For many companies, major acquisitions and a strategic reshaping would dent profitability, but Abcam (ABC) has proved time and again that it is a bit special. Analyst expectations of a big earnings hit for the supplier of protein research tools have failed to materialise and so profit and earnings per share, flat on last year's comparatives, came as a pleasant surprise to the market. Abcam's wide geographical exposure means recent currency movements buoyed revenues, although reported gross margins were down slightly on 2015.
At the top line, growth was impressive across all products and geographies, but particularly so in rabbit monoclonal antibodies, where a sales increase of 30 per cent smashed company targets. Market research indicates Abcam remains the number one brand for research antibodies, but a key company goal was to gain market share in other categories. This has been achieved, with a 30 per cent increase in revenue from non-primary antibody products.
Broker JPMorgan has made big adjustments to revenue and profit forecasts based on foreign exchange movements, and now expects adjusted earnings per share of 24.5p for the year to June 2017, rising to 29p the following year.
ABCAM (ABC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 753p | MARKET VALUE: | £1.53bn | |
| TOUCH: | 752.5-754p | 12-MONTH HIGH / LOW: | 783p | 547p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 40 | |
| NET ASSET VALUE: | 129p* | NET CASH: | £70.7m | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 98 | 34.7 | 13.7 | 6.05 |
| 2013 | 122 | 42.9 | 16.5 | 7.04 |
| 2014 | 128 | 43.6 | 17.1 | 7.75 |
| 2015 | 144 | 46.1 | 18.7 | 8.21 |
| 2016 | 172 | 45.4 | 18.6 | 8.91 |
| % change | +19 | -1 | - | +9 |
Ex-div: 10 Nov Payment: 2 Dec *Includes intangible assets of £183m, or 90p a share | ||||
