Novacyt is still loss-making, but half-year results show the company has turned a corner and is now well placed for growth in the coming periods.
Novacyt reported H1 2024 revenue of £10.3m, of which £7.8m was from the recently acquired Yourgene Health.
The company saw encouraging growth in Reproductive Health, which jumped 34% year-on-year, and Non-Invasive Prenatal Testing with a more modest 5% increase.
Despite an EBITDA loss of £5.6m and a loss after tax of £17.7m, largely due to exceptional costs related to the DHSC settlement, Novacyt made progress in integrating Yourgene, delivering £5.0m in annualised cost savings.
The company maintains a strong cash position of £32.9m as of 30 June 2024.
Looking ahead, Novacyt aims to continue reducing its cost base, rationalise its product offering, and develop new products over the next three years.
Management expects full-year revenue to remain at a similar run-rate and is focused on positioning the company for long-term growth through its comprehensive strategy for the combined group, which they say will be detailed in H1 2025.
“We made good progress during first half of 2024, which saw encouraging growth in our Reproductive Health and NIPT businesses and the delivery of £5.0m of annualised cost savings. Whilst the continued reduction of our cost base remains our core priority, we are also investing for the future and bolstering our R&D team who are developing an exciting pipeline of new products, to expand our capabilities and meet the needs of our growing customer base, which we expect to bring to market over the next three years,” said Lyn Rees, CEO of Novacyt.
“The conclusion of the DHSC dispute has enabled the management to focus on driving the growth of the combined business and with our robust product portfolio, first-class team and strong cash position we are well placed to deliver future growth.”