REG - Novacyt S.A. - 2025 Interim results
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RNS Number : 3027B Novacyt S.A. 30 September 2025
Novacyt S.A.
("Novacyt", the "Company" or the "Group")
2025 Interim results
Paris, France, and Manchester, UK - 30 September 2025 - Novacyt S.A. (EURONEXT
GROWTH: ALNOV; AIM: NCYT), the 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 2025, which was a
period of consolidation, positioning the Company for long-term growth.
Financial Highlights (unaudited)
· The underlying Group revenue has grown by circa 2% (4% on a constant
currency basis), excluding the impact of the Taiwan service laboratory
divestment
· Unaudited Group statutory revenue for H1 2025 of £9.8m (H1 2024:
£10.0m)
· The Group reports strong demand from the reproductive range of
products, with a 10% increase in the NIPT Technologies segment year-on-year to
£2.4m
· Geographically, the APAC region achieved year-on-year growth of circa
9%, driven by the continued strong demand for the Company's Reproductive
Health range of products
· Group gross margin of the business remained strong at 66% (H1 2024:
67%)
· The Group invested an incremental circa £0.7m in R&D during H1
to accelerate the launch of new products
· Group EBITDA loss before exceptional items reduced to £4.1m in H1
2025 (H1 2024: £5.0m loss), predominantly driven by the cost saving
initiatives implemented by the Group
· Cash position at 30 June 2025 was £23.7m (31 December 2024:
£30.5m), and the Group remains debt free. Cash at the end of August 2025 was
£22.5m
Operational Highlights (including post period-end)
· LightBench® Discover, a high-precision instrument for genomic research
labs conducting long-read sequencing, launched in July 2025 with encouraging
initial sales
· Received accreditation under the new EU requirements of the In Vitro
Diagnostic Regulation ("IVDR") for the Yourgene QST*R Base assay, as well as
for Yourgene Cystic Fibrosis Base, which is widely used for newborn screening
· Conclusion of HSE prosecution trial of Lab 21 Healthcare Ltd
Commenting on the results Lyn Rees, Chief Executive Officer, said: "We are
pleased to deliver an improved H1 2025 compared to last year with the Group
well positioned to implement and accelerate its future growth plans. As the
Company has now completed its restructuring programmes, the Group is now
focused on expanding adoption of its leading product set globally and
investing in product innovation, backed by a robust balance sheet to see the
Group through to EBITDA profitability. We look forward to detailing the
growth plan before the end of year, in which we will provide guidance for the
2025 full year and beyond."
This announcement contains inside information for the purposes of Article 7
of Regulation (EU) 596/2014.
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)
Singer Capital Markets (Joint Broker) +44 (0) 20 7496 3000
Tom Salvesen / Phil Davies / James Fischer / Samed Ethemi
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
Walbrook PR (Financial PR & IR) +44 (0)20 7933 8780 or novacyt@walbrookpr.com
Paul McManus / Lianne Applegarth +44 (0)7980 541 893 / +44 (0)7584 391 303
Alice Woodings +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 Le Vésinet in France with offices in the UK
(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
(http://www.novacyt.com)
Chief Executive's review
We are pleased to deliver an improved H1 2025 result compared to last year, as
we have continued to streamline our operations, in order to restructure and
consolidate the Group to unlock the next phase of growth. The cost savings
delivered have further strengthened our balance sheet and enabled the Group to
prioritise investment into R&D to accelerate the launch of new products
and position the Group for long-term profitable growth. As such, the board
remains confident that it has enough cash to see the Group through to EBITDA
profitability based on the organic growth plan.
Clinical
The Clinical business which is focused across three key strategic pillars:
Reproductive Health, Precision Medicine and Infectious Diseases, has
generated sales of £6.9m (H1 2024: £7.0m). Whilst sales are marginally down
on the period, the Group reports strong demand from the Company's reproductive
range of products, with a 10% increase in the NIPT Technologies segment,
during the period.
As detailed in the Group's full year results, the Company received
accreditation under the new EU requirements of the In Vitro Diagnostic
Regulation ("IVDR") for the Yourgene QST*R Base assay in February 2025.
This is the third of Novacyt's products to be IVDR accredited demonstrating
the high quality and accuracy of the Group's products and the exceptional
ability of the regulatory team to navigate the stringent new regulatory
environment for in vitro diagnostic tests. Novacyt remains committed to
progressing its key products through the IDVR process to ensure that they can
be used in the clinical setting.
