LONDON (Alliance News) - Abcam PLC said Tuesday that it expects to report revenue growth of around 8.1% in the half year ended December 31, 2013, as it saw a strong performance from its core catalogue products business, but that it remained cautious on US government funding.
Abcam said its core catalogue products business had seen underlying growth of around 9.3% despite challenging market conditions in the US where protracted federal budget discussions, including a government shut-down, characterised the period.
The biotechnology company said that the 2014 US budget proposal was "relatively favourable" but noted that if it is implemented, it would not completely offset the reductions in central research expenditure made during last year's sequestration. As a result the company expressed caution about the US government funding environment, and in improvements in market conditions in general.
The company had previously revised down its revenue expectations for its custom services business, but noted that given the small size of the unit, it does not expect this to affect its full year profitability.
Abcam opened a new office in Shanghai and consolidated its distribution network in China during the period, which it said will improve delivery times and service levels.
Shares in Abcam were trading up 1.8% at 510.00 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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