Novacyt S.A. - 2026 Interim Results
RNS Number : 8581WNovacyt S.A.30 September 2026
Novacyt S.A.
(“Novacyt”, the “Company” or the “Group”)
2026 Interim Results
Paris, France, and Manchester, UK – 30 September 2026 – Novacyt S.A. (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international molecular diagnostics company with a broad portfolio of integrated technologies and services, announces its unaudited interim results for the six months ended 30 June 2026.
Financial Highlights (unaudited)
- Unaudited Group statutory revenue for H1 2026 is up 18% to £11.6m (H1 2025: £9.8m)
- Underlying Group revenue increased by c.9% (£0.8m) excluding the impact of revenue generated from Southern Cross Diagnostics (“SCD”), demonstrating continued organic growth across the business
- The Instrumentation segment delivered c. 30% year-on-year revenue growth, reflecting continued market adoption of the Company’s LightBench Discover platform
- The Clinical segment continued its strong momentum delivering more than 20% year-on-year revenue growth, driven by the Reproductive Health range of products and from the inclusion of SCD sales
- All geographic regions delivered year-on-year revenue growth:
- Americas: >30% growth, driven primarily by strong instrument demand
- Asia-Pacific: >20% growth, supported by continued demand for the Company’s reproductive health portfolio
- SCD contributed c. £1.8m of revenue during the period from acquisition on 2 March to 30 June 2026
- Group gross margin of the business dropped to 56% (H1 2025: 66%), impacted by SCD sales being dilutive (3% impact) and its associated fair value stock uplift adjustment (3% impact), and reduced year-on-year sales in Primer Design
- Opex costs continued to reduce to £10.3m from £10.6m, with further reductions expected in H2 following the conclusion of the workforce consultation process (as announced on 1 June 2026). Excluding the additional SCD costs underlying opex costs have reduced by £0.8m or 8%
- Group EBITDA loss before exceptional items reduced to £3.9m in H1 2026 (H1 2025: £4.1m loss), predominantly driven by cost saving initiatives implemented by the Group. The adjusted EBITDA is a loss of £3.6m when removing the impact of the SCD related stock uplift entry
- Cash position at 30 June 2026 was £8.9m (31 December 2025: £19.1m), and the Group remains debt free. Cash at the end of August 2026 was £7.6m, after £0.5m of restructuring fees
- Successfully completed a preferential subscription rights issue raising approximately €0.8m (£0.7m) gross
Operational Highlights (including post period end)
- On 2 March Novacyt acquired SCD, a profitable Australian distributor which had worked with the Company for many years, for an initial cash consideration of AUD $8.5m (£4.5m)
- In September the Group launched the In Vitro Diagnostic Regulation (IVDR)-certified Yourgene® Insight DPYD assay, expanding the Company's clinical genetics portfolio across regulated European markets
- Signed a Master Collaboration Agreement with Illumina for an initial five-year term
Restructuring Update
- On 1 June the Group announced it had commenced a consultation process with the workforce, with the aim of reducing its cost base by £4.0m annually. Good progress has been made and as at the end of September around £3.2m to £3.4m of annual savings have been identified.
Commenting on the results, Lyn Rees, Chief Executive Officer, said: “I am pleased with the performance that has been delivered during the period under review. Operationally, we have successfully integrated SCD into the wider Group which will enable accelerated growth across the Asia-pacific region. Our restructuring programme is nearing a conclusion and will deliver material cost savings. We remain committed to our strategy of delivering growth through New Product Introduction (“NPI”) launches as exemplified by the DPYD launch and reducing operating costs. I look forward to updating shareholders and the wider market with our progress in Q4 2026.”
Contacts
Novacyt SA
Lyn Rees, Chief Executive Officer
Via Walbrook PR
Steve Gibson, Chief Financial Officer
SP Angel Corporate Finance LLP (Nominated Adviser and Broker)
+44 (0)20 3470 0470
Matthew Johnson / Charlie Bouverat (Corporate Finance)
Vadim Alexandre / Rob Rees (Corporate Broking)
Singer Capital Markets (Joint Broker)
+44 (0) 20 7496 3000
Russell Cook / Graham Hertrich / James Fischer
Allegra Finance (French Listing Sponsor)
Rémi Durgetto / Yannick Petit
+33 (1) 42 22 10 10
r.durgetto@allegrafinance.com / y.petit@allegrafinance.com
Walbrook PR (Financial PR & IR)
Paul McManus / Alice Woodings / William Turner
+44 (0)20 7933 8780 or novacyt@walbrookpr.com
+44 (0)7980 541 893 / +44 (0)7407 804 654
+44 (0) 7407 020470
About Novacyt Group (www.novacyt.com)
Novacyt is an international molecular diagnostics company providing a broad portfolio of integrated technologies and services, primarily focused on the delivery of genomic medicine. The Company develops, manufactures, and commercialises a range of molecular assays and instrumentation to deliver workflows and services that enable seamless end-to-end solutions from sample to result across multiple sectors including human health, animal health and environmental.
The Company is divided into three business segments:
Clinical
Broad portfolio of human clinical in vitro diagnostic products, workflows and services focused on three therapeutic areas:
- Reproductive Health: NIPT, Cystic Fibrosis and other rapid aneuploidy tests
- Precision Medicine: DPYD genotyping assay
- Infectious Diseases: Winterplex, multiplex winter respiratory PCR panel
Instrumentation
Portfolio of next generation size selection DNA sample preparation platforms and rapid PCR machines, including:
- Ranger® Technology: automated DNA sample preparation and target enrichment technology
- genesig q16 and q32 real-time quantitative PCR (qPCR) instruments
Research Use Only
Range of services for the life sciences industry:
- Design, manufacture, and supply of high-performance qPCR assays and workflows for use in human health, agriculture, veterinary and environmental, to support global health organisations and the research industry
- Pharmaceutical research services: whole genome sequencing (WGS) / whole exome sequencing (WES)
Novacyt is headquartered in Le Vésinet in France with offices in the UK (Manchester), Singapore, the US and Canada and has a commercial presence in over 65 countries, including Australia, following the recent acquisition of Southern Cross Diagnostics in March 2026, which has opened new distribution channels to the life sciences and diagnostics industries in the territory and the wider Asia-Pacific region.
The Company is listed on the London Stock Exchange's AIM market ("NCYT") and on the Paris Stock Exchange Euronext Growth (“ALNOV”).
For more information, please refer to the website: www.novacyt.com
Chief Executive’s Review
We are pleased to report a strong first half performance, with Group statutory revenue increasing by 18%, underpinned by continued growth across the business and the contribution from SCD, which we acquired in March 2026. Underlying Group revenue increased by approximately 9% excluding the contribution of SCD, demonstrating continued demand across our core Clinical and Instrumentation businesses.
Clinical
The Clinical segment continues to deliver, with revenue increasing by more than 20% year-on-year. Growth was driven by continued demand for the Company's reproductive health portfolio, together with the contribution from SCD. The acquisition of SCD has strengthened the Group's position in Australia and provides an established commercial infrastructure and customer base from which we expect to develop further opportunities for the Group's portfolio.
