the 
chief executive the finance director the sales and marketing director and the managing director of genesis diagnostics ltd and cambridge 
nutritional sciences ltd david evans nonexecutive chairman and michael gurner nonexecutive director are considered by the board 
to be independent in character and judgement michael gurner is the senior independent nonexecutive director the board meets at regular 
intervals and is responsible for setting corporate strategy approving the annual budget reviewing financial performance agreeing the renewal 
of and any new bankingtreasury facilities and approving major items of capital expenditure the board is provided with appropriate information 
in advance of board meetings to enable it to discharge its duties effectively 
during the financial year the board met on twelve occasions one of the meetings on 20 december 2010 was a meeting of an authorisation 
committee where the board had delegated responsibility to andrew shepherd and kieron harbinson to be able to approve all the final form 
documents in connection with the admission placing and acquisition in december 2010 of the eleven other meetings david evans attended 
ten with michael gurner andrew shepherd kieron harbinson and geoff gower attending all 11
the chairman has additional nonexecutive directorships of the following companies
bgenuinetec kk
epistem holdings plc
immunodiagnostic systems holdings plc
momentum biosciences limited
onyx research chemicals limited
scancell holdings plc
ekf diagnostics plc
rosnes limited
sirigen limited
cytox limited
venn life sciences limited
bbi holdings limited
diagnostics capital limited
lochglen whisky limited
st andrews golf art limited
horizon discovery limited
the audit committee
the audit committee has met on two occasions during the year and once since the yearend the committee is comprised of david evans  
as chairman and michael gurner and has primary responsibility for monitoring the quality of internal controls ensuring that the financial 
performance of the company is properly measured and reported on and for reviewing reports from the company’s auditors relating to the 
company’s accounting and internal controls in all cases having due regard to the interests of shareholders the committee shall also review 
preliminary results announcements summary financial statements significant financial returns to regulators and any financial information 
contained in certain other documents such as announcements of a pricesensitive nature
the committee considers and makes recommendations to the board to be put to shareholders for approval at the annual general meeting  
in relation to the appointment reappointment and removal of the company’s external auditors the committee also oversees the relationship 
with the external auditors including approval of remuneration levels approval of terms of engagement and assessment of their independence 
and objectivity in so doing they take into account relevant uk professional and regulatory requirements and the relationship with the auditors 
as a whole including the provision of any nonaudit services ernst  young llp have been auditors to omega diagnostics limited ‘odl ’  
since 2000 and were appointed as auditors to the company following completion of the reverse takeover of odl in september 2006
the committee has reviewed the effectiveness of the company’s system of internal controls and has considered the need for an internal audit 
function at this stage of the company’s size and development the committee has decided that an internal audit function is not required as the 
company’s internal controls system in place is appropriate for its size the committee will review this position on an annual basis
the committee also reviews the company’s arrangements for its employees raising concerns in confidence about possible wrongdoing 
in financial reporting or other matters the committee ensures that such arrangements allow for independent investigation and followup action
the remuneration committee
the remuneration committee has met on one occasion during the year and once since the year end the committee is comprised of michael 
gurner as chairman and david evans and has primary responsibility for determining and agreeing with the board the remuneration of the 
company’s chief executive chairman executive directors the company secretary and such other members of the executive management  
as it is designated to consider the remuneration of the nonexecutive directors shall be a matter for the chairman and the executive directors  
of the board no director or manager shall be involved in any decisions regarding their own remuneration annual report and accounts 201 1 
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financial  
statements
internal control
the board is responsible for the company’s system of internal control and for reviewing its effectiveness throughout the year such a system 
can only provide reasonable assurance against misstatement or loss
the board monitors financial controls through the setting and approval of an annual budget and the regular review of monthly management 
accounts management accounts contain a number of indicators that are designed to reduce the possibility of misstatement in financial 
statements
where the management of operational risk requires outside advice this is sought from expert consultants and the company receives  
this in the areas of employment law and health and safety management
the company is compliant with industry standard quality assurance measures and undergoes regular external audits to ensure that 
accreditation is maintained
communication with shareholders
the board recognises the importance of communication with its shareholders the company maintains informative websites for genesis 
diagnostics limited omega diagnostics limited cambridge nutritional sciences limited and omega gmbh containing information likely to  
be of interest to existing and new investors in addition the company retains the services of financial pr consultants providing an additional 
contact point for investors the board encourages shareholder participation at its annual general meeting where shareholders can be updated 
on the company’s activities and plans
going concern
the group’s business activities together with the factors likely to affect its future development performance and position are set out in the 
business review which runs from page 10 to page 15 the financial position of the group its cash flows liquidity position and borrowing 
facilities are described in the financial review on pages 14 to 15 in addition note 23 to the financial statements includes the group’s objectives 
policies and processes for managing its capital its financial risk management objectives details of its financial instruments and hedging 
activities and its exposures to credit risk and liquidity risk the group has adequate financial resources together with longterm relationships 
with a number of customers and suppliers across different geographic areas and industries
as a consequence the directors believe that the group is wellplaced to manage its business risks successfully despite the current uncertain 
economic outlook 
the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable 
future accordingly they continue to adopt the going concern basis of accounting in preparing the annual financial statements
by order of the board
k ieron harbinson
company secretary
1 july 2011 annual report and accounts 201 1 
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statement of directors’ responsibilities
the directors are responsible for preparing the annual report and the group and company financial statements in accordance with applicable 
united kingdom law and those international financial reporting standards as adopted by the european union
the directors are required to prepare group and company financial statements for each financial year end under company law the directors 
must not approve the financial statements unless they are satisfied that they present fairly the financial position of the group and company 
financial performance of the group and cash flows of the group and company for that period in preparing the group and company financial 
statements the directors are required to
select suitable accounting policies in accordance with ias 8 accounting policies changes in accounting estimates and errors and then •	
apply them consistently
present information including accounting policies in a manner that provides relevant reliable comparable and understandable information •	
provide additional disclosures when compliance with the specific requirements in ifrss is insufficient to enable users to understand the •	
impact of particular transactions other events and conditions on the group’s financial position and financial performance
state that the group and company has complied with ifrss subject to any material departures disclosed and explained in the financial •	
statements and
make judgments and estimates that are reasonable and prudent •	
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s 
transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure 
that the group and company financial statements comply with the companies act 2006 they are also responsible for safeguarding assets  
of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities annual report and accounts 201 1 
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financial  
statements
independent auditor’s report
to the members of omega diagnostics group plc
we have audited the financial statements of omega diagnostics group plc for the year ended 31 march 2011 which comprise the consolidated 
statement of comprehensive income consolidated balance sheet consolidated statement of changes in equity consolidated cash flow 
statement company balance sheet company statement of changes in equity company cash flow statement and the related notes 1 to 23 
the financial reporting framework that has been applied in their preparation is applicable law and international financial reporting standards 
ifrss as adopted by the european union and as regards the parent company financial statements as applied in accordance with the 
provisions of the companies act 2006
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the companies act 2006  
our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them  
in an auditor’s report and for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone  
other than the company and the company’s members as a body for our audit work for this report or for the opinions we have formed 
respective responsibilities of directors and auditors
as explained more fully in the statement of directors’ responsibilities on page 26 the directors are responsible for the preparation of 
the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit and express an opinion the 
financial statements in accordance with applicable law and international standards on auditing uk and ireland those standards require  
us to comply with the auditing practices board’s ethical standards for auditors
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance  
that the financial statements are free from material misstatement whether caused by fraud or error this includes an assessment of whether  
the accounting policies are appropriate to the group’s and the parent company’s circumstances and have been consistently applied  
and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall presentation  
of the financial statements in addition we read all the financial and nonfinancial information in the directors’ report to identify material 
inconsistencies with the audited financial statements if we become aware of any apparent material misstatements or inconsistencies  
we consider the implications for our report
opinion on financial statements
in our opinion
the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 march 2011  •	
and of the group’s profit for the year then ended
the group financial statements have been properly prepared in accordance with ifrss as adopted by the european union •	
the parent company financial statements have been properly prepared in accordance with ifrss as adopted by the european union  •	
and as applied in accordance with the provisions of the companies act 2006 and
the financial statements have been prepared in accordance with the requirements of the companies act 2006 •	
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent 
with the financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you if in our opinion 
adequate accounting records have not been kept by the parent company or returns adequate for our audit have not been received from •	
branches not visited by us or 
the parent company financial statements are not in agreement with the accounting records and returns or •	
certain disclosures of directors’ remuneration specified by law are not made or •	
we have not received all the information and explanations we require for our audit •	
mark william harvey senior statutory auditor
for and on behalf of ernst  young llp statutory auditor
edinburgh
1 july 2011 annual report and accounts 201 1 
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consolidated statement of comprehensive income
for the year ended 31 march 2011
     2011 2010 
    note £ £
continuing operations
revenue    7 7902036 6198742
cost of sales     3195742 2582522
gross profit     4706294 3616220
administration costs     3508810 2508608
selling and marketing costs     1069027 800632
other income – government grants and related assistance    7769 500
operating profit    7 136226 307480
finance costs    5 33052 97909
finance income – interest receivable    7 1950 437
profit before taxation     105124 210008
tax charge    6 73667 22909
profit for the year     31457 187099
other comprehensive income
exchange differences on translation of foreign operations    189009 –
actuarial gain on defined benefit pensions     41984 –
other comprehensive income for the year    230993 –
total comprehensive income for the year    262450 187099
earnings per share eps    
basic and diluted eps on profit for the year    22 01p 10p
adjusted profit before taxation
for the year ended 31 march 2011
     2011 2010 
     £ £
profit before taxation     105124 210008
ifrsrelated discount charges included within finance costs    21968 94958
fair value adjustments to financial derivatives included within finance costs   4086 2580
amortisation of intangible assets included within administration costs   192907 108750
sharebased payment charges included within administration costs   7873 178375
acquisition costs included within administration costs    412045 –
adjusted profit before taxation     735831 589511
earnings per share eps
adjusted eps on profit for the year     17p 31p
 
