Abingdon’s FY21 trading update indicated revenues are expected to be ~£11.6m and an adj EBITDA loss of £(3.3m), in line with the revised guidance given in April. It continues to be hamstrung by the hiatus in orders for its lead product AbC-19 and is caught in the crossfire of a legal dispute involving the DHSC. Payment of the outstanding debt of £6.7m continues to be withheld pending the outcome of this judicial review. As a result, Abingdon has enacted a cost reduction programme, which has included reducing headcount by 60 to 130. Despite these challenges, the company continue to make progress in building a broader contract development and manufacturing organisation, with a number of new contract wins for both Covid and non-Covid related applications. The latest phase of capacity expansion has been completed, giving Abingdon state-of-the-art automated manufacturing capabilities. Utilising that capacity will be key to driving value and a number of programmes are expected to complete tech transfer and move to volume manufacturing in the coming months. Given the ongoing uncertainties, our forecasts remain withdrawn for now.
