RE: 500P SOON AGAIN28 Aug 2020 00:33
part of 13th July half year trading update
The Company remains well positioned to address the global need for COVID-19 testing, with its test being sold worldwide. It also has sufficient manufacturing capacity, raw materials and finished goods to meet the expected demand, having orchestrated a significant scale-up of operations during the half year. The Company continues to scale the business internally and has hired 45 people during the first half of the year, with plans to make further investment to strengthen the organisation in the second half of the year.
Development of the Company's COVID-19 test established Novacyt as a pioneer and a leader in COVID-19 diagnostics. Novacyt remains committed to building on this world-class innovative position for COVID-19 testing, and more broadly for respiratory disease testing, and is investing to address unmet needs in the market. Novacyt has already launched three new innovative products, COVID-HT, Exsig™ Direct and Exsig™ Mag, to support laboratories testing for COVID-19. These products are expected to drive incremental revenue and the Company received initial orders in June 2020 following their launch. Novacyt expects to provide an update on its investment in R&D to support continued growth, including a number of new products and innovations to be launched in the near future.
Outlook
Given the visibility of orders, extended contracts and the launch of new COVID-19 related products, the Company anticipates revenue for the second half of the year to be greater than the first half of the year and margins to be at least at a similar level. As a result, there is expected to be greater cash generation in the second half of the year and the Company is reviewing its capital allocation policy to enhance and accelerate long-term value creation through its three-pillar strategy of organic, R&D and acquisitive growth.
Graham Mullis, Group CEO of Novacyt, commented:
"The first half of 2020 has been transformational for Novacyt. The Company has rapidly established itself as one of the market leaders in COVID-19 PCR testing, with a significantly increased customer base, a recognised reputation for the performance of its products and established multiple significant strategic partnerships. This solid foundation, combined with a strong financial performance, will enable us to greatly enhance and accelerate our strategy for delivering long-term value to shareholders. I look forward to providing an update on these plans as we move into this exciting next phase of growth for the Company."
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