Reproductive health
Our Non-invasive prenatal testing ("NIPT") technology portfolio had another
strong period generating revenues of £2.4m (H1 2024: £2.1m), up over 10%
year-on-year driven by a number of new customer installations rolling out in
H2 2024 and recurring consumable revenue streams that have now been
recognised. In addition, during H1 2025 the Group installed several new NIPT
accounts across the APAC region, with growth up c.9% year-on-year in this
region.
The Company continues to see steady growth in Yourgene Cystic Fibrosis Base
uptake for CF screening in Australia, driven by the nationwide reimbursement
pathway for CF screening introduced by the Australian government last year.
This pathway enables eligible Australians to receive CF screening either
before or early in pregnancy with adoption expected to continue over the
coming years.
Precision Medicine
We continue to work on an enhanced dihydropyrimidine dehydrogenase ("DPYD")
product assay which meets the current testing guidelines from AMP/ACMG/CPIC,
which is expected to launch in Q1 2026. The test helps identify cancer
patients at risk of suffering a severe and potentially life-threatening
reaction to common chemotherapy.
Instrumentation
Post period end, the Company launched LightBench® Discover, a high-precision
3-in-1 instrument for genomic research labs conducting long-read sequencing
which was one of the four new products launches Novacyt expected in 2025.
LightBench® Discover combines DNA size selection, large fragment analytics
and fluorometric quantification into one integrated single benchtop solution
that replaces the need for multiple instruments in labs conducting long-read
HiFi sequencing.
While the instrumentation segment was flat, year-on-year reporting revenues of
£0.9m (H1 2024: £0.9m), as expected whilst labs awaited the new instrument,
we expect to see this segment grow in H2 given the feedback we have already
received from customers on the cost-effective LightBench® Discover product.
H2 has started well, demonstrated by selling four units since launch, and the
Board can confirm a strong forward pipeline.
RUO
Although the Research Use Only (RUO) segment is slightly down on the prior
period, delivering sales of £2.0m (H1 2024: £2.1m), the Company has been
re-mapping the route to market for Primerdesign RUO products and has launched
of an online shop which went live post-period in August 2025, optimising its
distribution channels to drive growth.
New products
The Group has previously announced its investment in R&D to support the
introduction of new products to the portfolio and deliver future organic
revenue growth. The first product, LightBench® Discover, launched
successfully in July 2025, with the Company already rolling out and placing
four instruments with new customers.
The R&D team have also been working hard on developing a bespoke NIPT
solution to meet a change in reimbursement in Thailand where elements of the
NIPT workflow needed to be regulated by Thai Food and Drug Administration.
This is now being installed in customer laboratories across Thailand.
Finally, there are two other RUO products in development which are on track to
be launched before the end of the calendar year, which will mark the
completion of four new product launches planned for 2025.
HSE update
This month the Lab 21 Healthcare Ltd ("Lab 21") HSE prosecution was resolved
and concluded with no further legal action expected. This followed a
sentencing hearing which took place in respect of the legal proceedings
brought against Lab 21, a non-trading subsidiary of Novacyt, in relation to
Lab 21's site based at Axminster, Devon for the use of biological agents at
the site. Lab 21 pleaded guilty at Exeter Magistrates Court to health and
safety charges relating to the historical operation at the site, between June
2018 and April 2019. The court granted full recognition for an early guilty
plea with Lab 21 being ordered to pay a fine of £52,000. The fine was paid
from existing cash resources which did not materially affect the Group's
financial position.
Outlook
As the Company has now completed its cost saving programmes, realised in terms
of reduced cost and reduced cash spend, the Group remains confident that it
has enough cash to see it through to EBITDA profitability based on the organic
growth plan. Historic legacy issues, such as HSE case, are now resolved,
enabling the leadership team to focus solely on business growth and the
delivery of new products following R&D investment. The Company will update
the market on its forward-looking strategy by the end of 2025, in which it
will provide guidance for the 2025 full year and beyond.
1. ABRF - Association of Biomolecular Resource Facilities
2. ESHG - European Society of Human Genetics
Lyn Rees
Chief Executive Officer
30 September 2025
FINANCIAL REVIEW
Overview
Novacyt's H1 2025 performance delivered sales of £9.8m, an EBITDA loss of
£4.1m and a loss after tax of £6.8m, which is a material improvement on the
prior year. Novacyt continued to execute on right sizing its cost base by
closing a number of operational sites, whilst re-investing an element of those
savings into R&D to deliver future organic revenue growth.
Cash at 30 June 2025 was £23.7m, providing the Group with a solid foundation
on which to build and execute its future strategy.
