22nd Jul 2014 09:51
LONDON (Alliance News) - Biotechnology company Abcam PLC said in a trading statement Tuesday that it expects its adjusted pretax profit to be slightly higher than consensus expectations for the year to the end of June.
The company said it had seen revenues rise at 8.6% at constant currency, although 4.7% on a reported basis.
Abcam said it had seen catalogue revenues rise 10.6% in the second half compared to 9.3% in the first-half, at constant currency, as it made progress with its organic growth strategy.
Its plan to strengthen its position in China with its new Shanghai office led to 20% year-on-year revenue growth in the fourth quarter in the region, Abcam said. In its largest market, the US, Abcam expressed cautious optimism although it noted there was uncertainty over the level of centrally funded research expenditure.
In Europe, Japan and the rest of the world it continued to see above market growth.
Outside of catalogues, the company's other components performed in line with guidance, it said. Abcam worked on repositioning its custom service line to be more closely aligned to its overall strategic direction, but noted that its key focus remains on its catalogue sales.
Abcam expects its gross margins to be broadly in line with its interim results, as higher margins from its own-manufactured products were offset by growing sales from its antibody products, it expanded into new geographies, and was hit by exchange rate movements.
Abcam will announce its full-year results on September 9.
Shares in Abcam were trading up 6.2% at 381.35 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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