Novacyt (ALNOV) H2 2025 earnings summary

Executive summary

• Achieved FY 2025 revenue of £20.0m, slightly above market expectations, with underlying growth of 4% year-on-year, excluding the Taiwan divestment.

• EBITDA loss reduced to £7.8m, outperforming expectations, and loss after tax narrowed to £22.9m from £41.8m in FY 2024.

• Completed the earnings-accretive acquisition of Southern Cross Diagnostics for £4.4m, expanding presence in Australia and APAC.

• Strategic investments in R&D, new product launches, and operational streamlining support future growth and profitability.

• Preferential Subscription Rights Issue raised €0.8m gross, strengthening the balance sheet.

Financial highlights

• Group statutory revenue: £20.0m (FY 2024: £19.6m); underlying revenue up 4% after adjusting for divestments.

• Gross profit reached £12.6m, with a 63% margin; Primerdesign business delivered over 80% margin.

• EBITDA loss improved to £7.8m from £9.1m year-over-year; loss after tax: £22.9m (FY 2024: £41.8m loss).

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

• Cash at year-end: £19.1m; cash at 31 March 2026: £11.0m, with Q1 outflow mainly due to the Southern Cross acquisition.

Outlook and guidance

• Targeting double-digit revenue growth and EBITDA profitability in FY 2026, with revenue expected at £26.4m per broker note.

• Board approved up to £2.0m annual R&D investment for 2025-2027 to accelerate new product launches.

• Continued focus on cost control, cash preservation, and leveraging regulatory advantages as IVDR requirements tighten.