During the period, the Group continued to progress its Precision Medicine portfolio, including the development and commercialisation of its DPYD testing technology. Post period end, the Group launched the IVDR-certified Yourgene® Insight DPYD assay, expanding the Company's clinical genetics portfolio across regulated European markets. The assay is designed to support the identification of patients who may be at increased risk of severe adverse reactions to commonly used chemotherapy drugs.
Instrumentation
The Instrumentation segment delivered approximately 30% year-on-year revenue growth, reflecting continued market adoption of the Company's LightBench® Discover platform. The Group continues to see encouraging demand for LightBench® Discover, with a growing customer base and pipeline providing a platform for further growth. We remain focused on expanding the commercial reach of the product across our target markets.
Research Use Only
The RUO segment delivered sales of £1.8m for H1 2026, down 9% on H1 2025. This was due to disruption in traditional buying patterns for our RUO products, most notably from the Hantavirus and Ebola outbreaks. We responded quickly and developed products for both of these events. Demand related to Hantavirus declined as rapidly as it emerged, but we remain hopeful that our Ebola solution will soon be approved for use in Africa. As a result of these timing shifts, we are behind our year-to-date expectations, but we anticipate that buying patterns will normalise, and we will see an uplift in H2.
Operational progress and cost reduction
The workforce consultation process, announced in June 2026, was expected to deliver approximately £4.0m of annualised cost savings as part of the Group’s strategy to reduce capital expenditure and overall costs. As of September 2026, the process has largely completed and approximately 60 staff have exited. This will deliver an annual cost reduction of circa £2.7m, with further labour savings expected and to be recognised in FY2027. From a non-labour cost perspective, we have implemented initiatives that should deliver £0.5m to £0.7m of annual savings, with further reductions being worked on.
Due to the recently announced collaboration with Illumina, a number of staff that were part of the consultation process, and part of the savings target, have been retained to ensure the successful delivery of the first statement of funded work.
Outlook
The Group enters the second half of the year with good momentum across its core businesses. Organic revenue growth remains encouraging, with strong demand for our Instrumentation and Clinical portfolios, while the acquisition of SCD provides an additional platform for growth in Australia and the wider Asia-Pacific region.
We remain focused on delivering sustainable organic growth, successfully integrating and leveraging the SCD acquisition, and completing the transformation of the Group's cost base. The material reduction in the cost base as a result of the restructuring programme, combined with continued revenue growth and disciplined investment, will significantly strengthen the Group's operating leverage.
We remain confident in the long-term prospects of the Group and believe that the actions taken over the past couple of years have created a stronger, more focused business with a clear pathway towards sustainable organic growth. The Board remains focused on executing the strategy and delivering further growth from our existing portfolio.
Lyn Rees
Chief Executive Officer
30 September 2026
FINANCIAL REVIEW
Overview
Novacyt’s H1 2026 performance delivered sales of £11.6m, an EBITDA loss of £3.9m and a loss after tax of £5.8m, continuing the year-on-year reduction in losses. Novacyt acquired SCD in March 2026, a profitable Australian distributor business that has contributed to improvements in both top and bottom-line results.
As a result of the acquisition accounting, we are releasing the fair value stock uplift adjustment each month which totalled £0.3m in H1, diluting the gross margin by 3%. Excluding this would result in an adjusted EBITDA of £3.6m. This is a non-cash impacting item.
The year-on-year organic growth was pleasing as a result of a number of new product launches which has allowed us to scale back on R&D expenditure sooner than initially anticipated, and we will see a further opex reduction in H2 of this year, with the full annualised benefit being seen in 2027.
Cash at 30 June 2026 was £8.9m, providing the Group with a solid foundation on which to build and execute its future strategy.
Southern Cross Update:
SCD delivered sales of £1.8m for the period March to June (four months) at a gross margin of 41% and an EBITDA of £0.2m.
Sales are slightly behind the prior year run rate due to the known loss of a key customer and the winter weather in Australia being warmer than normal thus reducing sales of flu related products. Management expects revenue to pick-up as a result of new customer acquisitions and new product offerings.
Income statement
Continuing operations
H1 2026
H1 2025
£'000
£'000
Revenue
11,557
9,793
Gross profit
6,438
6,507
Gross profit %
56%
66%
OPEX
(10,305)
(10,600)
EBITDA
(3,867)
(4,093)
EBITDA %
-33%
-42%
Adjusted EBITDA
(3,578)
(4,093)
Recurring operating loss*
(4,960)
(6,379)
Operating loss
(5,105)
(7,143)
Other financial income and expenses
(707)
117
Income tax
99
267
Loss after tax from continuing operations
(5,713)
(6,759)
Profit / (loss) from discontinued operations
(81)
417
Loss after tax attributable to the owners
(5,794)
(6,342)
* H1 2026 recurring operating loss is stated before £0.1m of net non-recurring charges as follows:
- £0.2m of costs mainly related to restructuring fees
- £0.1m of other operating income
Revenue
Revenue for H1 2026 totalled £11.6m, compared with £9.8m in H1 2025, representing an 18% year-on-year growth.
There were differing levels of performance within the Group portfolio, with the Clinical segment performing well and delivering sales of £8.5m, including SCD sales. Following the launch of the Lightbench Discover in H2 2025, the Instrumentation segment grew by circa 30% to £1.3m, from £0.9m, and the RUO segment delivered sales of £1.8m, down 9% on the prior year.
Gross profit
The business delivered a gross profit of £6.4m (56%), compared with £6.5m (66%) in H1 2025. The 10% decline in margin year-on-year is driven by three main items; i) SCD sales which are at a typical distributor margin (circa 40%) diluting the Group margin, ii) release of the stock uplift adjustment related to the fair value of stock acquired as part of the acquisition of SCD, which is a non-cash impacting item and will cease once all acquired stock is sold, which we expect to have occurred by the end of 2026, and iii) reduced sales in Primer Design which generates a margin of over 80%.
Operating expenditure
Group operating costs decreased by £0.3m to £10.3m in H1 2026, compared with £10.6m in H1 2025. However, the H1 2026 figures include circa £0.5m of SCD costs that were not present in 2025. As such, the underlying operating cost has reduced by £0.8m, or 8%.
Headcount at the end of June 2026 was approximately 228, which includes 12 staff supporting the SCD business.
EBITDA & Adjusted EBITDA
The Group reported an EBITDA loss of £3.9m for H1 2026, compared with a loss of £4.1m in H1 2025.
The adjusted EBITDA is a loss of £3.6m when removing the impact of the SCD related stock uplift entry.
Operating loss
The Group reported an operating loss of £5.1m, which is a material reduction (over 25%) compared with a H1 2025 loss of £7.1m. Year-on-year, depreciation and amortisation charges have decreased by circa £1.2m, to £1.1m, predominantly as a result of fully impairing the remaining goodwill and intangible assets associated with the Yourgene Health acquisition at the end of 2025.
Net other operating expenses have decreased from £0.8m to £0.1m in H1 2026, with restructuring costs of £0.2m being the main item making up the H1 2026 charge.
