TIDMNCYT
RNS Number : 6197X
Novacyt S.A.
27 April 2023
Novacyt S.A.
("Novacyt", the "Company" or the "Group")
Full year 2022 results
Full year revenue and EBITDA in line with guidance
Accelerating product development post-COVID-19 to become a
leading global clinical diagnostic company in infectious
diseases
Paris, France and Eastleigh, UK 27 April 2023 - Novacyt
(EURONEXT GROWTH: ALNOV; AIM: NCYT), an international specialist in
clinical diagnostics, announces its audited results for the year
ended 31 December 2022.
Operational highlights
Non-COVID-19 assay development
-- Completed the development of genesig(TM)PLEX, a multiplex
gastrointestinal bacterial assay, available as a research-use-only
test (RUO)
-- Developed and relaunched two single analyte transplant viral
assay panels for the Epstein-Barr virus and BK virus for use on
open instrument platforms
-- Augmented product portfolio with the addition of over 40 CE
marked in vitro diagnostic (IVD) assays, through a third-party
distribution agreement with Clonit srl
-- International launch and UK Coronavirus Test Device Approvals
(CTDA) approval of genesig(TM) Real-time PCR SARS-CoV-2 genesig(TM)
Winterplex panel covering RSV, Flu A&B and COVID-19
-- Relaunched RUO portfolio globally and developed Monkeypox and
Adenovirus F41 RUO assays to support infectious disease
monitoring
COVID-19 assay development
-- Six UK CTDA approvals in the year (including genesig(TM)
Winterplex multiplex panel), taking the total number of Novacyt
products approved by the CTDA to seven, the most of any UK-based
company
-- CE marked two lyophilised PROmate(TM) products, enabling
deployment of near-patient COVID-19 diagnostic solution without the
need for cold-chain shipping
-- CE marked PathFlow(TM) COVID-19 Rapid Antigen Self-Test
received, one of the first saliva-based COVID-19 assays to be
launched in the EEA and providing diagnosis of symptomatic and
asymptomatic individuals in approximately 15 minutes
Workflow and instrumentation development
-- Launched and CE marked CO-Prep(TM) Automated Liquid Handling
System and completed validation of a nucleic acid extraction system
to enhance post-COVID-19 integrated sample-to-result molecular
workflow solution
-- Launched two new lateral flow test (LFT) readers for use in
conjunction with a broad range of assays within Novacyt's
Pathflow(TM) product portfolio, consisting of 18 non-COVID-19
products across sexually transmitted, gastrointestinal, respiratory
and insect-borne infections
Commercialisation
-- Partnered with a global fisheries company to develop
solutions for testing infectious salmon anaemia virus and bacterial
kidney disease
-- Signed a contract with a leading global non-governmental
organisation (NGO) to support the detection of arboviruses,
including dengue, Zika and Chikungunya
-- Partnered with leading healthcare company in India to develop and supply both reagents and instrumentation
Post-period highlights
-- CE marked both q16 and q32 instruments
-- Validation of third-party Respiratory Infection Assays largely completed in Q1 as planned
-- Exclusive development agreement with Eluceda Ltd to develop
novel biosensor technology in the fields of human and animal in
vitro diagnostics, life science research and animal speciation
-- Completed the development of several RUO multiplex assays
across gastrointestinal, respiratory and insect borne viruses
-- Sales to leading global NGO continues to gain momentum
covering West Nile Fever, Hepatitis A & E, haemorrhagic fever
and arboviruses (CHIK/DENG/ZIKA) with orders in excess of
GBP150k
Financial highlights
-- Group revenue for FY2022 was GBP21.0m, in line with guidance,
(FY2021: GBP92.6m ), due to the expected decline in COVID-19
related sales
-- Revenue from COVID-19 products in 2022 totalled GBP14.7m (FY2021: GBP84.0m)
-- Revenue for the non-COVID-19 portfolio in 2022 totalled
GBP6.3m (FY2021: GBP8.6m). This decline was predominantly driven by
lower instrument sales compared to FY2021 which benefited from
COVID-19 demand
-- Group gross profit totalled GBP5.7m (27%) in FY2022 (FY2021:
GBP28.2m (30%)). The FY2022 gross profit was reduced as a result of
significant stock provisions based on lower forecasted COVID-19
sales in addition to writing-off stock that had not been provided
for previously. Excluding the impact of these items, the margin
would be in excess of 60%
-- Group EBITDA loss in FY2022 is GBP13.5m before exceptional
items (FY2021: GBP3.1m profit) as a result of the expected decline
in revenue and in line with guidance
-- Discontinued operations loss of GBP3.5m in FY2022 (FY2021: GBP3.7m loss )
-- Loss after tax increased to GBP25.7m in FY2022 (FY2021: GBP9.7m loss)
-- Cash position at 31 December 2022 was GBP87.0m (2021:
GBP101.7m) and the Company remains debt free
Continuing operations
* 2022 2021
GBP'000 GBP'000
Revenue 21,040 92,603
Gross profit ** 5,746 28,226
--------- ---------
Gross profit % 27% 30%
--------- ---------
OPEX (19,286) (25,131)
--------- ---------
EBITDA (13,540) 3,095
--------- ---------
EBITDA % n.m. 3%
--------- ---------
Adjusted EBITDA ** (13,540) 38,865
--------- ---------
Recurring operating (loss) / profit
*** (15,655) 1,305
--------- ---------
Operating loss (23,393) (3,916)
--------- ---------
Other financial income and expenses 3,340 (1,744)
--------- ---------
Income tax (2,148) (349)
--------- ---------
Loss after tax from continuing operations (22,201) (6,009)
--------- ---------
Loss from discontinued operations (3,529) (3,719)
--------- ---------
Loss after tax attributable to the
owners (25,730) (9,728)
--------- ---------
* Following the 28 April 2022 announcement where Novacyt
notified its intention to close Microgen Bioproducts and Lab21
Healthcare, the net results of the Lab21 Products segment for
FY2021 and FY2022 has been reported on a separate line 'Loss from
discontinued operations' in accordance with IFRS 5, "Non-current
Assets Held for Sale and Discontinued Operations".
** Due to the ongoing commercial dispute with the DHSC, GBP35.8m
exceptional cost of sales were incurred in FY2021 (FY2022: GBPnil)
that were one-off in nature. The two largest items were a GBP26.1m
stock provision, as a result of the Group buying stock to fulfil
expected future DHSC orders that did not materialise; and the
expensing of GBP6.9m of stock delivered to the DHSC which has not
been paid for as it is now part of the ongoing contract
dispute.
*** FY2022 recurring operating loss is stated before GBP7.7m of
non-recurring charges as follows:
1. A GBP5.2m impairment charge in relation to the goodwill and
intangible assets associated with the IT-IS International
acquisition.
2. GBP1.3m restructuring expenses.
3. GBP0.9m costs in relation to the ongoing DHSC contract dispute.
4. GBP0.3m of other expenses.
James McCarthy, Acting Group CEO of Novacyt, commented:
"The focus during 2022 has been on expanding our infectious
disease product portfolio beyond COVID-19 to sustain the long-term
growth of the Company. The distribution agreement with Clonit srl,
was an important strategic step, adding over 40 assays focused on
our high growth target therapeutic areas of respiratory,
gastrointestinal infections, transplant and insect-borne pathogens
and also provided access to an additional diagnostic area in
sexually transmitted infection (STI). We successfully relaunched
our core RUO business, developing important new assays to support
infectious disease monitoring and we also strengthened our
instrumentation business, which in partnership with our assay
development provides customers with a seamless sample-to-result
workflow.
"Following a rightsizing of our cost base, Novacyt is well
positioned for future growth and value creation as we move past the
pandemic and continue our journey to become a leading global
clinical diagnostics company focused on both existing and unmet
needs in infectious diseases."
The information contained within this Announcement is deemed by
the Company to constitute inside information as stipulated under
Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as
amended) as it forms part of the domestic law of the United Kingdom
by virtue of the European Union (Withdrawal) Act 2018 (as amended).
Upon the publication of this Announcement via the Regulatory
Information Service, this inside information is now considered to
be in the public domain.
Contacts
Novacyt SA
James Wakefield, Non-Executive Chairman
James McCarthy, Acting Chief Executive Officer
+44 (0)1276 600081
SP Angel Corporate Finance LLP (Nominated Adviser and
Broker)
Matthew Johnson / Charlie Bouverat (Corporate Finance)
Vadim Alexandre / Rob Rees (Corporate Broking)
+44 (0)20 3470 0470
Numis (Joint Broker)
Freddie Barnfield / Duncan Monteith / Jack McLaren
+44 (0)20 7260 1000
Allegra Finance (French Listing Sponsor)
Rémi Durgetto / Yannick Petit
+33 (1) 42 22 10 10
r.durgetto@allegrafinance.com ; y.petit@allegrafinance.com
Walbrook PR
Paul McManus/ Stephanie Cuthbert/ Anna Dunphy
+44 (0)20 7933 8780
novacyt@walbrookpr.com
About Novacyt Group
Novacyt is an international diagnostics business delivering a
broad portfolio of in vitro and molecular diagnostic tests for a
wide range of infectious diseases, enabling faster, more accurate,
accessible testing to improve healthcare outcomes. The Company
provides customers with a seamless sample-to-result workflow using
its integrated and scalable instrumentation/solutions. The Company
specialises in the design, manufacture, and supply of real-time PCR
kits, reagents and a full range of laboratory and qPCR
instrumentation for molecular biology research and clinical use.
