Fusion Antibodies plc (AIM: FAB), specialists in pre-clinical antibody discovery, engineering and supply for both therapeutic drug and diagnostic applications, provides an update on current trading.
The Company is pleased to announce that trading in the third quarter of the financial year has continued the favourable trends experienced in the first half. Strong revenue performance is being seen across the Company’s three service strands of Discovery, Engineering and Supply.
As a consequence, the Company expects revenues for the year ended 31 March 2020 to be significantly ahead of current market expectations, and materially ahead of the previous year (FY2019: £2.2 million).
In line with the first six months of the financial year, gross profit margin remains ahead of the previous financial year. The revenue growth is largely a result of an increase in sales of existing services, as the contribution from newer high margin services has yet to be fully achieved to the extent previously anticipated. Accordingly, the Company expects gross profit margin for the current financial year to be marginally below current market expectations but ahead of that achieved in FY2019.
The Company continues to invest for growth with the continuing development of new services including the Mammalian Antibody Library and sales and marketing of existing services including the new Rational Affinity Maturation Platform (“RAMPTM“) service. The continued improvement in revenue performance means that development in these areas can be continued, and in some cases increased, whilst maintaining EBITDA and a cash position broadly in line with current market expectations for the full year.