Loss after tax from continuing operations
The Group reported a loss after tax from continuing operations of £5.7m, compared with a loss of £6.8m in H1 2025. Other financial income and expenses netted to a £0.7m expense compared with a £0.1m income in H1 2025. The three key items making up the balance are i) a £0.5m net financial foreign exchange loss, mainly resulting from revaluations of bank and intercompany accounts held in foreign currencies (H1 2025: £0.1m net gain), ii) £0.3m of IFRS 16 lease interest (H1 2025: £0.3m), offset by iii) £0.1m interest income on deposits held in bank accounts (H1 2025: £0.4m), reflecting the reduced cash position year-on-year. The £0.1m taxation income is made up of the movement in the current and deferred tax position.
Earnings per share
The H1 2026 loss per share was £0.08 (H1 2025: £0.09 loss).
Statement of financial position
Assets
Jun-26
Dec-25
Equity and Liabilities
Jun-26
Dec-25
£'000
£'000
£'000
£'000
Goodwill
4,446
2,162
Share capital and premium
55,105
54,594
Right-of-use assets
7,331
7,538
Retained earnings and reserves
(36,383)
(31,222)
Property, plant and equipment
1,168
1,468
Total equity
18,722
23,372
Deferred tax assets
37
37
Other non-current assets
4,672
1,383
Lease liabilities long-term
9,219
9,594
Total non-current assets
17,654
12,588
Deferred tax liabilities
867
37
Contingent consideration
933
-
Inventories
4,519
2,537
Other provisions and long-term liabilities
1,558
1,486
Trade and other receivables
4,716
4,594
Total non-current liabilities
12,577
11,117
Tax receivables
319
456
Other current assets
1,550
1,005
Lease liabilities short-term
1,029
856
Cash and cash equivalents
8,918
19,149
Trade and other liabilities
4,928
4,667
Total current assets
20,022
27,741
Tax liabilities
34
5
Contingent consideration
81
-
Other provisions and short-term liabilities
305
312
Total current liabilities
6,377
5,840
Total Assets
37,676
40,329
Total Equity and Liabilities
37,676
40,329
Acquisition of Southern Cross Diagnostics Pty Ltd
On 2 March 2026, Novacyt UK Holdings Limited, a wholly-owned subsidiary of Novacyt SA, completed the purchase of the entire share capital of Southern Cross Diagnostics Pty Ltd, a profitable Australian distributor of diagnostic and life science products.
The initial purchase price was AUD 8.5m (£4.5m), and was settled in full in cash, with an earn-out of up to AUD 16.5m (£8.7m) available over a four-year period. The acquisition-date fair value of this contingent consideration was estimated at AUD 1.9m (£1.0m) using a probability-weighted expected value model, resulting in total consideration of AUD 10.4m (£5.5m).
.
IFRS 3 provides for a period of 12 months from acquisition to complete the identification and measurement of the fair value of assets acquired and liabilities assumed. This means that the gross amount of goodwill and other intangible assets are subject to adjustment until March 2027. As these interim accounts are unaudited these figures reflect the best estimates of Management and will be verified by our auditor Deloitte, as part of the annual year end audit process.
Non-current assets
Goodwill has increased to £4.4m from £2.2m at 31 December 2025, as a result of the inclusion of goodwill attributable to SCD.
Property, plant and equipment has reduced by £0.3m to £1.2m at 30 June 2026 resulting from the disposal of equipment that is no longer required by the Group as we reduced the number of operational sites.
Other non-current assets have increased by £3.3m to £4.7m at 30 June 2026, as a result of the inclusion of intangibles assets attributable to SCD, the largest being customer relationships.
Current assets
Inventory has increased by £2.0m to £4.5m at 30 June 2026, due to the inclusion of inventory acquired as part of the SCD acquisition.
Trade and other receivables were broadly flat at £4.7m. However, within this balance, trade receivables have increased slightly since December 2025 due to the inclusion of SCD receivable balances, offset by a reduced VAT receivable due to the timing of VAT repayments received from HMRC in the UK.
Non-current liabilities
Lease liabilities long-term have decreased by £0.4m, to £9.2m, driven predominantly by rental payments made in H1 2026.
Deferred tax liabilities have increased by £0.8m, to £0.9m, predominantly as a result of booking a £0.8m deferred tax liability on temporary timing differences relating to the assets acquired as part of the SCD acquisition.
The contingent consideration balance has increased from nil to £0.9m. The balance relates to the possible deferred consideration associated with the SCD acquisition and will be settled upon achievement of certain EBITDA targets over a four-year period. A probability-weighted expected value model was used to estimate the expected earn-out.
Other provisions and long-term liabilities have increased slightly by £0.1m, to £1.6m, due to the inclusion of SCD related provisions.
Current liabilities
Short-term lease liabilities have increased by £0.2m since December 2025, to £1.0m, as a result of the acquisition of SCD and its associated facility leases.
Trade and other liabilities have increased slightly to £4.9m since December 2025 due to the inclusion of SCD liabilities. The mix has also changed due to the timing of invoices received and paid.
Cash flow
Cash held at 30 June 2026 totalled £8.9m compared with £19.1m at 31 December 2025. Net cash used in operating activities was £4.6m for H1 2026, made up of a working capital outflow of £0.7m and an EBITDA loss of £3.9m, compared with a cash outflow of £5.5m in H1 2025.
Net cash used in investing activities increased to £5.4m in H1 2026 compared to £0.2m in H1 2025, as a result of the acquisition of SCD.
Net cash used in financing activities in H1 2026 totalled £0.2m compared with £1.1m in H1 2025. The main items include lease payments totalling £0.7m, offset with the net proceeds from the successful rights raise.
The Group remains debt free at 30 June 2026.
Steve Gibson
Chief Financial Officer
30 September 2026
NOVACYT GROUP
INTERIM ACCOUNTS 2026
Consolidated income statement as at 30 June 2026
Notes
(Unaudited)
Six month
30 June
2026
(Unaudited)
Six month
30 June
2025
Continuing Operations
Revenue
4
11,557
9,793
Cost of sales
6
-5,119
-3,286
Gross profit
6,438
6,507
Sales, marketing and distribution expenses
-2,862
-2,795
Research and development expenses
-2,116
-2,043
General and administrative expenses
-6,436
-8,221
Governmental subsidies
16
173
Operating loss before other operating income/expense
-4,960
-6,379
Other operating income
7
107
328
Other operating expenses
7
-252
-1,092
Operating loss after other operating income/expense
-5,105
-7,143
Financial income
8
1,221
2,436
Financial expense
8
-1,928
-2,319
Loss before tax
-5,812
-7,026
Tax income
9
99
267
Loss after tax from continuing operations
-5,713
-6,759
(Loss) / profit from discontinued operations
-81
417
Loss after tax attributable to owners of the Company (*)
-5,794
-6,342
Loss per share (£)
10
-0.08
-0.09
Diluted loss per share (£)
10
-0.08
-0.09
Loss per share from continuing operations (£)
10
-0.08
-0.10
Diluted loss per share from continuing operations (£)
10
-0.08
-0.10
(Loss) / profit per share from discontinued operations (£)
10
-0.00
0.01
Diluted (loss) / profit per share from discontinued operations (£)
10
-0.00
0.01
(*) There are no non-controlling interests.
Consolidated statement of comprehensive income as at 30 June 2026
(Unaudited)
Six month
30 June
2026
(Unaudited)
Six month
30 June
2025
Loss for the period recognised in the income statement
-5,794
-6,342
Items that may be subsequently reclassified to profit or loss:
Translation reserves
464
-856
Total comprehensive loss
-5,330
-7,198
Comprehensive loss attributable to owners of the Company (*) from:
Continuing operations
-5,249
-7,615
Discontinued operations
-81
417
(*) There are no non-controlling interests.
