Novacyt (ALNOV) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose to £10.3m from £3.3m in H1 2023, driven by Yourgene Health sales and strong growth in reproductive health and NIPT segments.

• Integration of Yourgene Health is ahead of schedule, with over £5m in annualized cost savings expected by end of FY 2025.

• Net loss widened to £17.7m, mainly due to exceptional costs from the DHSC dispute, including a £5.0m settlement and £20m bad debt write-off.

• Cash position at 30 June 2024 was £32.9m, increasing to £36.6m by end of August after a £12.2m VAT refund.

• Board changes included new CEO, CFO, CSO, and Chairman appointments.

Financial highlights

• Revenue increased 209% year-over-year to £10.3m in H1 2024.

• Underlying gross margin improved to 65%, with Primerdesign delivering over 80% margin.

• EBITDA loss before exceptionals was £5.6m, broadly flat year-over-year.

• Group reported a loss after tax of £17.7m, mainly due to DHSC-related exceptional costs.

• Cash consumed in H1 was £11m, with a closing cash balance of £32.9m at period end and £36.6m by end of August after VAT refund.

Outlook and guidance

• Confident in reaching profitability with current cash reserves and ongoing cost savings; no additional external funding anticipated through September 2025.

• Focus remains on cost base reduction, integration, and product portfolio expansion, with further product launches and R&D investments planned.

• IVDR certification is expected to be a key differentiator, reducing competition and price pressure.