Abzena Expects Annual Revenue Growth Following Stronger Second Half

LONDON (Alliance News) - Abzena PLC on Monday said that it expects to report revenue growth in ...

Alliance News 16 April, 2018 | 2:07PM
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LONDON (Alliance News) - Abzena PLC on Monday said that it expects to report revenue growth in 2018 financial year, boosted by "strong" performance in bio-manufacturing and chemistry divisions over the second half.

The life sciences group expects to report revenue of GBP22.0 million for the year to the end of March, up 18% from GBP18.6 million reported the year before, due to a "stronger" second half.

The group's bio-manufacturing division grew revenue by 60% from GBP5.3 million posted in 2017 while its chemistry segment's revenue was up by 15% compared with GBP7.0 million.

The company predicted its biology division revenue to come in around 14% lower than GBP5.7 million reported the prior year, due to lower immunology service revenue, which is expected to be reversed in 2019.

Abzena anticipates adjusted earnings before interest, taxes, depreciation, and amortization to come in line with the board's expectations. The year earlier, the company made adjusted Ebitda loss of GBP7.5 million.

The group said it had GBP6.8 million cash as at the end of March, down from GBP16.9 million it had at the end of September, following the investments in its facilities, equipment and services, and funding of operating losses during the year.

The value of contracts secured in the second half of 2018 was GBP15.3 million, up 49% from the first half's total of GBP10.2 million. As a result, the group said it started the current financial year with committed forward contracts of GBP11.4 million.

Looking ahead, Abzena said that it is "encouraged" by the revenue growth in the second half and is targeting annual revenue growth in 2019 at a slightly higher rate than 18% seen in 2018.

In addition, the company said that it has taken actions to reduce capital expenditure in the first half of the current financial year and is implementing a cost reduction programme to significantly reduce operating costs. This is anticipated to bring the benefits in 2019 and beyond, it said.

"We are building momentum towards the full realisation of our scientific and commercial potential. Notwithstanding the challenges to our original growth plans, we have seen increased engagement from a broadening portfolio of customers with Abzena's talented scientific teams. This has driven the growth in the business, particularly in the second half of the year," said Chief Executive John Burt.

"Abzena remains focused on effectively supporting our customers while driving our business through this transition period to sustainable growth," Burt added.

Shares in Abzena were flat at 19.50 pence per share on Monday.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Security Name Price Change (%) Morningstar
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Abzena PLC 15.75 GBX 0.00 -
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