Novacyt targets AIM listing, acquisitions and US expansion
Clinical diagnostics specialist Novacyt, based in Cambridge and Paris, is reaping a handsome return on investment in the business, CEO Graham Mullis has revealed along with the company’s unaudited results for the six months ended June 30.
Quoted in France, the company plans an AIM listing in the UK this year, although no specific timetable has been disclosed. It is also seeking a distributor in the US to underpin further geographical expansion and Mullis said the board is eyeing potential acquisitional opportunities to stretch its global reach.
Mullis said Novacyt continues to deliver robust revenue growth and is moving closer to profitability as the investment programme across the business begins to bear fruit. This is reflected in a 53 per cent increase in revenue at constant exchange rates during the first half of the year, compared to the prior period.
Over the past three years every €1 invested in commercial infrastructure has delivered around €5 of additional sales, which supports the ongoing investment programme.
Novacyt has seen the full benefit of the acquisition of Primerdesign, which is now fully integrated, as well as delivering strong organic sales growth from NOVAprep® and Lab21 in Cambridge, leading to the group delivering significant improvement in EBITDA and reinforcing its accelerated trajectory towards profitability.
Consolidated group sales topped €7 million in the first half compared to €4.95m last time. The EBITDA loss significantly narrowed from €1.6m in 2016 to €0.5m in 2017 as a result of higher sales, improving gross margin and cost controls.
• PHOTOGRAPH SHOWS: Graham Mullis