Novacyt S.A.
("Novacyt", the "Company" or the
"Group")
Further expansion of cost reduction
programme
Proposed site consolidations expected to
deliver c. £2.0m EBITDA improvement
Paris, France, Eastleigh and
Manchester, UK - 14 November 2024 - Novacyt (EURONEXT GROWTH:
ALNOV; AIM: NCYT), an international molecular diagnostics
company with a broad portfolio of integrated technologies and
services,
announces proposed changes to its operational footprint which would
lead to a further consolidation of global facilities and is
expected to improve the Group's EBITDA position by an additional
£2.0m annually.
Proposed closure of Eastleigh
site
Following the refocus of the Primer Design
business on the Research Use Only market, and a review of
operations as part of a programme to implement further significant
cost savings, the Company announces that it has begun a
consultation process which may result in the closure of its
Eastleigh site and relocation of the business to the Group's
Manchester facility. A further announcement will be released in
respect of the outcome of the consultation process in due
course.
Transfer of Canada manufacturing
operations to Manchester
In
addition, the Company is in the process of closing Yourgene Health
Canada's manufacturing site and relocating its operations to the
Group's Manchester facility, where the manufacture of Ranger®
instrumentation and consumables will take place. Yourgene Health
Canada's research and development facility on Vancouver Island,
responsible for developing improvements and updates to the Ranger®
Technology portfolio, will remain in place.
Should
the relocation of the Eastleigh operations proceed, the combined
consolidations are expected to improve the Group's EBITDA position
by c. £2.0m annually. A cash restructuring charge of c. £1.5m is
expected in connection with the combined closures.
Lyn Rees, CEO of Novacyt,
commented: "Whilst a difficult decision, consolidating
our sites and having the Group's manufacturing based at our
Manchester facility would provide a significant reduction in our
cost base, in-line with our strategy. If completed, we believe that
this move would benefit the entirety of the Novacyt business and
represent a key step in right-sizing our cost base and better
positioning us to deliver future growth, and we have the capacity
and expertise at our Manchester facility to ensure that there is no
impact on our customers as a result of any site
consolidations.
"We will begin the consultation regarding the Eastleigh site
closure in due course and will provide an update to the market
following the conclusion of the process."
Contacts
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Novacyt SA
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https://novacyt.com/investors
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Lyn Rees, Chief Executive
Officer
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Via Walbrook
PR
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Steve Gibson, Chief Financial
Officer
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SP
Angel Corporate Finance LLP (Nominated Adviser and
Broker)
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+44 (0)20
3470 0470
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Matthew Johnson / Charlie Bouverat
(Corporate Finance)
Vadim Alexandre / Rob Rees
(Corporate Broking)
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Deutsche Numis (Joint
Broker)
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+44 (0)20
7260 1000
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Freddie Barnfield / Duncan Monteith
/ Michael Palser
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Allegra Finance (French Listing Sponsor)
Rémi Durgetto / Yannick
Petit
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+33 (1) 42 22 10 10
r.durgetto@allegrafinance.com
/ y.petit@allegrafinance.com
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Walbrook PR (Financial PR & IR)
Paul McManus / Lianne
Applegarth
Phillip Marriage / Alice
Woodings
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+44 (0)20
7933 8780 or novacyt@walbrookpr.com
+44
(0)7980 541 893 / +44 (0)7584 391 303
+44
(0)7867 984 082 / +44 (0)7407 804 654
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About Novacyt Group (www.novacyt.com)
Novacyt is an international
molecular diagnostics company providing a broad portfolio of
integrated technologies and services, primarily focused on the
delivery of genomic medicine. The
Company develops, manufactures, and
commercialises a range of molecular assays
and instrumentation to deliver workflows and services that enable
seamless end-to-end solutions from sample to result across multiple
sectors including human health, animal health and environmental.
The Company is divided into three
business segments:
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Clinical
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Broad portfolio of human clinical
in vitro diagnostic
products, workflows and services focused on three therapeutic
areas:
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Reproductive Health: NIPT, Cystic Fibrosis and
other rapid aneuploidy tests
·
Precision Medicine: DPYD genotyping
assay
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Infectious Diseases: Winterplex, multiplex winter
respiratory PCR panel
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Instrumentation
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Portfolio of next generation size
selection DNA sample preparation platforms and rapid
PCR machines, including:
·
Ranger® Technology: automated DNA sample
preparation and target enrichment technology
·
genesig q16 and q32 real-time quantitative PCR
(qPCR) instruments
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Research Use Only
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Range of services for the life
sciences industry:
· Design, manufacture, and supply of high-performance qPCR
assays and workflows for use in human health, agriculture,
veterinary and environmental, to support global health
organisations and the research industry
·
Pharmaceutical research services: whole genome
sequencing (WGS) / whole exome sequencing (WES)
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Novacyt is headquartered in
Vélizy-Villacoublay in France with offices in the UK (in Eastleigh
and Manchester), Singapore, the US and Canada and has a commercial
presence in over 65 countries. The Company is listed on the London
Stock Exchange's AIM market ("NCYT") and on the Paris Stock
Exchange Euronext Growth ("ALNOV").
For more information, please refer
to the website: www.novacyt.com