Novacyt offers one of the world's most varied and comprehensive
range of qPCR assays, covering human, veterinary, biodefence,
environmental, agriculture and food testing.
Novacyt is headquartered in Vélizy in France with offices in
Stokesley and Eastleigh, UK, and is listed on the London Stock
Exchange's AIM market ("NCYT") and on the Paris Stock Exchange
Euronext Growth ("ALNOV").
Chief Executive's review
In early 2022 the business set out a new strategy to transition
to a post-COVID-19 market; this strategy remains in place today and
I am pleased to see its successful early execution over the course
of last year and Q1 2023. This strategy focussed on the twin
objectives of portfolio development and geographic expansion
underpinned by our credentials as an agile, world leading provider
of integrated RUO and clinical diagnostics. In parallel we continue
to evaluate strategic opportunities, which would accelerate the
growth of the Company, including potential licensing deals,
partnerships and acquisitions.
As part of the transition beyond COVID-19, the Company conducted
a foundational piece of market research early in 2022, which
directed the organic development of the post-COVID-19 diagnostics
portfolio towards high growth infectious disease areas, including
respiratory, gastro-intestinal infections, transplant, and
insect-borne pathogens.
Whilst our core strategy has not changed, the 2022 trading
environment was much more volatile than expected and the Company
saw a sharp reduction in COVID-19 sales, falling from GBP10.6m in
Q1 2022 to GBP4.1m for the total Q2-Q4 period. This decline was
much faster than previously expected, prompting management to
accelerate our post-COVID-19 product development efforts, both
internally and externally. Following a strategic review, we also
executed a significant cost rightsizing including the
discontinuation of the Microgen Bioproducts and Lab21 Healthcare
businesses whilst protecting investment in R&D and commercial
activities. As we accelerate our product development it is also
worth noting that the application of the In Vitro Diagnostic
Regulation (IVDR) from May 2022 means that product development
cycles for clinical products from design to launch are now likely
to be c.24 months, vs 6 months under the previous IVD process.
Portfolio development
Product development
In July 2022 the Company relaunched its extensive and
established research use only (RUO) portfolio, ensuring our primers
and probes were best-in-class to reliably target current pathogens.
By year-end, the team had optimised and verified the redesigns of
25 RUO products, and also developed new RUO assays for Monkeypox
and Adenovirus F41.
As the product development pathway for clinical products has
been significantly extended under IVDR, the Company will now
develop RUO versions for its target therapeutic areas as a first
step. This activity is well underway targeting the development of
up to ten new multiplex products in 2023 in the areas of
gastrointestinal, respiratory and insect-borne infections.
Through a combination of internal R&D and third-party
sourcing, the Company has already launched a portfolio of CE marked
clinical assays in the following areas:
-- A winter respiratory panel with the internally developed
genesig(TM) Real-time PCR SARS-CoV- 2 Winterplex launched in Europe
and CTDA approved for UK launch in October 2022
-- Sexually transmitted infections (STI) (e.g., Chlamydia
trachomatis, Neisseria gonorrhoeae, Trichomonas vaginalis)
-- Gastrointestinal infections (e.g., Clostridium difficile, Enterovirus)
-- Respiratory (RI) (e.g., Mycoplasma pneumoniae)
-- Two single analyte transplant viral assay panels for the
Epstein-Barr virus and BK virus for use on open instrument
platforms during the period.
These products and our enhanced workflow solution will be
targeted to indications where there is a need for cost-effective,
rapid, accurate and highly precise diagnostic testing. Based on
market research, we believe the key market for this offering is in
routine testing in mid-to-low volume spoke laboratories and
non-routine services in hub laboratories. As identified in April
2022 at the strategy update, we will target these markets due to
our differentiated customer offering.
For Europe, which is our initial target geography with CE marked
products, the Company estimates a market size of circa GBP470m
growing at a CAGR of 10%. The mid-term goal is to expand our
offering to customers worldwide.
Our molecular portfolio is complemented by an extensive range of
lateral flow diagnostic tests (LFTs) for clinical use. The range
aligns with the target disease areas covered by our molecular
portfolio and has been further enhanced with the launch of two new
LFT readers for use in conjunction with a number of key assays
within Novacyt's Pathflow(TM) product portfolio. The readers are
designed to provide digital test results based on optical imaging
technology, thereby removing the ambiguity of manually interpreting
a reading. The result is available in a matter of seconds (10-12
secs) in a digital form that can be exported to other systems.
Instrumentation & workflow
Novacyt has made considerable progress enhancing its
post-COVID-19 integrated sample-to-result molecular workflow
solution. We have validated a nucleic acid extraction system and
have launched an automated liquid handling system (CO-Prep(TM)) for
assay setup that complements our proprietary q16 and q32
instruments and user friendly direct-to-PCR assays to deliver an
end-to-end, fast scalable workflow solution capable of processing
over 1,000 tests per day. The new workflow reduces hands-on time
and risk of contamination whilst providing robust sample
stewardship to reduce the chance of human error. The complete
workflow platform can be used where current decentralised
sample-to-result solutions are not easily scalable, slow, and
costly.
COVID-19 portfolio
To ensure Novacyt remains well positioned for any future
COVID-19 outbreaks in both developed and developing markets, the
Company has consolidated its portfolio. To this end, Novacyt
secured CE mark accreditation for its saliva-based PathFlow(TM)
COVID-19 Rapid Antigen Self-Test and an ambient version of its
PROmate(TM) COVID-19 2G assay designed for international shipping.
Both tests complement the Company's established genesig(TM)
COVID-19 Real-Time PCR portfolio and PROmate(TM) COVID-19 direct to
PCR 1G and 2G assays.
Commercialisation
During the period, Novacyt has focused on deploying talent in
key geographies and optimising its global distributor network to
ensure optimal commercial coverage for its recently relaunched RUO
portfolio and its growing clinical offering. Through this work,
coverage has been increased across EMEA and the Company has begun
conducting distributor training on its full portfolio, including
its expanded clinical portfolio and workflow.
-- Commercialised Winterplex panel with sales to hospitals in both the UK and Europe.
-- Partnered with a global fisheries company in the development
of tests and workflow for more efficient management of fish stocks;
initial sales have been focused on their North American subsidiary
and we are now engaging with other global sites to identify their
testing needs
-- As the APAC region begins to open up post-COVID, we are
re-engaging with new and existing distributors across the region
with the RUO reagent and instrument products
-- Signed a contract with a leading global non-governmental
organisation (NGO) to support the detection of arboviruses,
including dengue, Zika and Chikungunya. This has now been extended
to include West Nile fever, hepatitis A & E and haemorrhagic
fever, with further orders received. We also anticipate sales of
our RSV test to come in the near term and they are currently
evaluating our Winterplex product for deployment across Africa
-- Partnered with a leading healthcare company in India to
supply both reagents and instrumentation
The Company expects to launch an updated customer website in Q3,
that will replace and consolidate former legacy sites. All commerce
activity will be conducted from this single site, which will
include webshop functionality, as well as a customer portal
offering instrument registration and software upgrades.
Business development
In addition to the internal development of the new portfolio,
the Company continues to assess strategic M&A, partnership and
licensing opportunities as a priority to add scale and
diversification to support the long-term growth of the
business.
In January 2023 Novacyt entered into an exclusive development
agreement with Eluceda Ltd, a specialist developer of
electrochemical sensors, to develop novel biosensor technology in
the fields of human and animal in vitro diagnostics, life science
research and animal speciation. Development of two products has
started and the first product is expected to launch early in
2024.
DHSC dispute
On 25 April 2022, the Company was notified that the Department
of Health and Social Care (DHSC) had issued a claim against Primer
Design Ltd and Novacyt S.A. for GBP134.6m in relation to the
contract dispute announced by the Company on 9 April 2021 regarding
its second supply contract with the DHSC, announced on 29 September
2020. On 15 June 2022, Novacyt and Primer Design Ltd filed a
defence of the claim received on 25 April 2022 and Primer Design
Ltd made a counterclaim of GBP81.5m against the DHSC. On 30 January
2023 the UK High Court notified Novacyt that the hearing of the
case between Primer Design Ltd / Novacyt and the DHSC has been
listed to commence on 10 June 2024 and is expected to last 16 days.
The Group remains committed to defending the case and asserting its
contractual rights, including recovering outstanding sums due from
the DHSC.
The Company is unable to provide additional comment at this time
but will provide further updates as appropriate and to the extent
it is permitted to do so.
Current trading and outlook
Group revenue for Q1 2023 is expected to be circa GBP1.7m of
which GBP0.3m relates to COVID-19 sales. This has been a slower
than expected start to the year particularly in instrumentation
where we are seeing an over-hang of inventories that customers
built up during the pandemic. Looking forward we expect the
run-rate for both RUO and instrument sales to increase and we
should also observe sales from our clinical portfolio coming
through towards the latter part of the year.
Last year we implemented a number of strategic changes to
transition the business beyond COVID-19 and position Novacyt for
long-term sustainable growth. We are evaluating a number of
opportunities that would accelerate this growth and believe we are
well placed to build on the strength of our core business as we
continue to deliver our strategy, expanding both our product
portfolio and geographic footprint, to build a leading global
clinical diagnostics company focused on unmet needs in infectious
diseases.
