Novacyt (ALNOV) H2 2025 earnings summary

Executive summary

• Achieved revenue of GBP 20 million for FY2025, slightly above market expectations, with underlying growth of 4% after adjusting for the Taiwanese divestment.

• Gross profit reached GBP 12.6 million with a 63% margin, and EBITDA loss narrowed to GBP 7.8 million year-over-year.

• Completed the earnings-accretive acquisition of Southern Cross Diagnostics, expanding presence in Australia and accelerating growth.

• Raised €0.8 million gross through a Preferential Subscription Rights Issue, strengthening the balance sheet.

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

Financial highlights

• Revenue totaled GBP 20 million, up 4% year-on-year after adjusting for divestments.

• Gross profit margin held at 63%; Primerdesign business delivered over 80% margin.

• EBITDA loss reduced by 14% to GBP 7.8 million; reported loss after tax decreased to GBP 22.9 million from GBP 42 million prior year.

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

• Cash position at year-end was GBP 19.1 million, with Q1 outflow of GBP 8 million mainly due to the Southern Cross acquisition.

Outlook and guidance

• Targeting double-digit revenue growth for 2026 and beyond, with 2026 revenue expected at GBP 26.4 million per broker note.

• Strategic R&D investment of up to GBP 2 million per year planned for new product launches over the next 20 months.

• Confident in cash runway to reach EBITDA profitability, assuming forecasts are met.

• Continued focus on R&D, new product launches, and leveraging regulatory advantages as IVDR requirements tighten.

• Launch of new DPYD assay expected in H1 2026.