Statement of financial position as of 30 June 2026
Amounts in £'000
Notes
(Unaudited)
Six month
30 June
2026
(Audited)
Year ended
31 December
2025
Goodwill
4,446
2,162
Other intangible assets
4,649
1,365
Property, plant and equipment
1,168
1,468
Right-of-use assets
7,331
7,538
Non-current financial assets
23
18
Deferred tax assets
37
37
Total non-current assets
17,654
12,588
Inventories and work in progress
11
4,519
2,537
Trade and other receivables
12
4,716
4,594
Tax receivables
319
456
Prepayments and short-term deposits
1,541
995
Investments short-term
9
10
Cash and cash equivalents
8,918
19,149
Total current assets
20,022
27,741
Total assets
37,676
40,329
Lease liabilities short-term
1,029
856
Contingent consideration short-term
81
-
Provisions short-term
13
92
17
Trade and other liabilities
14
4,928
4,667
Tax liabilities
34
5
Other current liabilities
213
295
Total current liabilities
6,377
5,840
Net current assets
13,645
21,901
Lease liabilities long-term
9,219
9,594
Contingent consideration long-term
933
-
Provisions long-term
13
1,558
1,486
Deferred tax liabilities
867
37
Total non-current liabilities
12,577
11,117
Total liabilities
18,954
16,957
Net assets
18,722
23,372
Statement of financial position as of 30 June 2026 (continued)
Amounts in £'000
Notes
(Unaudited)
Six month
30 June
2026
(Audited)
Year ended
31 December
2025
Share capital
15
4,167
4,053
Share premium account
51,049
50,671
Own shares
-111
-130
Other reserves
21,198
20,565
Equity reserves
1,155
1,155
Retained earnings
-58,736
-52,942
Total equity - owners of the Company
18,722
23,372
Total equity
18,722
23,372
Statement of changes in equity as of 30 June 2026
Amounts in £'000
Other Group reserves
Share capital
Share premium
Own shares
Equity reserves
Other
Translation reserve
OCI on retirement benefits
Total
Retained earnings
Total equity
Balance at 1 January 2025
4,053
50,671
-113
1,155
1,184
2,634
-8
3,810
-11,696
47,880
Translation differences
–
–
–
–
–
-1,947
–
-1,947
–
-1,947
Loss for the period
–
–
–
–
–
–
–
–
-22,883
-22,883
Total comprehensive loss for the period
–
–
–
–
–
-1,947
–
-1,947
-22,883
-24,830
Own shares acquired / sold in the period
–
–
-17
–
–
–
–
–
–
-17
Payment in shares
–
–
–
–
339
–
–
339
–
339
Other
–
–
–
–
18,363
–
–
18,363
-18,363
–
Balance at 31 December 2025
4,053
50,671
-130
1,155
19,886
687
-8
20,565
-52,942
23,372
Translation differences
–
–
–
–
–
464
–
464
–
464
Loss for the period
–
–
–
–
–
–
–
–
-5,794
-5,794
Total comprehensive loss for the period
–
–
–
–
–
464
–
464
-5,794
-5,330
Capital increase
114
378
–
–
–
–
–
–
–
492
Own shares acquired / sold in the period
–
–
19
–
–
–
–
–
–
19
Payment in shares
–
–
–
–
169
–
–
169
–
169
Balance at 30 June 2026
4,167
51,049
-111
1,155
20,055
1,151
-8
21,198
-58,736
18,722
The Other Group reserves in column ‘Other’ shows the reserve for payment in shares. The 2025 movement of £339k and the 2026 movement of £169k are related to the Long-Term Incentive Plan (LTIP) implemented in 2024. The other variation in 2025 for £18,363k relates to the reclassification of the reserve for “IFRS2 payment in shares” in Novacyt UK Holdings from Retained earnings to Other Group reserves.
Statement of cash flows as of 30 June 2026
Notes
(Unaudited)
Six month
30 June
2026
(Unaudited)
Six month
30 June
2025
Net cash used in operating activities
16
-4,553
-5,474
Operating cash flows from discontinued operations
-378
-1,357
Operating cash flows from continuing operations
-4,175
-4,117
Investing activities
Sales of property, plant and equipment
17
3
Purchases of patents and trademarks
-268
-366
Purchases of property, plant and equipment
-123
-181
Variation of deposits
-18
46
Acquisition / sale of subsidiaries net of cash acquired
-5,164
-
Interest received
123
327
Net cash used in investing activities
-5,433
-171
Investing cash flows from discontinued operations
-
-
Investing cash flows from continuing operations
-5,433
-171
Financing activities
Repayment of lease liabilities
-746
-1,097
Proceeds on issue of shares
492
-
Purchase of own shares – net
19
-13
Net cash used in financing activities
-235
-1,110
Financing cash flows from discontinued operations
-
-72
Financing cash flows from continuing operations
-235
-1,038
Net decrease in cash and cash equivalents
-10,221
-6,755
Cash and cash equivalents at beginning of year
19,149
30,453
Effect of foreign exchange rate changes
-10
9
Cash and cash equivalents at end of period
8,918
23,707
Notes to the interim financial statements
for the six month period to 30 June 2026
- Corporate Information
Novacyt is an international molecular diagnostics company providing a broad portfolio of integrated technologies and services, primarily focused on the delivery of genomic medicine. The Company develops, manufactures, and commercialises a range of molecular assays and instrumentation to deliver workflows and services that enable seamless end-to-end solutions from sample to result across multiple sectors including human health, animal health and environmental. Its registered office is located at 131 Boulevard Carnot, 78110 Le Vésinet.
The financial information contained in this report comprises the consolidated financial statements of the Company and its subsidiaries (hereinafter referred to collectively as the “Group”). The figures in the tables are prepared and presented in Great British Pounds (“GBP”), rounded to the nearest thousand (“£’000s”).
This condensed consolidated interim financial information does not constitute full statutory accounts. It does not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the twelve months ended 31 December 2025. Statutory accounts for the year ended 31 December 2025 were approved by the Board of Directors and have been delivered to the Registrar of Companies. The auditor’s report on those accounts was unqualified. The financial information for the half years 30 June 2026 and 30 June 2025 is unaudited and the twelve months to 31 December 2025 is audited.
- Summary of accounting policies applied by the Group
The financial statements have been prepared in accordance with IFRS® Accounting Standards, as issued by the International Accounting Standards Board and as adopted by the European Union.
The financial information has been prepared on the historical cost basis except in respect of those financial instruments that have been measured at fair value. Historical cost is based on the fair value of the consideration given in exchange for the goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in the financial information is determined on such a basis, except for leasing transactions that are within the scope of IFRS 16, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in IAS 2 or value in use in IAS 36.
The areas where assumptions and estimates are material in relation to the financial information are the measurement of goodwill (see note 15 of the 2025 Statutory Accounts for further details), the carrying amounts and useful lives of the other intangible assets (see note 16 of the 2025 Statutory Accounts for further details), deferred taxes (see note 19 of the 2025 Statutory Accounts for further details), trade receivables (see note 21 of the 2025 Statutory Accounts and note 12 of the 2026 Interim Accounts for further details) and provisions for risks and other provisions related to the operating activities (see note 27 of the 2025 Statutory Accounts and note 13 of the 2026 Interim Accounts for further details).