adjusted profit before taxation is derived by taking statutory profit before taxation and adding back ifrsrelated discount charges amortisation of 
intangible assets sharebased payment charges acquisition costs and fair value adjustments to financial derivatives this is not a primary statement annual report and accounts 201 1 
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29
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financial  
statements
consolidated balance sheet
as at 31 march 2011
     2011 2010 
    note £ £
assets
noncurrent assets
intangibles    9 9605259 5159774
property plant and equipment    10 1954485 672903
deferred taxation    15 84913 96074
retirement benefit surplus    19 41984 –
derivative financial instruments    23 – 196
      11686641 5928947
current assets
inventories    11 1273971 814344
trade and other receivables    12 2369701 1682263
income tax receivable     16683 45527
cash and cash equivalents     2054877 678800
      5715232 3220934
total assets     17401873 9149881
equity and liabilities
equity
issued capital     12977107 5930962
retained earnings     10751 281074
total equity     12966356 5649888
liabilities
noncurrent liabilities
longterm borrowings    13 1275832 1593491
other financial liabilities    20 549663 –
deferred taxation    15 520607 583249
derivative financial instruments    23 3435 7717
total noncurrent liabilities     2349537 2184457
current liabilities
shortterm borrowings    13 332499 343685
trade and other payables    14 1615705 862878
income tax payable     137776 108973
total current liabilities     2085980 1315536
total liabilities     4435517 3499993
total equity and liabilities     17401873 9149881
david evans k ieron harbinson
nonexecutive chairman finance director
1 july 2011 1 july 2011
omega diagnostics group plc
registered number 5017761 annual report and accounts 201 1 
wwwomegadiagnosticscom
30
consolidated statement of changes in equity
for the year ended 31 march 2011
   share share retained 
   capital premium earnings total 
   £ £ £ £
balance at 31 march 2009   1362246 3649523 646548 4365221
issue of share capital for cash consideration  200000 800000 – 1000000
expenses in connection with share issue   – 80807 – 80807
profit for the year ended 31 march 2010   – – 187099 187099
total comprehensive income   – – 459449 5471513
sharebased payments   – – 178375 178375
balance at 31 march 2010   1562246 4368716 281074 5649888 
issue of share capital for cash consideration  2583334 5166668 – 7750002
expenses in connection with share issue   – 703857 – 703857
profit for the year ended 31 march 2011   – – 31457 31457
other comprehensive income – net exchange adjustments  – – 189009 189009
other comprehensive income – actuarial gain on defined benefit pensions – – 41984 41984
total comprehensive income   – – 18624 12958483
sharebased payments   – – 7873 7873
balance at 31 march 2011   4145580 8831527 10751 12966356 annual report and accounts 201 1 
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business  
review governance
financial  
statements
consolidated cash flow statement
for the year ended 31 march 2011
     2011 2010 
    note £ £
cash flows generated from operations
profit for the year     31457 187099
adjustments for
 taxation     73667 22909
 finance costs     33052 97909
 finance income     1950 437
operating profit before working capital movement    136226 307480
increase in trade and other receivables     623918 360405
decreaseincrease in inventories     95707 48964
increasedecrease in trade and other payables    466544 24926
gainloss on sale of property plant and equipment    3949 1873
depreciation    10 144294 102925
amortisation of intangible assets    9 192907 108750
sharebased payments     7873 178375
taxation paid     67501 52825
net cash flow from operating activities     348183 212283
investing activities
finance income     1950 437
purchase of property plant and equipment    10 200977 90485
purchase of intangible assets     563653 –
sale of property plant and equipment     5499 2540
outflow on acquisition of subsidiaries    8 4916049 580699
net cash used in investing activities     5673230 668207
financing activities
finance costs     26446 42010
proceeds from issue of share capital     7750002 1000000
expenses of share issue    16 703857 80807
loan repayments     276744 273283
finance lease repayments     62795 81730
net cash from financing activities     6680160 522170
net increase in cash and cash equivalents    1355113 66246
effects of exchange rate movements     20964 –
cash and cash equivalents at beginning of year    678800 612554
cash and cash equivalents at end of year    2054877 678800 annual report and accounts 201 1 
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company balance sheet
as at 31 march 2011
     2011 2010 
    note £ £
assets
noncurrent assets
investments    21 10655361 8113040
intangible assets    9 984663 –
derivative financial instruments    23 – 196 
      11640024 8113236
current assets
trade and other receivables    12 4949986 1377997
income tax receivable     12627 –
cash and cash equivalents     552702 12214
      5515315 1390211
total assets     17155339 9503447
equity and liabilities
equity
issued capital     13966782 6920637
retained earnings     292639 253745
total equity     14259421 7174382
liabilities
noncurrent liabilities
longterm borrowings    13 1262470 1520100
other financial liabilities    20 549663 –
derivative financial instruments    23 3435 7717
total noncurrent liabilities     1815568 1527817
current liabilities
shortterm borrowings    13 272470 280890
trade and other payables    14 690012 439165
income tax payable     117868 81193
total current liabilities     1080350 801248
total liabilities     2895918 2329065
total equity and liabilities     17155339 9503447
david evans k ieron harbinson
nonexecutive chairman finance director
1 july 2011 1 july 2011 annual report and accounts 201 1 
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overview
business  
review governance
financial  
statements
company statement of changes in equity
for the year ended 31 march 2011
   share share retained 
   capital premium earnings total 
   £ £ £ £
balance at 31 march 2009   1734528 4266916 137167 5864277
issue of share capital for cash consideration  200000 800000 – 1000000
expenses in connection with share issue   – 80807 – 80807
profit for the year ended 31 march 2010   – – 212537 212537
total comprehensive income   – – 75370 6996007
sharebased payments   – – 178375 178375
balance at 31 march 2010   1934528 4986109 253745 7174382
issue of share capital for cash consideration  2583334 5166668 – 7750002
expenses in connection with share issue    703857 – 703857
profit for the year ended 31 march 2011   – – 31021 31021
total comprehensive income   – – 284766 14251548
sharebased payments   – – 7873 7873
balance at 31 march 2011   4517862 9448920 292639 14259421 annual report and accounts 201 1 
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company cash flow statement
for the year ended 31 march 2011
     2011 2010 
     £ £
cash flows generated from operations
lossprofit for the year     31021 212537
adjustments for
 taxation     105241 95918
 finance costs     25730 84426
 finance income     19905 132
operating profit before working capital movement    142087 392749
increase in trade and other receivables     1177250 591726
increasedecrease in trade and other payables    250847 117312
taxation paid     81193 –
sharebased payments     7873 178375
net cash flow from operating activities     857636 137914
investing activities
finance income     19905 132
purchase of intangible assets     435000 –
outflow on acquisition of subsidiaries     4937058 582253
net cash used in investing activities     5352153 582121
financing activities
finance costs     19124 28527
proceeds from issue of share capital     7750002 919193
expenses of share issue     703857 –
loan repayments     276744 273283
net cash from financing activities     6750277 617383
net increasedecrease in cash and cash equivalents    540488 102652
cash and cash equivalents at beginning of year    12214 114866
cash and cash equivalents at end of year    552702 12214 annual report and accounts 201 1 
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overview
business  
review governance
financial  
statements
notes to the financial statements
for the year ended 31 march 2011
1 authorisation of financial statements
the financial statements of omega diagnostics group plc for the year ended 31 march 2011 were authorised for issue by the board of directors 
on 1 july 2011 and the balance sheets were signed on the board’s behalf by david evans and kieron harbinson omega diagnostics group plc 
is a public limited company incorporated in england the company’s ordinary shares are traded on the aim market
2 accounting policies 
basis of preparation
the accounting policies which follow set out those policies which have been applied consistently to all periods presented in these financial 
statements these financial statements are presented in sterling and have been prepared in accordance with ifrs as adopted by the eu  
and applied in accordance with the provisions of the companies act 2006
in relation to ifrs 8 – operating segments the group has identified the executive board as the chief operating decision maker with 
responsibility for decisions over the allocation of resources to operating segments and for the monitoring of their performance during the year 
the group acquired the invitro diagnostics business of allergopharma joachim ganzer kg providing a presence in the allergy testing market 
accordingly the group has reorganised its internal reporting to provide information over the performance of the following three segments 
allergy and autoimmune •	
food intolerance •	
infectious disease and other •	
comparatives have been adjusted to reflect the new reporting format
basis of consolidation
the group financial statements consolidate the financial statements of omega diagnostics group plc and the entities it controls its subsidiaries 
control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities and is 
achieved through direct or indirect ownership of voting rights subsidiaries are consolidated from the date of acquisition being the date on 
which the group obtains control and continue to be consolidated until the date that such control ceases the financial statements of the 
subsidiaries used in the preparation of the consolidated financial statements are based on consistent accounting policies all intercompany 
balances and transactions including unrealised profits arising from them are eliminated 
intangible assets
goodwill
business combinations are accounted for under ifrs 3 using the acquisition method goodwill represents the excess of the cost of the business 
combination over the group’s interest in the net fair value of the identifiable assets liabilities and contingent liabilities goodwill is not amortised 
but is subject to an annual impairment review and whenever events or changes in circumstances indicate that the carrying value may be impaired 
after initial recognition goodwill is stated at cost less any accumulated impairment losses
for the purpose of impairment testing goodwill is allocated to the related cash generating units monitored by management usually at business 
segment level or statutory company level as the case may be where the recoverable amount of the cashgenerating unit is less than its carrying 
amount including goodwill an impairment loss is recognised in the income statement
other intangible assets
intangible assets acquired as part of a business combination are recognised outside goodwill if the asset is separable or arises from contractual 
or other legal rights and its fair value can be measured reliably following initial recognition at fair value at the acquisition date the historic cost 
model is applied with intangible assets being carried at cost less accumulated amortisation and accumulated impairment losses intangible 
assets with a finite life have no residual value and are amortised on a straight line basis over the expected useful lives with charges included  
in administration costs as follows
technology assets – 520 years
customer relationships – 510 years
supply agreements – 5 years
other intangibles – 5 years
the carrying value of intangible assets is reviewed for impairment whenever events or changes in circumstances indicate the carrying value may 
not be recoverable
research and development costs
expenditure on research which is incurred up to the point of manufacturing validation is written off as incurred thereafter expenditure on 
product development which meets certain criteria is capitalised and amortised over its useful life the manufacturing validation stage is when  
it is probable that the product will generate future economic benefits and the following criteria have been met technical feasibility intention  
and ability to sell the product availability of resources to complete the development of the product and the ability to measure the expenditure 
attributable to the product the useful life of the intangible asset is determined on a product by product basis taking into consideration  
a number of factors development costs previously recognised as an expense are not recognised as an asset in a subsequent period
property plant and equipment
property plant and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses depreciation is charged 
so as to write off the cost of assets to their estimated residual values over their estimated useful lives on a straight line basis as follows
freehold properties – 33 years straight line with no residual value
leasehold improvements – 10 years straight line with no residual value
plant and machinery – 810 years straight line with no residual value
motor vehicles – 5 years straight line with no residual value annual report and accounts 201 1 
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2 accounting policies continued
the carrying values of property plant and equipment are reviewed for impairment if events or changes in circumstances indicate the carrying 
value may not be recoverable and are written down immediately to their recoverable amount useful lives are reviewed annually and where 
adjustments are required these are made prospectively
impairment of assets
the group and company assesses at each reporting date whether there is an indication that an asset may be impaired if any such indication 
exists the group and company makes an estimate of the asset’s recoverable amount an asset’s recoverable amount is the higher of an asset’s 
or cashgenerating unit’s fair value less costs to sell and its value in use and is determined for an individual asset unless the asset does not 
generate cash inflows that are largely independent of those from other assets or groups of assets where the carrying amount of an asset 
exceeds its recoverable amount the asset is considered to be impaired and is written down to its recoverable amount 
in assessing value in use the estimated future cash flows are discounted to their net present value using a pretax discount rate that reflects 
current market assessments of the time value of money and the risks specific to that asset impairment losses on continuing operations are 
recognised in the income statement in those expense categories consistent with the function of the impaired asset
inventories
inventories are stated at the lower of cost and net realisable value cost is defined as standard cost or purchase price and includes all direct 
costs incurred in bringing each product to its present location and condition net realisable value is based on estimated selling price less any 
further costs expected to be incurred prior to completion and disposal 
trade receivables
trade receivables are recognised initially at fair value and subsequently measured at the lower of original invoice amount and recoverable 
amount a provision for doubtful amounts is made when there is objective evidence that collection of the full amount is no longer probable 
significant financial difficulty or significantly extended settlement periods are considered to be indicators of impairment normal average 
payment terms vary from payment in advance to 90 days balances are written off when the probability of recovery is assessed as remote 
cash and cash equivalents
cash and cash equivalents in the balance sheet comprise cash at banks and in hand and shortterm deposits with an original maturity 
of three months or less
financial instruments
under ias39 financial assets liabilities and equity instruments are classified according to the substance of the contractual arrangements 
entered into an equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities
financial assets are classified as either
financial assets at fair value through profit or loss •	
loans and receivables •	
financial assets at fair value through profit or loss
the group uses derivative financial instruments to reduce its exposure to fluctuations in interest rates both in sterling and us dollars the group 
does not hold or issue derivatives for speculative or trading purposes derivative financial instruments with positive fair values are recognised  
as assets measured at their fair values at the balance sheet date the fair value of interest rate contracts is determined by reference to market 
values for similar instruments that have similar maturities changes in fair value are recognised in the income statement included in finance 
costs due to the fact that hedge accounting has not been applied
loans and receivables
trade receivables that do not carry any interest and have fixed or determinable payment amounts that are not quoted in an active market are 
classified as loans and receivables loans and receivables with a maturity of less than 12 months are included in current assets and are 
measured at amortised cost using the effective interest method as reduced by appropriate allowances for estimated irrecoverable amounts 
financial liabilities are classified as either
financial liabilities at fair value through profit or loss •	
other liabilities •	
financial liabilities at fair value through profit or loss
the group uses derivative financial instruments to reduce its exposure to fluctuations in interest rates both in sterling and us dollars 
the group does not hold or issue derivatives for speculative or trading purposes derivative financial instruments with negative fair values  
are recognised as liabilities measured at their fair values at the balance sheet date the fair value of interest rate contracts is determined by 
reference to market values for similar instruments that have similar maturities changes in fair value are recognised in the income statement 
included in finance costs due to the fact that hedge accounting has not been applied
other financial liabilities whether used as part of the consideration for acquisitions which include deferred consideration or not are designated 
by the group as financial liabilities at fair value through profit and loss they are measured at the present value of the consideration expected  
to be payable by discounting the expected future cash flows at prevailing interest rates at initial recognition the quantum of liability to be 
recognised will depend upon management’s expectation at that date of the amount that would ultimately be payable where there is a change 
in the expectation of future cash flows or interest rates the change is reflected through the income statement
notes to the financial statements
continued annual report and accounts 201 1 
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business  
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financial  
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other liabilities
trade payables are not interestbearing and are recognised initially at fair value and subsequently measured at amortised cost using the 
effective interest method
bank borrowings are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method for 
longterm bank borrowings stated at amortised cost transaction costs that are directly attributable to the borrowing instrument are recognised 
as an interest expense over the life of the instrument
a financial asset or liability is generally derecognised when the contract that gives rise to it is settled sold cancelled or expires where an 
existing financial liability is replaced by another from the same lender on substantially different terms or the terms of an existing liability are 
substantially modified such an exchange or modification is treated as a derecognition of the original liability and recognition of the new liability 
such that the difference in the respective carrying amounts together with any costs or fees incurred are recognised
financial assets and liabilities that are held for trading and other assets and liabilities designated as such on inception are included at fair value 
through profit and loss financial assets and liabilities are classified as held for trading if they are acquired for sale in the shortterm derivatives 
are also classified as held for trading unless they are designated as hedge instruments assets are carried in the balance sheet at fair value with 
gains or losses recognised in the income statement 
company’s investments in subsidiaries 
the company recognises its investments in subsidiaries at cost the carrying value of investments is reviewed for impairment whenever events 
or changes in circumstances indicate the carrying value may not be recoverable
presentation currency
the financial statements are presented in uk pounds sterling transactions in currencies other than sterling are recorded at the prevailing rate  
of exchange at the date of the transaction at each balance sheet date monetary assets and liabilities that are denominated in foreign currencies 
are retranslated at the rates prevailing on the balance sheet date 
foreign currencies
nonmonetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the date of the 
transaction gains and losses arising on retranslation are included in the net profit or loss for the year the trading results of the overseas 
subsidiary are translated at the average exchange rate ruling during the year with the exchange difference between the average rates and  
the rates ruling at the balance sheet date being taken to reserves any difference arising on the translation of the opening net investment  
in the overseas subsidiary and of applicable foreign currency loans are dealt with as adjustments to reserves 
revenue recognition
revenue is measured at the fair value of the consideration received or receivable and net of discounts and salesrelated taxes sales of  
goods are recognised when the significant risks and rewards of ownership are transferred to the customer this will be when goods have  
been dispatched and the collection of the related receivable is reasonably assured revenue relates to the sale of medical diagnostic kits
government grants
government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met 
usually on submission of a valid claim for payment government grants in respect of capital expenditure are credited to a deferred income 
account and are released to the income statement over the expected useful lives of the relevant assets by equal annual instalments
leasing and hire purchase commitments
assets held under finance leases and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of their 
lease period and useful life the corresponding lease or hire purchase obligation is capitalised in the balance sheet as a liability the interest 
element of the rental obligation is charged to the income statement over the period of the lease and represents a constant proportion of the 
balance of capital repayments outstanding
rentals applicable to operating leases where substantially all the benefits and risks remain with the lessor are charged against profits 
on a straight line basis over the period of the lease
sharebased payments
equitysettled transactions
for equitysettled transactions the group measures the award by reference to the fair value at the date at which they are granted and it is 
recognised as an expense over the vesting period which ends on the date on which the relevant employees become fully entitled to the  
award fair value is determined using an appropriate pricing model in valuing equitysettled transactions no account is taken of any service  
and performance vesting conditions other than conditions linked to the price of the shares of the company market conditions 
any other conditions which are required to be met in order for an employee to become fully entitled to an award are considered to be non
vesting conditions like market performance conditions nonvesting conditions are taken into account in determining grant date fair value  
no expense is recognised for awards that do not ultimately vest except for awards where vesting is conditional upon a market or nonvesting 
condition which are treated as vesting irrespective of whether or not the market or nonvesting condition is satisfied provided that all other 
performance conditions are satisfied
at each balance sheet date before vesting the cumulative expense is calculated representing the extent to which the vesting period has 
expired and management’s best estimate of the achievement or otherwise of vesting conditions and of the number of equity instruments that 
will ultimately vest or in the case of an instrument subject to a market or nonvesting condition be treated as vesting as described above  annual report and accounts 201 1 
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2 accounting policies continued
this includes any award where nonvesting conditions within the control of the group or the employee are not met the movement in cumulative 
expense since the previous balance sheet date is recognised in the income statement with a corresponding entry in equity
where the terms of an equitysettled award are modified or a new award is designated as replacing a cancelled or settled award the cost  
based on the original award terms continues to be recognised over the original vesting period in addition an expense is recognised over the 
remainder of the new vesting period for the incremental fair value of any modification based on the difference between the fair value of the 
original award and the fair value of the modified award both as measured on the date of the modification no reduction is recognised if this 
difference is negative
where an equitysettled award is cancelled it is treated as if it had vested on the date of cancellation and any cost not yet recognised  
in the income statement for the award is expensed immediately any compensation paid up to the fair value of the award at the cancellation  
or settlement date is deducted from equity with any excess over fair value being treated as an expense in the income statement
pension contributions
contributions to personal pension plans of employees on a defined contribution basis are charged to the income statement in the year 
in which they are payable
the group also operates two defined benefit plans in germany which are closed to new members obligations under defined benefit  
plans are measured at discounted present values by actuaries while plan assets are recorded at fair value the operating and financing costs  
of pensions are charged to the income statement in the period in which they arise and are recognised separately the difference between  
actual and expected returns on assets during the year including changes in actuarial assumptions are recognised in the statement of 
comprehensive income
income taxes
current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities based 
on tax rates and laws that are enacted or substantively enacted by the balance sheet date
deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their carrying 
amounts in the financial statements with the following exceptions
where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business •	
combination that at the time of the transaction affects neither accounting nor taxable profit or loss
in respect of taxable temporary differences associated with investments in subsidiaries associates and joint ventures where the timing  •	
of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the 
foreseeable future and
deferred income tax assets are recognised only to the extent that it is probable that taxable profit will be available against which the •	
deductible temporary differences carried forward tax credits or tax losses can be utilised
deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply when the related 
asset is realised or the liability is settled based on tax rates and laws enacted or substantively enacted at the balance sheet date
income tax and deferred tax is charged or credited in other comprehensive income or directly to equity if it relates to items that are credited  
or charged in other comprehensive income or directly to equity otherwise income tax and deferred tax is recognised in profit or loss
use of estimates and judgements
the preparation of these financial statements requires management to make judgements estimates and assumptions that affect the application 
of accounting policies and the reported amounts of assets liabilities income and expenses actual results may differ from these estimates
estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are recognised in the period 
in which the estimate is revised and in any future periods affected
the significant areas of estimation and uncertainty and critical judgements in applying the accounting policies that have the most significant 
effect on the amounts recognised in the financial information are discussed below further judgements assumptions and estimates are set  
out in the group financial statements
valuation of intangible assets
management judgement is required to estimate the useful lives of intangible assets having reference to future economic benefits expected 
to be derived from use of the asset economic benefits are based on the fair values of estimated future cash flows
impairment of goodwill
goodwill is tested annually for impairment the test considers future cash flow projections of cash generating units that give rise to the  
goodwill where the discounted cash flows are less than the carrying value of goodwill an impairment charge is recognised for the difference 
further analysis of the estimates and judgements is disclosed in note 9
deferred tax assets
management judgement is required to determine the amount of deferred tax assets that can be recognised based upon the likely timing and 
level of future taxable profits together with an assessment of the effect of future tax planning strategies the carrying value of the deferred tax 
asset at 31 march 2011 is £84913 2010 £96074 further details are contained in note 15
notes to the financial statements
continued annual report and accounts 201 1 
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business  
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financial  
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new standards and interpretations not applied 
iasb and ifric have issued the following standards and interpretations with an effective date after the date of these financial statements
international accounting standards iasifrs’s     effective date
ifrs 1 amendments to ifrs 1 – limited exemption from comparative ifrs 7 disclosures   1 july 2010
ifrs 9 financial instruments classification  measurement     1 january 2013
frs 10 consolidated financial statements       1 january 2013
ifrs 11 joint arrangements         1 january 2013
ifrs 12 disclosure of interests in other entities      1 january 2013
ifrs 13  fair value measurement       1 january 2013
2010 annual improvements      various dates
ias 24 related party disclosures revised      1 january 2011
ias 27  revised – separate financial statements       1 january 2013
ias 28  revised – investments in associates and joint ventures     1 january 2013
ias 32 amendment to ias 32 classification of rights issues     1 february 2010
international financial reporting interpretations committee ifric     effective date
ifric 14 amendment prepayments of a minimum funding requirement    1 january 2011
ifric 19 extinguishing financial liabilities with equity instruments    1 july 2010
 
