Sparks

Novacyt reported H126 revenue of £11.6m, up 18% y-o-y, with c 9% underlying growth excluding the contribution from Southern Cross Diagnostics (SCD) and growth across all geographic regions. Clinical revenue increased by more than 20%, supported by reproductive health and SCD, while Instrumentation grew c 30% on continued LightBench Discover adoption; Research Use Only revenue declined 9%, although management expects buying patterns to normalise and sales to improve in H2. Gross margin declined to 56% from 66%, reflecting the lower-margin SCD contribution, a non-cash acquisition-related stock uplift and weaker sales at the higher-margin Primer Design business.

Cost reductions are starting to support profitability, with underlying opex down 8%, the EBITDA loss narrowing to £3.9m (£3.6m adjusted) and £3.2–3.4m of annual savings identified against the c £4.0m restructuring target, with further benefits expected. Post-period operational progress includes the launch of the IVDR-certified Yourgene Insight DPYD assay and a five-year master collaboration agreement with Illumina, while SCD provides an established platform to pursue further growth in Australia and the wider Asia-Pacific region. Cash stood at £8.9m at end-June and £7.6m at end-August, with the group remaining debt free. Importantly, the directors’ forecast indicates sufficient liquidity through September 2027 without assuming additional external funding.