REG - Novacyt S.A. - Further expansion of cost reduction programme

Novacyt SAAnnouncement

14/11/2024 13:30

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RNS Number : 3058M  Novacyt S.A.  14 November 2024

Novacyt S.A.

("Novacyt", the "Company" or the "Group")

 

Further expansion of cost reduction programme

 

Proposed site consolidations expected to deliver c. £2.0m EBITDA improvement

 

Paris, France, Eastleigh and Manchester, UK - 14 November 2024
- Novacyt (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international molecular
diagnostics company with a broad portfolio of integrated technologies and
services, announces proposed changes to its operational footprint which would
lead to a further consolidation of global facilities and is expected to
improve the Group's EBITDA position by an additional £2.0m annually.

 

Proposed closure of Eastleigh site

Following the refocus of the Primer Design business on the Research Use Only
market, and a review of operations as part of a programme to implement further
significant cost savings, the Company announces that it has begun a
consultation process which may result in the closure of its Eastleigh site and
relocation of the business to the Group's Manchester facility. A further
announcement will be released in respect of the outcome of the consultation
process in due course.

 

Transfer of Canada manufacturing operations to Manchester

In addition, the Company is in the process of closing Yourgene Health Canada's
manufacturing site and relocating its operations to the Group's Manchester
facility, where the manufacture of Ranger® instrumentation and consumables
will take place. Yourgene Health Canada's research and development facility on
Vancouver Island, responsible for developing improvements and updates to the
Ranger® Technology portfolio, will remain in place.

 

Should the relocation of the Eastleigh operations proceed, the combined
consolidations are expected to improve the Group's EBITDA position by c.
£2.0m annually. A cash restructuring charge of c. £1.5m is expected in
connection with the combined closures.

 

Lyn Rees, CEO of Novacyt, commented: "Whilst a difficult decision,
consolidating our sites and having the Group's manufacturing based at our
Manchester facility would provide a significant reduction in our cost base,
in-line with our strategy. If completed, we believe that this move would
benefit the entirety of the Novacyt business and represent a key step in
right-sizing our cost base and better positioning us to deliver future growth,
and we have the capacity and expertise at our Manchester facility to ensure
that there is no impact on our customers as a result of any site
consolidations.

 

"We will begin the consultation regarding the Eastleigh site closure in due
course and will provide an update to the market following the conclusion of
the process."

 

Contacts

 

 Novacyt SA                                                              https://novacyt.com/investors (https://novacyt.com/investors/)
 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)

 Deutsche Numis (Joint Broker)                                                                                    +44 (0)20 7260 1000
 Freddie Barnfield / Duncan Monteith / Michael Palser

 Allegra Finance (French Listing Sponsor)       +33 (1) 42 22 10 10

                                             r.durgetto@allegrafinance.com (mailto:r.durgetto@allegrafinance.com) /
 Rémi Durgetto / Yannick Petit                 y.petit@allegrafinance.com (mailto:y.petit@allegrafinance.com)

 Walbrook PR (Financial PR & IR)                                         +44 (0)20 7933 8780 or novacyt@walbrookpr.com (mailto:novacyt@walbrookpr.com)

 Paul McManus / Lianne Applegarth                                        +44 (0)7980 541 893 / +44 (0)7584 391 303

 Phillip Marriage / Alice Woodings                                        +44 (0)7867 984 082 / +44 (0)7407 804 654

 

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 Vélizy-Villacoublay in France with offices in the
UK (in Eastleigh and Manchester), Singapore, the US and Canada and has a
commercial presence in over 65 countries. 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

 

 

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