By Samuel Indyk
Investing.com – Shares in rapid test manufacturer Abingdon Health (LON:ABDX) fell by as much as 30% on Tuesday after the company said they expect to report FY21 performance of a between a £3.3mln loss and breakeven.
The company also anticipates FY21 revenue will be between £11.4mln and £17.0mln.
The AIM-listed company said it continues to make progress on commercialising the AbC-19 rapid test, both in the UK private sector and internationally.
However, the speed of adoption and therefore the receipt of orders is taking longer than the company first anticipated. The board therefore expects FY21 results to be “substantially” below current market expectations.
“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,” Abingdon Health CEO Chris Yates said in a statement.
“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.”
DHSC Contract
Abingdon Health also noted that they are still owed outstanding debts from the UK Department of Health and Social Care, in relation to a contract that expired in February 2021. As of 27th April, the company noted they have outstanding invoices with DHSC worth £6.7mln.
At 11:55BST, shares in Abingdon Health were trading lower by 29% at 57.84p per share.