Income statement
Continuing operations H1 2025 H1 2024
£'000 £'000
Revenue 9,793 9,973
Gross profit 6,507 26,428
Gross profit % 66% 265%
OPEX (10,600) (31,449)
EBITDA (4,093) (5,021)
EBITDA % -42% -50%
Recurring operating loss* (6,379) (8,346)
Operating loss (7,143) (16,382)
Other financial income and expenses 117 (803)
Income tax 267 219
Loss after tax from continuing operations (6,759) (16,966)
Profit / (loss) from discontinued operations 417 (733)
Loss after tax attributable to the owners (6,342) (17,699)
* H1 2025 recurring operating loss is stated before £0.8m of net
non-recurring charges as follows:
1. £0.7m of costs mainly related to site closures
2. £0.4m of other costs including litigation advice
3. £0.3m income relating to a historic VAT reclaim
Revenue
Revenue for H1 2024 totalled £9.8m, compared with £10.0m in H1 2024.
However, excluding the impact of the Taiwan service laboratory divestment,
revenue grew year-on-year by around 2%.
There were differing levels of performance within the Group portfolio, with
the Clinical segment performing well and delivering sales of £6.9m. NIPT
technologies (within the Clinical segment) saw double digit growth delivering
£2.4m of revenue, up from £2.1m in the prior year. The RUO segment delivered
sales of £2.0m, down slightly on the prior year's £2.1m of revenue, and the
Instrumentation segment was flat year-on-year at £0.9m.
Gross profit
The business delivered a gross profit of £6.5m (66%), compared with £6.7m
(67%), excluding the impact of the DHSC settlement, in H1 2024.
Operating expenditure
Group operating costs decreased by £20.8m to £10.6m in H1 2025, compared
with £31.4m in H1 2024, predominantly as a result of booking a £20.0m bad
debt write-off following the settlement with the DHSC in 2024. As such, the
underlying operating cost has reduced by £0.8m year-on-year.
Headcount at the end of June 2025 was approximately 230, a reduction from the
position at year end of around 240.
EBITDA
The Group reported an EBITDA loss of £4.1m for H1 2025, compared with a loss
of £5.0m in H1 2024. The loss has decreased by around 20%, which has been
driven by further cost reductions resulting from closing a number of
operational sites, whilst re-investing an element of those savings into
R&D.
Operating loss
The Group reported an operating loss of £7.1m compared with a 2024 loss of
£16.4m. Year-on-year, depreciation and amortisation charges have decreased by
circa £1.0m, to £2.3m, predominantly resulting from a number of items being
fully depreciated.
Net other operating expenses have decreased from £8.0m to £0.8m in H1 2025,
as the 2024 results included costs associated with the DHSC dispute. The main
items making up the H1 2025 charge are £0.7m of site closure costs including
redundancy fees, £0.4m relating to a range of non-repeating items including
litigation costs, offset by a one-off income of £0.3m relating to a historic
VAT reclaim.
Loss after tax from continuing operations
The Group reported a loss after tax of £6.8m, compared with a loss of £17.0m
in H1 2024. Other financial income and expenses netted to a £0.1m income
compared with a £0.8m expense in H1 2024. The three key items making up the
balance are i) a £0.1m net financial foreign exchange gain, mainly resulting
from revaluations of bank and intercompany accounts held in foreign currencies
(H1 2024: £1.1m net loss), ii) £0.3m of IFRS 16 lease interest (H1 2024:
£0.4m), offset by iii) £0.4m interest income on deposits held in bank
accounts (H1 2024: £0.7m), reflecting the reduced cash position year-on-year.
The £0.3m taxation income is made up of the movement in the current and
deferred tax position.
Earnings per share
The H1 2025 loss per share was £0.09 (H1 2024: £0.25 loss).
Statement of financial position
Assets Jun-25 Dec-24 Equity and Liabilities Jun-25 Dec-24
£'000 £'000 £'000 £'000
Goodwill 2,730 2,669 Share capital and premium 54,598 54,611
Right-of-use assets 8,137 8,294 Retained earnings and reserves (13,759) (6,731)
Property, plant and equipment 1,833 2,407 Total equity 40,839 47,880
Deferred tax assets 132 286
Other non-current assets 16,400 17,600 Lease liabilities long-term 9,991 10,621
Total non-current assets 29,232 31,256 Deferred tax liabilities 3,949 4,445
Other provisions and long-term liabilities 1,450 1,466
Inventories 2,976 2,269 Total non-current liabilities 15,390 16,532
Trade and other receivables 4,885 4,717
Tax receivables 456 477 Lease liabilities short-term 956 1,257
Other current assets 1,665 1,460 Trade and other liabilities 4,755 3,767
Cash and cash equivalents 23,707 30,453 Tax liabilities 73 47
Total current assets 33,689 39,376 Other provisions and short-term liabilities 908 1,149
Total current liabilities 6,692 6,220
Total Assets 62,921 70,632 Total Equity and Liabilities 62,921 70,632
Non-current assets
Property, plant and equipment has reduced by £0.6m resulting from the
disposal of equipment that is no longer required by the Group as we reduce the
number of operational sites.
