Novacyt S.A.
("Novacyt", the "Company" or the "Group")
Half year 2022 results
Significant progress against post-COVID-19 growth strategy to
offset expected decline in COVID-19 sales
Paris, France and Camberley, UK – 29 September 2022 – Novacyt (EURONEXT
GROWTH: ALNOV; AIM: NCYT), an international specialist in clinical diagnostics,
announces its unaudited results for the six months ended 30 June 2022.
David Allmond, Group CEO of Novacyt, commented:
“During 2022, we have made good progress transitioning the business away from COVID19 revenue, due to its expected decline, and beginning to deliver against our growth
strategy, as outlined at our full year results earlier this year. Of note, we are pleased with
the progress we have made in the development of the post-COVID-19 product portfolio,
including the launch of our integrated and scalable molecular workflow capable of
delivering over 1,000 tests per day. This has been significantly accelerated by signing an
agreement for the immediate distribution of over 40 assays focused on our target
therapeutic areas, which we expect to drive near-term growth and supplement our internal
R&D. At the same time, we have also relaunched our extensive RUO portfolio to support
near-term growth and are encouraged by the early success and new revenue streams.
“These developments bring together extraction capability, automated sample preparation,
and broad menu expansion. We expect this to deliver a competitive market offering for
rapid turnaround time, routine testing in our target areas of mid to low volume “spoke”
laboratories and non-routine services in “hub” laboratories. Following our strategic review,
we have also completed the closure of our Lab21 Healthcare and Microgen Bioproducts
businesses allowing us to focus on our core capabilities and operations. Novacyt remains
well positioned for future growth and value creation as we move past the pandemic and
continue our journey to become a leading global clinical diagnostics company focused on
unmet needs in infectious diseases.”
Financial highlights
• Group revenue of £16.5m in H1 2022 (H1 2021: £52.2m), predominantly driven
by the expected decline in COVID-19 related sales
• Revenue derived from COVID-19 products totalled £13.0m, or 79% of total H1
revenue in 2022 (H1 2021: £47.6m (91%))
• Revenue for the non-COVID-19 portfolio was £3.5m (H1 2021: £4.6m). As
previously indicated, this decline was predominantly driven by lower instrument
sales compared to a strong H1 2021 which benefited from COVID-19 demand
• Group gross profit improved to £4.0m (24%) in H1 2022 (H1 2021: £1.2m (2%)).
The latter was impacted by the one-off exceptional costs relating to the DHSC
dispute. H1 2022 gross profit was reduced as a result of significant stock provision
based on lower forecast COVID-19 sales in addition to writing-off stock that had
not been provided for previously. Excluding the impact of these items, the margin
would be in excess of 60%.
• Group adjusted EBITDA loss of £7.1m in H1 2022 before exceptionals (H1 2021:
£23.6m profit)
• Discontinued operations loss of £3.7m in H1 2022 (H1 2021: £0.6m)
• Loss after tax decreased to £8.7m in H1 2022 (H1 2021: £12.7m)
• Filed a defence of the DHSC claim issued against Primerdesign Ltd and Novacyt
S.A. for £134.6m in relation to the contract dispute, as previously announced, and
filed a counterclaim of £81.5m against the DHSC
• Cash position at 30 June 2022 was £99.6m (FY 2021: £101.7m) and the Company
remains debt free
• Predicted Q3 2022 revenue of circa £2.0m, with similar levels expected in Q4 2022,
resulting in an anticipated EBITDA loss for the full year of circa £13.5m
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