Abcam 'cautious' after strong growth

07/09/2010 Robert Tyerman

Online antibody distributor Abcam fears public spending cuts might dampen growth after lifting annual pre-tax profits 58.4 per cent to £25.8 million.

The Cambridge-based group, named AIM Company of the Year in the 2010 Growth Company Awards, produces and distributes research-grade antibodies from its own online catalogue to academic and commercial concerns around the world and increased turnover 25.2 per cent to £71.1 million in the year to June.

Chaired by Mike Redmond and steered by chief executive officer Jonathan Milner, Abcam pushed sales in the UK, where it is market leader, 15.3 per cent ahead to £5.6 million. More significant was 20.1 per cent sales growth to £31.8 million in the USA, where the company has offices in Cambridge, Massachusetts, and San Francisco, while Abcam, with offices also in Tokyo and Hong Kong, hoisted sales in Japan 39.7 per cent to £6.8 million.

The company, which ended its financial year with net cash up 57 per cent at £40.2 million, increased earnings for 2009-10 by 54.45 per cent to 53.82p-a-share. Abcam proposes a 14.61p-a-share final dividend, for a full year 65.4 per cent payout increase to 20.03p-a-share.

Redmond says the current financial year has started well, but warns 'we still remain cautious, due to the pressure on governments to reduce their deficits,' with all that could imply for research funding. That has sent the shares down 40p to £16.50p today, valuing the company at £593.2 million, but still leaving scope for further growth in the medium to longer term.