ABCAM sees adjusted operating profit margin at lower end of guidance

Life science research tools supplier ABCAM warned on Friday that its full-year adjusted operating profit margins would come in at the lower end of its guidance range of 25.0-28.0% due to rapid investments into its newly-laid expansion plans.

While ABCAM expected that it would report total first-half revenues of £138.2m, representing growth of 10.8% on a reported basis, the group said that based on its expected revenue phasing for the year, it was now tightening its constant currency revenue growth target for the full year to 9.0-10.0%.

Catalogue revenue, which accounted for approximately 95.0% of its total sales, had grown by 11.6% in the first six months of the year on a reported basis - with all regions and product categories growing faster than estimated underlying market growth rates.

Revenues in China grew by 17.4%, outpacing the wider market's by 17.4% to reach 17% of total company sales.

The AIM-listed group added that custom products and licensing revenues, which made up roughly 5.0% of total sales, declined 1.3% on a reported basis because of the phasing of a few large in-vitro diagnostic supply orders.

ABCAM expected its gross margins to be "broadly in line" with the first half of 2019 at 70.2%.

Chief executive Alan Hirzel said: "We have recently set out ambitious plans to double the scale of our business and we are making good progress in investing in, and scaling up, the company.

"I am pleased to report that we have continued to gain market share and sustain profitable growth in the period, whilst investing in the business."

As of 1000 GMT, ABCAM shares were down 4.34% at 1,366p.