FINANCIAL REVIEW
Overview
Novacyt's 2022 performance was impacted by a faster than
anticipated decline in COVID-19 related sales, and as such is
reporting a loss for the year. During the second half of 2022 the
Group made good progress on i) transitioning from its reliance on
COVID-19 revenue and ii) right sizing its cost base. During the
year the Group carried out a large restructuring exercise to reduce
its opex cost base, which saw over 100 employees leave the
Group.
Novacyt generated sales of GBP21.0m, an EBITDA loss of GBP13.5m
and a loss after tax of GBP25.7m.
Cash at the end of 2022 was GBP87.0m, which provides the Group
with a solid foundation on which to build and execute on its future
strategy.
Discontinued operations
In early 2022, Novacyt carried out a strategic review of the
Lab21 Healthcare and Microgen Bioproducts businesses to consider
the merits of maintaining multiple company entities/names under the
Novacyt Group umbrella versus a simplified business model and
brand, which the Directors believed could be more impactful.
Novacyt announced its intention to discontinue both businesses in
April 2022, and they had ceased day to day trading as at the end of
June 2022.
In accordance with IFRS 5, the net results of Lab21 Healthcare
and Microgen Bioproducts have been reported on a separate line
"Loss from discontinued operations" in the consolidated income
statement for FY 2022 and 2021.
Revenue
Revenue for 2022 fell to GBP21.0m compared with GBP92.6m in
2021, driven by reduced demand for COVID-19 testing as we emerge
from the pandemic. Primer Design delivered sales totalling GBP19.6m
whilst IT-IS International delivered sales of GBP1.4m for 2022.
Gross profit
The business delivered a gross profit of GBP5.7m (27%), compared
with GBP28.2m (30%) in 2021. The margin, at 27%, is significantly
below the Group's historic margin (60%+) predominantly due to the
impact of stock in the form of i) booking a higher stock provision
than normal as a result of lower forecast COVID-19 sales and ii)
writing-off stock that had not been provided for previously.
Excluding the impact of these items, the margin would be in excess
of 60%. The 2021 gross profit was impacted by the GBP35.8m one-time
cost of sales exceptional charge relating to the DHSC dispute.
Operating expenditure
Group operating costs fell by GBP5.8m to GBP19.3m in 2022
compared with GBP25.1m in 2021. Savings are mainly due to lower
staff costs, as headcount for the continuing operations has fallen
from circa 239 in December 2021 to circa 137 in December 2022 as a
result of the Group-wide restructuring programme. Further savings
have been made in legal and professional fees, commercial
insurance, as the business contracts, and facilities.
The business continued to invest in research and development,
which saw a year-on-year increase in expenditure that supported
bringing a number of new products to the market.
EBITDA
The Group reported an EBITDA loss of GBP13.5m for 2022 compared
with a profit of GBP3.1m in 2021. The GBP16.6m swing from EBITDA
profitability in 2021 to an EBITDA loss in 2022 is driven by a
reduced gross profit contribution of GBP22.5m as a result of lower
sales, partially offset by a GBP5.8m fall in operating
expenditure.
Operating loss
The Group reported an operating loss of GBP23.4m compared with a
2021 loss of GBP3.9m, predominantly driven by lower sales.
Year-on-year, depreciation and amortisation charges have increased
by GBP0.3m to GBP2.1m due to the annualised effect of reporting
twelve months of depreciation on a number of material asset
additions during late 2021.
Other operating expenses have increased from GBP5.2m to GBP7.7m.
The main items making up the 2022 charge are i) a GBP5.2m
impairment charge in relation to the goodwill and intangible assets
associated with the IT-IS International acquisition due to reduced
future expected cash flow generation, ii) GBP1.3m restructuring
expenses predominantly covering redundancy payments, iii) GBP0.9m
costs in relation to the ongoing DHSC contract dispute and iv)
GBP0.3m of other expenses.
Loss after tax from continuing operations
The Group reported a loss after tax from continuing operations
of GBP22.2m, compared with a loss of GBP6.0m in 2021. Other
financial income and expenses netted to a GBP3.3m income compared
with a GBP1.7m charge in 2021. The two key items making up the
balance are i) a GBP2.4m net financial foreign exchange gain mainly
resulting from revaluations of the 2017 to 2020 LTIP scheme
liability and bank and intercompany accounts held in foreign
currencies and ii) with interest rates rising the Group received
GBP0.6m interest on deposits held in bank accounts. Taxation at
GBP2.1m is predominantly as a result of the movement in deferred
tax.
Loss from discontinued operations
In accordance with IFRS 5, the net result of the Lab21 Products
business has been reported on a separate line "Loss from
discontinued operations" in the consolidated income statement for
2022 and 2021.
Lab21 Products reported a loss after tax of GBP3.5m in 2022
versus a loss of GBP3.7m in 2021. The 2022 loss includes closure
costs totalling circa GBP1.8m made up of i) a GBP1.0m impairment
charge of right-of-use assets (Camberley facility lease), ii)
GBP0.6m impairment charge of remaining property, plant and
equipment and iii) GBP0.2m redundancy costs. The 2022 tax expense
of GBP0.4m is primarily due to the release of all deferred tax
balances, as unused tax losses cannot be utilised by the Group post
closure.
Earnings Per Share
2022 saw a loss per share of GBP0.36 compared to a loss per
share of GBP0.14 in 2021, as a result of the loss widening.
Statement of financial position
Dec-22 Dec-21 Dec-22 Dec-21
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- ------------------------------ --------
Goodwill 6,646 11,471 Share capital and premium 54,633 54,646
Retained earnings and
Right-of-use assets 521 1,788 reserves 60,583 87,169
Property, plant
and equipment 2,751 4,594 Total equity 115,216 141,815
Deferred tax assets 624 3,143
Other non-current
assets 3,121 3,918 Deferred tax liabilities 1,041 1,224
Total non-current
assets 13,663 24,914 Lease liabilities long-term 263 1,446
Other provisions and
long-term liabilities 145 308
Inventories 3,027 11,461 Total non-current liabilities 1,449 2,978
Trade and other
receivables 33,662 38,499
Tax receivables 1,149 5,034 Lease liabilities short-term 609 424
Other current assets 2,427 2,043 Trade and other liabilities 2,787 17,190
Other provisions and
Cash and cash equivalents 86,973 101,746 short-term liabilities 20,840 21,290
Total current
assets 127,238 158,783 Total current liabilities 24,236 38,904
TOTAL ASSETS 140,901 183,697 TOTAL EQUITY AND LIABILITIES 140,901 183,697
--------------------------- -------- ------------------------------ --------
Non-current assets
Goodwill has fallen from GBP11.5m in 2021 to GBP6.6m in 2022.
Following the 2022 impairment review, goodwill associated with the
acquisition of IT-IS International Ltd has been impaired by GBP5.2m
as a result of reduced future expected cash flow. The remaining
GBP0.3m is due to exchange revaluations on the acquisition of
Primer Design goodwill balance, which is held in Euros.
Right-of-use assets have decreased from GBP1.8m at 31 December
2021 to GBP0.5m at 31 December 2022, largely as a result of fully
impairing the right-of-use asset associated with the Camberley
facility following the closure of the Lab21 Products business that
operated from that site.
Property, plant and equipment has decreased by GBP1.8m from 31
December 2021 to GBP2.8m at 31 December 2022, driven by four main
factors, i) GBP1.0m depreciation costs, ii) GBP0.6m impairment
costs for fixed assets associated with the Lab21 Products business,
iii) GBP0.4m impairment costs for lab equipment that will not be of
use to the Novacyt Group and iv) offset by capital purchases of
GBP0.2m.
Deferred tax assets have decreased from GBP3.1m at 31 December
2021 to GBP0.6m at 31 Dece mber 2022. The 2022 balance relates to
Primer Design, where a GBP0.6m deferred tax asset, relating to
carried forward tax losses, has been recognised to offset its
GBP0.6m deferred tax liability on accelerated capital allowances.
The remaining deferred tax assets have not been recognised at 31
December 2022 on the basis that they may not be recoverable in the
near-term. At 31 December 2022, the Group has unused tax losses of
over GBP70.9m (covering France & the UK) available for offset
against future relevant profits and their period of use is
unlimited.
Other non-current assets have reduced by GBP0.8m to GBP3.1m as
at 31 December 2022 largely driven by the amortisation of
intangible assets.
Current assets
Inventories and work in progress has fallen significantly from
GBP11.5m at 31 December 2021 to GBP3.0m at 31 December 2022, this
is mainly due to i) providing for stock that is at risk of not
being sold due to the fall in expected future demand for COVID-19
related products and ii) writing off stock that has expired in 2022
that was not previously provided for.
Trade and other receivables has fallen by GBP4.8m to GBP33.7m at
31 December 2022 in line with a decline in sales. The trade
receivables balance includes a GBP24.0m unpaid DHSC invoice raised
in December 2020, in respect of products delivered during 2020 that
remains unpaid at the date of publishing the accounts. Recovery of
the invoice is dependent on the outcome of the contract dispute.
