Life sciences tools and services provider Abcam (ABC:AIM) is to continue the scale-boosting investment programme that helped sales jump by 19% to £171.7 million in the year to 30 June. Investors like the optimism, marking the share price more than 9% higher in today's trading to an all-time 799.5p high.
Abcam is focused on developing infrastructure and expanding its online catalogue of products, such as anti-bodies to help scientists examine cells to ultimately make new and better medicines.
To increase the company’s scale and influence in the life sciences market, management will continue to invest in IT, spend 8% of revenue in R&D and boost the workforce’s skills through a recruit programme.
Abcam has already moved to a new manufacturing site in China and plans new headquarters in Cambridge, which is expected to be ready in 2019.
‘Market demand is stable worldwide, encouraged by increasing investment in the US and China,’ chief executive Alan Hirzel told Shares.
Growth was driven by these core markets. Revenues here improved by 10.6% to £68.8 million in the US and by 43% to £18.8 million in China.
The boost in investment saw pre-tax profits dip by around £1 million to £45 million in 12 months, but was better than the market had anticipated. The company should benefit from a weaker pound going forward.
Management continue to look for acquisitions, which have unique products where Abcam can boost sales through its online profile.
Panmure Gordon’s analysts expect sales to jump to almost £200 million in the current financial year to 30 June 2017.