January's positive trading update meant Abcam (ABC) investors were already aware of strong first-half trading. Nevertheless, the official numbers revealed 7.7 per cent growth in total revenues to £66.7m, or an even more impressive 13.8 per cent on a constant currency basis.
The medical proteins supplier has entered a "new phase": it switched its chief executive towards the end of last year, replacing Jonathan Milner with Alan Hirzel. Now, the group is pouring money into product development, in addition to revamping the website and pursuing acquisitions. This has reduced operating margins to 32.8 per cent, from 34.1 per cent this time last year.
Abcam wants to ramp up sales of the antibody range by 15-20 per cent and the non-antibody range by 25-30 per cent this year. In the first half alone, antibody product sales increased by 19.4 per cent and non-antibody product sales were up 29.3 per cent. This significantly outstripped wider market growth of 3-4 per cent.
Analysts at Numis expect pre-tax profits of £48m in 2015, giving EPS of 18.9p. This is up from £47m and 18.1p in 2014.
| ABCAM (ABC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 465p | MARKET VALUE: | £934m | |
| TOUCH: | 463-465p | 12-MONTH HIGH: | 484p | LOW: 346p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 98p* | NET CASH: | £63m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 62.0 | 21.2 | 8.31 | 2.13 |
| 2014 | 66.7 | 22.1 | 8.84 | 2.29 |
| % change | +8 | +4 | +6 | +8 |
Ex-div: 19 Mar Payment: 17 Apr *Includes intangible assets of £110m, or 55p a share | ||||
