Novacyt Share News (NCYT)

(Sharecast News) - Novacyt said on Wednesday that it expects improved second-half performance in 2025, as it outlined a new growth strategy focused on accelerating product development, achieving sustained double-digit revenue growth, and returning to EBITDA profitability.

The AIM-traded, Paris- and Manchester-based molecular diagnostics group said revenue in the second half of 2025 were expected to be slightly higher than in the first, driven mainly by increased instrument sales following the launch of its 'LightBench Discover' platform.

EBITDA losses were forecast to narrow from the £9.1m loss recorded in 2024, supported by stronger margins and reduced cash outflows as the company completes its restructuring and site consolidation.

Novacyt said it had set three key financial objectives - to deliver double-digit annual revenue growth from the 2026 financial year, maintain gross margins above 60% across the group, already at 66% in the first half of 2025; and achieve EBITDA profitability as soon as possible.

Following a period of cost reduction and operational streamlining, the company said it had "derisked" the business and built a stronger core platform for sustainable growth.

It was now focused on leveraging its established customer base, expanding its product portfolio, and capitalising on emerging market opportunities through both internal development and strategic partnerships.

As part of its £2m annual investment programme running from 2025 to 2027, Novacyt said it was accelerating the launch of new diagnostic products.

Those included the LightBench Discover system for PacBio long-read sequencing labs, launched in July, and a new non-invasive prenatal testing (NIPT) solution tailored for the Asia-Pacific market, introduced in the fourth quarter of the year.

The group said its mixed growth model positioned it to achieve sustained revenue growth and profitability.

At 1304 BST, shares in Novacyt were up 5.91% at 41.2p.

Reporting by Josh White for Sharecast.com.