Abcam raises divi as profits jump 25%

By Benjamin Chiou

Date: Tuesday 13 Sep 2011

AIM-listed bioscience firm Abcam hiked its final dividend by 30% as it reported a 25% increase in profits in the year ended 30 June.

The protein research tolls supplier is to pay a final dividend of 3.8p per share, from 2.922p previously.

Meanwhile, pre-tax profits increased from £25.8m to £32.3m, slightly above market consensus estimates of £32.13m. Earnings per share jumped 23% from 10.76p to 13.23p.

Sales grew 17.1% from £71.1m to £83.3m (consensus: £83.7m), as the firm's product range increased by 16.9% to 73,652 antibodies and related products. The group said it was particularly encouraged by strong growth in the Far East.

The number of publications referencing Abcam's products (one of the group's key performance indicators) jumped to 17,417, from 10,825.

"For several years we have cautioned that the way in which Western governments adjust their spending patterns may affect our business," said chairman Michael Redmond. "It is apparent that it is not only actual reductions that have an impact on researchers' spending, but the threat of cuts can be sufficient to cause a reaction as well. However, revenue growth continues and profits are on track to meet consensus market expectations," he said.

In a separate statement, Abcam announced the acquisition of UK-based biochemical reagents firm Ascent Scientific for £10m. The consideration is being settled by way of £6m in cash and £4m in Abcam shares issued at 345.58p per share.

"Ascent Scientific has built an excellent reputation as a provider of high quality biochemical products and has been quick to bring new, best-in-class reagents to market backed by specialist technical support, which is very much in line with Abcam's ethos," said chief executive officer Jonathan Milner.

BC

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