Novacyt (NCYT ) has described the full year ended 31 December 2020 as “a year of transformation” as the group saw revenue increase by over twenty times from 2020.
The clinical diagnostics specialist reported a more-than-twentyfold increase in consolidated revenue to £277.2m as the group’s gross margin rose to 76.3% in FY20 from 64% in FY19.
Over the period, group EBITDA increased to £176.1m in FY20 compared with £0.2m in FY19 while the group’s EBITDA margin increased to 64% in FY20 compared with 2% in FY19.
Novacyt reported operating profit at £167.4m for the year, up from a loss of £1.6m in FY19 while profit after tax was reported at £132.4m in FY20 compared to a loss of £5.7m in FY19. Meanwhile, cash at year-end stood at £91.8m, compared to £1.5m at the start of the year.
In addition, the Company stated that it had become debt free for the first time by the end of the FY20 period after repaying all long-term company debt of £7.1 million in 1H20.
Novacyt said it had experienced unprecedented sales demand for its COVID-19 products during 2020, which in turn transformed its financial position, resulting in the Company significantly exceeding its full year 2020 budget and surpassing any previous performance.
In particular, back in February 2020, the Company produced one of the world's first CE-Mark COVID-19 tests for the 2019 strain of the novel coronavirus and received approval from both the US Food and Drug Administration (FDA) and the World Health Organization (WHO) for the COVID-19 test to be eligible for procurement under the Emergency Use Listing (EUL).
To date, the company’s product has now received regulatory approval from 53 countries.
Over the period, and as part of the UK government's five pillar plan to increase testing for COVID-19, Novacyt collaborated with AstraZeneca, GSK and the University of Cambridge.
Towards the end of April 2020, Novacyt secured a supply contract with the UK Department of Health and Social Care (DHSC) to supply its COVID-19 test to central testing laboratories. This was then followed by a second contract award by the DHSC in September 2020.
Shares in Novacyt have increased by nearly 8% in value over the past two weeks. The stock was trading 11.60% higher this morning at 400.6p following the publication of the results.
To date, Novacyt has launched over 28 new COVID-19 related products since the start of 2020 and has moved from one to three major molecular diagnostic product platforms. All three product platforms have proven to be successful and open different potential markets.
Post-period and for the five months ended 31 May 2021, the Company reported unaudited sales of £88.4m compared to £40.8m for the same period in 2020 with the £88.4m total including £40.7m of sales to the DHSC, which were part of the group’s prior dispute.
Novacyt said it expects strong growth in private testing as markets and travel re-open, which could lead to higher infection rates, and a rise in testing to return in 4Q21, in line with 4Q20 in the winter period. It also expects to see significant new growth from the launch of new products in 2H21, including the expansion of its lateral flow antigen testing portfolio.
If demand picks up in line with expectations, the Company said it expects to see full year sales of approximately £100m, excluding the sales to the DHSC which are in dispute.
Commenting on the results, Graham Mullis, Group Chief Executive of Novacyt commented: “As a result of supporting an urgent global demand for PCR testing, the future of Novacyt has been secured, having repaid all long-term debt, significantly strengthened the balance sheet, and delivered on a number of strategic objectives to support future growth.”
He added, "As we look to build on our solid foundations, and develop Novacyt into a major diagnostics player, we have updated our strategy for delivering long-term growth with a refined focus in key areas of test, instrument, and geographic expansion. We will also continue to supplement these growth initiatives through our M&A strategy.”
Follow News & Updates from Novacyt here: