Novacyt: Revenue Up 4% to £20M, but Cash Reserves Decline to £19.1M
Novacyt shows slight but sustained growth. Revenue increased by 4% (5% at constant exchange rates) to reach £20.0M, slightly exceeding market expectations of £19.8M. EBITDA loss improved, falling to £7.8M from £9.1M the previous year. These figures reflect a trajectory of stabilization after two years of operational restructuring and cost reduction. However, despite this apparent recovery, the situation remains fragile. Net loss reached £22.9M, cash reserves eroded to £19.1M, and the group still shows a deficit. Novacyt now presents a new strategy aiming for double-digit organic revenue growth from 2026, a gross margin above 60%, and a path to EBITDA profitability.
Growth by Segment: Instrumentation Soars, Research Declines
The group's performance shows a marked contrast between activities. The Instrumentation segment grew vigorously by over 25%, driven by the successful launch of LightBench® Discover, a high-precision 3-in-1 instrument for long-read sequencing. Ten units were deployed in the five months following its launch in North America, the UK, Europe, Turkey, and Indonesia. The Clinical segment showed moderate growth of 3% to £13.8M, supported by the acquisition of a new strategic client in the Asia-Pacific region and a growth of over 10% in NIPT (non-invasive prenatal testing) technologies. Conversely, the Asia-Pacific region accelerated with a revenue increase of about 12% to £5.8M. However, the Research (RUO) segment eroded by 10%, falling to £3.7M, due to declining sales from the Primer Design product catalog. This contraction partially offsets gains made elsewhere.
Stable Margins but Still Massive Operational Losses
The group's gross margin remains unchanged at 63%, amounting to £12.6M compared to £12.3M the previous year, excluding non-recurring effects. This stability reflects satisfactory control of production costs despite the slight increase in sales. However, this operational performance remains mired in a layer of structural expenses and amortizations that weigh heavily. Operating loss amounted to £28.5M (compared to £37.3M in 2024). The operating loss, however, remains burdened in 2025 by an impairment of £14.4M of intangible assets, including goodwill, related to the acquisition of Yourgene Health. Operational expenses only decreased by £0.7M (4%) on a comparable basis, showing some rigidity in costs despite site closures and workforce reductions. Cash reserves significantly eroded, dropping from £30.5M to £19.1M, consumed by £9.2M of outflow for operational activities. This annual consumption, combined with the persistent EBITDA loss, imposes strict financial discipline.
Promised Double-Digit Growth, and Goal to Reach EBITDA Profitability According to the Organic Growth Plan
In October 2025, the management unveiled its new strategy with clear objectives: year-over-year double-digit revenue growth (starting in 2026), maintaining a gross margin above 60%, and achieving EBITDA profitability according to the organic growth plans. This ambition is supported by real catalysts. The acquisition of Southern Cross Diagnostics in March 2026 (£4.4M in cash) provides direct access to the rapidly growing Australian market and key strategic accounts in Asia-Pacific. A capital increase of €0.8M also strengthened the balance sheet. After closing, the signing of a contract with a hospital in Iceland for a national NIPT service (estimated volume of 3,500 samples per year, worth £2.0M over four years) illustrates commercial progress. However, the cash reserve of £11.0M as of March 31, 2026 (after the acquisition and capital increase) requires flawless execution. At the current consumption rate (£9.2M annually in 2025), the financial leeway remains narrow to absorb contingencies or accelerate R&D investments.
