30th Apr 2019 11:19
LONDON (Alliance News) - Novacyt SA on Tuesday said it expects to deliver double-digit revenue growth in the year ahead following a strong performance in 2018.
The clinical diagnostics company said its loss narrowed in 2018 to EUR2.1 million from EUR3.5 million reported a year ago, as revenue rose by 7.6% to EUR13.7 million from EUR12.8 million.
Novacut's gross margin increased to 63% in 2018 from 62% the year prior, driven by product mix, sales volumes and cost of sales improvements within Primerdesign. Primerdesign sales increased by 2% to EUR6.2 million in 2018.
The Lab21 unit revenue was EUR7.5 million, up 14% on 2017, mainly reflecting the acquisition of Omega ID which accounted for 13% of the 14% year-on-year growth.
As part of the strategic review, Novacyt decided to sell the Clinical Lab business, based in Cambridge, as it is now considered non-core. The company also sold the NOVAprep unit in December 2018 due to the material investment required in this early stage business.
"The group made good operational progress over the course of 2018, continuing its growth trajectory and research & development," said Chief Executive Graham Mullis.
Looking ahead, he said: "The group, on a continued operations basis, is now Ebitda profitable, and we aim to build on the operational progress made in 2018 to continue to deliver double-digit revenue growth from this base, further increase margins with the medium target to become self-sustainable on a free cash-flow basis and look at the potential for further acquisitions."
The stock was trading 21% lower on Tuesday at 15.03 pence per share.