14th Sep 2020 10:15
(Alliance News) - Abcam PLC on Monday posted a significant dive in profit for financial 2020, as higher expenses took a big chunk out of earnings.
Shares in the life science research software firm were trading 1.7% lower at 1,351.00 pence each on Monday morning in London.
For its financial year that ended June 30, Abcam posted pretax profit of GBP8.4 million, a sharp decline from GBP56.6 million in financial 2019. Revenue was flat at GBP260.0 million from GBP259.9 million.
The deterioration in profit was blamed on Covid-19 and exceptional costs, with the company previously stating that government-imposed Covid-19 restrictions had wreaked havoc on its business in North America and the Europe, Middle East & Africa region. The company noted that profit also was reduced by planned investments to support its long-term strategy.
General and administrative expenses were GBP131.4 million, up 17% from GBP112.1 million the year prior. Research and development costs more than doubled to GBP38.3 million from GBP15.0 million.
No final dividend was declared, resulting in a total annual dividend of 3.55p, down from 12.13p paid the year prior.
Looking ahead, the Cambridge-based company said improving trends in customer activity levels seen during the final quarter of financial 2020 have continued into its new financial year, as more laboratories continue to partially or fully reopen. However, it decided to not provide full-year guidance due to the ongoing Covid-19 pandemic, risk around further outbreaks, and the potential for the re-introduction of more stringent lock-down measures.
"We remain committed and focused on achieving our 2023/24 financial goals, comprising revenue of GBP450 to GBP500 million, an adjusted operating margin of over 30% and a return on capital employed of over 18%," said Chief Financial Officer Michael Baldock.
As at June 30, Abcam had cash of GBP187.3 million.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
ABC.L