Novacyt (ALNOV) H2 2024 earnings summary

Executive summary

• Completed major consolidation, merging two businesses into a Manchester-based center of excellence, reducing operational complexity and cost base, and delivering significant cost synergies ahead of schedule.

• FY2024 marked a transition year with the integration of Yourgene, site consolidations, and a focus on cost reduction and portfolio rationalization.

• Achieved revenue of £19.6m in FY2024, with strong growth in Reproductive Health (26%) and Ranger consumables (13%) compared to FY2023.

• Board strengthened with new CEO, CFO, CSO, and Chairman appointments, and additional £2.0m allocated to R&D for new product launches.

• Achieved IVDR accreditation for key clinical and reproductive health assays, enabling global sales.

Financial highlights

• Statutory revenue: £19.6m in FY2024 (up 85% YoY); Yourgene contributed £15.3m, Primer Design £4.3m.

• Gross profit: £32.1m (inflated by one-off items); underlying gross margin at 63%.

• EBITDA loss reduced to £9.1m from £11.8m in FY2023.

• Loss after tax of just under £42m, impacted by exceptional costs and impairments.

• Year-end cash position at £30.5m, with Q1 2025 closing at just under £28m.

Outlook and guidance

• Q1 2025 trading in line with or slightly above expectations for both revenue and EBITDA; further improvements anticipated as site consolidations complete.

• Four new product launches planned for 2025 across Reproductive Health, Precision Medicine, and Ranger Technology, with £2.0m additional R&D investment.

• Management confident in sufficient cash reserves to self-fund through to EBITDA profitability.

• Comprehensive growth strategy to be communicated by end of summer/H2 2025.