Shares of Novacyt SA (LON: NCYT) today surged 10.8% after the company reported a significant jump in H1 2020 profits driven by rising demand for COVID-19 tests.
The company, which produces clinical diagnostics tools made a profit of €40.2 million ($47.5 million) before taxes during the six month period as compared to the 2.0 million loss reported during a similar period last year.
The company’s sales rose more than ten times to reach €72.4 as compared to last year.
High demand for Novacyt’s PCR COVID-19 test was the main driver behind the company’s positive results.
The firm repaid all its outstanding debts and made a major investment in its inventory, yet it was left with €19.7 million in cash flow as of June 30.
The company also revealed that it had adopted a new strategy to maintain its current growth trajectory by extending its portfolio to include respiratory and transplant clinical diagnostics.
The firm said that the orders made for its COVID-19 product portfolio so far indicate that H2 2020 results could exceed H1 results.
Novacyt share price
Novacyt shares surged 10.8% today to trade at 410p having closed Wednesday’s session trading at 370p.