Novacyt: Revenue Up 18% in First Half, Operating Loss Reduced by Over 25%
Novacyt published its unaudited interim results on September 30, 2026 for the half-year ended June 30, 2026. The molecular diagnostics company recorded a 18% increase in revenue, driven by the integration of its new Australian subsidiary Southern Cross Diagnostics (SCD), while its gross margin declined due to this same acquisition.
The group remains loss-making but continues to reduce losses year-on-year, in the context of a restructuring aimed at lowering its cost base.
Revenue of 11.6 M£ Driven by Instrumentation and Clinical
First-half 2026 revenue reached 11.6 M£, compared to 9.8 M£ in the first half of 2025, representing 18% year-on-year growth. Excluding SCD's contribution, underlying organic growth stood at approximately 9%.
The Clinical segment posted sales of 8.5 M£, up more than 20%, driven by demand for the reproductive health portfolio and SCD's contribution. The Instrumentation segment grew by approximately 30% to reach 1.3 M£ (versus 0.9 M£), reflecting adoption of the LightBench Discover platform.
The RUO segment (research use only) recorded revenue of 1.8 M£, down 9% year-on-year, a trend the company attributes to scheduling delays related to hantavirus and Ebola epidemics.
Gross Margin Declines by 10 Percentage Points Following SCD Acquisition
The business generated a gross margin of 6.4 M£, representing 56% of revenue, compared to 6.5 M£ (66%) in the first half of 2025. The 10 percentage point decline is explained by three factors identified by the company: SCD's distribution margin (approximately 40%), which dilutes the group's margin, the reversal of fair value revaluation adjustment on inventory acquired in the acquisition (0.3 M£, with no cash impact), and the decline in Primer Design sales, whose margin exceeds 80%.
The group reported an EBITDA loss of 3.9 M£, compared to a loss of 4.1 M£ in the first half of 2025. The loss after taxes from continuing activities stood at 5.7 M£, compared to 6.8 M£ one year earlier. The operating loss amounted to 5.1 M£, a reduction of more than 25% compared to the 7.1 M£ loss in the first half of 2025.
Operating expenses declined by 0.3 M£ to 10.3 M£, despite the integration of approximately 0.5 M£ of costs related to SCD. Cash stood at 8.9 M£ as of June 30, 2026, compared to 19.1 M£ as of December 31, 2025, with the group remaining debt-free.
Cost Reduction Plan and Expectations for Second-Half Rebound
The personnel consultation process, announced in June 2026, was expected to generate approximately 4.0 M£ in annualized savings. By September 2026, it was largely completed, with approximately 60 departures, enabling annual cost reductions of approximately 2.7 M£, with additional payroll savings expected in 2027. Non-personnel cost initiatives should generate 0.5 M£ to 0.7 M£ in additional annual savings.
The acquisition of SCD, completed on March 2, 2026, was settled for an initial price of 8.5 M AUD (4.5 M£) in cash, together with a contingent consideration that could reach 16.5 M AUD (8.7 M£) over four years, subject to achieving revenue and EBITDA targets. Over the March to June period, SCD contributed 1.8 M£ in revenue and 0.2 M£ in EBITDA.
For the RUO segment, the company anticipates a normalization of purchasing patterns and a rebound in the second half. Across its core business activities, it indicates entering the second half with organic growth it describes as encouraging.
