(Boursier.com) — Novacyt unveils annual revenue and EBITDA (unaudited) in line with its expectations. The global specialist in clinical diagnostics thus achieved revenues of 95.8 million pounds sterling for the financial year ended December 2021, compared to 277.2 million pounds sterling for the 2020 financial year, excluding 40.8 M£ related to the contract with the UK Department of Health and Social Care (DHSC) subject to a contractual dispute, as previously announced. Management was aiming for a turnover of around £100m. Revenue related to COVID-19 products represents 86% of activity, compared to 95% in fiscal year 2020.
The gross margin before exceptional items should be around 70%. EBITDA before exceptional items is expected to be above £36m compared to £176.1m a year earlier, representing a margin above 37%, in line with management’s forecast of around 40%.
The Company’s cash at December 31, 2021 was £101.8m, compared to £91.8m at December 31, 2020 and £77.2m at June 30, 2021.
As observed over the past two years, and demonstrated over the past two months, the course of this pandemic is unpredictable and, therefore, so is the predictability of demand for testing. Currently, the Board expects reported Covid-19 sales to be reduced by approximately 50% in 2022, compared to 2021, which will be partially offset by new non-Covid-19 products that will begin to be marketed in the fourth quarter of 2022.
In the UK, the additional uncertainty regarding product availability has been caused by the implementation of the UK Health Safety Agency’s Medical Devices (Coronavirus Testing Devices Approval) (Amendment) Regulations 2021 (“CTDA”), as previously announced. While Novacyt has so far been successful in obtaining approval for one product and two on the interim protocol, eight products remain under review. The Group continues to engage with the UK Health Safety Agency and will provide further updates on its tests still under review as appropriate.
The Board of Directors believes that the Group is well placed to accelerate its investments in the development of products other than Covid-19 in order to address unmet needs, expand its international reach and support its business development efforts .
Since joining on October 18, 2021, David Allmond has conducted an initial strategic review of the Company during his first 100 days as CEO and provides the following key findings. Novacyt has already begun to implement many of the findings of this initial review and intends to develop the strategy in detail at the time of the publication of the 2021 annual results. The Group’s vision to become a world leader in clinical diagnostics for the fight against infectious diseases is based on the three previously announced pillars of product portfolio expansion, geographic expansion and commercial development.
Furthermore, on the management side, Paul Oladimeji has held the newly created position of Director of Research and Development (R&D) since January 1, 2022. Paul Oladimeji is a specialist in nucleic acid amplification technologies and a neuroscientist by training. . Bryan Close has been named Chief Operating Officer, effective January 17, 2022. Bryan Close is a graduate engineer and brings significant experience in operations, supply chain and project management, acquired over a 35-year career. Finally, Paul Eros, Commercial Director, retired at the end of 2021 after four years with the Group. Paul will continue to work with Novacyt as a consultant, focusing on business development.
The group will release its audited annual results for 2021 in the week beginning April 25, 2022.