Novacyt half-year revenue rises 18%, but cash drops after SCD deal

Novacyt S.A. has delivered a stronger first half for revenue, helped by organic growth, demand for its diagnostic instruments and the acquisition of Southern Cross Diagnostics, or SCD.

Unaudited statutory revenue for the six months to 30 June 2026 is expected to reach approximately £11.6 million. That represents an 18% increase from £9.8 million in the equivalent period of 2025.

The growth is encouraging, particularly as every geographic region moved forward. However, investors also need to watch Novacyt's cash position. Cash fell from £19.1 million at the end of December to £8.9 million, partly reflecting the £5.5 million paid out in connection with the SCD acquisition.

Novacyt's key first-half figures

Metric	H1 2026	Comparison
Statutory revenue	Approximately £11.6 million	Up 18%
H1 2025 revenue	£9.8 million	-
Underlying revenue growth excluding SCD	Approximately 9%	Up £0.8 million
SCD revenue contribution	Approximately £1.8 million	From 2 March to 30 June 2026
Cash at 30 June 2026	£8.9 million	£19.1 million at 31 December 2025
Cash outflow relating to SCD acquisition	£5.5 million	-
Preferential rights issue	Approximately €785,000 gross	Completed
Targeted annualised cost savings	Up to £4.0 million	Consultation remains ongoing

The original company announcement describes the figures as unaudited, so the full interim results will provide a more complete view.

Organic growth supports the headline number

Acquisitions can make revenue growth look stronger than the underlying business performance, so Novacyt's like-for-like progress matters.

Excluding revenue generated by SCD, underlying group revenue increased by approximately 9%, or £0.8 million. This suggests the existing business continued to expand rather than relying entirely on the acquired operation.

SCD contributed approximately £1.8 million between completion of the acquisition on 2 March and the end of June. The deal has also given Novacyt a presence in Australia and opened distribution channels across the wider Asia-Pacific region.

The update does not disclose profitability, margins or earnings for the period. Investors therefore cannot yet judge how much of the additional revenue translated into an improved operating result.

Instrumentation and clinical sales lead growth

Novacyt's Instrumentation segment produced approximately 30% year-on-year revenue growth. Management attributed this to continued market adoption of LightBench Discover, the company's DNA sample preparation platform.

That is one of the clearest positives in the update. Demand for instrumentation can help establish a wider installed base, although the announcement does not disclose unit sales, pricing or the segment's profitability.

The Clinical segment also maintained strong momentum, with revenue increasing by more than 20%. This was driven by demand for Novacyt's non-invasive prenatal testing technology, known as NIPT, together with the inclusion of SCD sales.

No specific growth figure was provided for the Research Use Only segment.

Growth across all three regions

Novacyt reported year-on-year revenue growth in each of its geographic regions, although performance varied considerably.

Region	H1 2026 revenue growth	Main driver disclosed
Americas	More than 30%	Strong instrument demand
Asia-Pacific	Approximately 22%	Reproductive health portfolio
EMEA	Approximately 2%	Not disclosed

The Americas was the fastest-growing region, supported primarily by instrument demand. Asia-Pacific also performed strongly as demand continued for the reproductive health portfolio.

EMEA, covering Europe, the Middle East and Africa, grew by approximately 2%. It remained positive, but the gap between EMEA and the other regions is worth noting. Novacyt did not explain why growth there was more subdued.

Cash is the main point of caution

Novacyt ended June with £8.9 million of cash, down from £19.1 million at the end of 2025. That is a £10.2 million reduction over six months.

The company said the movement reflected several factors, including a £5.5 million cash outflow relating to the SCD acquisition. It did not provide a full reconciliation of the remaining reduction in this trading update.

Novacyt also completed a preferential subscription rights issue, raising approximately €785,000 before costs. Preferential rights allow eligible existing shareholders to subscribe for newly issued shares, potentially helping a company raise cash while giving those investors an opportunity to maintain their ownership proportion.

Management's focus on reducing cash burn is therefore important. Revenue is growing, but the group needs to demonstrate that expansion and restructuring can translate into a more sustainable financial position.

Restructuring could materially change the picture

The workforce consultation process remains ongoing. Novacyt continues to expect annualised cost savings of up to £4.0 million from its restructuring programme.

Annualised savings represent the estimated benefit over a full year once the measures have taken effect. If delivered, £4.0 million would be substantial compared with first-half revenue of approximately £11.6 million.

Management expects the programme to reduce cash burn materially, extend the group's cash runway and strengthen its financial position. However, the update does not disclose the timing of the savings, associated restructuring costs or how much will be realised during 2026.

That means the potential benefit is meaningful, but execution remains a key issue. Investors will want to see evidence of lower costs and a slower rate of cash outflow in subsequent results.

A new precision medicine product enters the portfolio

Novacyt launched the Yourgene Insight DPYD kit in June as a Research Use Only assay. The kit detects 19 mutations in the DPYD gene, with the aim of supporting safer chemotherapy treatments.

The company is compiling its submission under the EU's In Vitro Diagnostic Regulation, or IVDR. Accreditation is expected in the coming months, although no precise date was disclosed.

Regulatory progress could broaden the product's commercial opportunity. For now, however, the announcement provides no revenue expectations or commercial targets for the kit.

What investors should watch next

This is a constructive revenue update. Statutory sales grew by 18%, underlying revenue advanced by approximately 9%, and all three regions reported growth. Instrumentation and clinical diagnostics were the standout areas, while SCD made a meaningful initial contribution.

The counterweight is cash. The acquisition explains part of the decline, but not all of it, and the company did not disclose profitability or a detailed cash-flow breakdown.

The next important evidence will be whether Novacyt delivers the proposed cost savings, slows its cash burn and converts higher revenue into improved financial performance. Investors should also watch the integration of SCD and the regulatory progress of the DPYD kit.

For comparison with another recent company update where growth and execution timing both mattered, see the Uniphar half-year trading update.