Also included in trade and other receivables is a GBP8.3m VAT
receivable balance (December 2021: GBP8.2m), that mainly relates to
UK VAT paid on sales invoices in dispute with the DHSC. As these
sales have not been recognised in accordance with IFRS 15, the
revenue, trade receivable and VAT element of the transactions have
been reversed, resulting in a VAT debtor balance.
Tax receivables has fallen by GBP3.9m to GBP1.1m at 31 December
2022, as the Group received a refund for the overpayment of 2020
corporation tax from HMRC in March 2022. The current balance
relates to 2021 losses that can be carried back for relief against
2020 taxable profits totalling GBP0.5m and a Research and
Development Expenditure Credit (RDEC) accrual covering 2021 and
2022 totalling GBP0.6m.
Other current assets have increased to GBP2.4m from GBP2.0m in
2021, driven by a GBP0.2m increase in prepayments and a GBP0.2m
increase in short-term deposits, which includes rent deposits due
back to the Group. Prepayments at 31 December 2022 include the
annual Group commercial insurance, rent, rates, prepaid support
costs and stock that had not been delivered at the reporting
date.
Current liabilities
Contingent consideration fell from GBP0.8m to GBPnil in 2022 as
a result of settling the final earnout milestones associated with
the IT-IS International acquisition, concluding the payments for
the acquisition.
Short-term provisions remained flat year-on-year at GBP20.3m
(2021: GBP20.0m). A product warranty provision for GBP19.8m booked
in 2020 to cover Management's view of the maximum cost of replacing
products in relation to the ongoing commercial dispute with the
DHSC remained unchanged in 2022.
Trade and other liabilities fell to GBP2.8m at 31 December 2022
from GBP17.2m at 31 December 2021, predominantly as a result of
payments made during the year in relation to the 2017 to 2020 LTIP
scheme, together with a GBP2.6m decrease in trade payables and
accrued invoices in line with reduced sales.
Non-Current Liabilities
Non-current liabilities has fallen by GBP1.5m to GBP1.4m at 31
December 2022. The main driver for this is the reduction in the
long-term lease liability as a result of Microgen Bioproducts
negotiating the surrender of its Watchmoor Point leased facility
based in Camberley, which was agreed in 2022 and settled in early
2023.
Cash flow
Cash held at the end of 2022 totalled GBP87.0m compared with
GBP101.7m at 31 December 2021. Net cash used in operating
activities was GBP13.7m for 2022 made up of a working capital
outflow of GBP0.2m and an EBITDA loss of GBP13.5m, compared to a
cash inflow of GBP15.7m in 2021.
Net cash used in investing activities fell to GBP0.6m from
GBP5.0m in 2021. Capital expenditure in 2022 fell to GBP0.4m
compared with GBP4.1m in 2021, when the Group heavily invested in
insourcing manufacturing. Acquisition related cash outflows reduced
by GBP0.1m year-on-year as a result of the final earnout milestone
associated with the IT-IS acquisition being lower than the previous
year's payment. In addition, the Group has benefited from interest
rate rises throughout 2022, generating GBP0.6m interest income from
its cash balances.
Net cash used in financing activities in 2022 totalled GBP0.5m
compared with GBP0.6m in 2021, with the main cash outflow
continuing to be lease payments.
The Group remains debt free at 31 December 2022.
Patent Box
On 30 March 2022 Novacyt (specifically Primer Design Ltd)
received confirmation that the UK Intellectual Property Office had
granted the key patent (ORF1a/b), with patent number GB2593010.
This means that the effective rate of tax on profits (adjusted for
certain rules) derived from the sale of products incorporating this
patent is close to 10% rather than the current (FY2022) UK
corporation tax rate of 19%.
The effective tax rate is given via a tax deduction and due to
the uncertainty over the precise timing of the tax relief available
to the company and the complexity involved in making a claim for
the first time, a tax asset has not been recognised. The asset will
only be recognised when Management can reliably measure and predict
the outcome of a Patent Box claim in terms of value and timing.
Announcement Note
The information included in this announcement is extracted from
the audited Group Consolidated Accounts. Defined terms used in the
announcement refer to terms as defined in the Group Consolidated
Accounts unless the context otherwise requires. This announcement
should be read in conjunction with, and is not a substitute for,
the full Group Consolidated Accounts.
Chief Financial Officer
Novacyt S.A.
Consolidated income statement for the years ended 31 December
2022 and 31 December 2021
Year ended Year ended
31 December 31 December
Amounts in GBP'000 Notes 2022 2021 (*)
Continuing Operations
Revenue 21,040 92,603
Cost of sales 4 -15,294 -28,607
Cost of sales - exceptional 5 - -35,770
============================================== ============= =============
Total cost of sales -15,294 -64,377
============================================== ============= =============
Gross profit 5,746 28,226
Sales, marketing and distribution expenses -4,826 -6,225
Research and development expenses -5,047 -4,645
General and administrative expenses 6 -12,090 -16,359
Governmental subsidies 562 308
Operating (loss) / profit before exceptional
items -15,655 1,305
============================================== ============= =============
Other operating income 7 - 65
Other operating expenses 7 -7,738 -5,286
Operating loss after exceptional items -23,393 -3,916
============================================== ============= =============
Financial income 8 3,969 787
Financial expense 8 -629 -2,531
Loss before tax -20,053 -5,660
============================================== ============= =============
Tax expense 9 -2,148 -349
Loss after tax from continuing operations -22,201 -6,009
============================================== ============= =============
Loss from discontinued operations 17 -3,529 -3,719
Loss after tax attributable to owners
of the Company (**) -25,730 -9,728
============================================== ============= =============
Loss per share (GBP) 10 -0.36 -0.14
Diluted loss per share (GBP) 10 -0.36 -0.14
Loss per share from continuing operations
(GBP) 10 -0.31 -0.09
Diluted loss per share from continuing
operations (GBP) 10 -0.31 -0.09
Loss per share from discontinued operations
(GBP) 10 -0.05 -0.05
Diluted loss per share from discontinued
operations (GBP) 10 -0.05 -0.05
* The 2021 consolidated income statement is presented to reflect
the impact of the application of IFRS 5 relative to discontinued
operations, by stating the Lab21 Products activity on a single line
'Loss from discontinued operations'.
** There are no non-controlling interests.
Consolidated statement of comprehensive income for the years
ended 31 December 2022 and 31 December 2021
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021 (*)
Loss for the period recognised
in the income statement -25,730 -9,728
==================================== ============= =============
Items that may be subsequently
reclassified to profit or loss:
Translation reserves -843 862
Total comprehensive loss -26,573 -8,866
==================================== ============= =============
Comprehensive loss attributable
to:
Owners of the Company (**) -26,573 -8,866
* The 2021 consolidated income statement is presented to reflect
the impact of the application of IFRS 5 relative to discontinued
operations, by stating the Lab21 Products activity on a single line
'Loss from discontinued operations'.
