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Novacyt Shares Surge 10.8% on Upbeat H1 Results

Simon Mugo trader
Updated 17 Sep 2020

Practice Stock Trading

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

Tradingview chart of Novacyt share price 17092020

Novacyt shares surged 10.8% today to trade at 410p having closed Wednesday’s session trading at 370p.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading