Abzena: FY18 Results – Clouds Lifting
Edison | Jun 19, 2018 09:58AM ET
Following a stronger H2 and Abzena's (LON:ABZA) FY18 results, we have made major changes to our model across both the services business and the Abzena Inside royalty portfolio. The FY18 reported revenues of £22.0m were ahead of our forecast and up c 18% over FY17. This was driven by 60% growth in bio-manufacturing where fortunately, most of the investment in capacity was directed in FY18. Last week’s announcement of a proposed royalty monetisation will help to address the FY19 working capital requirement.
Positive FY18 announcement
After last year’s trading update, the tone of Abzena’s FY18 results announcement was much more upbeat. A stronger H2 resulted in FY18 revenues growing by about 18% to £22.0m (FY17, £18.7) and beat our £21.6m estimate. The investment programme increased the FY adjusted EBITDA loss to £12.0m (FY17 £7.5m, and our FY18 estimate of £10.8m). Encouragingly for the future, the value of the contracts secured in the second-half of FY18 was £15.4m; a 42% jump over the more sedate £10.8m in H118. The year-end cash position of £6.8m reflected the continued investment programme, which drove the FY loss to £14.2m.
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