**There are no non-controlling interests.
Statement of financial position for the years ended 31 December
2022 and 31 December 2021
Year ended Year ended
31 December 31 December
Amounts in GBP'000 Notes 2022 2021
Goodwill 11 6,646 11,471
Other intangible assets 3,121 3,710
Property, plant and equipment 2,751 4,594
Right-of-use assets 521 1,788
Non-current financial assets - 144
Deferred tax assets 624 3,143
Other long-term assets - 64
===================================== ============= =============
Total non-current assets 13,663 24,914
Inventories and work in progress 12 3,027 11,461
Trade and other receivables 13 33,662 38,499
Tax receivables 1,149 5,034
Prepayments and short-term deposits 2,418 2,034
Investments short-term 9 9
Cash and cash equivalents 86,973 101,746
===================================== ============= =============
Total current assets 127,238 158,783
Total assets 140,901 183,697
===================================== ============= =============
Lease liabilities short-term 609 424
Contingent consideration short-term - 836
Provisions short-term 14 20,300 19,956
Trade and other liabilities 15 2,787 17,190
Other current liabilities 540 498
===================================== ============= =============
Total current liabilities 24,236 38,904
Net current assets 103,002 119,879
===================================== ============= =============
Lease liabilities long-term 263 1,446
Provisions long-term 14 95 308
Deferred tax liabilities 1,041 1,224
Other long-term liabilities 50 -
===================================== ============= =============
Total non-current liabilities 1,449 2,978
Total liabilities 25,685 41,882
===================================== ============= =============
Net assets 115,216 141,815
===================================== ============= =============
Statement of financial position for the years ended 31 December
2022 and 31 December 2021 (continued)
Year ended Year ended
31 December 31 December
Amounts in GBP'000 Notes 2022 2021
Share capital 16 4,053 4,053
Share premium account 50,671 50,671
Own shares -91 -78
Other reserves 16 -2,017 -1,174
Equity reserve 1,155 1,155
Retained earnings 16 61,445 87,188
============================== ============= =============
Total equity - owners of the
Company 115,216 141,815
Total equity 115,216 141,815
============================== ============= =============
Statement of changes in equity for the years ended 31 December
2022 and 31 December 2021
Amounts in
GBP'000 Other Group reserves
------------------------------------------------
Acquisition
of the
shares of OCI on
Share Share Own Equity Primer Translation retirement Retained Total
capital premium shares reserves Design reserve benefits Total earnings equity
======== ======== ======= ========= ============ ============ =========== ======= ========== ========
Balance at 1
January 2021 4,053 50,671 -49 1,155 -2,407 379 -8 -2,036 96,916 150,710
================ ======== ======== ======= ========= ============ ============ =========== ======= ========== ========
Translation
differences - - - - - 862 - 862 - 862
Loss for the
period - - - - - - - - -9,728 -9,728
Total
comprehensive
income /
(loss) for the
period - - - - - 862 - 862 -9,728 -8,866
Own shares
acquired /
sold in the
period - - -29 - - - - - - -29
Balance at 31
December 2021 4,053 50,671 -78 1,155 -2,407 1,241 -8 -1,174 87,188 141,815
================ ======== ======== ======= ========= ============ ============ =========== ======= ========== ========
Translation
differences - - - - - -843 - -843 - -843
Loss for the
period - - - - - - - - -25,730 -25,730
Total
comprehensive
loss for the
period - - - - - -843 - -843 -25,730 -26,573
Own shares
acquired /
sold in the
period - - -13 - - - - - - -13
Other - - - - - - - - -13 -13
================ ======== ======== ======= ========= ============ ============ =========== ======= ========== ========
Balance at 31
December 2022 4,053 50,671 -91 1,155 -2,407 398 -8 -2,017 61,445 115,216
================ ======== ======== ======= ========= ============ ============ =========== ======= ========== ========
Statement of cash flows for the years ended 31 December 2022 and
31 December 2021
Amounts in GBP'000 Notes Year ended Year ended
31 December 31 December
2022 2021
Net cash (used in) / from operating
activities 18 -13,729 15,689
======================================== ============= =============
Operating cash flows from discontinued
operations -1,955 2,180
Operating cash flows from continuing
operations -11,774 13,509
Investing activities
Purchases of patents and trademarks -260 -330
Purchases of property, plant and
equipment -156 -3,770
Variation of deposits -12 16
Acquisition of subsidiary net
of cash acquired -787 -943
Interest received 638 40
=============
Net cash used in investing activities -577 -4,987
=============
Investing cash flows from discontinued
operations 28 -247
Investing cash flows from continuing
operations -605 -4,740
Financing activities
Repayment of lease liabilities -503 -610
Purchase of own shares - net -13 -29
Net cash used in financing activities -516 -639
=============
Financing cash flows from discontinued
operations -142 -261
Financing cash flows from continuing
operations -374 -378
Net (decrease) / increase in
cash and cash equivalents -14,822 10,063
======================================== ============= =============
Cash and cash equivalents at
beginning of year 101,746 91,765
Effect of foreign exchange rate
changes 49 -82
======================================== ============= =============
Cash and cash equivalents at
end of year 86,973 101,746
======================================== ============= =============
Notes
1. CORPORATE INFORMATION
Novacyt is an international diagnostics business delivering a
broad portfolio of in vitro and molecular diagnostic tests for a
wide range of infectious diseases, enabling faster, more accurate,
accessible testing to improve healthcare outcomes. Its registered
office is located at 13 Avenue Morane Saulnier, 78140 Vélizy
Villacoublay.
2. BASIS OF ANNOUNCEMENT
2.1 Basis of Preparation
The consolidated financial statements for the fiscal year ended
31 December 2022 have been prepared in accordance with
International Financial Reporting Standards (IFRSs). The financial
statements have also been prepared in accordance with IFRSs adopted
by the European Union. They are prepared and presented in Great
British Pounds ("GBP"), rounded to the nearest thousand
("GBP'000s").
2.2 Discontinued operations and assets held for sale
A discontinued operation is a component that either has been
disposed of, or is classified as held for sale, and
(a) represents a separate major line of business or geographical
area of operations,
(b) is part of a single co-ordinated plan to dispose of a
separate major line of business or geographical area of operations,
or
(c) is a subsidiary acquired exclusively with a view to
resale.
Discontinued operations are presented in the consolidated income
statement as a single amount comprising the total of:
- The post-tax profit or loss of the discontinued operation,
- The post-tax gain or loss recognised on the measurement to fair value less costs to sell, and
- The post-tax gain or loss recognised on the disposal of assets
or the disposal group making up the discontinued operation.
Where material, the analysis of the single amount is presented
in the relevant note (see note 17).
In the statement of cash flows the net cash flow attributable to
the operating, investing and financing activities of discontinued
operations have been disclosed separately.
No adjustments have been made in the statement of financial
position.
Comparatives for discontinued operations are restated.
2.3 Going concern
The Directors have, at the time of approving the financial
statements, a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future. Thus, they adopt the going concern basis of accounting in
preparing the financial statements.
The going concern model covers the period up to and including
April 2024. In making this assessment, the Directors have
considered the following elements:
- The working capital requirements of the business;
- A positive cash balance at 31 December 2022 of GBP86,973,000;
- Payment of the Long-Term cash Incentive Plan ("LTIP") that
commenced in 2021 and vests at the end of 2023; and
- The DHSC commercial dispute having a trial date set for June 2024.
The forecast prepared by the Group shows that it is able to
cover its cash needs during the financial year 2023 up until April
2024.
2.4 Critical accounting judgements and key sources of estimate
uncertainty
In the application of the Group's accounting policies, the
Directors are required to make judgements (other than those
involving estimations) that have a significant impact on the
amounts recognised and to make estimates and assumptions about the
carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects
only that period, or in the period of the revision and future
periods if the revision affects both current and future
periods.
2.4.1 Critical accounting judgements
-- Constraint of revenue
Revenue is only constrained if it is highly probable there will
not be a significant reversal of revenue in the future. Highly
probable is not defined in IFRS 15 and so it is a significant
judgement to be exercised by Management. The value of revenue
related to performance obligations fulfilled in 2020 to which
constraint has not been applied is GBP130,642,000 and relates to
the DHSC dispute, further details are disclosed in note 20.
-- Trade and other receivables
An estimate of the risks of non-receipt based on commercial
information, current economic trends and the solvency of individual
customers is made to determine the need for impairment on a
customer-by-customer basis. Management use significant judgement in
determining whether a credit loss provision is required.
At the year end, the Group had trade receivables of
GBP25,485,000 against which a credit loss provision of GBP214,000
has been applied. At the date of signing the financial statements,
GBP23,957,000 of the 31 December 2022 receivables, relating to
products delivered during 2020, were overdue due to the contract
dispute with the Department of Health and Social Care "DHSC" (see
notes 20 and 21). Management considers it to be more likely than
not that the 31 December 2022 balances are recoverable; this is a
significant judgement.
-- Provisions
The carrying value of provisions at 31 December 2022 and 2021
are as per the table below:
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Provisions for restoration of premises 425 308
Provision for litigation 157 157
Provisions for product warranty 19,813 19,799
Total provisions 20,395 20,264
======================================== ================ ================
o Provisions for restoration of premises
The value of provision required is determined by Management on
the basis of available information, experience and, in some cases,
expert estimates. When these obligations are settled, the amount of
the costs or penalties that are ultimately incurred or paid may
differ significantly from the amounts initially provisioned.
Therefore, these provisions are regularly reviewed and may have an
effect on the Group's future results.
To the Group's knowledge, there is no indication to date that
the parameters adopted as a whole are not appropriate, and there
are no known developments that could significantly affect the
amount of provision.
o Provisions for product warranty
The value of provision required is determined by Management
based on available information, experience and, in some cases,
expert estimates. Product warranty provisions are only included if
it is considered to be probable that an outflow of economic benefit
will be required. Determination of probable is a significant
judgement especially in light of the dispute described in notes 20
and 21.
2.4.2 Key sources of estimation uncertainty
The Group has a number of key sources of estimation uncertainty.
Of these items, only the measurement of goodwill (see note 11) is
considered likely to result in a material adjustment. Where there
are other areas of estimates these have been deemed not
material.
-- Measurement of goodwill
Goodwill is tested for impairment on an annual basis. The
recoverable amount of goodwill is determined mainly on the basis of
forecasts of future cash flows. The total amount of anticipated
cash flows reflects Management's best estimate of the future
benefits and liabilities expected for the relevant CGU. The
assumptions used and the resulting estimates sometimes cover very
long periods, taking into account the technological, commercial and
contractual constraints associated with each CGU. These estimates
are mainly subject to assumptions in terms of volumes, selling
prices and related production costs, and the exchange rates of the
currencies in which sales and purchases are denominated. They are
also subject to the discount rate used for each CGU.
The value of the goodwill is tested whenever there are
indications of impairment and reviewed at each annual closing date
or more frequently should this be justified by internal or external
events.
The carrying amount of goodwill in the statement of financial
position and related impairment loss over the period is shown
below:
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Goodwill Primer Design 6,384 6,053
Cumulative impairment of goodwill - -
=================================== ============== ==============
Net value 6,384 6,053
==================================== ============== ==============
Goodwill IT-IS International 9,437 9,437
Cumulative impairment of goodwill -9,175 -4,019
==================================== ============== ==============
Net value 262 5,418
==================================== ============== ==============
Total goodwill 6,646 11,471
==================================== ============== ==============
Sensitivity analysis has been performed on the goodwill balance.
There is significant headroom associated with the Primer Design
balance, but there is limited headroom on the IT-IS International
goodwill balance, which could result in future impairments. The
goodwill sensitivity analysis is presented in note 11.