Other non-current assets have decreased by £1.2m to £16.4m at 30 June 2025,
driven by the amortisation of intangible assets.
Current assets
Trade and other receivables have increased by £0.2m since December 2024, to
£4.9m, as a result of higher revenue in May and June 2025 compared with
November and December 2024.
Inventory has increased by £0.7m to £3.0m at 30 June 2025, to ensure that we
meet current and future expected demand for our key products, including our
newly launched LightBench® Discover instrument.
Tax receivables remain at circa £0.5m with the current balance relating to
research and development tax claim accruals covering 2023, 2024 and 2025.
Non-current liabilities
Lease liabilities long-term have decreased by £0.6m, to £10.0m, driven
predominantly by rental payments made in H1 2025.
Deferred tax liabilities on temporary timing differences predominantly relate
to the assets acquired as part of the Yourgene acquisition in September 2023
and accelerated capital allowances. Deferred tax liabilities have decreased to
£3.9m, from £4.4m in December 2024, in line with the reduction in intangible
assets.
Current liabilities
Short-term lease liabilities have fallen by £0.3m since December 2024, to
£1.0m, primarily as a result of surrendering two facility leases, as part of
the site consolidation programme.
Other provisions and short-term liabilities have fallen slightly to £0.9m and
includes the estimated cost (legal fees and penalty) of settling the Lab21
Health and Safety Executive legal case. On 11 September the court gave its
final ruling on the matter and imposed a fine of £52k, which the company has
now paid.
Trade and other liabilities increased from £3.8m to £4.8m at 30 June 2025,
due to the timing of invoices received and paid.
Cash flow
Cash held at 30 June 2025 totalled £23.7m compared with £30.5m at 31
December 2024. Net cash used in operating activities was £5.5m for H1 2025,
made up of a working capital outflow of £1.4m and an EBITDA loss of £4.1m,
compared with a cash outflow of £9.1m in H1 2024.
Net cash used in investing activities reduced to £0.2m in H1 2025 compared to
£1.1m in H1 2024, largely as a result of the contingent consideration
(related to the Coastal Genomics acquisition) that was paid in H1 2024 not
repeating in 2025. Capital expenditure reduced year-on-year, but this was
offset by reduced interest income on our decreasing cash pile.
Net cash used in financing activities in H1 2025 totalled £1.1m compared with
£0.9m in H1 2024, with the main cash outflow continuing to be lease payments.
The Group remains debt free at 30 June 2025.
Steve Gibson
Chief Financial Officer
30 September 2025
Consolidated income statement as at 30 June 2025
Amounts in £'000 Notes (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024 (*)
Continuing Operations
Revenue 4 9,793 9,973
Cost of sales 6 -3,286 16,455
Gross profit 6,507 26,428
Sales, marketing and distribution expenses -2,795 -2,968
Research and development expenses -2,043 -1,332
General and administrative expenses -8,221 -30,474
Governmental subsidies 173 -
Operating loss before other operating income/expense -6,379 -8,346
Other operating income 7 328 -
Other operating expenses 7 -1,092 -8,036
Operating loss after other operating income/expense -7,143 -16,382
Financial income 8 2,436 2,095
Financial expense 8 -2,319 -2,898
Loss before tax -7,026 -17,185
Tax income 9 267 219
Loss after tax from continuing operations -6,759 -16,966
Profit / (loss) from discontinued operations 417 -733
Loss after tax attributable to owners of the Company (**) -6,342 -17,699
Loss per share (£) 10 -0.09 -0.25
Diluted loss per share (£) 10 -0.09 -0.25
Loss per share from continuing operations (£) 10 -0.10 -0.24
Diluted loss per share from continuing operations (£) 10 -0.10 -0.24
Profit / (loss) per share from discontinued operations (£) 10 0.01 -0.01
Diluted profit / (loss) per share from discontinued operations (£) 10 0.01 -0.01
(*) The H1 2024 consolidated income statement has been restated to reflect the
impact of the application of IFRS 5 relative to discontinued operations, by
stating the IT-IS International activity on a single line 'Loss from
discontinued operations'.
(**) There are no non-controlling interests.
