Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of Abingdon Health (LON: ABDX) have fallen over 31% on Tuesday after the company warned investors about a slower than anticipated uptake of its Covid-19 test kits.
The company said that it continues to make progress on commercialising the AbC-19T rapid test both in the UK private sector and internationally and that it is encouraged by ongoing commercial discussions.
However, Abingdon stated: “Whilst each of the opportunities at the time of the interims remains in place and the pipeline continues to grow, the speed of adoption and therefore the receipt of orders is taking longer than the Board originally anticipated.
“The Board, therefore, expects the results for FY21 will be substantially below the current market expectations.”
The uncertainty means the AIM-listed company has set its revenue guidance for FY21 at between £11.4 million and £17 million, with an adjusted EBITDA range of -£3.3 million to £0.
If revenue was to come in at the lower end of the range, it would still represent a significant increase year over year.
Elsewhere, Abingdon said it is continuing to work with contract service partners to transfer assays to large-scale manufacture, with three projects ongoing.
They are also awaiting payment from the expired Department of Health and Socia Care contract, with the current outstanding total at £6.7 million.
Chris Yates, CEO of Abingdon Health, commented: “Abingdon Health has made significant commercial progress across the COVID-19 and non-COVID-19 markets and the company expects revenues to more than double this year.
“The Company continues to develop a strong pipeline of opportunities for its AbC-19™ rapid test. As previously stated, the timing of antibody testing programme roll-outs around the world and future orders is difficult to accurately predict given the range of factors including the evolving regulatory processes, the impact of COVID-19 virus mutations and the rate of vaccination programs.
“We believe there are clear use cases for antibody testing which includes checking levels of immunity both prior to and after vaccinations and we are confident that over the coming months, the Company's Tier 1 and other targets will convert.”
Abingdon Health’s share price is currently down 31.68% at 55p per share.
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 Abingdon Health shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .