Novacyt (LSE:NCYT) reported an 18% increase in unaudited group revenue to £11.6 million for the first half of 2026, supported by growth across its regions and a contribution from its acquisition of Southern Cross Diagnostics.
Underlying revenue, excluding the acquisition contribution, increased by approximately 9%. The molecular diagnostics group reported growth across all geographic regions, with demand for instrumentation and clinical reproductive health products contributing to the performance.
Southern Cross Diagnostics, the Australian distributor acquired by Novacyt, contributed £1.8 million of revenue during the period.
Southern Cross Acquisition Affects Gross Margin
Novacyt said the addition of Southern Cross Diagnostics reduced the group’s overall gross margin because of the distributor’s different margin profile.
The company completed the integration of Southern Cross during the period, expanding its operations in the Asia-Pacific region.
Novacyt also reduced operating expenses through cost-saving measures, contributing to a narrower EBITDA loss.
Cash declined to £8.9 million, and the company undertook a small rights issue during the period.
Restructuring Targets £4 Million in Annual Savings
Novacyt is implementing a restructuring programme targeting approximately £4 million of annual cost savings.
The company said initiatives representing up to £3.4 million of those targeted savings have already been identified.
The programme forms part of measures to reduce the group’s operating cost base alongside its product development and geographic expansion activities.
Novacyt Launches DPYD Assay and Signs Illumina Collaboration
During the first half, Novacyt launched its IVDR-certified Yourgene Insight DPYD assay in Europe, expanding its precision oncology product range.
The group also entered into a five-year collaboration with Illumina.
Novacyt develops and commercialises molecular diagnostics products, including assays, instrumentation and diagnostic workflows. Its activities cover clinical diagnostics, instrumentation and research-use-only products across areas including reproductive health, precision medicine and infectious diseases.
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