30 May NCYT – Full Year 2023 Results (30.05.2024)

Novacyt S.A.

(“Novacyt”, the “Company” or the “Group”)

Full Year 2023 results
Integration of Yourgene Health remains on track
Laying the foundations for future growth

Paris, France, and Eastleigh and Manchester, UK – 30 May 2024 – Novacyt S.A. (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international molecular diagnostics company with a broad portfolio of integrated technologies and services, announces its audited results for the year ended 31 December 2023. The results include almost four months’ trading of Yourgene Health Limited (formerly plc) (“Yourgene”) following its acquisition by the Group, which completed on 8 September 2023.

Operational Highlights (including post year-end and Yourgene 2023 activities pre-acquisition)

• Completed the strategic acquisition of Yourgene, significantly enhancing Novacyt’s global diagnostics business, adding scale and diversification to accelerate long-term growth.
• Lyn Rees and John Brown CBE joined the Novacyt Board as Executive and Non-Executive Director respectively.
• Lyn Rees appointed Chief Executive Officer following a six-year tenure as CEO of Yourgene Health plc, bringing over 28 years’ global healthcare leadership and commercial experience.
• Steve Gibson appointed CFO, and to join the Board along with Dr Jo Mason, CSO, subject to shareholder approval.
• IVDR certification: received first IVDR accreditation for the Yourgene DPYD genotyping assay for chemotoxicity in chemotherapy patients; submitted application for Cystic Fibrosis quantitative fluorescence PCR (QF-PCR) test.
• Yourgene became a compatible partner of PacBio, a leading global developer of sequencing technology, supporting the use of the LightBench™ instrument (Ranger® Technology) to its global customer base.
• Yourgene launched MagBench™ automated DNA extraction platform for NIPT workflows in Asia-Pacific and the Middle East.
• Launch of the Primer Design Co-Prep ES instrument, providing automated DNA and RNA extraction using Primer Design assays, for use in multiple applications.
• Primer Design launched a range of “complete” assays, including customised mastermix reagent for RUO customers.

Financial Highlights

• Acquired the AIM-listed company Yourgene and its subsidiaries for an all-cash consideration of £16.7m on 8 September 2023.
• Group statutory revenue for FY2023 was £11.6m, in line with guidance, of which £0.6m relates to COVID-19 (FY2022*: £21.0m, of which £14.7m related to COVID-19).
• Group statutory revenue for the non-COVID-19 portfolio of £11.0m represents circa 95% of total revenue (FY2022*: £6.3m).
• Group gross profit totalled £3.7m (32%) in FY2023 (FY2022: £5.7m (27%)). This was reduced predominantly as a result of providing for all remaining COVID-19 associated stock, in addition to writing off stock that had not been provided for previously. Excluding the impact of these items, the Group gross profit margin would be in excess of 60%.
• Group EBITDA loss in FY2023 totalled £13.7m before exceptional items (FY2022: £13.5m loss).
• Loss after tax increased to £28.3m in FY2023 (FY2022: £25.7m loss).
• Completed cost savings actions that will deliver over £4.0m of bottom-line improvement, the Group is tracking ahead of schedule on the targeted synergies to be achieved from the Yourgene acquisition.
• Cash position at 31 December 2023 was £44.1m (2022: £87.0m), reflecting the cash consideration and associated costs of the acquisition of Yourgene. The Group remains debt free.

*excludes any Yourgene revenue as pre-acquisition

Commenting on the results Lyn Rees, CEO of Novacyt, said: “2023 was a transitional year for Novacyt, during which the Group completed the acquisition of Yourgene, a significant milestone that has enhanced our global diagnostics capabilities, diversified our product portfolio and increased the scale of our non-COVID-19 revenues.

“We continue to focus all efforts towards working as a single business so that the reorganisation of the Group and the resulting synergies will leave us well placed to deliver future growth. We remain focused on driving the global sales of our key clinical and instrumentation products, while also rebuilding our RUO business. The Board believes that investment in R&D combined with our commercial strength is key to achieving long-term growth and we are increasingly well-placed to execute our business strategy.”

Contacts

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
MyGo: real-time quantitative PCR (qPCR) instruments

Research Use Only
Range of services for the research 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 Stokesley, Eastleigh and Manchester), Taipei, 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

NCYT – Full Year 2023 results  (30.05.2024) pdf