3. Operating segments
Segment reporting
Pursuant to IFRS 8, an operating segment is a component of an
entity:
- that engages in business activities from which it may earn
revenues and incur expenses (including revenues and expenses
relating to transactions with other components of the same
entity);
- whose operating results are regularly reviewed by the Group's
Chief Executive to make decisions regarding the allocation of
resources to the segment and to assess its performance; and
- for which discrete financial information is available.
The Group has identified four operating segments, whose
performance and resources are monitored separately. Following the
Group's announcement to discontinue the Microgen Bioproducts and
Lab21 Healthcare businesses earlier this year, the Lab21 Products
segment, which is made up of these businesses, is being treated as
a discontinued operation:
o Primer Design
This segment represents the activities of Primer Design Ltd,
which is a designer, manufacturer and marketer of molecular
'real-time' qPCR testing devices and reagents in the area of
infectious diseases based in Eastleigh, UK.
o IT-IS International
This segment represents the activities of IT-IS International
Ltd, a diagnostic instrument development and manufacturing company
specialising in the development of PCR devices for the life
sciences and food testing industry based in Stokesley, UK.
o Lab21 Products
This segment represents the activities of Lab21 Products, which
was a developer, manufacturer and distributor of a large range of
protein-based infectious disease IVD products covering Microgen
Bioproducts Ltd and Lab21 Healthcare Ltd, both based in Camberley,
UK. As these businesses ceased trading in June 2022, this segment
is being treated as a discontinued operation.
o Corporate
This segment represents Group central/corporate costs. Where
appropriate, costs are recharged to individual business units via a
management recharge process.
o Intercompany eliminations
This represents intercompany transactions across the Group that
have not been allocated to an individual operating segment. It is
not a discreet segment.
The Chief Operating Decision Maker is the Chief Executive
Officer.
Headcount
The average headcount by segment is presented in the table
below:
Segment 2022 2021
--------------------- ----- -----
Primer Design 141 169
Lab21 Products 21 45
IT-IS International 31 38
Corporate 29 24
Total headcount 222 276
Breakdown of revenue by operating segment and geographic
area
o Year ended 31 December 2022
Amounts in GBP'000 Primer Design IT-IS International Total
Geographical area
United Kingdom 10,051 72 10,123
Europe (excluding UK) 3,372 477 3,849
America 4,134 347 4,481
Asia-Pacific 1,373 479 1,852
Middle East 347 30 377
Africa 357 1 358
Total revenue 19,634 1,406 21,040
====================== ============= =================== ======
o Year ended 31 December 2021
Amounts in GBP'000 Primer Design IT-IS International Total
Geographical area
United Kingdom 41,944 164 42,108
Europe (excluding UK) 31,045 355 31,400
America 8,047 782 8,829
Asia-Pacific 7,262 1,376 8,638
Middle East 501 17 518
Africa 1,053 57 1,110
Total revenue 89,852 2,751 92,603
====================== ============= =================== ======
Breakdown of result by operating segment
o Year ended 31 December 2022
Intercompany
Amounts in GBP'000 Primer Design Lab21 Products IT-IS International Corporate eliminations Total
Revenue 19,634 - 1,417 - -11 21,040
Cost of sales -14,710 - -2,026 - 1,442 -15,294
Sales and marketing
costs -4,231 - -321 -274 - -4,826
Research and
development -4,458 - -589 - - -5,047
General and
administrative -7,668 - -1,046 -1,261 - -9,975
Governmental subsidies 490 - 72 - - 562
Earnings before
interest, tax,
depreciation and
amortisation as per
management reporting -10,943 - -2,493 -1,535 1,431 -13,540
======================= ============== =============== ==================== ========== ============== ==========
Depreciation and
amortisation -1,699 - -405 -44 33 -2,115
Operating (loss) /
profit before
exceptional items -12,642 - -2,898 -1,579 1,464 -15,655
======================= ============== =============== ==================== ========== ============== ==========
o Year ended 31 December 2021
Intercompany
Amounts in GBP'000 Primer Design Lab21 Products IT-IS International Corporate eliminations Total
Revenue 89,856 - 9,270 - -6,523 92,603
Cost of sales -27,582 - -5,131 - 4,106 -28,607
Cost of sales -
exceptional -37,192 - -3,984 - 5,406 -35,770
Sales and marketing
costs -5,659 - -228 -338 - -6,225
Research and
development -4,148 - -497 - - -4,645
General and
administrative -12,439 - -1,493 -637 - -14,569
Governmental
subsidies 254 - 54 - - 308
ADJUSTED Earnings
before interest,
tax, depreciation,
amortisation and
cost of sales -
exceptional,
as per management
reporting 40,282 - 1,975 -975 -2,417 38,865
====================== ============== =============== ==================== ========== ============== ===========
Earnings before
interest, tax,
depreciation and
amortisation as per
management reporting 3,090 - -2,009 -975 2,989 3,095
====================== ============== =============== ==================== ========== ============== ===========
Depreciation and
amortisation -1,372 - -404 -24 10 -1,790
Operating profit /
(loss) before
exceptional items 1,718 - -2,413 -999 2,999 1,305
====================== ============== =============== ==================== ========== ============== ===========
Assets and liabilities are not reported to the Chief Operating
Decision Maker on a segmental basis and are therefore not
disclosed.
Please note that in accordance with IFRS 5 the results of the
Lab21 Products segment for 2022 and 2021 have been reported on a
separate line 'Loss from discontinued operations' which is shown
below EBITDA and thus all items above EBITDA have a nil value.
4. Cost of sales
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Cost of inventories recognised as an expense 17,509 20,373
Change in stock provision -6,473 -10,404
Freight costs 73 405
Direct labour 4,141 17,624
Product warranty 14 11
Other 30 598
Total cost of sales 15,294 28,607
============================================== ============= =============
Total cost of sales has fallen year on year reflecting the
reduction in sales.
In 2022 the stock provision relating to continuing operations
decreased by a net GBP6,473,000 (2021: GBP10,404,000). A large
amount of stock, which had previously been provided for, was
written off and disposed of during 2022, with the cost being
charged to 'Cost of inventories recognised as an expense' and a
corresponding release of the stock provision being made.
Direct labour (including subcontractor costs) has decreased year
on year as a result of scaling back production to align to lower
sales.
A large amount of stock, which had previously been provided for,
was written off and disposed of during 2021, with the cost being
charged to 'Cost of inventories recognised as an expense' and a
corresponding release of the stock provision being made.
5. Cost of sales - exceptional
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Cost of inventories recognised
as an expense - 4,802
Change in stock provision - 26,098
Direct labour - 4,133
Other - 737
Total cost of sales - exceptional - 35,770
==================================== ============= =============
During 2022 no costs were classified as cost of sales -
exceptional relating to the DHSC dispute.
Due to the DHSC dispute mentioned in note 20, Management booked
a number of one-off, non-recurring cost of sales charges in 2021.
Two of the key items were a GBP26,098,000 stock provision, as a
result of the Group buying stock to fulfil expected future DHSC
orders that did not materialise, and the expensing of GBP6,884,000
of stock delivered to the DHSC which has not been paid for as it is
now included in the ongoing contract dispute.
6. General and administrative expenses
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Purchases of non-stored raw materials and supplies 323 376
Lease and similar payments 477 397
Maintenance and repairs 370 499
Insurance premiums 1,024 1,451
Legal and professional fees 1,622 2,404
Banking services 55 88
Employee compensation and social security contributions 5,144 7,890
Depreciation and amortisation of property, plant and equipment and intangible assets 2,115 1,790
Other general and administrative expenses 960 1,464
Total general and administrative expenses 12,090 16,359
====================================================================================== ============= =============
Legal and professional fees include advisors' fees, audit fees
and legal fees.
Labour costs have reduced year on year predominantly as a result
of the restructuring programming undertaken by the Group in 2022 to
reduce its cost base.
Depreciation and amortisation of property, plant and equipment
and intangible assets increased in 2022 due to the annualised
effect of reporting twelve months of depreciation on a number of
material asset additions during late 2021.
Other general and administrative expenses include costs such as
building rates, regulatory fees and IT expenses. 2021 included
approximately GBP500,000 charitable donations.
7. Other operating income and expenses
Year ended Year ended
Amounts in GBP'000 31 December 2022 31 December 2021
Other operating income - 65
Total other operating income - 65
============================================ ================== ==================
Impairment of IT-IS International goodwill -5,156 -4,019
DHSC contract dispute costs -927 -802
Restructuring expenses -1,255 -422
Acquisition related expenses -325 -
Other expenses -75 -43
Total other operating expenses -7,738 -5,286
============================================ ================== ==================
Operating income
Other operating income in 2021 predominantly relates to the
settlement of a legal claim against a third party.
Operating expenses
Goodwill associated with the IT-IS International Ltd acquisition
was impaired in 2022 and 2021 due to reduced future expected cash
flow generation.
DHSC contract dispute costs relate to legal and professional
fees and product storage costs incurred in the ongoing commercial
dispute.
Restructuring expenses have increased in 2022 driven by the
Group restructuring programme.
Acquisition related expenses primarily include costs associated
with potential merger and acquisition targets.
