Abingdon’s sales lifted by rapid test demand

In the year since Covid-19 swept across the UK, the nation – which “did not start this crisis with a large diagnostics industry”, in the words of health secretary Matt Hancock – has massively scaled up testing. Roughly 200,000 lab-based coronavirus tests were conducted in the UK on 7 March alone.

But while these ‘PCR’ tests tell you whether you currently have the virus, another type of diagnostic kit could be just as important. Antibody tests look for signs in a person’s blood that they have already been infected by a specific illness. And according to Abingdon Health (ABC), such products could have multiple uses in the pandemic – from showing how infection is spreading through communities to potentially helping with the design of vaccination programmes.

Abingdon was chosen by the health department last April to develop rapid antibody tests for Covid-19. While the minnow diagnostics group only floated on Aim in December, its maiden half-year numbers reflected the positive impact of that contract – with revenues rising almost five-fold. Operating losses widened after IPO costs and other expenses.

Admittedly the health department contract expired in February 2021, after Abingdon delivered 1m antibody tests to it at £5.15 per kit in January. But the group says it is advancing towards approval in America and several other countries. Given where Abingdon is from both a clinical and commercial perspective, it is still too early to make a definitive call.

Further on the diagnostic front, electronics engineer TT Electronics (TT), whose goal is to “solve electronic challenges for a sustainable world”, posted its final numbers a day after Abingdon. TT is working as an exclusive manufacturing partner for ‘Virolens’, iAbra’s rapid Covid-19 screening device. Evaluation trials for Virolens are continuing. Like Abingdon, TT believes Covid screening can complement vaccination programmes, though there is no guarantee it will benefit financially from Virolens.

TT’s revenues dipped a tenth to £432m in 2020, but its performance has been recovering since a hit in Q2. The group has resumed its paused dividend pay-outs at 4.7p a share and already has a record order book for 2021. Chief executive Richard Tyson said the group was 80 per cent covered for the year ahead and that it was “feeling in good shape for growth”.

Last IC view: na