Closure of IT-IS International

Paris, France, and Eastleigh and Manchester, UK - 8 October 2024 - Novacyt S.A. (EURONEXT GROWTH: ALNOV; AIM: NCYT), an international molecular diagnostics company with a broad portfolio of integrated technologies and services, announces the closure of its IT-IS International Limited ("IT-IS") subsidiary, effective immediately.

IT-IS, a Stokesley-based manufacturer of rapid-PCR instruments, was acquired by Novacyt in 2020 to support the Group's response to COVID-19, where it facilitated the full delivery of the Group's contracts during the period. The PCR instrumentation market has since become saturated, with IT-IS subsequently experiencing several consecutive loss-making years. IT-IS contributed £0.3m to the Group's total revenue in H1 2024 (H1 2023: £0.6m).

The closure of IT-IS is anticipated to improve the Group's EBITDA position by c. £1.0m annually. A restructuring charge of c. £0.7m is expected in connection with the closure. The entity will be treated as a discontinued operation under IFRS 5 for the 2024 financial year.

The Intellectual Property ("IP") that exists within IT-IS will be retained to allow Novacyt to continue an ongoing IP infringement dispute with Roche Diagnostics GmbH. The dispute, instigated by IT-IS, dates back over five years and is currently progressing through the German courts. The Group will provide further updates on the dispute when appropriate.

Lyn Rees, Chief Executive Officer of Novacyt, said: "The saturation of the PCR instrument market following the pandemic has put significant pressure on IT-IS. Given the subsequent losses, the Board has made the strategic decision to close the business as we continue to focus on reducing our cost base and rationalising our product and service offering. By taking this step, we are better positioning the Group for future growth and driving value for our shareholders."

"I'd like to take this opportunity to thank the entire the IT-IS team for their hard work and dedication over the years."