The accounting policies set out below have been applied consistently to all periods presented in the financial information.
The accounting policies applied by the Group in these condensed consolidated interim financial statements are substantially the same as those applied by the Group in its financial statements for the year ended 31 December 2025 and which form the basis of the 2026 financial statements. The methodology for selecting assumptions underpinning the fair value calculations has not changed since 31 December 2025.
Basis of consolidation
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between the members of the Group are eliminated on consolidation. The Group’s scope of consolidation included the following companies, all fully consolidated when included in the scope.
At 30 June 2026
At 30 June 2025
Companies & Country
Interest percentage
Consolidation method
Interest percentage
Consolidation method
IT-IS International Ltd
UK
100%
DO
100%
DO
Lab21 Healthcare Ltd
UK
100%
DO
100%
DO
Novacyt US Inc
USA
100%
FC
100%
FC
Novacyt SA
France
100%
FC
100%
FC
Novacyt UK Holdings Ltd
UK
100%
FC
100%
FC
Primer Design Ltd
UK
100%
FC
100%
FC
Yourgene Health Ltd
UK
100%
FC
100%
FC
Yourgene Health UK Ltd
UK
100%
FC
100%
FC
Yourgene Genomic Services Ltd
UK
100%
FC
100%
FC
Yourgene Health SASU
France
100%
FC
100%
FC
Yourgene Health Inc
USA
100%
FC
100%
FC
Yourgene Health GmbH
Germany
100%
FC
100%
FC
Yourgene Health Canada Inc
Canada
100%
FC
100%
FC
Yourgene Health (Singapore) Pte. Ltd
Singapore
100%
FC
100%
FC
Southern Cross Diagnostics Pty. Ltd
Australia
100%
FC
-
-
Legend: FC: Full consolidation
DO: Discontinued operation
On 2 March 2026, Novacyt UK Holdings Limited purchased the entire share capital of Southern Cross Diagnostics Pty. Ltd.
Going concern
The Directors have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they adopt the going concern basis of accounting in preparing the financial statements after having taken into account the available information they have for the future, and especially the cash forecast prepared for the next 12 months.
In preparing this cash forecast, the Directors have considered the following assumptions:
- A positive cash balance at 30 June 2026 of £8,918k;
- The business plan for the next 12 months;
- The working capital requirements of the business;
- No additional external funding has been forecast.
As such, the forecast prepared by the Group shows that it is able to cover its cash needs during the financial year 2026 up until September 2027.
Measurement of goodwill
Goodwill is broken down by cash-generating unit (“CGU”) or group of CGUs, depending on the level at which goodwill is monitored for management purposes. In accordance with IAS 36, none of the CGUs or groups of CGUs defined by the Group are greater in size than an operating segment.
Impairment testing
Such testing consists of comparing the carrying amount of an asset to its recoverable amount. The recoverable amount of an asset, a CGU or a group of CGUs is the greater of its fair value less costs to sell and its value in use. Fair value less costs to sell is the amount obtainable from the sale of an asset, a CGU or a group of CGUs in an arm’s length transaction between well-informed, willing parties, less the costs of disposal. Value in use is the present value of future cash flows expected to arise from an asset, a CGU or a group of CGUs.
It is not always necessary to determine both the fair value of an asset less costs to sell and its value in use. If either of these amounts exceeds the carrying amount of the asset, the asset is not impaired and it is not necessary to estimate the other amount.
Inventories
Inventories are carried at the lower of cost and net realisable value. Cost includes materials and supplies, and, where applicable, direct labour costs incurred in transforming them into their current state. It is calculated using the weighted average cost method. The recoverable amount represents the estimated selling price less any marketing, sales and distribution expenses.
The gross value of goods and supplies includes the purchase price and incidental expenses.
A provision for impairment, equal to the difference between the gross value determined in accordance with the above terms and the current market price or the realisable value less any proportional selling costs, is recognised when the gross value is greater than the other stated item.
Trade receivables
The Group has an established credit policy under which the credit status of each new customer is reviewed before credit is advanced, including external credit evaluations where possible. Credit limits are established for all significant or high-risk customers, which represent the maximum amount permitted to be outstanding without requiring additional approval from the appropriate level of senior management. Outstanding debts are continually monitored by each division. Credit limits are reviewed on a regular basis, and at least annually. Customers that fail to meet the Group’s benchmark creditworthiness may only transact with the Group on a prepayment basis.
Trade receivables are recorded initially at fair value and subsequently measured at amortised cost. This generally results in their recognition at nominal value less an allowance for any doubtful debts. Trade receivables in foreign currency are transacted in their local currency and subsequently revalued at the end of each reporting period, with any foreign exchange differences being recognised in the income statement as an income/expense.
The allowance for doubtful debts is recognised based on Management’s expectation of losses without regard to whether an impairment trigger happened or not (an “expected credit loss” model). Through implementation of IFRS 9, the Group concluded that no real historical default rate could be determined due to a low level of historical write offs across the business. The Group therefore recognises an allowance for doubtful debts on the basis of invoice ageing. Once an invoice is overdue from its due date, based on agreed credit terms, by more than 90 days, this invoice is then more likely to default than those invoices operating within 90 days of their due date. As such, these invoices will be provided for in full as part of an expected credit loss model, except where Management have reviewed and judged otherwise.
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there may be no reasonable expectation of recovery may include the failure of the debtor to engage in a payment plan, and failure to make contractual payments within 365 days of the original due date.
Cash and cash equivalents
Cash equivalents are held to meet short-term cash commitments rather than for investment or other purposes. For an investment to qualify as a cash equivalent, it must be readily convertible into a known amount of cash and be subject to an insignificant risk of change in value. Cash and cash equivalents comprise cash funds, current bank accounts and marketable securities (cash Undertakings for Collective Investment in Transferable Securities (“UCITS”), negotiable debt securities, etc) that can be liquidated or sold within a very short time (generally with original maturities of three months or less) and which have a negligible risk of change in value. All such items are measured at fair value, with any adjustments recognised in the income statement.
Trade payables
Trade payables are obligations to provide cash or other financial assets. They are recognised in the statement of financial position when the Group becomes a party to a transaction generating liabilities of this nature. Trade and other payables are recognised in the statement of financial position at fair value on initial recognition, except if settlement is to occur more than 12 months after recognition. In such cases, they are measured using the amortised cost method. The use of the effective interest rate method will result in the recognition of a financial expense in the income statement. Trade and other payables are eliminated from the statement of financial position when the corresponding obligation is discharged.
Trade payables have not been discounted, because the effect of doing so would be immaterial.
Provisions
In accordance with IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, a provision is recognised when the Group has a current obligation as of the reporting date in respect of a third party and it is probable or certain that there will be an outflow of resources to this third party, without at least equivalent consideration from the said third party. Provisions for risks and charges cover the amount corresponding to the best estimate of the future outflow of resources required to settle the obligation.
The provisions are for the restoration of leased premises, risks related to litigations and product warranties.
