Abingdon Health shares surged higher on Tuesday after the company announced an impressive 52% increase compared to the previous year.
Abingdon Health share price were 14.30% higher at the time of writing.
The firm’s growth trajectory is particularly noteworthy in the second half of FY 2024, with revenues surging 55% compared to the first half and 27% year-on-year. This robust performance has been driven by strong commercial progress across the group, with the contract services division seeing a 51% year-on-year revenue increase to £5.5 million.
Abingdon’s product division also contributed to the growth, with revenues of £0.7 million representing a 56% increase from the previous year. The launch of three Boots own-label tests in the second half of the year significantly boosted this segment’s performance.
In a positive turn for investors, Abingdon Health achieved cash flow positivity in the fourth quarter of 2024. The company ended the fiscal year with a cash balance of £1.3 million, demonstrating improved financial stability despite ongoing investments in growth.
“We are pleased to report another year of growing revenue performance with FY 2024 revenues 52% ahead of FY 2023,” said Chris Yates, CEO of Abingdon Health.
“We were particularly pleased to achieve positive cashflow in Q4 2024. Our key focus is to build a focused, high quality, sustainable, profitable business and we are making great strides towards this. We believe with our lateral flow focus, our comprehensive CDMO service proposition and growing self-test distribution platform that we are well placed to deliver further revenue growth in FY 2025 and beyond.”
The acquisition of regulatory consultancy IVDeology in May 2024 has strengthened Abingdon’s service capabilities, particularly in the increasingly complex area of regulatory approval. This strategic move is expected to enhance the company’s ability to support customers navigating regulatory challenges in various markets.
Looking ahead, Abingdon’s board anticipates continued strong revenue growth in FY 2025. The company’s focus on building a sustainable, profitable business model appears to be gaining traction, with its comprehensive CDMO service proposition and growing self-test distribution platform positioning it well for future growth.