NOVACYT REVENUES FULL YEAR 2017
Delivers record revenue growth of 35%
China sales exceed expectations
Successfully completed dual-listing on AIM
Paris, France and Cambridge, UK – 24 January 2018 – Novacyt (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international specialist in clinical diagnostics, is pleased to announce its unaudited revenues for the full year ended 31 December 2017.
In 2017, Novacyt continued to deliver against its three strategic pillars of organic, acquisition and R&D led growth. During the year, Novacyt specifically focused on organic growth following the May 2016 acquisition and subsequent integration of Primerdesign and, as a result, reports record sales growth across the entire business in 2017. Novacyt is expected to continue to make significant progress in 2018 towards becoming a profitable and cash generative global clinical diagnostics company.
Financial highlights
· Consolidated Group sales increased 35%1 to €15.0m (£13.1m) compared with €11.1m (£9.1m) in 2016
· Sales growth represented 43%1at constant exchange rates (CER), equating to €15.9m in sales in
2017
· All parts of the Group achieved double digit sales growth at CER
· Successfully completed a dual-listing on the Alternative Investment Market (AIM) of the London Stock Exchange in October 2017, raising €9.7m (£8.8m) before expenses
· Novacyt ended the year with €4.3m (£3.8m) in cash following the payment of a deferred Primerdesign milestone, deleveraging of the balance sheet and confirmed it will make no further drawdowns against the Yorkville convertible bond facility
Divisional revenues
· Primerdesign sales increased to €6.1m (£5.3m) compared with pro forma sales of €5.1m (£4.2m) in the prior year, representing 27% growth on a pro forma CER basis
· Primerdesign revenue growth was partly driven by new sales in China, which was the fastest growing region, and increased from €4,900 (£4,000) to €0.97m (£0.85m)
· NOVAprep® sales increased 36% to €2.2m, which is the fastest annual sales growth by this division so far reported by the Group
· NOVAprep® sales in Asia Pacific grew by 184% in 2017, continuing to be the division’s fastest growing region
· Lab21 revenues grew 8% (16% CER) to €6.7m (£5.8m) driven by strong core product growth
Operational highlights
· In October 2017, Novacyt successfully completed a pioneering dual-listing on AIM, adding to the Company’s existing Euronext Growth Paris listing. This important step in Novacyt’s development provides access to a deeper potential pool of capital and raises the Group’s international and capital markets profiles
· As reported on 4 September 2017, Primerdesign secured significant new business in China, which was expected to be delivered by the end of the year. Actual sales of €0.97m (£0.85m) were recognised in the year, exceeding management’s initial expectations
· Novacyt recruited a total of 36 additional employees during the year across the business, in particular adding commercial and manufacturing capacity to help facilitate accelerated revenue growth
· Continued to invest in senior commercial hires with the key appointments of Phil Sefton, Ruth Powell and Paul Eros as Managing Directors of the three business divisions
· Completed the build and relocation to a new 15,000 square feet manufacturing site in Camberley on target in September 2017 to support the planned growth of the Group
Graham Mullis, Group CEO of Novacyt, commented:
“I am delighted to report record organic sales growth across the Group in 2017 in a year where we successfully completed a pioneering dual-listing on AIM. This listing will enable Novacyt to further raise its international profile and accelerate our ambitious organic and inorganic growth plans.
“The new senior management hires made during the year provides the foundations and the leadership to further drive performance. Of note, the sales growth, particularly achieved in China, from both Primerdesign and NOVAprep® products has been pleasing as it exceeded our expectations. It also validates our investment in the region and we plan to build upon this success in 2018 by investing further, whilst working closely with our new distribution partners.
“With continued organic sales growth and strong gross margins, we are aiming to move into profitable trading during 2018 to strengthen the basis for future growth. I look forward to updating shareholders of our progress in due course.”
Current trading and outlook
During 2018, the Group will continue to build on the organic sales progress made in 2017 and will evaluate the potential for further accretive acquisitions. It also expects to report further progress in the development of the product pipeline for Primerdesign. Management therefore believes that Novacyt is on track to continue to deliver against all three of its strategic growth pillars.
Key dates for the company’s results disclosure include:
· Full year 2017 results – 26 April 2018
· AGM – TBC
· Half-year 2018 revenues – 26 July 2018
· Half-year 2018 results – 19 September 2018
Inside Information
This announcement contains inside information. The person responsible for arranging for the release of this announcement on behalf of the Company is Anthony Dyer.
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Contacts
Novacyt SA
Graham Mullis, Chief Executive Officer
Anthony Dyer, Chief Financial Officer
+44 (0)1223 395472
Stifel Nicolaus Europe Limited (Nominated Advisor and Joint Broker)
Jonathan Senior / Fred Walsh / Ben Maddison
+44 (0)20 7610 7600
WG Partners (Joint Broker)
Nigel Birks / Chris Lee / Claes Spång
+44 (0) 203 705 9330
FTI Consulting (International)
Brett Pollard / Victoria Foster Mitchell
+44 (0)20 3727 1000
[email protected] / [email protected]
FTI Consulting (France)
Arnaud de Cheffontaines / Astrid Villette
+33 (0)147 03 69 47 / +33 (0)147 03 69 51
[email protected] / [email protected]
About Novacyt Group
The Novacyt Group is a rapidly growing, international diagnostics group with a growing portfolio of cancer and infectious disease products and services. Through its proprietary technology platform, NOVAPrep®, and molecular platform, genesig®, Novacyt is able to provide an extensive range of oncology and infectious disease diagnostic products across an extensive international distributor network. The Group has diversified sales from diagnostic reagents used in oncology, microbiology, haematology and serology markets, and its global customers and partners include major corporates.
For more information please refer to the website: www.novacyt.com
[1] The acquisition of Primerdesign was completed in May 2016 and the total Group consolidated revenues include Primerdesign from 1 May 2016
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