TIDMNCYT
RNS Number : 7379S
Novacyt S.A.
13 July 2020
Novacyt S.A.
("Novacyt", the "Company" or the "Group")
Half-Year Trading Update
Sales growth of more than 900%, debt-free and
significantly cashflow positive
Demand for COVID-19 test expected to continue into 2021
Paris, France and Camberley, UK - 13 July 2020 - Novacyt (
EURONEXT GROWTH: ALNOV; AIM: NCYT ), an international specialist in
clinical diagnostics, announces an unaudited trading update for the
six months ended 30 June 2020.
Trading update
Unaudited revenue for the first half of 2020 increased over 900%
to EUR72.4 million (GBP63.3 million), compared to revenue of EUR7.2
million (GBP6.3 million) for the first half of 2019, with 91% of
revenue accounted for in the second quarter. For the half year, the
Group estimates EBITDA profitability over EUR45 million (GBP41
million). This follows the successful launch of one of the world's
first molecular tests for COVID-19, which the Company rapidly
developed and launched in January 2020.
T he Company's cash position as at 30 June 2020 was EUR20
million (GBP18 million) (cash as at 31 December 2019 of EUR1.8
million (GBP1.6 million)) . This strong cash position is after
significant investment to meet continued demand for the COVID-19
test expected in the second half of the year. It is also reported
after paying down all outstanding debt, making Novacyt debt free
for the first time in the Company's history.
Demand for the Company's COVID-19 test remains strong, with June
sales of EUR25.4 million (GBP22.5 million) showing the sixth
consecutive month of growth. Certain contracts for the supply of
the test have also been extended into the second half of the year
and in some cases into 2021. W ith the daily global incidence of
SARS-CoV-2 infections continuing to rise, Novacyt expects
significant ongoing demand for COVID-19 testing well into 2021 . It
is a sad fact that as of 11 July 2020, the number of global cases
is more than 12.7 million, an increase of 69% compared to 11 June
2020.
In the US, the Company has signed a major distribution agreement
for its COVID-19 test with a new global strategic partner. The US
is delivering significant sales growth for Novacyt and this new
agreement enables the Company to accelerate penetration of its
COVID-19 test in this important market. This distribution agreement
will focus initially on the US, with the potential to expand into
further markets.
The Company remains well positioned to address the global need
for COVID-19 testing, with its test being sold worldwide. It also
has sufficient manufacturing capacity, raw materials and finished
goods to meet the expected demand, having orchestrated a
significant scale-up of operations during the half year. The
Company continues to scale the business internally and has hired 45
people during the first half of the year, with plans to make
further investment to strengthen the organisation in the second
half of the year.
Development of the Company's COVID-19 test established Novacyt
as a pioneer and a leader in COVID-19 diagnostics. Novacyt remains
committed to building on this world-class innovative position for
COVID-19 testing, and more broadly for respiratory disease testing,
and is investing to address unmet needs in the market. Novacyt has
already launched three new innovative products, COVID-HT, Exsig(TM)
Direct and Exsig(TM) Mag , to support laboratories testing for
COVID-19. These products are expected to drive incremental revenue
and the Company received initial orders in June 2020 following
their launch . Novacyt expects to provide an update on its
investment in R&D to support continued growth, including a
number of new products and innovations to be launched in the near
future.
Outlook
Given the visibility of orders, extended contracts and the
launch of new COVID-19 related products, the Company anticipates
revenue for the second half of the year to be greater than the
first half of the year and margins to be at least at a similar
level. As a result, there is expected to be greater cash generation
in the second half of the year and the Company is reviewing its
capital allocation policy to enhance and accelerate long-term value
creation through its three-pillar strategy of organic, R&D and
acquisitive growth.
Graham Mullis, Group CEO of Novacyt, commented:
"The first half of 2020 has been transformational for Novacyt.
The Company has rapidly established itself as one of the market
leaders in COVID-19 PCR testing, with a significantly increased
customer base, a recognised reputation for the performance of its
products and established multiple significant strategic
partnerships. This solid foundation, combined with a strong
financial performance, will enable us to greatly enhance and
accelerate our strategy for delivering long-term value to
shareholders. I look forward to providing an update on these plans
as we move into this exciting next phase of growth for the
Company."
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
- End -
Contacts
Novacyt SA
Graham Mullis, Chief Executive Officer
Anthony Dyer, Chief Financial Officer
+44 (0)1276 600081
SP Angel Corporate Finance LLP (Nominated Adviser and
Broker)
Matthew Johnson / Charlie Bouverat (Corporate Finance)
Vadim Alexandre / Rob Rees (Corporate Broking)
+44 (0)20 3470 0470
Allegra Finance (French Listing Sponsor)
Rémi Durgetto / Yannick Petit
+33 (1) 42 22 10 10
r.durgetto@allegrafinance.com ; y.petit@allegrafinance.com
FTI Consulting (International)
Victoria Foster Mitchell / Mary Whittow
+44 (0)20 3727 1000
victoria.fostermitchell@fticonsulting.com /
mary.whittow@fticonsulting.com
FTI Consulting (France)
Arnaud de Cheffontaines
+33 (0)147 03 69 47
arnaud.decheffontaines@fticonsulting.com
About Novacyt Group
The Novacyt Group is an international diagnostics business
generating an increasing portfolio of in vitro and molecular
diagnostic tests. Its core strengths lie in diagnostics product
development, commercialisation, contract design and manufacturing.
The Company's lead business units comprise of Primerdesign and
Lab21 Products, supplying an extensive range of high-quality assays
and reagents worldwide. The Group directly serves microbiology,
haematology and serology markets as do its global partners, which
include major corporates.
For more information please refer to the website:
www.novacyt.com
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END
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