Novacyt shares were down 5.1% to 152p in late afternoon trading in light of the firm’s total revenue drop to £95.8 million in 2021 compared to £277.2 million in 2020, excluding £40.9 million of 2021 DHSC revenue under contractual dispute.
The company announced an 86% revenue allocation linked to Covid-19 products, compared to 95% in the year before.
Novacyt confirmed a shift away from large, centralised contracts towards independent testing, with a focus on private laboratories and non-governmental organisations (NGOs).
The group reported a 98% revenue increase to £55.9 million from £28.3 million year-on-year on private laboratory revenues, including £10.5 million from NGOs.
The company said private testing made up 58% of 2021 revenues at £55.9 million, against 10% in 2020 of £28.3 million.
The UK contributed to a reported 45% of total revenues with £42.7 million compared to 79% in 2020 at £219.4 million.
The company mentioned a gross profit of 68% at £65.4 million, representing a decline from its 76% result in 2020 due to a higher stock provision on an obsolescence of Covid-19 products as the pandemic eased, alongside margin dilution as a result of increased instrument sales as the firm built its installed base.
Novacyt confirmed a cash position of £101.7 million on 31 December 2021 against £91.8 million the previous year, with the company remaining debt free heading into 2022.
“In 2021, we delivered a financial performance in line with market expectations. The Company responded to a rapidly changing marketplace and diversified from predominately servicing government COVID-19 testing tenders, to the private market for COVID-19 testing in travel, sport, film, media, and workplace settings,” said Novacyt CEO David Allmond.
“Novacyt’s reputation for the innovation and high performance of its diagnostic technologies was reinforced throughout the pandemic and the Company has established a strong foundation of R&D, manufacturing, regulatory and commercial capabilities, supported by a strong financial position.”
“As a result, Novacyt is well positioned for future growth and value creation and there are exciting times ahead for the Company as we move past the current pandemic and continue our journey to become a leading global clinical diagnostics company focused on unmet needs in infectious diseases.”
