Smashing full-year revenue expectations by the interim stage sends life sciences research tools and services provider Abcam (ABC:AIM) 7% higher to 644p.
The £1.3 billion cap expects to report 16.7% revenue growth in the six months to 31 December 2015, ahead of the 11.5% full-year gain that the market expected.
The picks and shovels business supporting innovation in biotechnology saw revenues jump on strong demand for its catalogue products, such as antibodies. It also made full use of the names in its contact book as sales in all geographic regions remained strong especially in China where turnover jumped by more than 50%.
Margins were slightly down on foreign exchange losses which could limit profit growth in the current financial year. Consensus expects pre-tax profits to grow 3.6% to £51.4 million in the year to 30 June 2016.
Stefan Hamill, an analyst at Numis, remains upbeat following the update. ‘This should build confidence in the strategy and investments it is making. In line with previous guidance, we expect reinvestment of the revenue beat, which is the right thing to do given the long term recurring nature of product revenues.’
Interim results will be published on 7 March.