Novacyt (ALNOV) H2 2025 earnings summary

Executive summary

• Achieved strong strategic progress with successful integration of Southern Cross Diagnostics, accelerating growth and expanding market reach.

• Focused on R&D investment, new product launches, and operational streamlining to deliver market expectations.

• Clinical products represent 70% of sales, with double-digit growth in NIPT and significant contract wins in the UK, Iceland, and Thailand.

• Four consecutive half-year periods of growth, exceeding market expectations for 2025.

Financial highlights

• 2025 revenue totaled GBP 20 million, up 4% year-on-year after adjusting for the Taiwanese divestment.

• Gross profit reached GBP 12.6 million, with a strong 63% gross margin; Primerdesign business delivered over 80% margin.

• EBITDA loss reduced by 14% to GBP 7.8 million; reported loss after tax decreased to GBP 22.9 million from GBP 42 million prior year.

• Operating expenses down to GBP 20.4 million from GBP 41 million, reflecting cost control and site consolidation.

• Cash position at end of March 2026 was GBP 11 million, with Q1 outflow of GBP 8 million, mainly due to the Southern Cross acquisition.

Outlook and guidance

• Targeting double-digit revenue growth for 2026 and beyond, with 2026 revenue expected at GBP 26.4 million per broker note.

• Confident in cash runway to reach EBITDA profitability, assuming forecasts are met.

• Continued focus on R&D, new product launches, and leveraging regulatory advantages as IVDR requirements tighten.