   the effective dates stated here are those given in the original iasbifric standards and interpretations as the group prepares its financial 
statements in accordance with ifrs as adopted by the european union eu the application of new standards and interpretations will be 
subject to their having been endorsed for use in the eu via the eu endorsement mechanism in the majority of cases this will result in an 
effective date consistent with that given in the original standard or interpretation but the need for endorsement restricts the group’s discretion  
to adopt standards early
the directors do not anticipate that the adoption of these standards and interpretations will have a material impact on the group’s financial 
statements in the period of initial application
3 adoption of new international financial reporting standards 
the accounting policies adopted are consistent with those of the previous financial year except for ifrs 3 revised – business combinations 
the key features of ifrs 3 revised are for acquisitionrelated costs to be expensed through the income statement and not to be included  
in the purchase price and contingent consideration where applicable to be recognised at fair value on the acquisition date with subsequent 
changes recognised in the income statement and not as a change to goodwill
4 segment information
following the completion of the acquisition of the invitro diagnostics business of allergopharma joachim ganzer kg and the incorporation  
of omega gmbh the group carried out a review of internal reporting and the information presented to the board
for management purposes the group is now organised into three operating divisions allergy and autoimmune food intolerance and infectious 
and other the allergy and autoimmune division specialises in the research development production and marketing of invitro allergy and 
autoimmune tests used by doctors to diagnose patients with allergies and autoimmune diseases
the food intolerance division specialises in the research development and production of kits to aid the detection of immune reactions to food 
it also provides clinical analysis to the general public clinics and health professionals as well as supplying the consumer food detective
®
 test
the infectious diseases division specialises in the research development and production and marketing of kits to aid the diagnosis of  
infectious diseases
corporate consists of centralised corporate costs which are not allocated across the three business divisions
inter segment transfers or transactions are entered into under the normal commercial conditions that would be available to unrelated third parties
comparatives have been adjusted to reflect the new reporting format  annual report and accounts 201 1 
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4 segment information continued
business segment information       
  allergy and food infectious 
  autoimmune intolerance other corporate group 
2011  £ £ £ £ £
statutory presentation  
revenue  1539206 3997989 2862036 – 8399231
intersegment revenue  – 438879 58316 – 497195
total revenue  1539206 3559110 2803720 – 7902036
operating costs  1593544 2654718 2421619 1103599 7773480
operating profitloss  54338 904392 382101 1103599 128556
other operating income  – 4000 3769 – 7769
net finance costs  – 7068 – 24133 31201
profitloss before taxation  54338 901324 385870 1127732 105124
adjusted profit before taxation
profitloss before taxation  54338 901324 385870 1127732 105124
ifrsrelated discount charges  – – – 21968 21968
fair value adjustments to financial derivatives – – – 4086 4086
amortisation of intangible assets  90942 81961 20004 – 192907
acquisition costs  – – – 412045 412045
sharebased payment charges  – – – 7873 7873
adjusted profitloss before taxation  36604 983285 405874 689932 735831
       
