Abcam (LON:ABC) , the online distributor of research grade antibodies and related products, announced a strong set of results for the year to 30 June 2010. Sales increased by 23% on a constant currency basis - just shy of FY2009's figure of 28%. The company remains defensively positioned vs. the global economy because its customers are predominantly government funded research institutions and pharmaceutical companies, but the company warned that growth may be dampened somewhat by budget cuts, especially in its large Western markets. Overall growth in the use of antibodies and proteins to study the fundamental mechanisms of cellular function and disease should more than compensate though. The company generated over £19 million in cash for the year and it now has about £40 million on the balance sheet. The company is increasing its dividend payout ratio to 37.5% of post tax profit, bringing the total to 20.03p per share. Abcam plans to use its cash judiciously to acquire new products, and is considering M&A.

The ABC share price has appreciated by 105% over the last year. Abcam Plc is currently graded B by LCF Research.

Unlock the rest of this Article in 15 seconds

or Unlock with your email