Consolidated statement of comprehensive income as at 30 June 2025
Amounts in £'000 (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024 (*)
Loss for the period recognised in the income statement -6,342 -17,699
Items that may be subsequently reclassified to profit or loss:
Translation reserves -856 794
Total comprehensive loss -7,198 -16,905
Comprehensive loss attributable to owners of the Company (**) from:
Continuing operations -7,615 -16,172
Discontinued operations 417 -733
(*) The H1 2024 consolidated statement of comprehensive income has been
restated to reflect the impact of the application of IFRS 5 relative to
discontinued operations, by stating the IT-IS International activity on a
single line 'Loss from discontinued operations'.
(**) There are no non-controlling interests.
Statement of financial position as of 30 June 2025
Amounts in £'000 Notes (Unaudited) (Audited)
Six month
30 June Year ended
2025
31 December
2024
Goodwill 2,730 2,669
Other intangible assets 16,399 17,575
Property, plant and equipment 1,833 2,407
Right-of-use assets 8,137 8,294
Non-current financial assets 1 25
Deferred tax assets 132 286
Total non-current assets 29,232 31,256
Inventories and work in progress 11 2,976 2,269
Trade and other receivables 12 4,885 4,717
Tax receivables 456 477
Prepayments and short-term deposits 1,655 1,452
Investments short-term 10 8
Cash and cash equivalents 23,707 30,453
Total current assets 33,689 39,376
Total assets 62,921 70,632
Lease liabilities short-term 956 1,257
Provisions short-term 13 551 748
Trade and other liabilities 14 4,755 3,767
Tax liabilities 73 47
Other current liabilities 357 401
Total current liabilities 6,692 6,220
Net current assets 26,997 33,156
Lease liabilities long-term 9,991 10,621
Provisions long-term 13 1,450 1,466
Deferred tax liabilities 3,949 4,445
Total non-current liabilities 15,390 16,532
Total liabilities 22,082 22,752
Net assets 40,839 47,880
Statement of financial position as of 30 June 2025 (continued)
Amounts in £'000 Notes (Unaudited) (Audited)
Six month Year ended
30 June
31 December
2025
2024
Share capital 15 4,053 4,053
Share premium account 50,671 50,671
Own shares -126 -113
Other reserves 3,121 3,810
Equity reserves 1,155 1,155
Retained earnings -18,035 -11,696
Total equity - owners of the Company 40,839 47,880
Total equity 40,839 47,880
Statement of changes in equity as of 30 June 2025
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 2024 4,053 50,671 -138 1,155 846 761 -8 1,599 29,902 87,242
Translation differences - - - - - 1,873 - 1,873 - 1,873
Loss for the period - - - - - - - - -41,758 -41,758
Total comprehensive loss for the period - - - - - 1,873 - 1,873 -41,758 -39,885
Own shares acquired / sold in the period - - 25 - - - - - - 25
Payment in shares - - - - 338 - - 338 - 338
Other - - - - - - - - 160 160
Balance at 31 December 2024 4,053 50,671 -113 1,155 1,184 2,634 -8 3,810 -11,696 47,880
Translation differences - - - - - -856 - -856 - -856
Loss for the period - - - - - - - - -6,342 -6,342
Total comprehensive loss for the period - - - - - -856 - -856 -6,342 -7,198
Own shares acquired / sold in the period - - -13 - - - - - - -13
Payment in shares - - - - 167 - - 167 3 170
Balance at 30 June 2025 4,053 50,671 -126 1,155 1,351 1,778 -8 3,121 -18,035 40,839
The Other Group reserves in column 'Other' include the impacts of the
acquisition of Primer Design in 2016 and Yourgene Health in 2023. It also
shows the movement in the reserve for payment in shares totalling £167k in
2025 in relation to the LTIP scheme that was implemented in 2024.
Statement of cash flows as of 30 June 2025
Amounts in £'000 Notes (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Net cash used in operating activities 16 -5,474 -9,087
Operating cash flows from discontinued operations -1,357 -268
Operating cash flows from continuing operations -4,117 -8,819
Investing activities
Sales of property, plant and equipment 3 -
Purchases of patents and trademarks -366 -104
Purchases of property, plant and equipment -181 -738
Variation of deposits 46 -84
Acquisition / sale of subsidiaries net of cash acquired - -898
Interest received 327 691
Net cash used in investing activities -171 -1,133
Investing cash flows from discontinued operations - -1
Investing cash flows from continuing operations -171 -1,132
Financing activities
Repayment of lease liabilities -1,097 -900
Purchase of own shares - net -13 39
Net cash used in financing activities -1,110 -861
Financing cash flows from discontinued operations -72 -46
Financing cash flows from continuing operations -1,038 -815
Net decrease in cash and cash equivalents -6,755 -11,081
Cash and cash equivalents at beginning of year 30,453 44,054
Effect of foreign exchange rate changes 9 -34
Cash and cash equivalents at end of period 23,707 32,939
Notes to the interim financial statements
for the six month period to 30 june 2025
1. 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
2024. Statutory accounts for the year ended 31 December 2024 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 2025 and 30 June 2024 is unaudited and
the twelve months to 31 December 2024 is audited.