  allergy and food infectious 
  autoimmune intolerance other corporate group 
2010  £ £ £ £ £
statutory presentation  
revenue  657884 3368599 2625115 – 6651598
intersegment revenue  – 415559 37297 – 452856
total revenue  657884 2953040 2587818 – 6198742
operating costs  521563 2469454 2212218 688526 5891761
operating profitloss  136321 483586 375600 688526 306981
other operating income  – – 500 – 500
net finance costs  – 11544 – 85929 97473
profitloss before taxation  136321 472042 376100 774455 210008
adjusted profit before taxation
profitloss before taxation  136321 472042 376100 774455 210008
ifrsrelated discount charges  – – – 94958 94958
fair value adjustments to financial derivatives – – – 2580 2580
amortisation of intangible assets  20737 78011 10002 – 108750
sharebased payment charges  – – – 178375 178375
adjusted profitloss before taxation  157058 550053 386102 503702 589511
notes to the financial statements
continued annual report and accounts 201 1 
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the segment assets and liabilities are as follows
             
  allergy and food infectious   
  autoimmune intolerance other corporate group 
2011  £ £ £ £ £
segment assets  7995211 5641980 1572562 35647 15245400
unallocated assets  – – – – 2156473
total assets  7995211 5641980 1572562 35647 17401873
segment liabilities  693826 299347 395273 227259 1615705
unallocated liabilities  – – – – 2819812
total liabilities  693826 299347 395273 227259 4435517
  allergy and food infectious 
  autoimmune intolerance other corporate group 
2010  £ £ £ £ £
segment assets  1351339 5326634 1611862 39449 8329284
unallocated assets  – – – – 820597
total assets  1351339 5326634 1611862 39449 9149881
segment liabilities  75885 316453 368462 102079 862879
unallocated liabilities  – – – – 2637114
total liabilities  75885 316453 368462 102079 3499993
unallocated assets comprise cash income tax receivable deferred taxation and derivative financial instruments unallocated liabilities comprise 
interestbearing loans borrowings other financial liabilities derivative financial instruments deferred taxation and income tax payable
information about major customers
no single customer accounts for 10 or more of group revenues
     
geographical information
the group’s geographical information is based on the location of its markets and customers sales to external customers disclosed in the 
geographical information are based on the geographical location of its customers the analysis of segment assets and capital expenditure  
is based on the geographical location of the assets 
     2011 2010 
     £ £
revenues
uk     957788 861249
germany     1092943 134989
rest of europe     2399994 2014148
north america     266938 307007
southcentral america     361164 327577
asia and far east     1352732 1365977
africa and middle east     1470477 1187795
      7902036 6198742 annual report and accounts 201 1 
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4 segment information continued
  property plant  retirement  trade and other  
 intangibles and equipment benefit surplus inventories receivables total 
2011 £ £ £ £ £ £
assets
uk 6025685 679455 – 705653 1917905 9328698
germany 3579575 1275030 41984 568318 451795 5916702
unallocated assets – – – – – 2156473
total assets 9605260 1954485 41984 1273971 2369700 17401873
           
  property plant  retirement  trade and other  
 intangibles and equipment benefit surplus inventories receivables total 
2010 £ £ £ £ £ £
assets
uk 5159774 672904 – 814344 1682262 8329284
germany – – – – – –
unallocated assets – – – – – 820597
total assets 5159774 672904 – 814344 1682262 9149881
     2011 2010
liabilities
uk     975162 862878
germany     640543 –
unallocated liabilities     2819812 2637115
total liabilities     4435517 3499993
capital expenditure
uk     120281 90485
germany     80696 –
total capital expenditure     200977 90485
5 finance costs
     2011 2010 
consolidated     £ £
interest payable on loans and bank overdrafts    24624 35396
exchange difference on loans     16776 41978
unwinding of discounts     21968 31131
fair value adjustment to acquisition     – 63826
fair value adjustment to financial derivatives     4086 2580
finance leases     7322 12114
      33052 97909
6 taxation
     2011 2010 
consolidated     £ £
a income tax expense
current tax – current year     125148 81193
current tax – prior year adjustment     – 48016
deferred tax – current year     51121 9899
deferred tax – prior year adjustment     360 20167
tax charge for the year     73667 22909
notes to the financial statements
continued annual report and accounts 201 1 
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business  
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financial  
statements
     2011 2010 
consolidated     £ £
b reconciliation of total tax charge
factors affecting the tax charge for the year
profit before tax     105124 210008
effective rate of taxation     28 28
profit before tax multiplied by the effective rate of tax    29435 58802
effects of
expenses not deductible for tax purposes and permanent differences   123842 50570
transfers from previously unrecognised deferred tax asset    – 25767
research and development tax credits     43197 44047
tax overprovided in prior years     360 68183
adjustment due to different overseas tax rate    5965 –
impact of uk rate change on deferred tax     30088 –
tax charge for the year     73667 22909
 
in march 2011 the uk government announced its intention to accelerate the planned phased decrease in the rate of corporation tax with  
a reduction to 26 on 1 april 2011 and further reducing by 1 per annum until it reaches 23 on 1 april 2014 at 31 march 2011 the change  
in corporation tax rate from the planned 27 to 26 on 1 april 2011 had been substantively enacted and therefore the deferred tax assets  
and liabilities included within these results have been calculated based on the reduced current uk corporation tax rate of 26 the forecast 
effect of the proposed reductions in the corporation tax rate by 2014 would be to reduce the net deferred tax liability by £50272
7 revenue and expenses
     2011 2010 
consolidated     £ £
revenues
revenue – sales of goods     7902036 6198742
finance income     1950 437
total revenue     7903986 6199179
     2011 2010 
consolidated     £ £
operating profit is stated after charging
material costs     2361191 2031279
depreciation     144294 102925
amortisation of intangibles     192907 108750
net foreign exchange losses     22108 28146
research and development costs     250055 209747
impairment of trade receivables     22676 525
operating lease rentals     131109 175242
sharebased payments     7873 178375
auditor’s remuneration
– fees payable to the company’s auditors for the audit of the annual accounts   26000 16000
– fees payable to the company’s auditors for other services 
 – taxation     10500 17050
 – local statutory audit of subsidiaries     42000 20000
 – local statutory audit of the parent company    5000 3000
 – all other services     8000 11500
all research and development costs were charged directly to administration costs in the income statement annual report and accounts 201 1 
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7 revenue and expenses continued
staff costs
the average monthly number of employees including directors was
     2011 2010 
consolidated     number number
operations     65 43
management and administration     28 21
employee numbers     93 64
their aggregate remuneration comprised
     2011 2010 
     £ £
wages and salaries     2276187 1751650
social security costs     252774 168722
pension costs     86082 40962
sharebased payments     7873 178375
      2622916 2139709
equitysettled sharebased payments
consolidated and company
the sharebased payment plans are described below 
emi option scheme and unapproved option scheme
the plans are equitysettled plans and the fair value is measured at the grant date under the above plans share options are granted to
directors and employees of the company the exercise price of the option is equal to the market price of the shares on the date of grant
the options vest one year after the date of grant and are not subject to any performance criteria
the fair value of the options is estimated at the grant date using the blackscholes pricing model taking into account the terms and
conditions upon which the instruments were granted
the contractual life of each option granted is ten years and there is no cash settlement alternative
second unapproved option scheme suos
the plan is an equitysettled plan and the fair value is measured at the grant date under the above plan share options may be granted to third 
parties for provision of services to the company the exercise price of the option is equal to the market price of the shares on the date of grant 
the options vest three years after the date of grant and are not subject to any performance criteria
the fair value of the options is estimated at the grant date using the blackscholes pricing model taking into account the terms and conditions 
upon which the instruments were granted
the contractual life of each option granted is ten years and there is no cash settlement alternative
under the emi option scheme 20000 options lapsed during the year and a further 40000 were granted 
the following table illustrates the number and weighted average exercise prices waep of and movements in share options during the year
   2011 2011 2010 2010 
   number waep number waep
outstanding 1 april   1903289 1900p 1833289 1900p
granted during the year under the emi option scheme  40000 1675p 35000 2029p
granted during the year under the suos   – – 70000 2800p
exercised during the year   – – – –
lapsed during the year under the emi option scheme  20000 – 35000 1900p
outstanding at 31 march   1923289 – 1903289 –
exercisable at 31 march   1813289 – 1798289 1900p
notes to the financial statements
continued annual report and accounts 201 1 
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overview
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financial  
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the following table lists the inputs to the model used for the year ended 31 march 2011 and 31 march 2010
   emi option scheme and  
   unapproved option scheme suos
   2011 2010 2011 2010
dividend yield   0 0 – 0
expected volatility   107 115 – 115
riskfree interest rate   348 2 – 2
weighted average remaining contractual life   77 87 – 97
weighted average share price   1675p 2029p – 28p
exercise price   1675p 19p – 28p
model used   blackscholes blackscholes – blackscholes
the expected life of the options is based on management’s assumption of the options’ life due to the lack of any historical data on the exercise 
period of these options the assumption takes into account the experience of employees and directors and is not necessarily indicative of 
exercise patterns that may occur
the expected volatility reflects the assumption that historical volatility over a period similar to the life of the option is indicative of future trends 
which may not necessarily be the actual outcome 
directors’ remuneration
     2011 2010 
consolidated     £ £
fees     45000 45000
emoluments     350484 281898
      395484 326898
contributions to personal pension     18508 12845
      413992 339743
members of a defined contribution pension scheme at the year end   3 3
     2011 2010 
company     £ £
fees     45000 45000
emoluments     350484 281898
      395484 326898
information in respect of individual director’s emoluments is provided in the directors’ remuneration report on pages 22 and 23 
8 acquisition of subsidiaries
on 21 december 2010 the group acquired the business and certain assets of the invitro allergy diagnostics business of allergopharma 
joachim ganzer kg
the group incorporated a 100 owned subsidiary omega gmbh which was used to purchase the business and assets the business 
specialises in the research development production and marketing of invitro allergy tests used by doctors to diagnose patients with allergies annual report and accounts 201 1 
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8 acquisition of subsidiaries continued
the consolidated financial statements include the results for the period from 21 december 2010 to 31 march 2011 the fair values of the 
identifiable assets and liabilities at the date of acquisition were
   omega gmbh fair value 2011 2010 
   book value adjustments total total 
   £ £ £ £
     
intangible assets   
 – supply arrangements   – 529000 529000 –
 – technology assets   – 166000 166000 –
 – customer relationships   – 1135000 1135000 100000
property plant and equipment   1332491 151107 1181384 50310
inventories   677059 121725 555334 3000
trade and other receivables   63520 – 63520 66895
cash and cash equivalents   – – – 1554
trade and other payables   182156 104130 286286 16079
income tax payable   – – – 27780
deferred tax liability   – – – 29908
net assets   1890914 1453038 3343952 147992
goodwill on acquisition     1572097 332986
      4916049 480978
fair value of consideration     4916049 400000
acquisition costs     1115902 80978
      6031951 480978
cost of the acquisition
the total acquisition cost of £4916049 was settled in one cash payment acquisition costs amounted to £1115902 £412045 is included within 
administration costs in the statement of comprehensive income
funding
to fund the cost of the acquisition the group raised £7750002 before expenses of £703857 via the placing of 64583350 new ordinary 
shares at a price of 12p per share
from the date of incorporation omega gmbh has contributed revenue of £955153 and a pretax loss of £210718 to the group result for the 
year this is split between a loss of £90420 in the period from 30 june 2010 date of incorporation to 21 december 2010 and a loss of £120298 
between 21 december 2010 date of acquisition and 31 march 2011 being the trading period post acquisition of the business and assets
the result for the trading period post acquisition would have been an operating profit of approximately £100000 however the actual result was impacted by 
one off agency costs one off it training costs as well as intangible asset amortisation and intergroup interest charged based on funding levels provided
the combined revenue and profit before tax for the group assuming the business and assets had been acquired at the start of the period 
would have been £10767495 and £405124 respectively
goodwill
the acquisition of the business and certain assets of the invitro allergy business has resulted in goodwill of £1572097 this amount of goodwill 
is the total amount deductible for tax purposes in line with current german tax law
this goodwill represents the advantages synergies and strategic value to be derived from adding the business to the group as follows
driving export sales of current ivd business allergy products through the existing omega international distribution network •	
apply existing genarrayt •	
®
 microarray test platform to ige allergy screening automation of the test procedure will allow more rapid processing  
of higher test volumes
developing an instrumentation strategy for performing allergy diagnostics through an automated ‘closed system’ instrument through  •	
an agreement with immunodiagnostic systems holdings plc
in the prior year on 28 september 2009 the group acquired 100 of the voting shares of cotek south west ltd an unlisted company in devon 
uk cotek is a manufacturer of stained bacterial suspensions for the diagnosis of bacterial diseases including typhoid brucellosis and rickettsia 
     
