Clinical diagnostics specialist Novacyt has unveiled salutary results for its fiscal 2020. The figures released by the group are quite impressive when compared to those recorded for the previous fiscal year. Also, the company's business has continued with a strong growth momentum in the beginning of 2021. This allows it to display a solid outlook for the current fiscal year.
In FY2020, Novacyt saw its consolidated revenue increase more than 20-fold to £277.2 million. A year earlier, the group's turnover stood at £11.5 million. Meanwhile, the company's gross margin continued its upward momentum, rising from 64.0% in 2019 to 76.3% in 2020.
For the whole of last year, thecompany's gross operating profit (Ebitda) reached £176.1 million compared to £200,000 in the previous year. For its part, operating profit comes in at £167.4m in 2020, compared to a loss of £1.6m in 2019.
Profit after tax in 2020 is £132.4 million compared to a shortfall of £5.7 million a year earlier. Furthermore, at the end of last year's financial year, Novacyt has a very strong financial structure.
At the end of 2020, the Franco-British company had a cash position of 91 .8 million pounds compared to 1.5 million pounds at the end of the previous financial year. Also, the group ended the year 2020 without incurring any debt. It is worth noting that the company paid off all of its £7.1m debt in H1-2020.
Based on the strong performance of the group since the beginning of this year, it is clear that Novacyt has made a good start to FY2021. For the first five months as a whole (to the end of May), the clinical diagnostics specialist's revenue (unaudited) reached £88.4m, compared to £40.8m in the same period last year.
This figure (£88.4m) includes £40.7m of revenue from a contract with the UK Department of Health and Social Care (DHSC). It should be noted that this agreement is currently the subject of a commercial dispute.
In the first five months of 2021, the group's gross margin was over 70%. As for the Ebitda margin, it stands at over 40%. It should be noted that these figures exclude the impact of sales to DHSC.
For the full year under review, Novacyt expects strong growth in private sector anti-Covid testing, supported by the reopening of markets and travel. Also, the company is targeting another remarkable increase which will be driven by new product launches in H2-2021.
In this regard, the company intends to expand its range of lateral flow antigen tests for professional and domestic use. Betting on a recovery in demand in line with expectations, the Franco-British group expects annual sales of nearly £100m in FY2021. This forecast is made excluding sales to the DHSC.