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Abingdon Health Shares Plunge After “Challenging Year”

Updated: 18 Nov 2021

Abingdon Health (LON: ABDX) shares have plunged Thursday with the company reporting interim results for the year ended 30 June, showing an adjusted EBITDA loss of £3.3m compared to a £0.8m profit the previous year. 

“It has been a significant and challenging year for Abingdon, against the backdrop of a constantly evolving situation with regards to the COVID-19 pandemic,” commented Chris Yates, Abingdon Health's CEO.

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Abingdon has invested around £8.9m since 2020 to expand its manufacturing facilities in York and Doncaster.

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Revenue for the year was £11.6m, representing a 123% increase from 2020s revenue of £5.2m. The company's operating loss came in at £6.7m compared to a profit of £3.3m last year.

Abingdon is also still awaiting payment for the delivery of 1 million units of its AbC-19 Covid-19 rapid antibody test to the DHSC — but the company said it has recently held positive discussions with DHSC regarding the payment.

“Whilst the COVID-19 market environment remains uncertain, the group is well placed to support our global customers, having expanded the range of COVID-19 rapid tests under manufacture,” added Yates.

In reaction to the results, Abingdon's share price has fallen as low as 35.5p. It is currently down over 22% at 37p, while its stock price has declined over 60.5% for the year to date. Last month Abingdon shares surged after reports it would manufacture the KnowNow Covid saliva test.

Should you invest in Abingdon Health shares?

Abingdon Health shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are ABDX shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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