the total acquisition cost of £480978 for cotek comprised a cash payment of £400000 and acquisition costs amounting to £80978
to fund the cost of the cotek acquisition the group raised £1000000 before expenses of £80807 via the placing of 5000000 new ordinary 
shares at a price of 20p per share 
notes to the financial statements
continued annual report and accounts 201 1 
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47
overview
business  
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financial  
statements
9 intangibles
  licences supply technology customer 
 goodwill software arrangements assets relationships total 
 £ £ £ £ £ £
cost  
at 31 march 2009 3061054 – – 1975000 – 5036054
on acquisition 332986 – – – 100000 432986
adjustment related to  
contingent consideration 44162 – – – – 44162
at 31 march 2010 3349878 – – 1975000 100000 5424878
on acquisition 1572097 – 529000 166000 1135000 3402097
additions – 1113316 – – – 1113316
currency translation 52015 176 20248 6521 45349 124309
at 31 march 2011 4973990 1113492 549248 2147521 1280349 10064600
accumulated amortisation and impairment
at 31 march 2009 – – – 156354 – 156354
amortisation charge in the year – – – 98750 10000 108750
at 31 march 2010 – – – 255104 10000 265104
amortisation charge in the year – 9813 26955 107217 48922 192907
currency translation – 176 483 152 519 1330
at 31 march 2011 – 9989 27438 362473 59441 459341
net book value   
31 march 2011 4973990 1103503 521810 1785048 1220908 9605259
31 march 2010 3349878 – – 1719896 90000 5159774
31 march 2009 3061054 – – 1818646 – 4879700
of the licencessoftware balance above £984663 is held on the balance sheet of the company and relates to the ids licences 
impairment testing of goodwill     
the group tests goodwill annually for impairment or more frequently if there are indicators of impairment the carrying amount of goodwill  
is indicated in the table above the net book value of goodwill above for genesiscns amounts to £3016892 2010 £3016892 cotek 
£332986 2010 £332986 and omega gmbh £1624112 2010 £nil
the recoverable amount of genesiscns cotek and omega gmbh has been determined based on a value in use calculation using cash flow 
projections based on the financial budget approved by the board covering the period to 31 march 2012 with projected cash flows thereafter 
through to march 2016 based on a growth rate of 48 per annum the key assumptions used in the budget for genesiscns are the sales 
projections which are predicated on the continued success of the genarrayt
®
 and food detective
®
 assays being commercialised on an 
international basis and the gross margins which can be achieved from the sales of these products the key assumption used in the budget for 
cotek is the growth in sales of the company’s micropath™ range of products where increased volumes are dependent upon having accessed a 
lower manufacturing cost through the acquisition of cotek itself the budget for omega gmbh assumes continued organic growth in sales in the 
german market as well as achieving an increase in export sales through the existing omega international distribution network the omega gmbh 
forecast also includes revenues in years two to five from the microarray and idsisys platforms which will allow more rapid processing of higher volume tests
in all three cases the company also makes assumptions in regard to having sufficient production personnel to cope with increased volumes 
the discount rate applied to cash flows is 125 for the group which takes account of other risks specific to each segment such as currency  
risk geography and price risk the discount rate is the weighted average cost of pretax cost of debt financing and the pretax cost of equity 
financing cash flows beyond the budget period are extrapolated for genesiscns cotek and omega gmbh over the next four years using  
a growth rate of 48 that equates to the current growth rate in the ivd industry thereafter a nil growth rate has been assumed for prudence  
as a result there has been no impairment to the carrying value of goodwill
sensitivity analysis
base forecasts show headroom of £3m above carrying value for genesiscns headroom of £266k above carrying value for cotek and 
headroom of £54m for omega gmbh sensitivity analysis has been undertaken to assess the impact of any reasonably possible change  
in key assumptions if the growth rate were to drop from 48 to 38 this would have the effect of reducing the headroom in genesiscns  
by £134k over five years in cotek by £12k over five years and in omega gmbh by £135k over five years
for genesiscns the discount rate would have to increase to 355 or the growth rate would have to be a decline of 24 for the headroom to reduce to nil
for cotek the discount rate would have to increase to 404 or the growth rate would have to be a decline of 225 for the headroom to reduce to nil
for omega gmbh the discount rate would have to increase to 535 or the growth rate would have to be a decline of 60 for the headroom to reduce to nil annual report and accounts 201 1 
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48
9 intangibles continued
the adjustment relating to the contingent consideration amounting to £44162 results from a reassessment of the genesiscns earnout this is 
further analysed in note 20 other than the adjustment above there has been no impairment to the carrying value of goodwill
10 property plant and equipment
  land and leasehold plant and motor 
  property improvements machinery vehicles total 
consolidated  £ £ £ £ £
cost
at 31 march 2009  – 130200 1463354 18168 1611722
additions  – 20244 70241 – 90485
acquisitions  – – 50310 – 50310
disposals  – – 16292 18168 34460
at 31 march 2010  – 150444 1567613 – 1718057
additions  24758 31179 145040 – 200977
acquisitions  662937 – 445893 72554 1181384
disposals  – – 7489 – 7489
currency translation  25637 2 17265 2869 45773
at 31 march 2011  713332 181625 2168322 75423 3138702
 
accumulated amortisation and impairment     
at 31 march 2009  – 65630 893821 12825 972276
charge in the year  – 14295 86563 2067 102925
disposals  – – 15155 14892 30047
at 31 march 2010  – 79925 965229 – 1045154
charge in the year  4772 15856 117500 6166 144294
disposals  – – 5938 – 5938
currency translation  105 2 465 135 707
at 31 march 2011  4877 95783 1077256 6301 1184217
net book value
31 march 2011  708455 85842 1091066 69122 1954485
31 march 2010  – 70519 602384 – 672903
31 march 2009  – 64570 569533 5343 639446
the net book value of plant and machinery held under finance leases at 31 march 2011 is £64513 2010 £225565
11 inventories
     2011 2010 
     £ £
raw materials     518026 539685
work in progress     138105 151810
finished goods and goods for resale     617840 122849
      1273971 814344
12 trade and other receivables
     2011 2010 
consolidated     £ £
trade receivables     2008644 1527928
prepayments and other receivables     361057 154335
      2369701 1682263
the directors consider that the carrying amount of trade receivables and other receivables approximates their fair value
notes to the financial statements
continued annual report and accounts 201 1 
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overview
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     2011 2010 
company     £ £
prepayments and other receivables     35633 39449
due from subsidiary companies     4914353 1338548
      4949986 1377997
analysis of trade receivables
     2011 2010 
consolidated     £ £
neither impaired nor past due     1344201 1076588
past due but not impaired     687119 451340
impaired     22676 –
     2011 2010 
company     £ £
neither impaired nor past due     4914353 1338548
ageing of past due but not impaired trade receivables
     2011 2010 
consolidated     £ £
up to three months     511680 377461
between three and six months     145240 51808
more than six months     30199 22071
the directors consider that the carrying amount of trade receivables and other receivables approximates their fair value
the credit quality of trade receivables that are neither past due nor impaired is assessed internally with reference to historical information 
relating to counterparty default rates the maximum exposure to credit risk at the reporting date is the fair value of each class of receivable  
and no collateral is held as security
13 interestbearing loans and borrowings and financial instruments
     2011 2010 
consolidated     £ £
current
bank loans     272470 280890
obligations under finance leases     60029 62795
      332499 343685
noncurrent
bank loans     136235 421335
obligations under finance leases     13362 73391
other loans     1126235 1098765
      1275832 1593491
bank loans comprise the following
£408705 variable rate loans 2012 base rate  20 2010 base rate 20   408705 702225
      408705 702225
less current instalments     272470 280890
      136235 421335 annual report and accounts 201 1 
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13 interestbearing loans and borrowings and financial instruments continued
the group uses finance leases and hire purchase contracts to acquire plant and machinery these leases have terms of renewal but no 
purchase options and escalation clauses renewals are at the option of the lessee future minimum payments under finance leases and  
hire purchase contracts are as follows
     2011 2010 
     £ £
future minimum payments due
not later than one year     63233 70113
after one year but not more than five years     13676 76909
      76909 147022
less finance charges allocated to future periods    3518 10836
present value of minimum lease payments    73391 136186
the present value of minimum lease payments is analysed as follows
not later than one year     60029 62795
after one year but not more than five years     13362 73391
      73391 136186
     2011 2010 
consolidated     £ £
other loans comprise the following
vendor loan – 2014 base rate     1126235 1098765
      1126235 1098765
the term loans are secured by a floating charge over the assets of the group cross guarantees between omega diagnostics group plc 
omega diagnostics limited genesis diagnostics limited and cambridge nutritional sciences limited are in place and omega diagnostics 
group plc has given the bank of scotland a debenture secured over the assets of the company two directors have also provided personal 
guarantees of £100000 in support of the term loan
there are two bank of scotland term loans of £180000 2010 £300000 and us366660 2010 us611100 repayable in equal monthly 
instalments of £10000 and us20370 both with a maturity date of 4 september 2012 
     2011 2010 
company     £ £
current
bank loans     272470 280890
      272470 280890
noncurrent
bank loans     136235 421335
other loans     1126235 1098765
      1262470 1520100
bank loans comprise the following
£408705 variable rate loan 2012 base rate  20 2010 base rate 20   408705 702225
      408705 702225
less current instalments     272470 280890
      136235 421335
notes to the financial statements
continued annual report and accounts 201 1 
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overview
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review governance
financial  
statements
     2011 2010 
company     £ £
other loans comprise the following
vendor loan – 2014 base rate     1126235 1098765
      1126235 1098765
14 trade and other payables
     2011 2010 
consolidated     £ £
trade payables     916401 608136
social security costs     85136 52737
accruals and other payables     614168 202005
      1615705 862878
trade payables and other payables comprise amounts outstanding for trade purchases and ongoing costs the directors consider that the 
carrying amount of trade payables approximates their fair value
     2011 2010 
company     £ £
trade payables     34297 38748
accruals and other payables     192962 63331
due to subsidiary companies     462753 337086
      690012 439165
trade payables and other payables comprise amounts outstanding for trade purchases and ongoing costs the directors consider that the 
carrying amount of trade payables approximates their fair value
15 deferred taxation
the deferred tax asset is made up as follows
     2011 2010 
consolidated     £ £
decelerated capital allowances     6765 14009
temporary differences     8192 7483
tax losses carried forward     69956 74582
      84913 96074
a deferred tax asset has been recognised for the carry forward of unused tax losses to the extent that it is probable that future taxable profits 
will be available against which the unused tax losses can be utilised
the deferred tax liability is made up as follows
     2011 2010 
consolidated     £ £
fair value adjustments on acquisition     514109 571332
accelerated capital allowances     6498 11917
      520607 583249 annual report and accounts 201 1 
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16 share capital
     2011 2010 
company     number number
authorised share capital     
ordinary shares of 4 pence each     184769736 184769736
deferred shares of 09 pence each     123245615 123245615
issued and fully paid share capital     
at the beginning of the year     20632907 15632907
issued during the year     64583350 5000000
at the end of the year     85216257 20632907
     2011 2010 
     £ £
shares allotted for cash     
aggregate nominal value     2583334 200000
share premium     5166668 800000
expense of issue     703857 80807
consideration received     7046145 919193
on 21 december 2010 the company issued 64583350 ordinary shares of 4p each at a price of 12p per share the costs involved in the share 
issue were £703857
during the year to 31 march 2011 the company granted options over 40000 ordinary shares at an exercise price of 1675p per share 
the options will expire if not exercised within ten years of the date of grant
on 28 september 2009 the company issued 5000000 ordinary shares of 4p each at a price of 20p per share the costs involved in the share 
issue were £80807
the company granted warrants to those shareholders in quintessentially english plc on the register just prior to the reverse transaction 
in 2006 these warrants entitled those shareholders to subscribe for a total of 139710 new ordinary shares the warrants had an exercise  
price of 80p per share and an expiry date of 19 september 2009 none of the warrants were exercised
17 commitments and contingencies
operating lease commitments
future minimum rentals payable under noncancellable operating leases are as follows
     2011 2010 
consolidated     £ £
land and buildings
within one year     110846 163374
within two to five years     100340 211186
other
within one year     20264 11869
within two to five years     40187 26265
land and buildings leases in force for omega diagnostics ltd premises extend to june 2011 and have been recently renegotiated and now 
extend to 30 june 2021 the land and buildings leases in force for the premises of genesis diagnostics ltd and cambridge nutritional sciences 
extend to march 2013 at which point they may be renegotiated
other leases are in force for office equipment items and extend to time periods ranging from june 2011 to may 2014 the leases may be 
extended at the expiry of their term
performance bonds
the group has performance bonds and guarantees in place amounting to £30000 at 31 march 2011 2010 £30000 
notes to the financial statements
continued annual report and accounts 201 1 
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overview
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financial  
statements
18 related party transactions
remuneration of key personnel
the remuneration of the key management personnel of omega diagnostics group plc is set out below in aggregate for each of the categories 
specified in ias 24 related party disclosures
     2011 2010 
     £ £
shortterm employee benefits     395484 326898
sharebased payments     – 153002
postemployment benefits     18508 12845
      413992 492745
included within shortterm employee benefits are amounts paid to mba consultancy of £25000 2010 £25000 a company controlled by  
david evans and £nil 2010 £15000 to alberdale catalyst ltd and £20000 2010 £5000 to holdmer associates ltd two companies 
controlled by michael gurner
other related party transactions
during the year there have been transactions between the parent company omega diagnostics limited genesis diagnostics limited 
cambridge nutritional sciences cotek south west limited and omega gmbh largely relating to payment of fees the amounts outstanding 
at the year end are as follows
 odg odl genesis cns cotek gmbh 
at 31 march 2011 £ £ £ £ £ £
omega diagnostics group plc – 1404637 633167 462753 12219 2864330
omega diagnostics ltd 1404637 – 209081 156812 5138 130508
genesis diagnostics ltd 633167 209081 – 559409 – –
cambridge nutritional sc ltd 462753 156812 559409 – – –
cotek south west ltd 12219 5138 – – – –
omega gmbh 2864330 130508 – – – –
  odg odl genesis cns cotek 
at 31 march 2010  £ £ £ £ £
omega diagnostics group plc  – 1016639 309690 337086 12219
omega diagnostics limited  1016639 – 77639 889 9458
genesis diagnostics limited  309690 77639 – 462581 –
cambridge nutritional sciences limited  337086 889 462581 – –
cotek south west limited  12219 9458 – – –
during the year there were transactions between the company and its subsidiaries as follows 
   