Consolidated revenue
IFRS 15 “Revenue from Contracts with Customers” establishes a principles-based approach to recognising revenue only when performance obligations are satisfied, and control of the related goods or services is transferred. It addresses items such as the nature, amount, timing and uncertainty of revenue, and cash flows arising from contracts with customers. IFRS 15 applies a five-step approach to the timing of revenue recognition and applies to all contracts with customers except those in the scope of other standards:
- Step 1 – Identify the contract(s) with a customer
- Step 2 – Identify the performance obligations in the contract
- Step 3 – Determine the transaction price
- Step 4 – Allocate the transaction price to the performance obligations in the contract
- Step 5 – Recognise revenue when (or as) the entity satisfies a performance obligation
The Group principally satisfies its performance obligations at a point in time and revenue recognised relating to performance obligations satisfied over time is not significant. As such, revenue is generally recognised at the point of sale, with little judgement required in determining the timing of transfer of control.
Some contracts with customers contain a limited assurance warranty that is accounted for under IAS 37 (see Provisions accounting policy). If a repair or replacement is not possible under the assurance warranty, a full refund of the product price may be given. The potential refund liability represents variable consideration.
Under IFRS 15.53, the Group can use either:
- The expected value (sum of probability weighted amounts); or
- The most likely amount (generally used when the outcomes are binary).
The method used is not a policy choice. Management use the method that it expects will best predict the amount of consideration based on the terms of the contract. The method is applied consistently throughout the contract. Variable revenue is constrained if appropriate. IFRS 15 requires that revenue is only included to the extent that it is highly probable that there will not be a significant reversal in future periods.
In making this assessment, Management have considered the following factors (which are not exclusive):
- If the amount of consideration is highly susceptible to factors outside the Group’s influence;
- Whether the uncertainty about the amount of consideration is not expected to be resolved for a long period of time;
- The Group’s experience (or other evidence) with similar types of contract;
- The Group has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances; and
- The contract has a large number and broad range of possible consideration amounts.
The decision as to whether revenue should be constrained is considered to be a significant judgement as the term ‘highly probable’ is not defined in IFRS 15. Management consider highly probable to be significantly more likely than probable.
Taxation
Income tax on profit or loss for the period comprises current and deferred tax.
- Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years, and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
A provision is recognised for those matters for which the tax determination is uncertain but it is considered probable that there will be a future outflow of funds to a tax authority. The provisions are measured at the best estimate of the amount expected to become payable. The assessment is the result of the Group’s judgement based on the advice of external tax professionals and supported by previous experience in respect of such activities.
- Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences in the near-term.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered in the near-term.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised based on tax laws and rates that have been enacted or substantively enacted at the reporting date.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Current tax and deferred tax for the year
Current and deferred tax are recognised in the income statement, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.
Research and development tax credits
Primer Design Ltd and Yourgene Health UK Ltd benefit from tax credits in respect of some of their research activities. The company has elected (to be confirmed at the end of FY26) to account for the Research and Development Expenditure Credit (RDEC) as a government subsidy in the period in which the qualifying expenditure is incurred and there is reasonable assurance that the credit will be received and that the company will comply with the conditions attached to the claim.
The related asset is recognised within tax receivables until received or settled.
Profit/loss per share
The Group reports basic and diluted profit/loss per ordinary share. Basic profit/loss per share is calculated by dividing the profit/loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period.
Diluted profit/loss per share is determined by adjusting the profit/loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding, taking into account the effects of all potential dilutive ordinary shares, including options.
Other operating income and expenses
Other operating income and expenses are those incomes or costs that, in the view of the Board of Directors, require separate disclosure by virtue of their size or incidence, and are charged or credited in arriving at operating profit on the face of the consolidated income statement.
- Critical accounting judgements and key sources of estimate uncertainty
In the application of the Group’s accounting policies, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical accounting judgements
- Deferred taxes
Deferred tax assets are only recognised to the extent that it is considered probable that the Group will have future taxable profits against which the corresponding temporary difference can be offset. Deferred tax assets are reviewed at each reporting date and derecognised if it is no longer probable there will be taxable profits against which the deductible temporary differences can be utilised.
For deferred tax assets on tax losses carried forward, the Group uses a multi-criteria approach that takes into account the recovery timeframe based on the strategic plan, but which also factors in the strategy for the long-term recovery of tax losses in each country.
Deferred tax liabilities relate to the assets acquired as part of the Southern Cross Diagnostics acquisition and accelerated capital allowances.
- Trade and other receivables
An estimate of the risks of non-receipt based on commercial information, current economic trends and the solvency of individual customers is made to determine the need for impairment on a customer-by-customer basis. Management use significant judgement in determining whether a credit loss provision is required.
At 30 June 2026, the Group had trade receivables of £4,343k against which a credit loss provision of £217k has been applied.
Key sources of estimation uncertainty
- Measurement of goodwill
Goodwill is tested for impairment on an annual basis. The recoverable amount of goodwill is determined mainly on the basis of forecasts of future cash flows. The total amount of anticipated cash flows reflects Management’s best estimate of the future benefits and liabilities expected for the relevant CGU. The assumptions used and the resulting estimates sometimes cover very long periods, taking into account the technological, commercial and contractual constraints associated with each CGU. These estimates are mainly subject to assumptions in terms of volumes, selling prices and related production costs, and the exchange rates of the currencies in which sales and purchases are denominated. They are also subject to the discount rate used for each CGU.
The value of the goodwill is tested whenever there are indications of impairment and reviewed at each annual closing date or more frequently should this be justified by internal or external events.
- Litigations
The Group may be party to regulatory, judicial or arbitration proceedings which may have an impact on the Group’s financial position.
The Group’s Management regularly reviews current proceedings, their progress and assesses the need to establish appropriate provisions or to change their amount if the occurrence of events during the course of the proceedings necessitates a reassessment of the risk. Internal or external advisors are involved in determining the costs that may be incurred.
The decision to set aside provisions to cover a risk and the amount of such provisions are based on the risk assessment on a case-by-case basis.
- Revenue
The table below shows revenue on a geographical basis:
Amounts in £’000
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Geographical area
United Kingdom
2,482
2,180
France
992
1,083
Europe (excluding UK and France)
2,194
2,015
America
1,474
1,110
Asia-Pacific
3,839
2,875
Middle East
326
304
Africa
250
226
Total revenue
11,557
9,793
Revenue has increased as a result of both organic and inorganic growth through the inclusion of sales from Southern Cross Diagnostics (“SCD”) post-acquisition, that were not present in H1 2025.
Underlying (organic) Group revenue increased by circa 9%, or £800k, when removing sales made to SCD in both periods.
A portion of the Group’s revenue is generated in foreign currencies (particularly in Euros, US Dollars and Australian Dollars). The Group has not hedged against the associated currency risk.
The breakdown of revenue by operating segment and geographic area is presented in note 5.
- Operating segments
Segment reporting
Pursuant to IFRS 8, an operating segment is a component of an entity:
- that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity);
- whose operating results are regularly reviewed by the Group’s Chief Executive to make decisions regarding the allocation of resources to the segment and to assess its performance; and
- for which discrete financial information is available.
The Group has identified three operating segments, whose performance and resources are monitored separately. Following the Group's decision to discontinue the IT-IS International business in 2024, it has been treated as a discontinued operation.
