Omega Diagnostics chief executive Colin King is standing down with immediate effect following nearly two years of Covid-driven highs and lows for the testing kit manufacturer.

He is being replaced by Jag Grewal, who has been a member of the board of directors since June 2011 and is currently managing director of the Alva-headquartered company's health and nutrition division. Mr Grewal has more than 25 years' experience in the fields of in-vitro diagnostics, life science research and drug discovery.

Omega, which was hit in December with a £2.5 million refund demand from the UK government, also sought to play down speculation that the company is facing a funding crisis. It noted that the business currently has cash balances in excess of £2.5m and an undrawn overdraft facility of £2m.

"Thus, there is no short term need to raise additional capital," Omega said. "Like all growth companies, Omega will look to raise funds to drive growth as and when appropriate."

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Former chairman and non-executive director Bill Rhodes is also set to leave the business at the end of February. Omega said it will now begin the process of seeking a suitable replacement.

Chairman Simon Douglas thanked Mr King for his six and a half years of service.

"Colin has been a valued leader of the Omega team and it is with considerable regret that he has decided to step down and I would like to wish him all the best in his future endeavours," he said. "I also offer my thanks to Bill for his support for the company during his tenure as chairman and latterly as non-executive director.

“I would also like to welcome Jag into this new role and we look forward to working together on the next phase of Omega’s exciting future.”