     2011 2010 
     £ £
    
balance at 1 april     1001461 346544 
charges to subsidiary companies     1106669 1190833 
charges from subsidiary companies     – 511886
transfers of cash to subsidiary companies     3086328 821000 
transfers of cash from subsidiary companies    742858 845030
balance at 31 march 2011     4451600 1001461
note 13 discloses personal guarantees made by two of the directors in support of the bank term loan  annual report and accounts 201 1 
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54
19 retirement benefit obligations
the group operates pension schemes for the benefit of its uk and overseas employees
details of the defined contributions scheme for the group’s uk employees are given below in note a details of the defined benefits schemes 
for the group’s german employees and details relating to these schemes are given below in note b during the year group accounted for these 
pension schemes under ias19 “employee benefits”
a defined contribution schemes
the group makes contributions to personal plans of employees on a defined contribution basis the group does not have ownership of the 
schemes with individual plans being arrangements between the employee and pension provider the contributions for the year amounted to 
£46518 2010 £40962 
b defined benefit schemes
the deutscher pensionsfonds ag and the lv 1871 unterstutzungskasse ev schemes give the rights to defined future benefits these are mainly 
dependent on the number of earning years and salary level at pension age the commitments are covered through an insurance company and 
are compliant with the requirements of german insurance laws pension costs relating to each scheme operating in germany are charged in 
accordance with ias19 “employee benefits” formal valuations of each scheme have been carried out by towers watson pension service 
gmbh who are independent professionally qualified actuaries on 24 june 2011 using the following assumptions
     2011  2010
discount rate at 31 march     550  –
expected return on plan assets at 31 march     –  –
future salary increases      250  –
future pension increases      100  –
turnover rate     260 –
i the amounts recognised in the balance sheet are as follows
     2011 2010 
      £ £
present value of funded obligations      1174883  –
fair value of plan assets      1216867  –
      41984  –
present value of unfunded obligations      –  –
net asset      41984  –
net assets in the balance sheet
liabilities      1174883  –
assets      1216867  –
net asset      41984  –
ii the amounts recognised in the income statement are as follows
     2011 2010 
      £ £
current service costs      39564  –
interest on obligation      –  –
expected return on plan assets       – –
total included in employee benefits expense     39564  –
the current service costs for the year £39564 2010 £nil have been included in administration costs
notes to the financial statements
continued annual report and accounts 201 1 
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financial  
statements
iii the amounts recognised in the consolidated statement of comprehensive income are as follows
     2011 2010 
      £ £
actuarial gains on defined benefit obligation     1216867 –
actuarial losses on plan assets      1174883  –
total      41984  –
iv changes in the present value of the defined benefit obligation are as follows
     2011  2010 
     £  £
opening defined benefit obligation      –  –
service cost      39564  –
interest cost      –  –
acquisitionbusiness combination      1133517  –
experience adjustments on plan liabilities     1802  –
benefits paid      –  –
closing defined benefit obligation      1174883 –
 
acquisitionbusiness combination liability above includes an unrecognised gain of £54833
v changes in the fair value of plan assets are as follows
     2011 2010 
      £ £
opening fair value of plan assets      –  –
expected return      –  –
actuarial losses      11047  –
contributions by employer      39564  –
exchange differences on foreign plans      –  –
benefits paid      –  –
acquisitionbusiness combination     1188350 –
closing fair value of plan assets      1216867  –
vi the major categories of plan assets as a percentage of total plan assets are as follow
     2011  2010
equities      10  –
bondsdebt instruments     40  –
property      –  –
cashother      50  –
 
the group expects to contribute £158297 to its defined benefit pension plans in the year to 31 march 2012
vii mortality assumptions
assumptions regarding future mortality experience are set based on advice in accordance with published statistics and experience in germany 
in the calculations the mortality rate used is in accordance with heubeck richttafeln’s basis of calculation for group pension insurance 2005g 
other assumptions have been set in accordance with heubeck richttafeln’s basis of calculation for group pension insurance as set out in 
schedule 2005g annual report and accounts 201 1 
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56
notes to the financial statements
continued
19 retirement benefit obligations continued
viii history of experience adjustments
     2011 2010 
      £ £
defined benefit obligation     1174883  –
plan assets      1216867 –
surplus     41984 –
experience adjustments on plan liabilities      1802 –
experience adjustments on plan assets      11047 –
20 other financial liabilities
 
consolidated and company      £
as at 1 april 2009      131580
fair value adjustment to genesiscns earnout through finance costs    13857
fair value adjustment to genesiscns earnout through goodwill    44162
genesiscns earnout paid in year      101275
as at 31 march 2010      –
ids licence agreement      549663
as at 31 march 2011      549663
the earnout relating to genesiscns amounting to £131580 was fully extinguished by 31 march 2010 at 31 march 2011 other financial 
liabilities comprise unconditional future commitments under the licence agreement with ids 
21 investments
company
the company’s investments in subsidiaries which are all 100 owned are comprised of the following
    country of 2011 2010 
    incorporation £ £
investment in omega diagnostics limited    uk 1752884 1752884
investment in genesis diagnostics limited    uk 1815623 1815623
investment in cambridge nutritional sciences limited   uk 4063553 4063553
investment in cotek south west limited    uk 480978 480978
investment in bealaw 692 limited    uk 1 1
investment in bealaw 693 limited    uk 1 1
investment in omega gmbh    germany 2542321 –
      10655361 8113040
the new investment in the year relates to the 100 owned subsidiary omega gmbh which was used to purchase the business and certain 
assets of the invitro allergy diagnostics business of allergopharma joachim ganzer kg 
bealaw 692 limited and bealaw 693 limited are both dormant companies which have never traded annual report and accounts 201 1 
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22 earnings per share
basic earnings per share are calculated by dividing net profit for the year attributable to ordinary equity holders of the group by the weighted 
average number of ordinary shares outstanding during the year
diluted earnings per share are calculated by dividing the net profit attributable to ordinary equity holders of the group by the weighted average 
number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the 
conversion of all the dilutive potential ordinary shares into ordinary shares diluting events are excluded from the calculation when the average 
market price of ordinary shares is lower than the exercise price 
     2011 2010 
     £ £
profit attributable to equity holders of the group    31457 187099
     2011 2010 
     number number
basic average number of shares     38278631 18153455
share options     – 471581
diluted weighted average number of shares    38278631 18625036
adjusted earnings per share on profit for the year
the group presents adjusted earnings per share which is calculated by taking adjusted profit before taxation and deducting the tax charge  
in order to allow shareholders to understand better the elements of financial performance in the year so as to facilitate comparison with prior 
periods and to assess better trends in financial performance
     2011 2010 
     £ £
adjusted profit attributable to equity holders of the group   662164 566602
23 financial instruments
the group’s principal financial instruments comprise loans finance leases financial derivatives and cash the main purpose of these financial 
instruments is to manage the group’s funding and liquidity requirements the group has other financial instruments such as trade receivables 
and trade payables which arise directly from its operations the categories of financial instruments are summarised in the following tables
    assets at fair  
    value through loans and  
    profit and loss receivables total 
assets as per the consolidated balance sheet    £ £ £
2011 
trade receivables    – 2008644 2008644
cash and cash equivalents    – 2054877 2054877
     – 4063521 4063521
    assets at fair  
    value through loans and  
    profit and loss receivables total 
assets as per the consolidated balance sheet    £ £ £
2010     
derivative financial instruments held for trading   196 – 196
trade receivables    – 1527928 1527928
cash and cash equivalents    – 678800 678800
     196 2206728 2206924 annual report and accounts 201 1 
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23 financial instruments continued
    assets at fair  
    value through loans and  
    profit and loss receivables total 
assets as per the company balance sheet    £ £ £
2011 
due from subsidiary companies    – 4914352 4914352
cash and cash equivalents    – 552702 552702
     – 5467054 5467054
    assets at fair  
    value through loans and  
    profit and loss receivables total 
assets as per the company balance sheet    £ £ £
2010     
derivative financial instruments held for trading   196 – 196
due from subsidiary companies    – 1338548 1338548
cash and cash equivalents    – 12214 12214
     196 1350762 1350958
 