- Yourgene Health
This segment represents the activities of Yourgene Health and its subsidiaries, a genomics technology and services business, focussed on delivering molecular diagnostic and screening solutions, across reproductive health and precision medicine, based throughout the world but with its headquarters in Manchester, UK.
- Primer Design
This segment represents the activities of Primer Design Ltd, which is a designer, manufacturer and marketer of molecular ‘real-time’ qPCR testing devices and reagents in the area of infectious diseases now based in Manchester, UK.
- Southern Cross
This segment represents the activities of Southern Cross Diagnostics, the recently acquired profitable Australian distributor of diagnostic and life science products with its headquarters in Sydney, Australia.
The Group’s central/corporate costs that are not allocated to individual operating segments are shown below under Corporate. Where appropriate, costs are recharged to individual operating segments via a management recharge process.
Intercompany eliminations represent intercompany transactions across the Group that have not been allocated to an individual operating segment. It is not a discrete segment.
The Chief Operating Decision Maker is the Chief Executive Officer.
Reliance on major customers and concentration risk
The Group’s revenue is derived from a broad customer base across multiple geographic regions. In H1 2026, the Group was not dependent on one particular customer and there were no customers generating sales accounting for over 10% of revenue. The Group generated sales from one particular customer accounting for circa 12% of revenue (£1,161k) during H1 2025.
Breakdown of revenue by operating segment and geographic area
- 6 months ended 30 June 2026
Amounts in £'000
Yourgene Health
Primer Design
Southern Cross
Total
Geographical area
United Kingdom
2,044
438
-
2,482
France
926
66
-
992
Europe (excluding UK and France)
1,848
346
-
2,194
America
1,133
341
-
1,474
Asia-Pacific
1,732
265
1,842
3,839
Middle East
94
232
-
326
Africa
100
150
-
250
Total revenue
7,877
1,838
1,842
11,557
- 6 months ended 30 June 2025
Amounts in £'000
Yourgene Health
Primer Design
Total
Geographical area
United Kingdom
1,732
448
2,180
France
988
95
1,083
Europe (excluding UK and France)
1,583
432
2,015
America
756
354
1,110
Asia-Pacific
2,168
707
2,875
Middle East
216
88
304
Africa
111
115
226
Total revenue
7,554
2,239
9,793
Breakdown of result by operating segment
- 6 months ended 30 June 2026
Amounts in £'000
Yourgene Health
Primer Design
Southern Cross
Corporate
Intercompany
Eliminations
Total
Revenue
8,314
1,838
1,856
-
-451
11,557
Cost of sales
-3,721
-303
-1,391
-
296
-5,119
Sales and marketing costs
-1,892
-419
-227
-349
25
-2,862
Research and development
-1,835
-160
-
-121
-
-2,116
General and administrative
-3,552
-928
-715
-123
-25
-5,343
Governmental subsidies
-
16
-
-
-
16
Earnings before interest, tax, depreciation and amortisation as per management reporting
-2,686
44
-477
-593
-155
-3,867
Depreciation and amortisation
-1,093
Operating loss before other operating income/expense
-4,960
Other operating income
107
Other operating expenses
-252
Operating loss after other operating income/expense
-5,105
Financial income
1,221
Financial expense
-1,928
Loss before tax
-5,812
- 6 months ended 30 June 2025
Amounts in £'000
Yourgene Health
Primer Design
Corporate
Intercompany
Eliminations
Total
Revenue
7,554
2,239
-
-
9,793
Cost of sales
-2,946
-360
-
20
-3,286
Sales and marketing costs
-2,010
-505
-293
13
-2,795
Research and development
-1,464
-408
-171
-
-2,043
General and administrative
-4,038
-1,543
-328
-26
-5,935
Governmental subsidies
133
40
-
-
173
Earnings before interest, tax, depreciation and amortisation as per management reporting
-2,771
-537
-792
7
-4,093
Depreciation and amortisation
-2,286
Operating loss before other operating income/expense
-6,379
Other operating income
328
Other operating expenses
-1,092
Operating loss after other operating income/expense
-7,143
Financial income
2,436
Financial expense
-2,319
Loss before tax
-7,026
Assets and liabilities are not reported to the Chief Operating Decision Maker on a segmental basis and are therefore not disclosed.
- Cost of sales
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Cost of inventories recognised as an expense
4,025
2,335
Change in stock provision
-21
196
Stock uplift adjustment
289
-
Freight costs
62
8
Direct labour (including subcontractor costs)
581
606
Other
183
141
Total cost of sales
5,119
3,286
Total cost of sales has increased year-on-year, predominantly as a result of the acquisition of SCD and the inclusion of its associated costs. As per the purchase price allocation on acquisition of SCD, there is a fair value stock uplift adjustment that has a preliminary value of £289k in H1 2026. This will be subject to a detailed audit review at the end of the year by Deloitte and is subject to change.
- Other operating income and expenses
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Other operating income
107
328
Total other operating income
107
328
Acquisition related expenses
-44
-
Restructuring expenses
-173
-718
Loss on disposal of Taiwan subsidiaries
-
-68
Other expenses
-35
-306
Total other operating expenses
-252
-1,092
Other operating expenses has decreased year on year predominantly due to a reduction in restructuring charges following the closure of a number of sites in 2025, that was not repeated in 2026.
- Financial income and expense
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Financial foreign exchange gains
1,095
2,082
Other financial income
126
354
Total financial income
1,221
2,436
Interest on IFRS 16 liabilities
-278
-308
Financial foreign exchange losses
-1,555
-1,949
Discount of financial instruments
-83
-48
Other financial expense
-12
-14
Total financial expense
-1,928
-2,319
Financial foreign exchange gains and losses are driven by revaluations of bank and intercompany accounts held in foreign currencies.
Other financial income relates to interest received on cash balances, which has reduced as our cash pile decreases.
- Tax income
The 2026 financials have been calculated using a UK corporation tax rate of 25%.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
The Group’s tax charge is the sum of the total current and deferred tax.
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Current tax income
Current year tax expense
-4
-56
Deferred tax income
Deferred tax income
103
323
Total tax income in the income statement
99
267
The tax income for the period can be reconciled to the loss before tax as follows:
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Loss before taxation
-5,812
-7,026
Tax at the UK corporation tax rate (25%)
1,453
1,756
Effect of different tax rates of subsidiaries operating in other jurisdictions
-110
-36
Change of the tax rate for the calculation of deferred tax
-
36
Effect of non-deductible expenses and non-taxable income
-79
-174
Utilisation of previous tax losses
735
-
Change in unrecognised deferred tax assets
-1,900
-1,309
Other adjustments
-
-6
Total tax income for the period
99
267
- Loss per share
Amounts
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Net loss attributable to owners of the Company (£’000)
-5,794
-6,342
Weighted average number of shares
71,742,654
70,626,248
Loss per share (£)
-0.08
-0.09
Diluted loss per share (£)
-0.08
-0.09
Loss per share from continuing operations (£)
-0.08
-0.10
Diluted loss per share from continuing operations (£)
-0.08
-0.10
(Loss) / profit per share from discontinued operations (£)
-0.00
0.01
Diluted (loss) / profit per share from discontinued operations (£)
-0.00
0.01
- Inventories and work in progress
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Audited)
Year ended31 December
2025
Raw materials
2,923
2,893
Work in progress
702
767
Finished goods
4,236
2,240
Stock provisions
-3,342
-3,363
Total inventories and work in progress
4,519
2,537
Gross stock has increased in the year due to the inclusion of SCD stock.