2. Summary of accounting policies applied by the Group
The financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS® Accounting Standards), 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 16 of the 2024
Statutory Accounts for further details), the carrying amounts and useful lives
of the other intangible assets (see note 17 of the 2024 Statutory Accounts for
further details), deferred taxes (see note 20 of the 2024 Statutory Accounts
for further details), trade receivables (see note 22 of the 2024 Statutory
Accounts and note 12 of the 2025 Interim Accounts for further details) and
provisions for risks and other provisions related to the operating activities
(see note 29 of the 2024 Statutory Accounts and note 13 of the 2025 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 2024 and
which form the basis of the 2025 financial statements. The methodology for
selecting assumptions underpinning the fair value calculations has not changed
since 31 December 2024.
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 2025 At 30 June 2024
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 Inc USA - - 100% FC
Microgen Bioproducts Ltd UK - - 100% DO
Novacyt SA France 100% FC 100% FC
Novacyt Asia Ltd Hong Kong - - 100% FC
Novacyt China Ltd China - - 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 Holdings Ltd Canada - - 100% FC
Yourgene Health Canada Investments Ltd Canada - - 100% FC
Yourgene Health Canada Inc Canada 100% FC 100% FC
Yourgene Health (Singapore) Pte. Ltd Singapore 100% FC 100% FC
Yourgene Health (Taiwan) Co. Ltd Taiwan - - 100% FC
Elucigene Ltd UK - - 100% FC
Delta Diagnostics Ltd UK - - 100% DO
Legend: FC: Full consolidation
DO: Discontinued operation
Novacyt Inc was dissolved on 20 December 2024.
Yourgene Health Canada Holdings Limited, Yourgene Health Canada Investments
Limited and Yourgene Health Canada Inc were amalgamated on 1 January 2025.
Following the amalgamation, the entity is named Yourgene Health Canada Inc.
Delta Diagnostics Ltd was dissolved on 4 February 2025.
Microgen Bioproducts Ltd was dissolved on 1 April 2025.
Elucigene Ltd was dissolved on 29 April 2025.
Novacyt Asia Ltd was dissolved on 2 May 2025.
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 2025 of £23,707k;
- 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 2025 up until September 2026.
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
Goodwill is not amortised but is subject to impairment testing when there is
an indication of loss of value, and at least once a year at the reporting
date.
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 FY25) 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.
3. 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 Yourgene
Health 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 2025, the Group had trade receivables of £4,303k against which a
credit loss provision of £337k 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,
Management's assessment of the unfavourable nature of the outcome of the
proceeding in question (probability) and the ability to reliably estimate the
associated amount.
4. Revenue
The table below shows revenue on a geographical basis:
Amounts in £'000 (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Geographical area
United Kingdom 2,180 2,263
France 1,083 1,270
Europe (excluding UK and France) 2,015 1,804
America 1,110 1,380
Asia-Pacific 2,875 2,646
Middle East 304 331
Africa 226 279
Total revenue 9,793 9,973
Revenue has decreased as a result of the Taiwan service laboratory divestment,
but, excluding this impact, the underlying Group revenue has grown by circa 2%
(4% on a constant currency basis).
A portion of the Group's revenue is generated in foreign currencies
(particularly in Euros and US 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.
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 two 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.
o 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.
o 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.
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. However, during H1 2025 the Group generated sales from one
particular customer accounting for circa 12% of revenue (£1,161k). This
revenue is reported in the Yourgene Health segment. No other customer
contributed 10% or more to the Group's revenue during the reporting period. In
H1 2024 there were no customers generating sales accounting for over 10% of
revenue.
