NCYT revenue NOT impacted by Travel Rules change18 Sep 2021 10:38
I’ve put this buried in another thread but worthy of its own post:
Most of NCYT U.K. sales are for NHS NOT travel related
When you have a LFT that’s positive you have to go for a government free PCR test or if in hospital a government free PCR test - that’s where Nova sell in U.K.
The rest is then outside U.K. in US, Europe etc with the addition of WHO & UNICEF.
Extra revenue is from private sector globally for event, employee etc testing with a bit of travel.
They have never been a big player in travel arrival testing as others ran that so I don’t see any financial impact to their business
What we will see is a massive rise in cases into the winter & more demand for NHS PCR tests here & globally - quite a big upside if anything!
If you read the latest results RNS you will see travel is way down the list & if you check all the airport facilities they are not Nova
43% of revenue is DHSC/NHS for hospital & tests following positive LFT so unrelated to travel
Of the other 57%
“ came from a mixture of overseas sales and a growing UK private testing market, leading to non-DHSC revenue growing 20% year-on-year.”
“ Non-governmental organisation long-term agreements
Novacyt has entered into a two-year Long-Term Agreement (LTA) with the World Health Organization (WHO) for the supply of its genesig® COVID-19 tests. In addition, the Company has received confirmation from UNICEF that its existing LTA with the organisation has been extended by 12 months to July 2022. To date, Novacyt has shipped orders to a total of eight countries under the UNICEF LTA since September 2020.
Private sector testing
Overall, UK private market sales, which currently includes COVID-19 testing in film, media, travel and corporate industries, increased significantly in Q2 2021 compared to Q1 2021. The Company believes it is well placed to continue to support this growth during the second half of the year.
As part of its expansion in private testing, the Company has also signed a supply contract initially for genesig® COVID-19 products with Excalibur Healthcare Services, who have invested in new laboratory services in Cambridge, UK, to support COVID-19 testing of private clients.”
So travel is an element but mentioned after much bigger revenue streams! & much outside the U.K.
I’d personally be surprised, if you go check who does Heathrow & Gatwick testing (see below) that their U.K. PCR travel revenue is even above 1% as they don’t do this & are growing faster outside U.K. with the U.K. revenue for NHS.
Heathrow not Nova
https://www.heathrow.com/at-the-airport/fly-safe/covid-19-test
Gatwick not Nova
https://www.gatwickairport.com/at-the-airport/coronavirus/covid-testing/
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