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Diagnostics group Novacyt swung to a first-half loss after a contract dispute with the UK government over Covid-19 testing saw it record lower revenue and higher costs.
Pre-tax losses for the six months through June amounted to £15.1 million, compared to a year-on-year profit of £40.3 million.
Revenue fell to £54.0 million, down from £63.3 million.
Novacyt said its figures excluded £54.0 million of revenue related to Britain's department of health and social care whilst the contract dispute continues.
Non-department revenue climbed 20% to £54.0 million, supported by a growing UK private testing market.
The company booked an exceptional cost of sales of £35.8 million in connection with the contract dispute.
The cost was linked to it terminating supply agreements built in anticipation of further DHSC demand and to book the cost of products supplied to the DHSC in 2021 that had not been paid for.
'During 2021, Novacyt has remained at the forefront in its response to the constantly changing global Covid-19 pandemic,' outgoing chief executive Graham Mullis said.
'We have launched 18 new Covid-19 products since the beginning of 2021 and we expect Novacyt to continue to play a major role in Covid-19 testing well into 2022.'
'We also remain focused on strengthening our long-term position and executing against our strategy by building our product and instrument platforms and expanding our commercial infrastructure for growth beyond Covid-19.'