Breakdown of revenue by operating segment and geographic area
o 6 month 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
o 6 month ended 30 June 2024
Amounts in £'000 Yourgene Health Primer Design Total
Geographical area
United Kingdom 1,698 565 2,263
France 1,143 127 1,270
Europe (excluding UK and France) 1,413 391 1,804
America 965 415 1,380
Asia-Pacific 2,245 401 2,646
Middle East 240 91 331
Africa 86 193 279
Total revenue 7,790 2,183 9,973
Breakdown of result by operating segment
o 6 month ended 30 June 2025
Amounts in £'000 Yourgene Health Primer Design Corporate Intercompany Total
Eliminations
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 -2,771 -537 -792 7 -4,093
reporting
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
o 6 month ended 30 June 2024
Amounts in £'000 Yourgene Health Primer Design Corporate Intercompany Total
Eliminations
Revenue 7,790 2,183 - - 9,973
Cost of sales -2,937 19,391 - 1 16,455
Sales and marketing costs -1,990 -724 -254 - -2,968
Research and development -820 -382 -130 - -1,332
General and administrative -5,118 -21,574 -346 -111 -27,149
Earnings before interest, tax, depreciation and amortisation as per management -3,075 -1,106 -730 -110 -5,021
reporting
Depreciation and amortisation -3,325
Operating loss before other operating income/expense -8,346
Other operating income -
Other operating expenses -8,036
Operating loss after other operating income/expense -16,382
Financial income 2,095
Financial expense -2,898
Loss before tax -17,185
Assets and liabilities are not reported to the Chief Operating Decision Maker
on a segmental basis and are therefore not disclosed.
In accordance with IFRS 5, the results of the IT-IS International segment for
2025 and 2024 have been reported on a separate line 'Profit / (loss) from
discontinued operations' in the consolidated income statement, which is shown
below loss before tax and thus is not reported in the table above.
6. Cost of sales
Amounts in £'000 (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Cost of inventories recognised as an expense 2,335 3,341
Change in stock provision 196 -1,015
Freight costs 8 20
Direct labour (including subcontractor costs) 606 872
Reversal of DHSC related product warranty provision - -19,753
Other 141 80
Total cost of sales 3,286 -16,455
Total cost of sales is flat year-on-year, excluding the impact of the DHSC
product warranty provision release in 2024 for £19,753k.
7. Other operating income and expenses
Amounts in £'000 (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Other operating income 328 -
Total other operating income 328 -
Acquisition related expenses - -29
DHSC contract dispute costs - -7,372
Restructuring expenses -718 -379
Loss on disposal of Taiwan subsidiaries -68 -
Other expenses -306 -256
Total other operating expenses -1,092 -8,036
Restructuring expenses in 2025 relate to Group-wide restructuring charges,
predominantly associated with site closures, as the Group continues to reduce
its cost base.
2024 DHSC contract dispute costs relate to legal and professional fees and
product storage costs incurred in the resolution of the commercial dispute.
The settlement figure of £5,000k that was paid to the DHSC in July 2024 is
included within this category.
8. Financial income and expense
Amounts in £'000 (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Financial foreign exchange gains 2,082 1,380
Other financial income 354 715
Total financial income 2,436 2,095
Interest on IFRS 16 liabilities -308 -350
Financial foreign exchange losses -1,949 -2,470
Discount of financial instruments -48 -42
Other financial expense -14 -36
Total financial expense -2,319 -2,898
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.
9. Tax income
The 2025 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) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Current tax income
Current year tax (expense) / income -56 52
Deferred tax income
Deferred tax income 323 167
Total tax income in the income statement 267 219
The tax income for the period can be reconciled to the loss before tax as
follows:
Amounts in £'000 (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Loss before taxation -7,026 -17,185
Tax at the UK corporation tax rate (25%) 1,756 4,296
Effect of different tax rates of subsidiaries operating in other jurisdictions -36 -49
Change of the tax rate for the calculation of deferred tax 36 -
Effect of non-deductible expenses and non-taxable income -174 -562
Change in unrecognised deferred tax assets -1,309 -3,553
Other adjustments -6 87
Total tax income for the period 267 219
10. Loss per share
The loss per share is calculated based on the weighted average number of
shares outstanding during the period. The diluted loss per share is calculated
based on the weighted average number of shares outstanding and the number of
shares issuable as a result of the conversion of dilutive financial
instruments. At 30 June 2025 there are no outstanding dilutive instruments.
