Novacyt S.A.

H1 revenue was GBP 11.6 million, up significantly year-on-year; excluding Southern Cross, underlying revenue grew by around 9%. Gross profit was broadly flat at around GBP 6.4 million, while gross margin fell by around 10 percentage points to 56%. Reported EBITDA loss was GBP 3.9 million, which included about GBP 300,000 of stock uplift adjustments tied to Southern Cross; adjusted EBITDA loss was about GBP 3.6 million, an improvement of around 13% year-on-year. Operating losses fell by around GBP 2 million year-on-year. The company closed June with just under GBP 9 million in cash and remained debt free; cash at the end of August was around GBP 7.5 million. Management did not provide next-quarter or full-year revenue/EPS guidance, but said the restructuring benefits will mostly show up in 2027, and that gross margin should remain above 60% longer term.

Lyn Rees framed the period as one of operational execution: integrating Southern Cross, launching the Yourgene Insight DPYD assay, and advancing a 5-year Master Collaboration Agreement with Illumina. He emphasized that the business is focused on both growth and cost discipline, saying the company is right-sizing the operating base while preserving cash. His tone was upbeat and confident, repeatedly pointing to a stronger product pipeline, more customers in APAC, and a better foundation for future commercialization.

Steve Gibson highlighted the hard numbers behind the quarter: H1 revenue of GBP 11.6 million, gross profit of around GBP 6.4 million, gross margin of 56%, and adjusted EBITDA loss of around GBP 3.6 million. He said OpEx fell to around GBP 10.3 million, or about GBP 800,000 lower year-on-year excluding Southern Cross costs, and noted the company had reduced its underlying cost base by around GBP 7 million on an annualized basis versus the pro forma run rate after the Yourgene acquisition. On cash, he said the group consumed around GBP 10 million in H1, finished June with around GBP 8.9 million, and had about GBP 7.5 million at end-August; he also stressed the business is debt free and that restructuring should materially lower cash burn going forward.

Questions focused on whether the restructuring is finished, how much of the GBP 4 million savings target has been achieved, and whether the Illumina partnership could lead to more work or lower Yourgene test costs. Management said the restructuring is not done yet, but by end-September it had already released around 60 staff, delivering about GBP 2.7 million of annual labor savings plus roughly GBP 0.5 million to GBP 700,000 of non-labor savings, for total identified savings of at least GBP 3.2 million to GBP 3.4 million. On Illumina, they said the 5-year collaboration is progressing well, the first statement of work started about a month ago, and the relationship is about developing future content rather than lowering existing product costs. In response to a direct cash concern, management firmly said the company will not run out of cash by year-end.