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Abcam (AIM: ABC) No reason to worry about UK market caution
Posted 20/12/10
The rapidly growing bioscience company that markets antibodies via its own online catalogue issued a pre-close trading update ahead of its results for the six months ending 31 December 2010.Trading since the AGM is in line with ‘management’s’ expectations but….
The business has performed well, notably in largest geographic market, North America. Unfortunately sales growth in the UK has been somewhat restrained owing to uncertainty caused by the recent UK Government spending review. However, management states that effective cost control processes have ensured that margins remain strong – it’s a simple business model that works perfectly
Management commented that the possible impact on publicly funded research projects, continue to merit a degree of caution, but they remain confident in the outlook for the full year.
The Company will report its interim results for the six months ending 31 December 2010 in the week commencing 7 March 2011.
The negative outlook on the UK (or simple profit taking) dragged the share price down 9% off all time highs. However, UK only represented 7.9% of top line in 2009/2010 year and grew less strongly than all other regions so it’s a hardly that significant in the grand scheme!
Shares remain rather richly valued at 28x June 2011 estimates, however, this unique business just keeps on delivering. There appears to remain plenty to go for in North America and elsewhere around the world. The balance sheet remains loaded with cash (£40m at 30th June 2010) to support growth.
This entry was posted 1 year, 5 months ago.
