Abcam shares rise on return to growth
Cambridge life science specialist Abcam has returned to growth and seen its UK share price increase significantly as a result.
The business posted an 8.3 per cent increase in constant currency revenue in the first half to December 2020. Its stock rose 36p (3.45 per cent) to 1,503p following the trading update.
Abcam, which supplies life science research tools globally, expects to report total first half revenue of £147.5 million compared to £138.2m last time. A record level of the financial returns is home grown.
In-house products represented more than 55 per cent of total revenue and grew by over 25 per cent.
On a constant currency basis, catalogue revenue, representing 95 per cent of the total, grew approximately eight per cent in the half. Abcam says it grew high single-to-double digits in all regions other than the Americas where customer laboratory activity has been more constrained due to COVID-19.
Gross margin is expected to be in line with board expectations at approximately 70.5 per cent – ahead of the first half of last year (H1 2020: 69.7 per cent). Abcam expects to report an adjusted operating margin for the first half of around 16 per cent.
The company continued to build capabilities, invest in innovation and implement its multi-year growth strategy throughout the period and, of course, floated on the US NASDAQ technology exchange in October.
CEO Alan Hirzel said: “It is great to see the business return to growth in a market environment where demand is well below normal levels.
“This performance gives us confidence in the long term opportunity at Abcam. Thank you to our customers for trusting Abcam to support their work during this challenging time and thank you to our global team for their dedication and making our results possible.”