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Diagnostics group Novacyt forecast a steep drop in annual earnings after sales slumped amid an ongoing dispute over Covid-19 tests with the UK government.
Earnings before interest, tax, depreciation and amortisation before exceptional items were expected be above £36.0 million, down from £176.1 million year-on-year.
Novacyt said that represented a margin greater than 37%, compared to its guidance of around 40%.
Underlying revenue was seen dropping to £95.8 million, compared to £277.2 million year-on-year, excluding £40.8 million of disputed revenue.
Novacyt said the revenue performance was 'in line with management guidance of approximately £100 million'.
Looking forward, the company said Covid-19 reported sales could sink by about 50% in 2022, versus 2021, partially offset by new non-Covid-19 products coming on-stream in the fourth quarter of 2022.