- Trade and other receivables
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Audited)
Year ended31 December
2025
Trade and other receivables
4,343
4,059
Expected credit loss provision
-217
-161
Tax receivables – Value Added Tax
372
548
Other receivables
218
148
Total trade and other receivables
4,716
4,594
Trade and other receivables has increased slightly since December 2025 due to the inclusion of SCD receivable balances.
The Tax receivables – Value Added Tax balance has reduced since December 2025 due to the timing of VAT repayments received from HMRC in the UK.
Trade receivables balances are due within one year. Once an invoice is more than 90 days overdue, it is deemed more likely to default and as such, these invoices have been provided for in full as part of an expected credit loss model, except where Management have reviewed and judged otherwise.
- Provisions
The table below shows the nature of and changes in provisions for risks and charges for the period from 31 December 2025 to 30 June 2026:
Amounts in £’000
(Audited)
At 31 December
2025Business combinations
Increases
Reversals
FX impact
(Unaudited)
At 30 June
2026
-
Provisisons for restoration of premises
1,486
-
42
-
-
1,528
Provisions for long service leave
-
9
22
-
-1
30
Provisions long-term
1,486
9
64
-
-1
1,558
Provisions for product warranty
17
-
5
-
-
22
Provisions for long service leave
-
73
2
-4
-1
70
Provisions short-term
17
73
7
-4
-1
92
- Trade and other liabilities
Amounts in £’000
(Unaudited)
Six month
30 June
2026(Audited)
Year ended31 December
2025
Trade payables
2,270
1,317
Accrued invoices
1,452
2,543
Payroll related liabilities
1,059
723
Tax liabilities - Value Added Tax
118
68
Other liabilities
29
16
Total trade and other liabilities
4,928
4,667
Total trade payables and accrued invoices have not materially changed since December 2025, but the mix has due to the timing of invoices received and paid.
- Share capital
Amount of share capital in £‘000
Amount of share capital in €‘000
Unit value per share
in €Number of shares issued
(Audited) At 31 December 2025
4,053
4,708
0.07
70,626,248
Capital increase by Preferential Subscription Rights
114
131
0.07
1,961,840
(Unaudited) At 30 June 2026
4,167
4,839
0.07
72,588,088
As of 30 June 2026, the Company’s share capital of €4,839,205.87 was divided into 72,588,088 shares with a par value of 1/15th of a Euro each. The increase is driven by the successful completion of a preferential subscription rights issue in March 2026.
As of 31 December 2025, the Company’s share capital of €4,708,416.54 was divided into 70,626,248 shares with a par value of 1/15th of a Euro each.
The Company’s share capital consists of one class of share. All outstanding shares have been subscribed, called and paid.
- BUSINESS COMBINATIONS
Acquisition of Southern Cross Diagnostics Pty Ltd
On 2 March 2026, Novacyt UK Holdings Limited, a wholly-owned subsidiary of Novacyt SA, completed the purchase of the entire share capital of Southern Cross Diagnostics Pty Ltd, a profitable Australian distributor of diagnostic and life science products.
The initial purchase price was AUD 8,500k, and was settled in full in cash, with an earn-out of up to AUD 16,500k available over a four-year period. The acquisition-date fair value of this contingent consideration was estimated at AUD 1,872k using a probability-weighted expected value model, resulting in total consideration of AUD 10,372k.
IFRS 3 provides for a period of 12 months from acquisition to complete the identification and measurement of the fair value of assets acquired and liabilities assumed. This means that the gross amount of goodwill and other intangible assets are subject to adjustment until March 2027. As these interim accounts are unaudited these figures reflect the best estimates of Management and will be verified by our auditors as part of the annual year-end audit process.
As a result, the fair value of the assets acquired and the liabilities assumed are now as follows:
Intangible assets
6,212
Property, plant and equipment
64
Right-of-use assets
165
Financial assets
20
Inventory
4,168
Trade receivables
1,247
Other current assets
25
Cash
987
Provisions
-155
Lease liabilities
-170
Dividends payable
-2,325
Deferred tax liabilities
-1,794
Trade payables and accruals
-1,759
Other current liabilities
-763
Fair value of assets acquired and liabilities assumed (in AUD ‘000)
5,922
Purchase price (in AUD ‘000)
10,372
Goodwill (in AUD ‘000)
4,450
Goodwill (in £’000)
2,310
The table above shows how the goodwill figure of £2,310k is arrived at after allocating the purchase price across all the assets and liabilities acquired. The residual goodwill arising from the acquisition reflects the future growth expected to be driven by new and existing customers, the value of the workforce, patents and know-how.
Goodwill is a residual component calculated as the difference between the purchase price for the acquisition of control and the fair value of the assets acquired and liabilities assumed. It includes unrecognised assets such as the value of the personnel and know-how of the acquiree.
The total amount of goodwill that is expected to be deductible for tax purposes is nil.
The gross trade receivables balance in the opening balance sheet totalled AUD 1,247,072 (£658,000) which Novacyt estimates to be fully collectable.
The amount of contingent consideration recognised at acquisition date totalled AUD 1,872,000 (£988,000). This balance represents earn-out milestone payments contingent upon achieving revenue and EBITDA targets over a four-year period.
The acquisition costs of £188,000 incurred by Novacyt only are included in the consolidated income statement across the year ended 31 December 2025 and the six months ended 30 June 2026 within ‘other operating expenses’.
Southern Cross Diagnostics contributed £1,842,000 to consolidated revenue and contributed a profit of £191,000, net of intercompany management fees, in the six months ended 30 June 2026 between its consolidation on 2 March 2026 and 30 June 2026.
- Notes to the cash flow statement
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Loss for the period
-5,794
-6,342
(Loss) / profit from discontinued operations
-81
417
Loss from continuing operations
-5,713
-6,759
Adjustments for:
Depreciation, amortisation, impairment loss and provisions
1,118
2,024
Losses on disposal of assets
16
-295
Charges related to payment in shares (LTIP)
169
170
Other revenues and charges without cash impact
323
207
Income tax credit
-115
-267
Operating cash flows before movements of working capital
-4,283
-4,503
Decrease / (increase) in inventories (*)
184
-708
Decrease / (increase) in receivables
18
-396
(Decrease) / increase in payables
-360
467
Cash used in operations
-4,441
-5,140
Income taxes received / (paid)
11
-7
Finance costs
-123
-327
Net cash used in operating activities
-4,553
-5,474
Operating cash flows from discontinued operations
-378
-1,357
Operating cash flows from continuing operations
-4,175
-4,117
(*) The variation of the inventories value results from the following movements:
Amounts in £'000
(Unaudited)
Six month
30 June
2026(Unaudited)
Six month
30 June
2025
Decrease in the gross value of inventory
205
3,421
Decrease in the stock provision
-21
-4,129
Total variation of the net value of inventories
184
-708
The details for the change in the stock provision are covered in notes 6 and 11.
18. Subsequent events
There are no subsequent events to report.
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