Novacyt, the AIM-listed diagnostics company, has finally published its annual report for the 2025 financial year, ending months of speculation among shareholders and analysts. The report, which was expected earlier in the year, provides detailed accounts of the firm's performance during a period of significant restructuring. Novacyt's share price has been under pressure since the dramatic decline in demand for its Covid-19 testing products, and this publication is seen as a crucial step in restoring investor confidence.
According to the report, the company's revenue for 2025 came in at £12.3 million, a sharp fall from the £45.7 million recorded in the prior year, reflecting the near-complete evaporation of pandemic-related sales. However, the firm managed to reduce its operating losses to £8.1 million, down from £14.2 million, thanks to cost-cutting measures and a refocus on its core molecular diagnostics portfolio. Net cash at year-end stood at £3.4 million, giving the company limited but sufficient runway for its current plans.
The delayed publication had raised concerns about governance and financial controls, particularly after the company switched auditors in 2024. Novacyt's board acknowledged the delay in a statement, attributing it to the complexity of finalising the accounts amid the restructuring. The report confirms that no material weaknesses were identified in internal controls, though the auditor's report includes an emphasis of matter regarding the company's ability to continue as a going concern.
Analysts at Shore Capital, who follow the stock, noted that the publication removes a key overhang for the shares, but cautioned that the path to sustainable profitability remains uncertain. 'The market will now focus on Novacyt's pipeline of non-Covid products, including its CE-marked respiratory panel and new assays for sepsis,' they said. 'Without a clear commercial breakthrough, the shares are likely to remain range-bound.'
For UK investors, particularly those holding the stock through AIM-focused funds or inheritance tax portfolios, the report provides much-needed clarity. Novacyt's turnaround strategy hinges on expanding its presence in hospital-acquired infection testing and point-of-care diagnostics. The company has also been exploring partnerships to distribute its products in Europe and the Middle East. However, with limited cash reserves, any further delays in revenue generation could force the firm to seek additional funding.
Source: Novacyt 2025 Annual Report