Novacyt grows sales but reports lower margins and reduced cash reserves

Novacyt ($NCYT) reported first-half revenue growth of 18% to £11.6 million, with approximately 9% underlying growth excluding acquired Southern Cross Diagnostics. Instrumentation sales increased about 30%, while clinical products grew more than 20%. Gross margin nevertheless declined to 56% from 66%, reflecting acquisition-related mix, inventory accounting adjustments and lower Primer Design sales.

The EBITDA loss before exceptional items narrowed to £3.9 million from £4.1 million as operating costs fell. Cash declined to £8.9 million at the half-year end from £19.1 million at year-end, and stood at £7.6 million at the end of August after restructuring payments. The group remains debt-free, but the cash reduction is an important counterweight to revenue growth. Further cost reductions are expected in the second half; those savings have not yet been fully realized.

Sources:

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