Biotech firm Abcam yesterday remained bullish on growth in China, despite concerns of a slowdown in the world’s second-largest economy.
The Aim-listed firm, which makes and sells antibody-related products, delivered strong full-year results, with revenue up 14.2 per cent to £144m and pre-tax profit up 5.9 per cent to £46.1m. Growth was boosted by China, which saw a 75.7 per cent rise in revenue to £12.9m after increased investment. The country houses one third of Abcam’s employees and represents 10 per cent of sales, with City analysts forecasting this to soar to around one third of sales next year.
But fears of a meltdown in China were triggered last month after the surprise devaluation of the yuan and a stream of disappointing economic data that indicated slower growth.
“The macro story is evolving but the Chinese government has been increasing GDP spend on life science research,” chief financial officer Jeff Iliffe, who separately announced his resignation yesterday, told City A.M.
“Whether China grows at four or seven per cent, we still feel that it is a high growth market for us,” he added, eschewing the suggestion that the slowdown could hit government investment.