8. Financial income and expense
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Financial foreign exchange gains 2,506 337
Discount of financial instruments 3 33
Interest received from discontinued operations 779 363
Other financial income 681 54
Total financial income 3,969 787
================================================ ============= =============
Interest on IFRS 16 liabilities -45 -66
Financial foreign exchange losses -139 -2,214
Discount of financial instruments -31 -54
Interest paid to discontinued operations -413 -150
Other financial expense -1 -47
Total financial expense -629 -2,531
================================================ ============= =============
Financial foreign exchange gains and losses are driven by
revaluations of the LTIP liability and bank and intercompany
accounts held in foreign currencies.
Interest received from or paid to discontinued operations
relates to interest on intercompany balances with Microgen
Bioproducts Ltd and Lab21 Healthcare Ltd.
Other financial income relates to interest received on cash
balances.
9. Income tax
The standard rate of corporation tax applied to reported profit
is 19%, which is the tax rate applicable to the companies in the
United Kingdom for the financial year 2022 (due to rise to 25% on 1
April 2023). It was 19% for the year 2021.
Taxation for other jurisdictions (mainly France) is calculated
at the rates prevailing in the respective jurisdictions.
The Group's tax charge is the sum of the total current and
deferred tax.
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Current tax expense
Current year (expense) / income -224 411
Deferred tax expense
Deferred tax expense -1,924 -760
Total taxation expense in the income statement -2,148 -349
================================================ ============= =============
The expense for the period can be reconciled to the loss before
tax as follows:
Amounts in GBP'000 Year ended Year ended
31 December 31 December
2022 2021
Loss before taxation -20,053 -5,660
=================================================== ============= =============
Tax at the UK corporation tax rate (2022
and 2021: 19%) 3,810 1,075
Effect of different tax rates of subsidiaries
operating in other jurisdictions 95 115
Change of the tax rate for the calculation 3,571 -
of the deferred tax
Effect of non-deductible expenses and non-taxable
income -1,224 -822
Derecognition of deferred tax assets -8,047 -
Change in unrecognised deferred tax assets -287 -712
Other adjustments -66 -5
=================================================== ============= =============
Total taxation expense for the year -2,148 -349
=================================================== ============= =============
At 31 December 2022, the Group has unused tax losses of
GBP70,909,000 (2021: GBP9,432,000) available for offset against
future relevant profits and their period of use is unlimited.
The key item making up the non-deductible expenses in 2022 and
2021 is the impairment of goodwill.
Matters affecting the tax charge
On 30 March 2022 Novacyt (specifically Primer Design Ltd)
received confirmation that the UK Intellectual Property Office had
granted the key patent (ORF1a/b), with patent number GB2593010.
This means that the effective rate of tax on profits (adjusted for
certain rules) derived from the sale of products incorporating this
patent is close to 10% rather than the current UK corporation tax
rate of 19%.
The effective tax rate is given via a tax deduction and due to
the uncertainty over the precise timing of the tax relief available
to the Company and the complexity involved in making a claim for
the first time, a tax asset has not been recognised. The asset will
only be recognised when Management can reliably measure and predict
the outcome of a Patent Box claim in terms of value and timing.
10. Loss per share
The loss per share is calculated based on the weighted average
number of shares outstanding during the period. The diluted loss
per share is calculated based on the weighted average number of
shares outstanding and the number of shares issuable as a result of
the conversion of dilutive financial instruments. At 31 December
2022 there are no outstanding dilutive instruments.
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Net loss attributable to owners of the Company -25,730 -9,728
Impact of dilutive instruments - -
Net diluted loss attributable to owners of the Company -25,730 -9,728
============================================================ ============= =============
Weighted average number of shares 70,626,248 70,626,248
Impact of dilutive instruments - -
Weighted average number of diluted shares 70,626,248 70,626,248
============================================================ ============= =============
Loss per share (GBP) -0.36 -0.14
Diluted loss per share (GBP) -0.36 -0.14
Loss per share from continuing operations (GBP) -0.31 -0.09
Diluted loss per share from continuing operations (GBP) -0.31 -0.09
============================================================ ============= =============
Loss per share from discontinued operations (GBP) -0.05 -0.05
Diluted loss per share from discontinued operations (GBP) -0.05 -0.05
============================================================ ============= =============
11. Goodwill
Goodwill is the difference recognised, upon consolidation of a
company, between the fair value of the purchase price of its shares
and the net assets acquired and liabilities assumed, measured in
accordance with IFRS 3.
Cost GBP'000
=============================================== =======
At 1 January 2021 31,982
Exchange differences -1,624
At 31 December 2021 30,358
Exchange differences 1,144
At 31 December 2022 31,502
Accumulated impairment losses
=============================================== =======
At 1 January 2021 14,105
Impairment of the IT-IS International goodwill 4,019
Impairment of the Lab21 Products goodwill 1,822
Exchange differences -1,059
================================================= =======
At 31 December 2021 18,887
Impairment of the IT-IS International goodwill 5,156
Exchange differences 813
================================================= =======
At 31 December 2022 24,856
Carrying value at 31 December 2020 17,877
Carrying value at 31 December 2021 11,471
Carrying value at 31 December 2022 6,646
Primer Design
The impairment testing of the CGU as at 31 December 2022 was
carried out using the DCF method, with the key assumptions as
follows:
o Five-year business plan;
o Extrapolation of cash flows beyond five years based on a
growth rate of 1.5%; and
o Discount rate corresponding to the expected rate of return on
the market for a similar investment, regardless of funding sources,
equal to 12.1%.
The implementation of this approach demonstrated that the value
in use amounted to GBP36,112,000, which is greater than the
carrying amount of this asset. As such, no impairment was
recognised in the year ended 31 December 2022.
IT-IS International
The impairment testing of the CGU as at 31 December 2022 was
carried out using the DCF method, with the key assumptions as
follows:
o Five-year business plan;
o Extrapolation of cash flows beyond five years based on a
growth rate of 1.5%; and
o Discount rate corresponding to the expected rate of return on
the market for a similar investment, regardless of funding sources,
equal to 12.1%.
The implementation of this approach demonstrated that the value
in use amounted to GBP1,992,000, which is lower than the carrying
amount of this asset. As such an impairment charge has been
recognised in the year ended 31 December 2022 due to reduced future
expected revenue generation.
12. Inventories and work in progress
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Raw materials 8,562 19,382
Work in progress 2,854 3,350
Finished goods 3,404 7,831
Stock provisions -11,793 -19,102
Total inventories and work in progress 3,027 11,461
======================================== ============== ==============
Total inventories and work in progress has reduced significantly
since December 2021, predominantly as a result of providing for,
writing off and disposing of stock that had either expired or is
deemed excess stock as a result of lower future forecasted COVID-19
sales.
Stock provisions have fallen as a result of provided for stock
being written off and disposed of during 2022.
13. Trade and other receivables
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Trade and other receivables 25,485 30,279
Expected credit loss provision -214 -89
Tax receivables - Value Added Tax 8,312 8,213
Receivables on sale of businesses 69 66
Other receivables 10 30
Total trade and other receivables 33,662 38,499
=================================== ============== ==============
Trade receivables have decreased since 31 December 2021 in line
with falling monthly sales.
The trade receivables balance includes a GBP23,957,000 unpaid
DHSC invoice raised in December 2020, in respect of products
delivered during 2020, that remains unpaid at the date of
publishing the annual accounts. Recovery of the invoice is
dependent on the outcome of the contract dispute.
During 2021, GBP49,034,000 (including VAT) of products and
services were delivered and invoiced to the DHSC which has now been
included as part of the ongoing dispute. As these sales have not
been recognised in accordance with IFRS 15, the revenue, trade
receivable and VAT element of the transactions have been reversed.
This accounting treatment does not change the Group's legal
position or rights in relation to the dispute with the DHSC.
The 'Tax receivables - Value Added Tax' balance of GBP8,312,000
mainly relates to VAT paid in the UK on sales invoices in dispute
with the DHSC. As these sales have not been recognised in
accordance with IFRS 15, the revenue, trade receivable and VAT
element of the transactions have been reversed, resulting in a VAT
debtor balance.
Trade receivables balances are due within one year. Once an
invoice is more than 90 days overdue, it is deemed more likely to
default and as such, these invoices have been provided for in full
as part of an expected credit loss model, except where Management
have reviewed and judged otherwise.
The movement in the expected credit loss provision is shown
below:
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Balance at the beginning of the period 89 160
Impairment losses recognised 453 100
Amounts written off during the year as uncollectible -14 -44
Impairment losses derecognized -157 -
Amounts recovered during the year -157 -127
Balance at the end of the period 214 89
====================================================== ============== ==============
The split by maturity of the clients' receivables is presented
below:
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Less than one month 970 5,818
Between one and three months 143 217
Between three months and one year 121 24,200
More than one year 24,251 44
Balance at the end of the period 25,485 30,279
=================================== ============== ==============
14. Provisions
The table below shows the nature of and changes in provisions
for risks and charges for the period from 1 January 2022 to 31
December 2022:
At At
1 January 31 December
Amounts in GBP'000 2022 Increase Reduction Other movements Reclass 2022
Provisions for restoration of premises 308 - - 117 -330 95
Provisions long-term 308 - - 117 -330 95
======================================= =========== ========= ========== ================ ======== =============
Provisions for restoration of premises - - - - 330 330
Provision for litigation 157 - - - - 157
Provisions for product warranty 19,799 14 - - - 19,813
Provisions short-term 19,956 14 - - 330 20,300
======================================= =========== ========= ========== ================ ======== =============
The table below shows the nature of and changes in provisions
for risks and charges for the period from 1 January 2021 to 31
December 2021:
At At
1 January Change in exchange 31 December
Amounts in GBP'000 2021 Increase Reduction Other movements rates 2021
Provisions for
restoration of
premises 242 117 -67 16 - 308
Provisions long-term 242 117 -67 16 - 308
======================== =========== ========= ========== ================ ======================= =============
Provision for
litigation 68 157 -65 - -3 157
Provisions for product
warranty 19,788 11 - - - 19,799
Provisions short-term 19,856 168 -65 - -3 19,956
======================== =========== ========= ========== ================ ======================= =============
Provisions chiefly cover:
- Risks related to litigations;
- The restoration expenses of the premises as per the lease agreements; and
- Product assurance warranties.
The provisions for the restoration of the premises are an
estimation of amounts payable to cover dilapidations at the end of
the rental periods, thus at the following dates:
- Microgen Bioproducts Ltd: January 2023 (lease surrender date);
- Primer Design Ltd: May 2023 and November 2025 as there are two
sites that do not have co-terminus leases;
- IT-IS International Ltd: December 2023 and September 2025, as
there are two sites that do not have co-terminus leases.
The provision for product assurance warranties predominantly
relates to the notification of a product warranty claim with the
DHSC (see notes 20 and 21). Management have assessed the DHSC
product warranty provision held at 31 December 2021 and have deemed
that it is still appropriate at 31 December 2022.
15. Trade and other liabilities
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Trade payables 278 1,363
Accrued invoices 2,035 3,534
Social security liabilities 455 954
Tax liabilities - Value Added Tax 6 115
Other liabilities 13 11,224
Total trade and other liabilities 2,787 17,190
=================================== ============== ==============
Trade payables and accrued invoices have decreased in line with
reduced sales.
Other liabilities have fallen as a result of settling all
outstanding liabilities in relation to the 2017 to 2020 LTIP scheme
during 2022.
16. ISSUED CAPITAL and reserves
16.1 Share capital
As of 31 December 2022 and 2021, the Company's share capital of
EUR4,708,416.54 was divided into 70,626,248 shares with a par value
of 1/15th of a Euro each.
The Company's share capital consists of one class of share. All
outstanding shares have been subscribed, called and paid.
Amount of share capital Amount of share Unit value per share Number of shares
GBP'000 capital EUR'000 EUR issued
========================= ======================== ======================= ===================== =================
Balance a t 1 January
2021 4,053 4,708 0.07 70,626,248
Balance a t 31 December
2021 4,053 4,708 0.07 70,626,248
Balance a t 31 December
2022 4,053 4,708 0.07 70,626,248
16.2 Other reserves
Amounts in GBP'000
Balance at 1 January 2021 -2,036
Translation differences 862
Balance at 31 December 2021 -1,174
Translation differences -843
Balance at 31 December 2022 -2,017
16.3 Retained earnings/Losses
Amounts in GBP'000
Balance at 1 January 2021 96,916
Loss for the year -9,728
Balance at 31 December 2021 87,188
Loss for the year -25,730
Adjustment of the LTIP contribution -13
Balance at 31 December 2022 61,445
17. Discontinued operations
In early 2022, Novacyt commenced a strategic review of the
business, which included a review of the Microgen Bioproducts and
Lab21 Healthcare businesses to consider the merits of maintaining
multiple company entities/names under the Novacyt Group umbrella
versus a simplified business model and brand, which the directors
believed could be more impactful.
In April 2022, Novacyt announced its intention to discontinue
both businesses, and as at the end of June 2022 they had ceased day
to day trading operations.
In accordance with IFRS 5, the net result of the Lab21 Products
segment has been reported in the line 'Loss from discontinued
operations' on the consolidated income statement.
The table below presents the detail of the loss generated by
these two businesses as of 31 December 2022 and 2021:
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Revenue 1,448 3,177
Cost of sales -1,102 -1,725
============================================= ============== ==============
Gross profit 346 1,452
Sales, marketing and distribution expenses -320 -800
Research and development expenses -22 -170
General and administrative expenses -3,059 -2,474
Operating loss before exceptional items -3,055 -1,992
============================================= ============== ==============
Other operating expenses -290 -1,887
Operating loss after exceptional items -3,345 -3,879
============================================= ============== ==============
Financial income 1,181 192
Financial expense -953 -482
Loss before tax -3,117 -4,169
============================================= ============== ==============
Taxation (expense) / income -412 450
Loss after tax from discontinued operations -3,529 -3,719
============================================= ============== ==============
18. Notes to the cash flow statement
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Loss for the year -25,730 -9,728
Loss from discontinued operations -3,529 -3,719
Loss from continuing operations -22,201 -6,009
Adjustments for:
Depreciation, amortisation, impairment
loss and provisions 7,918 7,882
Unwinding of discount on contingent
consideration 133 -17
Losses on disposal of assets 543 75
Surrendering the Watchmoor Point
lease (non-cash impact) 281 -
Income tax charge / (credit) 1,998 -409
========================================= ============= =============
Operating cash flows before movements
of working capital -14,857 -2,197
Decrease in inventories (*) 8,434 18,427
Decrease in receivables 4,625 42,754
Decrease in payables -15,624 -23,996
Cash (used in) / from operations -17,422 34,988
========================================= ============= =============
Income taxes received / (paid) 4,223 -19,437
Finance costs -530 138
Net cash (used in) / from operating
activities -13,729 15,689
========================================= ============= =============
Operating cash flows from discontinued
operations -1,955 2,180
Operating cash flows from continuing
operations -11,774 13,509
(*) The variation of the inventories value results from the
following movements:
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
============================================ ============= =============
Decrease in the gross value of inventories 15,743 2,392
Variation of the stock provision -7,309 16,035
============================================ ============= =============
Total variation of the net value
of inventories 8,434 18,427
============================================ ============= =============
The details for the change in the stock provision are covered in
notes 4, 5 and 12.
19. Related parties
Parties related to Novacyt SA are:
- the managers, whose compensation is disclosed below; and
- the Directors of Novacyt SA.
Remuneration of key management personnel
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Fixed compensation and company cars 1,605 2,176
Variable compensation 15 590
Social security contributions 224 412
Contributions to supplementary pension plans 26 48
Termination benefits - 371
Cash based payment benefits - LTIP 17 -
Total remuneration 1,887 3,597
================================================ ============= =============
Aggregate Directors' remuneration
Year ended Year ended
31 December 31 December
Amounts in GBP'000 2022 2021
Fixed compensation and company cars 988 897
Variable compensation - 350
Social security contributions 155 181
Contributions to supplementary pension plans - 11
Fees 38 32
Total remuneration 1,181 1,471
================================================ ============= =============
Related party transactions were made on terms equivalent to
those that prevail in arm's length transactions.
20. Contingent liabilities
During 2021, the Group received notification of a contract
dispute between its subsidiary, Primer Design Ltd, and the DHSC
related to revenue totalling GBP129,125,000 in respect of
performance obligations satisfied during the financial year to 31
December 2020.
During 2021, a further GBP49,034,000 (including VAT) of products
and services were delivered and invoiced to the DHSC which have
subsequently been included as part of the ongoing dispute.
Management made the judgement that in accordance with IFRS 15,
Revenue from Contracts with Customers, it was not appropriate at
that stage in the dispute to recognise as revenue, any sales
invoices raised to the customer in 2021 that were in dispute.
However, Management remains committed to obtaining payment for
these goods and services.
Payment for GBP23,957,000 of invoices in respect of products
delivered during 2020 remains outstanding at the date of publishing
the annual accounts and recovery of the debt is dependent on the
outcome of the dispute.
On 25 April 2022, legal proceedings were issued against Novacyt
and Primer Design Ltd in respect of amounts paid to Primer Design
Ltd totalling GBP134,635,000 (including VAT) by the DHSC. This
refers to GBP132,814,000 (including VAT) of reagent sales out of a
total disputed amount of GBP154,950,000 (GBP129,125,000 excluding
VAT as previously reported) plus GBP1,821,000 (GBP1,517,000
excluding VAT) of q16 instruments which have been added to the
dispute. This takes the total 2020 revenue in dispute to
GBP130,642,000.
On 15 June 2022, Novacyt and Primer Design Ltd filed a defence
of the claim received on 25 April 2022, and Primer Design Ltd made
a counterclaim of circa GBP81,500,000 including interest and VAT
against the DHSC.
The Group remains committed to defending the case and asserting
its contractual rights, including recovering outstanding sums due
from the DHSC.
Management have reviewed the position at 31 December 2022 and
deem this to be an appropriate reflection of the current commercial
dispute.
Management and the Board of Directors have reviewed the product
warranty provision totalling GBP19,753,000 booked in 2020 in
relation to the DHSC dispute and have deemed that it remains
appropriate at 31 December 2022.
21. Subsequent events
On 30 January 2023, Novacyt announced that the UK High Court had
directed Novacyt, that the hearing of the case between Primer
Design Ltd / Novacyt SA and the DHSC has been listed to commence on
10 June 2024 and is expected to last 16 days.
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