Abcam (ABC) produces, distributes and sells protein research tools such as antibodies to the life sciences market. Following January’s trading update, there were few surprises in the group’s half-year sales figures. The six months to 31 December saw catalogue revenue – which accounts for 95 per cent of total sales – rise by 9.1 per cent on a constant-currency basis to £131m, with 14 per cent growth from in-house products at the top end of the 12-15 per cent target range.
But adjusted operating profit dropped by almost a fifth to £33.4m, coming in short of analysts’ expectations. The group had cautioned that accelerated investment in its five-year growth programme would push the margin down to the lower end of the 25-28 per cent guided range. In fact, the adjusted operating profit margin came in even lower at 24.2 per cent.
China is the fastest-growing market and sales there jumped 17.4 per cent at constant currencies to £23.7m. While the coronavirus outbreak has seen “very marginal” disruption to supply chains, lower Chinese demand has translated to a £3m hit to revenue so far in the second half. Activity in China is now said to be recovering, but remains below normal levels. As the virus continues to spread to other countries, Numis expects a £10m drag on sales in the back end of the year.
Peel Hunt forecasts adjusted pre-tax profit of £74.5m and EPS of 29.1p in 2020, down from £83.9m and 32.6p in 2019.
| ABCAM (ABC) | |||||
| ORD PRICE: | 1,143p | MARKET VALUE: | £2.3bn | ||
| TOUCH: | 1,144-1,142p | 12-MONTH HIGH: | 1,523p | LOW: | 1,058p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 54 | ||
| NET ASSET VALUE: | 190p* | NET CASH: | £14.5m** | ||
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) | |
| 2018 | 125 | 33.7 | 13.5 | 3.55 | |
| 2019 | 138 | 26.0 | 12.7 | 3.55 | |
| % change | +10 | -23 | -6 | - | |
| Ex Div: | 09-Apr | ||||
| Payment: | 20-May | ||||
| *Includes intangible assets of £226m, or 110p per share | |||||
| **Includes lease liabilities of £74m | |||||
