Abcam shares nosedive as H1 profit is almost halved
Cambridge company Abcam, which supplies life science tools to global customers, saw its UK share price fall 147p to 1,385p on Monday morning after a trading update revealed higher revenues but substantially lower pre tax profits for the six months to December 31.
The performance was actually much better than the reaction from shareholders suggested considering hefty fundraising in the period and investment in new business and product lines.
Abcam reported 8.3 per cent constant currency revenue growth in H1 as worldwide customers gradually began returning to labs – a trend it expects to continue as various vaccines make inroads into COVID-19.
Reported revenue was up to £147.5m from £138.2m in the first half of the previous year but pre-tax profit was almost halved to £13.8m from £26m.
The company ended the period with net cash of £211.9m; it had raised £126.5m through a secondary US listing on Nasdaq.
Abcam hauled in catalogue revenue of £139m – 7.8 per cent growth at constant exchange rates.
CEO Alan Hirzel said: “We delivered over eight per cent revenue growth at constant exchange rates in the first half year as we started to see more activity in our customers’ labs.
“Whilst we haven’t yet observed a return to normal demand, we are encouraged by the 25 per cent growth in our in-house products and the long-term outlook for Abcam.
“We remain confident in our growth strategy and are committed to investing in innovation and building an increasingly strong and sustainable global business.”