Novacyt (ALNOV) H1 2026 earnings summary

Executive summary

• Statutory revenue for H1 2026 rose 18% year-over-year to £11.6m, with underlying organic growth of 9% excluding Southern Cross Diagnostics (SCD) sales.

• SCD acquisition in March 2026 contributed £1.8m in revenue, expanding presence in Australia and Asia-Pacific.

• Instrumentation and Clinical segments delivered strong growth, with 30% and over 20% revenue increases, respectively.

• Launched IVDR-certified Yourgene Insight DPYD assay, expanding clinical genetics portfolio in Europe.

• Signed a five-year Master Collaboration Agreement with Illumina, with initial projects underway and key staff retained.

Financial highlights

• Revenue increased to £11.6m from £9.8m in H1 2025; instrumentation up 30% YoY, clinical up over 20% YoY.

• Gross margin declined to 56% from 66% due to SCD's lower distributor margin and stock uplift adjustment.

• Adjusted EBITDA loss improved to £3.6m, a year-on-year reduction of over 10%.

• Operating loss reduced to £5.1m from £7.1m year-over-year, aided by lower depreciation, amortization, and exceptional charges.

• Cash position at 30 June 2026 was £8.9m, down from £19.1m at year-end 2025, with the group remaining debt free.

Outlook and guidance

• Majority of cost savings from restructuring expected to be realized in FY2027, with annual savings of £3.2m–£3.4m.

• Continued focus on launching new products, expanding customer base, and leveraging the Illumina partnership for future growth.

• Board confident in maintaining a gross margin above 60% in the long term and in long-term strategy execution.