Abcam shareholders grab the opportunity to take profits
Abcam plc, the Cambridge supplier of life science research tools, saw its share price dip 93p at one stage despite reporting projected revenue growth of 10.7 per cent for the year to June 30.
Set against board predictions of 11 per cent growth for the year, market insiders did not feel that missing a target by 0.3 per cent would have triggered such a frenzied selling spree.
They were putting it down to profit taking as the share price has been pretty healthy for months now.
The share price started to recover by late morning and the stock market chatterati were largely prepared to give Abcam the benefit of the doubt.
The company, which is building a new HQ at Cambridge Biomedical Campus, is in acquisition mode and is attaining double digit growth annually on a pretty consistent basis.
The company’s trading update read: “Overall, we expect to report revenue growth for the year of 10.7 per cent on a constant currency basis and 7.4 per cent on a reported basis. Group reported gross margin is expected to be broadly in line with last year (FY2017: 70.1 per cent).
“Catalogue revenue grew by over 10 per cent in the year, with all product categories continuing to grow ahead of estimated underlying market growth rates. Custom products and licensing revenue, which represented over seven per cent of the total for the period, increased by approximately 17.5 per cent.
“The group expects to deliver an Adjusted EBITDA margin in line with the board’s expectations.”
Chief executive Alan Hirzel was certainly upbeat. He said: “I am pleased that we have once again delivered against our ambitious financial targets in the year, driven by our continued customer focus, innovation across our product portfolio, and the ongoing strengthening of our organisational capabilities.
“We remain market leaders in our field and are committed to investing in our business to sustain our growth whilst allowing us to do more for customers, creating long-term value for all our stakeholders. We look forward to talking more about these initiatives alongside our full year results in September.”
Abcam will report its full year results for the year ended June 30, together with an update on the group’s business, investments and strategy on September 10.
• PHOTOGRAPH SHOWS: Alan Hirzel