Novacyt reports storming sales start to 2017
Novacyt, an international specialist in cancer and infectious disease diagnostics with major operations in Cambridge, reports a surge in sales at the start of 2017 following a strong performance in 2016.
The UK-French group said it made significant strides towards its goal of transforming the company into a multi-platform, global clinical diagnostics company in the year to December 31.
In particular, the acquisition of Primerdesign in May 2016 marked the company’s entry into the fast growing, multi-billion dollar molecular diagnostics market.
Group sales increased 25 per cent on a reported basis and 38 per cent at constant exchange rates driven by NOVAprep® growth and the acquisition of Primerdesign.
The gross margin continued to improve and was up seven percentage points to 55 per cent. On a pro forma basis, the group achieved a further improvement in gross margin to 59 per cent.
Losses at the EBITDA level were reduced to €2.3 million (a loss of €1.7m on a pro forma basis) compared with a €2.9m loss for 2015. Momentum towards near-term EBITDA profitability was demonstrated by an EBITDA loss of €0.7m in H2 compared with €1.6m in H1.
Group CEO Graham Mullis (pictured) said: “I am delighted to report continued strong double-digit sales growth across the group in 2016. Our increased sales momentum reflects the acquisition of Primerdesign, a profitable high-growth molecular diagnostic business and successful investment in NOVAprep® commercial infrastructure.
“We have delivered the fourth consecutive period of high double-digit NOVAprep® sales growth. Consequently, our gross margin has continued to improve and I expect the trajectory to profitability to continue to accelerate, as demonstrated by the run-rate EBITDA loss significantly reduced during the second half of 2016.
“Furthermore, 2017 has started very strongly, with sales up over 70 per cent across the group and I look forward to updating our shareholders and the market of our continued progress during the year.”