The Abingdon Health PLC (LON: ABDX) share price plunged 30.2% after its disappointing full-year results were released. The company made £2.8 million in revenues compared to the £11.6 million it generated in sales in 2021.
YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Investors were unhappy to hear that the developer of rapid diagnostic tests incurred a pretax loss of £10.0 million compared to the £3.3 million loss recorded in 2021. The company attributed the higher losses to the increase in headcount to meet the expected demand for its COVID-19 tests, which did not materialise.
Abingdon’s cumulative loss for the twelve months surged to £21.3 million due to a £7.2 million impairment charge that was not there in 2021 when it made a cumulative loss of £7.0 million.
On a positive note, Abingdon settled with the UK Department of Health and Social Care (DHSC) and was paid £6.3 million to settle its case against the DHSC for cancelling its contract to supply rapid COVID-19 test kits.
Abingdon Health also shifted its business strategy by launching an e-commerce self-test website that markets a wide range of products from its Abingdon Simply Test product suite to consumers, bypassing any intermediaries. The website also sells other branded self-test products.
The company has also shifted its business model to become a contract manufacturing company for other firms that do not have the manufacturing capacity to produce lateral flow tests at scale. Abingdon is looking to capitalise on the rising demand for Contract Development and Manufacturing (CDMO) services to grow its business in future.
The company noted that with the conclusion of the legal cases against the DHSC, it could now focus on its business and continue growing it. As a result, the firm expects to improve its performance in the coming years.
Abingdon noted that it had a robust pipeline of deals covering regulatory and technical transfers and contract development. The firm was happy to see the industry shift focus away from COVID-19 to other applications of lateral flow tests.
*This is not investment advice.
Abingdon Health share price.
Abingdon Health (ABDX) shares plunged 30.17% to trade at 4.19p, falling from Wednesday’s closing price of 6.00p.