    liabilities at fair  
    value through amortised  
    profit and loss cost total 
liabilities as per the consolidated balance sheet   £ £ £
2011 
derivative financial instruments held for trading   3435 – 3435
trade payables    – 916401 916401
obligations under finance leases    – 73391 73391
bank loans    – 408705 408705
other loans designated on initial recognition   1126235 – 1126235
other financial liabilities    – 549663 549663
     1129670 1948160 3077830
    liabilities at fair  
    value through amortised  
    profit and loss cost total 
liabilities as per the consolidated balance sheet   £ £ £
2010 
derivative financial instruments held for trading   7717 – 7717
trade payables    – 608136 608136
obligations under finance leases    – 136186 136186
bank loans    – 702225 702225
other loans designated on initial recognition   1098765 – 1098765
     1106482 1446547 2553029
notes to the financial statements
continued annual report and accounts 201 1 
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financial  
statements
    liabilities at fair  
    value through amortised  
    profit and loss cost total 
liabilities as per the company balance sheet    £ £ £
2011 
derivative financial instruments held for trading   3435 – 3435
trade payables and amounts due to subsidiary companies   – 497050 497050
bank loans    – 408705 408705
other loans designated upon initial recognition   1126235 – 1126235
other financial liabilities    – 549663 549663
     1129670 1455418 2585088
    liabilities at fair  
    value through amortised  
    profit and loss cost total 
liabilities as per the company balance sheet    £ £ £
2010 
derivative financial instruments held for trading   7717 – 7717
trade payables and amounts due to subsidiary companies   – 375834 375834
bank loans    – 702225 702225
other loans designated upon initial recognition   1098765 – 1098765
     1106482 1078059 2184541
within other loans designated at fair value through profit and loss is the vendor loan note of £11 million which was issued in september 2007  
it carries a coupon of base rate only and is repayable in three equal instalments in september 2012 2013 and 2014 the interest is rolled up  
and repayable with the final capital payment the fair value is calculated as the future cash flows expected to result based on current estimates 
of interest rates there has been no change in the year to the fair value of the loan due to changes in credit risk the movement in the year  
of £27468 2010 £86600 is due to the effect of unwinding discount factors and is included within finance charges in the income statement
financial risk management
the principal financial risks to which the group is exposed are those relating to foreign currency credit liquidity and interest rate these risks 
are managed in accordance with boardapproved policies
foreign currency risk
the group operates in more than one currency jurisdiction and is therefore exposed to currency risk on the retranslation of the income 
statement and the balance sheet of its overseas subsidiary from euros into its functional currency of pounds sterling the company funds 
its subsidiary by a mixture of equity and intercompany loan financing in euros and these balances are subject to exchange rate movements  
that can give rise to movements in equity the group also buys and sells goods and services in currencies other than the functional currency 
principally in euros and us dollars the group has us dollar and euro denominated bank accounts and where possible the group will offset 
currency exposure where purchases and sales of goods and services can be made in these currencies the group’s nonsterling revenues 
profits assets liabilities and cash flows can be affected by movements in exchange rates it is currently group policy not to engage in any 
speculative transaction of any kind but this will be monitored by the board to determine whether it is appropriate to use additional currency 
management procedures to manage risk at 31 march 2011 and 31 march 2010 the group has not entered into any hedge transactions annual report and accounts 201 1 
wwwomegadiagnosticscom
60
23 financial instruments continued
the following table demonstrates the sensitivity to a possible change in currency rates on the group’s profit before tax and equity through  
the impact of sterling weakening against the us dollar the euro and the canadian dollar
     effect on effect on 
    decrease in profit before tax equity 
    currency rate £ £
2011     
trade and other receivables    5 51965 –
trade and other payables    5 43720 –
cash and cash equivalents    5 47301 –
bank loans    5 12037 –
net investment in overseas subsidiary    5 – 234827
2010
trade and other receivables    5 33635 –
trade and other payables    5 8593 –
cash and cash equivalents    5 10519 –
bank loans    5 21170 –
net investment in overseas subsidiary    5 – –
an increase in currency rate of 5 would have a similar opposite effect the sensitivity around bank loans above represents the entire impact 
on the company’s profit before tax and equity
credit risk
the group’s credit risk is primarily attributable to its trade receivables the group conducts its operations in many countries so there is  
no concentration of risk in any one area in most cases the group grants credit without security to its customers credit worthiness checks 
are undertaken before entering into contracts with new customers and credit limits are set as appropriate the group conducts most of its 
operations through distributors and is therefore able to maintain a fairly close relationship with its immediate customers as such the group 
monitors payment profiles of customers on a regular basis and is able to spot deteriorations in payment times an allowance for impairment  
is made that represents the potential loss in respect of individual receivables where there is an identifiable loss event which based on previous 
experience is evidence of a reduction in the recoverability of cash flows the amounts presented in the balance sheet are net of allowance  
for doubtful receivables an analysis of trade receivables from various regions is analysed in the following table
     2011 2010 
     trade receivables trade receivables 
     £ £
ukeurope     1166709 657868
north america     88768 75598
southcentral america     95336 109753
asia and far east     346106 422941
africa and middle east     311725 261768
      2008644 1527928
capital management
an explanation of the group’s capital management process and objectives is set out in the capital management section on page 15 of the 
financial review
notes to the financial statements
continued annual report and accounts 201 1 
wwwomegadiagnosticscom
61
overview
business  
review governance
financial  
statements
liquidity risk
the group’s objective is to maintain sufficient headroom to meet its foreseeable financing and working capital requirements the group has  
in place drawn loan facilities and in the case of bank loans regularly monitors performance to ensure compliance with all covenants the group 
also maintains a surplus balance of cash and cash equivalents to ensure flexible liquidity to meet financial liabilities as they fall due
the table below summarises the maturity profile of the group’s financial liabilities at 31 march 2011 based on the undiscounted cash flows of 
liabilities which include both future interest and principal amounts outstanding based on the earliest date on which the group can be required  
to pay the amounts of future interest are not included in the carrying value of financial liabilities on the balance sheet
   less than 3 to 12 1 to 5 
   3 months months years total 
consolidated   £ £ £ £
2011 
trade and other payables   916401 – – 916401
obligations under finance leases   16624 46609 13677 76910
bank loans   70278 208458 136942 415678
vendor loan   – – 1205658 1205658
    1003303 255067 1356277 2614647
2010     
trade and other payables   608136 – – 608136
obligations under finance leases   20242 49871 76909 147022
bank loans   74101 219864 428514 722479
vendor loan   – – 1200168 1200168
    702479 269735 1705591 2677805
the table below summarises the maturity profile of the company’s financial liabilities at 31 march 2010 based on the undiscounted cash flows  
of liabilities based on the earliest date on which the company can be required to pay     
      
   less than 3 to 12 1 to 5 
   3 months months years total 
company   £ £ £ £
     
2011  
trade payables and amounts due to subsidiary companies  497050 – – 497050
bank loans   70278 208458 136942 415678
vendor loan   – – 1205658 1205658
    567328 208458 1342600 2118386
2010      
trade payables and amounts due to subsidiary companies  375835 – – 375835
bank loans   74101 219864 428514 722479
vendor loan   – – 1200168 1200168
    449936 219864 1628682 2298482
interest rate risk
all of the group’s borrowings are at variable rates of interest the group has an exposure to interest rate risk on changes in us dollar and 
sterling interest rates to manage the interest rate risk the group has taken out interest rate hedge instruments relative to the two bank loans 
which will be repaid by september 2012 the change in fair value of these interest rate hedge instruments has been taken to the income 
statement in full annual report and accounts 201 1 
wwwomegadiagnosticscom
62
23 financial instruments continued
the following table demonstrates the sensitivity to a possible change in interest rates on the group’s profit before tax through the impact on 
floating rate borrowings and cash balances
      effect on profit 
      before tax 
     increase in and equity 
consolidated     basis points £
2011     
cash and cash equivalents     25 2557
bank loans – gbp     25 612
  – usd     25 777
vendor loan     25 2750
2010     
cash and cash equivalents     25 1614
bank loans – gbp     25 918
  – usd     25 1231
vendor loan     25 2750
the following table demonstrates the sensitivity to a possible change in interest rates on the company’s profit before tax through the impact on 
floating rate borrowings and cash balances 
       
      effect on 
      profit before tax 
     increase in and equity 
company     basis points £
2011     
cash and cash equivalents     25 721
bank loans – gbp     25 612
  – usd     25 777
vendor loan     25 2750
2010     
cash and cash equivalents     25 159
bank loans – gbp     25 918
  – usd     25 1231
vendor loan     25 2750
      
fair values 
the carrying amount for all categories of financial assets and liabilities disclosed on the balance sheet and in the related notes to the accounts 
is equal to the fair value of such assets and liabilities as at both 31 march 2011 and 31 march 2010 the monetary value attributable to these 
financial assets and liabilities is the same value that has been disclosed in the related notes to the accounts
the valuation methods used to fair value the financial assets and liabilities have been disclosed in note 2 to the financial statements under the 
heading of financial instruments
the carrying amount recorded in the balance sheet of each financial asset as at 31 march 2011 and 31 march 2010 including derivative financial 
instruments represent the group’s maximum exposure to credit risk
notes to the financial statements
continued annual report and accounts 201 1 
wwwomegadiagnosticscom
63
overview
business  
review governance
financial  
statements
derivative financial instruments
the group uses the following hierarchy for determining and disclosing the fair value of instruments by valuation technique
level 1 quoted unadjusted prices in active markets for identical assets or liabilities
level 2  other techniques for which all inputs which have a significant effect on the recorded fair value are observable either directly  
or indirectly and
level 3 techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data
the fair value of the financial derivatives detailed below have been valued using the hierarchy above and have been categorised as level 2
     2011 2010 
consolidated and company     £ £
included in noncurrent assets
interest rate instruments     – 196
included in noncurrent liabilities
interest rate instruments     3435 7717
the derivative financial instruments comprise
a an interest rate cap of 55 the floating rate option being bank of england daily base rate
b an interest cap and floor of 50 and 225 respectively the floating option rate being usdlibor
the group does not hold or issue derivatives for speculative or trading purposes annual report and accounts 201 1 
wwwomegadiagnosticscom
64
notice is hereby given that the annual general meeting of the company will be held at the british in vitro diagnostics association  
1 queen anne’s gate london sw1h 9bt on 23 august 2011 at 11am for the following purposes
ordinary business
1 to receive the reports of the directors and the auditors and the audited accounts for the year ended 31 march 2011
2  to reappoint ernst  young llp as auditors of the company to hold office until the conclusion of the next general meeting at which 
accounts are laid before the company and that their remuneration be fixed by the directors
3 to reelect mr david evans as a director of the company
4 to elect mr jagdeep grewal as a director of the company
5  that in accordance with section 551 of the companies act 2006 the directors be generally and unconditionally authorised to allot shares  
in the company or grant rights to subscribe for or to convert any security into shares in the company ‘rights’ up to an aggregate nominal 
amount of £113610312 provided that this authority shall unless renewed varied or revoked by the company expire on the conclusion of 
the next annual general meeting of the company save that the company may before such expiry make an offer or agreement which would 
or might require shares to be allotted or rights to be granted and the directors may allot shares or grant rights in pursuance of such offer  
or agreement notwithstanding that the authority conferred by this resolution has expired this authority is in substitution for all previous 
authorities conferred on the directors in accordance with section 80 of the companies act 1985 or section 551 of the companies act 2006 
but without prejudice to any allotment already made or to be made pursuant to such authority
special business
resolution 6 is proposed as a special resolution
6  that conditional on the passing of resolution 5 above and in accordance with section 570 of the companies act 2006 the directors be 
generally empowered to allot equity securities as defined in section 560 of the companies act 2006 pursuant to the authority conferred by 
resolution 5 as if section 5611 of the companies act 2006 did not apply to any such allotment provided that this power shall be limited to
 61  the allotment of equity securities in connection with an issue in favour of the holders of ordinary shares where the equity securities 
respectively attributable to the interests of all holders of ordinary shares are proportionate as nearly as may be to the respective 
number of ordinary shares held by them but subject to such exclusions or arrangements as the directors may deem necessary  
or expedient to deal with fractional entitlements arising or any legal or practical problems under the laws of any overseas territory  
or the requirements of any regulatory body or stock exchange and
 62   the allotment of equity securities otherwise than pursuant to sub paragraph 61 above up to an aggregate nominal amount  
of £17043248
  and provided that this power shall expire on conclusion of the next annual general meeting of the company save that the company may 
before such expiry make an offer or agreement which would or might require equity securities to be allotted after such expiry and the 
directors may allot equity securities in pursuance of any such offer or agreement notwithstanding that the power conferred by this resolution 
has expired
by order of the board
k ieron harbinson
company secretary
1 july 2011
notice of annual general meeting annual report and accounts 201 1 
wwwomegadiagnosticscom
65
overview
business  
review governance
financial  
statements
notes
1  a member entitled to attend and vote at the meeting convened by the notice set out above is entitled to appoint a proxy to exercise all or any 
of your rights to attend speak and vote at the meeting you may appoint more than one proxy provided each proxy is appointed to exercise 
rights attached to different shares a proxy need not be a member of the company
2  a form of proxy is enclosed to be effective it must be deposited at the office of the company’s registrars share registrars limited suite 
e first floor 9 lion and lamb yard west street farnham surrey gu9 7ll so as to be received not later than 48 hours before the time 
appointed for holding the annual general meeting completion of the proxy does not preclude a member from subsequently attending and 
voting at the meeting in person if he or she so wishes
3  copies of contracts of service of directors with the company or with any of its subsidiary undertakings will be available for inspection at the 
registered office of the company during normal business hours saturdays and public holidays excepted from the date of this notice until 
the conclusion of the agm
4  in accordance with regulation 41 of the uncertificated securities regulations 2001 only those members entered on the company’s register 
of members not later than 21 august 2011 or if the meeting is adjourned shareholders entered on the company’s register of members not 
later than 48 hours before the time fixed for the adjourned meeting shall be entitled to attend and vote at the meeting
registered in england and wales number 5017761
wwwomegadiagnosticscom
omega diagnostics group plc
omega house
hillfoots business village
alva fk12 5dq
scotland
united kingdom
tel 44 01259 763030 
fax 44 01259 761853 annual report and accounts 201 1 
wwwomegadiagnosticscom
66
notes annual report and accounts 201 1 
wwwomegadiagnosticscom
67 annual report and accounts 201 1 
wwwomegadiagnosticscom
68
advisers
nominated adviser and broker
cenkos securities plc
678 tokenhouse yard
london ec2r 7as
auditors
ernst  young llp
ten george street
edinburgh eh2 2dz
solicitors
brodies llp
15 atholl crescent
edinburgh eh3 8ha
share registrar
share registrars limited
suite e
first floor 9 lion and lamb yard
farnham
surrey gu9 7ll
pr
walbrook pr ltd
4 lombard street
london ec3v 9hd
country of incorporation 
omega diagnostics group plc
england  wales
registered no 5017761 omega diagnostics group plc is a  
public company quoted on the alternative 
investment market aim of the london 
stock exchange omega sells a wide 
range of products primarily in the 
immunoassay invitro diagnostics ivd 
market through a strong distribution 
network in over 100 countries
our business
omega is one of the uk’s leading companies in the fast 
growing area of food intolerance testing and also specialises  
in tests for autoimmune diseases including anaemia 
connective tissue disease and renal disease and infectious 
diseases including syphilis tuberculosis dengue fever 
chagas disease and malaria the allergy business acquired 
in the year specialises in allergy tests used by doctors to 
diagnose patients with allergies
breadth
going for  
growth through…
the acquisition of the ivd business combined with  
the followon instrumentation strategy will significantly 
broaden the group’s range of products
the continued growth of food intolerance products  
along with the successful fundraising and completion of  
the acquisition of allergopharma’s ivd allergy business
food intolerance
the food intolerance division 
specialises in the research 
development and production 
of kits to aid the detection of 
immune reactions to food it also 
provides clinical analysis to the 
general public clinics and health 
professionals as well as supplying 
the consumer food detective
®
 test
read more  
on page 2
allergy and  
autoimmune testing
the allergy and autoimmune 
division specialises in the research 
development production and 
marketing of invitro allergy and 
autoimmune tests used by doctors 
to diagnose patients with allergies 
or autoimmune diseases
read more  
on page 2
infectious diseaseother
the infectious disease division 
specialises in the research 
development production and 
marketing of kits to aid the 
diagnosis of infectious diseases
read more  
on page 2
read more  
on page 4 going for growth
omega diagnostics group plc annual report and accounts 2011
wwwomegadiagnosticscom
gmbh 
formed in 2010 omega gmbh acquired the ivd 
allergy business of allergopharma and is located 
in reinbek germany
wwwomegadiagnosticsde
omega diagnostics group plc
omega house
hillfoots business village
alva fk12 5dq
scotland
united kingdom
tel 44 01259 763030 
fax 44 01259 761853
email odlomegadiagnosticscouk
genesis diagnostics ltd
formed in 1994 genesis is one of the  
uk’s leading manufacturers of high quality  
elisa based diagnostic kits the company 
specialises in the research development  
and production of kits to aid the diagnosis  
of autoimmune and infectious diseases and  
for the detection of immune reactions to food
wwwelisacouk 
omega diagnostics ltd
formed in 1987 odl specialises  
in infectious diseases particularly  
syphilis tb and dengue fever
wwwomegadiagnosticscom
cambridge nutritional sciences ltd 
formed in 2001 cns provides clinical  
analysis to the general public clinics and  
health professionals as well as supplying  
the consumer food detective
®
 test
wwwcambridgenutritionalcom
omega diagnostics group plc annual report and accounts 2011


