Novacyt Shares Edge Lower as Revenue Falls Due to Covid-19 Sales Decline

Novacyt (LON: NCYT) edged lower in the early part of Thursday's session after the company said revenue for the year was significantly lower due to the expected decline in Covid-19-related sales.

Novacyt revealed revenue in FY2022 was £21 million, in line with guidance, compared to £92.6 million for FY2021.

Broken down, revenue from the company's Covid-19 products in 2022 totalled £14.7 million compared to £84 million in 2021, while revenue for Novacyt's non-Covid portfolio in 2022 totalled £6.3 million, below the £8.6 million reported in 2021.

The company previously revealed that it expected its non-Covid portfolio revenue to decline, driven by lower instrument sales compared to 2021, which benefited from Covid demand.

Novacyt shares are down just over 1% at the time of writing.

As a result of the revenue decline, the group's FY22 EBITDA loss is anticipated to be around £13.5 million before exceptional items, an increase from 2021's £3.1 million.

Even so, Novacyt stated that it remains debt free and said its cash position on December 31, 2022, was £87 million, down from £101.7 million at the same point last year.

“During 2022, the Company made good progress transitioning away from COVID-19 revenue and beginning to deliver against its growth strategy, as outlined at the full year 2021 results,” Novacyt said in its statement. “In addition, following a strategic review of the business in 2022, the company completed the closure of the Lab21 Healthcare and Microgen Bioproducts businesses to focus on core capabilities and operations. As a result, Novacyt remains well positioned for future growth.”

Novacyt will report its 2022 audited full-year results in the week commencing April 24.