(Unaudited) (Unaudited)
Six month
Six month
Amounts
30 June
30 June
2025
2024
Net loss attributable to owners of the Company (£'000) -6,342 -17,699
Weighted average number of shares 70,626,248 70,626,248
Loss per share (£) -0.09 -0.25
Diluted loss per share (£) -0.09 -0.25
Loss per share from continuing operations (£) -0.10 -0.24
Diluted loss per share from continuing operations (£) -0.10 -0.24
Profit / (loss) per share from discontinued operations (£) 0.01 -0.01
Diluted profit / (loss) per share from discontinued operations (£) 0.01 -0.01
11. Inventories and work in progress
Amounts in £'000 (Unaudited) (Audited)
Six month
Year ended
30 June
2025 31 December
2024
Raw materials 3,201 5,003
Work in progress 606 1,803
Finished goods 2,642 3,065
Stock provisions -3,473 -7,602
Total inventories and work in progress 2,976 2,269
12. Trade and other receivables
Amounts in £'000 (Unaudited) (Audited)
Six month
Year ended
30 June
2025 31 December
2024
Trade and other receivables 4,303 3,540
Expected credit loss provision -337 -302
Tax receivables - Value Added Tax 711 1,004
Other receivables 208 475
Total trade and other receivables 4,885 4,717
Trade and other receivables have increased slightly since December 2024 as a
result of higher revenue in May and June 2025 compared with November and
December 2024.
The Tax receivables - Value Added Tax balance has reduced since December 2024
following receipt of a historic VAT repayment claim 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.
13. Provisions
The table below shows the nature of and changes in provisions for risks and
charges for the period from 1 January 2025 to 30 June 2025:
Amounts in £'000 (Audited) Increases Reversals Reclass (Unaudited)
At 1 January At 30 June
2025
2025
Provisions for retirement benefits 7 - - - 7
Provisions for restoration of premises 1,459 49 -56 -9 1,443
Provisions long-term 1,466 49 -56 -9 1,450
Provisions for restoration of premises 233 - -204 9 38
Provisions for litigation 500 - - - 500
Provisions for product warranty 15 - -2 - 13
Provisions short-term 748 - -206 9 551
Both short and long-term provisions for the restoration of premises have
fallen since December 2024 as a result of completing the dilapidations work
for some of the site closures announced by the Company.
14. Trade and other liabilities
Amounts in £'000 (Unaudited) (Audited)
Six month
Year ended
30 June
2025 31 December
2024
Trade payables 1,578 462
Accrued invoices 2,339 2,433
Payroll related liabilities 702 665
Tax liabilities - Value Added Tax 133 195
Other liabilities 3 12
Total trade and other liabilities 4,755 3,767
Total trade and other liabilities have increased since December 2024, due to
the timing of invoices received and paid.
15. Share capital
Amount of share capital in £'000 Amount of share capital in €'000 Unit value per share Number of shares issued
in €
(Audited) At 31 December 2024 4,053 4,708 0.07 70,626,248
(Unaudited) At 30 June 2025 4,053 4,708 0.07 70,626,248
As of 30 June 2025 and 31 December 2024, 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.
16. Notes to the cash flow statement
Amounts in £'000 (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Loss for the period -6,342 -17,699
Profit / (loss) from discontinued operations 417 -733
Loss from continuing operations -6,759 -16,966
Adjustments for:
Depreciation, amortisation, impairment loss and provisions 2,024 -16,356
Losses on disposal of assets -295 -
Charges related to payment in shares (LTIP) 170 -
Other revenues and charges without cash impact 207 361
Income tax credit -267 -219
Operating cash flows before movements of working capital -4,503 -33,913
(Increase) / decrease in inventories (*) -708 1
(Increase) / decrease in receivables -396 20,058
Increase in payables 467 5,154
Cash used in operations -5,140 -8,700
Income taxes (paid) / received -7 304
Finance costs -327 -691
Net cash used in operating activities -5,474 -9,087
Operating cash flows from discontinued operations -1,357 -268
Operating cash flows from continuing operations -4,117 -8,819
(*) The variation of the inventories value results from the following
movements:
Amounts in £'000 (Unaudited) (Unaudited)
Six month
Six month
30 June
30 June
2025
2024
Decrease in the gross value of inventory 3,421 992
Decrease in the stock provision -4,129 -991
Total variation of the net value of inventories -708 1
The details for the change in the stock provision are covered in notes 6 and
11.
17. Subsequent events
On 11 September 2025, a sentencing hearing took place in respect of legal
proceedings brought against Lab21 Healthcare Ltd ("Lab 21"), a non-trading
subsidiary of Novacyt, in relation to Lab 21's site based at Axminster, Devon
for the use of biological agents at the site. As announced in March 2025
(https://www.londonstockexchange.com/news-article/NCYT/update-re-lab-21-hse-prosecution/16946814)
, Lab 21 pleaded guilty at Exeter Magistrates Court to health and safety
charges relating to the historical operation at the site, between June 2018
and April 2019. The court granted full recognition for an early guilty plea
with Lab 21 being ordered to pay a penalty of £52k.
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