The FY25 trading update from Novacyt sees key financial metrics all moving in the right direction and at least in line with our expectations. These results are the first opportunity for investors to evaluate progress after a substantial restructuring exercise and are reassuring in that regard. New product launches are beginning to contribute, which bodes well for future organic growth prospects, in our opinion. We make no changes to our forecasts at this stage, expecting an acceleration of growth and a further reduction in losses in FY26 and beyond as new growth initiatives progressively take hold. With cash at period end of £19.2m, Novacyt remains well-funded to execute on its organic growth plans. The shares remain in the doldrums however and offer a substantial re-rating opportunity on successful execution.
