(Alliance News) - ABCAM PLC on Monday said it expects revenue for financial 2020 to be lower than planned, as government-imposed Covid-19 restrictions wreak havoc on its business in North America and the Europe, Middle East and Africa region.
The stock was trading 2.7% higher at 1,187.00 pence each on Monday morning in London.
The life science research software firm said that as at Friday, revenue for its year to the end of June 2020 is expected to be around GBP14 million to GBP16 million lower than planned.
Revenue for financial 2019 was GBP259.9 million. Abcam previously forecast between GBP288 million and GBP294 million of revenue for financial 2020, equivalent to between 9% and 11% growth at constant currency. The new guidance suggests a turnout as low as GBP272 million, or 4.7% growth.
The company said its has not furloughed any staff or participated in any Covid-19-related government assistance scheme, adding that it has net cash of around GBP80 million and a GBP200 million revolving credit facility.
Abcam said it is currently focusing on boosting its supply chain and manufacturing flexibility to support the demand for products used for Covid-19 research, and is joining over 20 collaborations across the UK, US, and China which are focused on SARS-CoV-2 drug and vaccine development.
"Our priorities are to look after our global team and our customers as the COVID-19 pandemic continues. We are privileged to have an important role in the research and development activity to understand and defeat this virus. Abcam's unique technology and the business's financial health are positioning our company to emerge stronger from this outbreak," said Chief Executive Alan Hirzel.
By Ife Taiwo; ifetaiwo@alliancenews.com
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