Summary:
 annual report and accounts 201 1 
wwwomegadiagnosticscom
12
chief executive’s review 
our latest acquisition of the allergy ivd business of allergopharma 
in december 2010 provides us access to the high value allergy 
testing market we believe that this acquisition together with 
two high profile instrument development programmes will  
be transformational for the group going forward which will 
significantly enhance the group’s growth prospects
i am pleased to report that the group has 
seen an increase in revenue for the year  
to £790 million some 274 ahead of last 
year’s figures 2010 £620 million with 
likeforlike sales increasing by 12 
strategy
while increasing revenue and profits through 
organic growth significant progress was 
made in the year by acquiring the business 
and certain assets of the allergy ivd business 
of allergopharma the allergy tests acquired 
complement the group’s core food intolerance 
product offering as well as the acquisition  
it was recognised that to add more value we 
would need to enhance the future product 
offering by developing two new instrument 
systems which would allow us to access higher 
volume testing laboratories see research 
and development
food intolerance
food intolerance testing has seen growth  
of 21 in the year resulting in sales of  
£356 million 2010 £295 million
for the genarrayt
®
 laboratory system and 
ongoing reagent sales we have seen good 
growth in sales to £168 million 2010 £104 
million this growth has been achieved by  
the installation of 38 new systems as well as 
increasing the number of countries active with 
genarrayt
® 
by six this now brings the total 
number of installed systems to 95 since launch 
sales of genarrayt
®
 systems fell slightly to 
£192k 2010 £212k but sales of reagent kits 
increased dramatically to £149 million 2010 
£828k this shows the pull through effect of 
promoting food intolerance testing by placing 
new instruments and promoting test usage in 
partnership with our distributors
the food detective
®
 test for food intolerance 
has seen sales fall marginally to £772k 2010 
£790k the number of countries where we 
have now sold product has continued to 
increase to 54 2010 46 with an increase in 
volumes to 41665 kits 2010 34241 these 
volumes included bulk components supplied 
to a chinese customer who assembles the 
kits locally with the effect that revenue  
has fallen marginally the process of product 
registration in china is still proceeding but  
we are still managing to secure small sales  
for market seeding and evaluation purposes 
product registration has recently been 
achieved in india for an indian specific test 
panel and the product was launched in 
february 2011 by our partner in india  
thermo fisher scientific 
the uk market for food detective
®
 has seen 
a reduction in sales to £127k 2010 £216k 
following a move to using professional 
resellers with lower transfer pricing in return 
for higher volume sales in response to this 
result we have taken steps to return to  
direct selling ourselves by using webbased 
“ we fully expect that our 
anticipated growth in  
the bric countries will  
yield major growth”
bric country information
2011 sales
£219861
£89287
£498623
£96557
£904328
brazil
russia
india
china
total
2010 sales
£146630
£12776
£479696
£64817
£703919
brazil
russia
india
china
total annual report and accounts 201 1 
wwwomegadiagnosticscom
13
overview
business  
review governance
financial  
statements
marketing activities and targeted marketing  
to key customer groups the testing services 
for food intolerance and other related tests 
have shown an increase in business to £452k 
2010 £371k which has mainly been due  
to increased sales to offshore accounts  
who send samples into the cns laboratory 
for testing
after the year end we signed an agreement 
with toyota tsusho america inc for distribution 
of food detective
®
 in the united states there 
is an anticipated timeline of approximately  
one to two years to gain clearance by the us 
food and drug administration ‘fda’ before 
we can start selling the product but we believe 
the potential market to be substantial
allergyautoimmune disease
allergy
since acquiring the allergy range in 
december 2010 sales of £955k have been 
achieved which has been dominated by sales 
to the german domestic market export sales 
to russia and poland have commenced and  
it is the growth of export sales through the 
omega distribution network that is a priority 
for the financial year ahead
autoimmune disease
sales of autoimmune tests decreased  
by 11 to £584k 2010 £658k as a direct 
result of not being able to supply a dedicated 
instrument platform in an increasingly 
automated market we see further reductions 
in this business likely unless we can offer  
an instrument platform or technology to 
compete in this market the application  
of the genarrayt
®
 microarray technology  
to autoimmune disease testing still remains  
a possibility but other options are also being 
explored
infectious diseaseother tests
sales of infectious disease and other tests 
increased to £280 million 2010 £259 million 
for the year representing an increase of 8 
which reversed the trend over recent years 
this was in part due to increased sales of the 
micropath
®
 stained bacterial suspensions 
produced by our cotek subsidiary which  
we acquired in september 2009 other 
growth came from regaining previously lost 
business and new oem contract wins with 
our immutrep
®
 syphilis product range
distribution network
growth has been recorded in most 
geographic regions of the world with the 
exception of north america which reduced  
by 13 to £267k 2010 £307k due to lost 
tenders in several markets the asiafar east 
region dropped marginally by 1 to £135 
million 2010 £136 million these reductions 
were more than offset by good growth in 
africamiddle east with sales rising by 24  
to £147 million 2010 £119 million and  
in the ukeuropean market by sales rising 
48 to £445 million 2010 £301 million  
as a result of the new additional allergy tests 
from our german subsidiary and strong 
performance with key users of the genarrayt
®
 
food intolerance products sales to south
central america rose by just over 10 to 
£361k 2010 £328k
in last year’s report i mentioned the good 
growth rates being experienced in the ivd 
sector in brazil india and china in the year 
we have made efforts to concentrate on and 
expand our business in the bric group of 
countries brazil russia india and china  
and we have achieved some success in three 
out of the four target countries in brazil we 
increased sales by 50 across the group 
achieving total sales of £220k 2010 £147k  
in russia we increased sales by over 500  
to £89k 2010 £13k and in china we increased 
sales by 49 to £97k 2010 £65k only india 
showed marginal growth at 4 with sales 
rising to £499k 2010 £480k however  
with the signing of the food detective
®
 
distribution agreement with thermo fisher 
scientific in the latter part of the year we 
expect this to provide a positive impact in  
the year ahead several other initiatives are 
being explored to enhance our growth in 
these key countries
research and development
our move into the allergy testing market now 
drives our rd activity with the development 
of two new allergy instrument platforms  
both of which are being funded by the 
allergopharma acquisition fundraising
1 idsisys – in march 2011 we signed  
an exclusive licence agreement with 
immunodiagnostic systems holdings plc 
ids for the worldwide rights to develop 
and distribute allergy tests on its successful 
and us fdacleared idsisys automated 
instrument ids will supply the instruments 
and other consumables necessary to 
enable us to develop and distribute allergy 
tests through our worldwide distribution 
network although the development will 
take around one year to complete the early 
signs are encouraging
2 genarrayt
®
 – we are aiming to apply  
the expertise used to develop and produce 
the igg food intolerance microarray 
technology to routine ige allergy testing 
this requires development and adaptation 
of the existing technology so that it can be 
used on an automated testing instrument 
which will allow the test to be used in 
higher test volume laboratories initial 
feasibility studies have proven successful 
but a substantial effort is still required 
before a product and new instrument  
can be launched
work was also completed on an indian variant 
of the food detective
®
 macroarray test which 
completed its registration formalities during 
the year and was formally launched in india  
in february 2011
outlook
the outlook for the new financial year is very 
encouraging with the addition of the allergy 
test range and with other organic growth 
opportunities being actively pursued there are 
still difficulties with some eurozone countries 
but we fully expect that our anticipated growth 
in the bric countries will yield major growth 
going forward and counter any negative effects 
experienced elsewhere in the world
the recent announcement of 19 may 2011  
regarding cinven’s intended disposal of 
phadia to thermo fisher scientific on a 67x 
multiple of revenue and 166x ebitda only 
goes to show the high valuations possible in 
the world of allergy testing with our recent 
acquisition and the new development 
programmes which we have commenced in 
this year it is our ambition to add significant 
value to the group going forward we expect 
to see this reflected in a share price which 
more accurately reflects the true value of  
the group
andrew shepherd
chief executive
1 july 2011