Chris Yates, CEO and co-founder of Abingdon Health PLC (AIM:ABDX), presented at the Proactive One2One Investor Conference, detailing the company's impressive growth and future plans. Founded in 2008 and headquartered in York, Abingdon Health specialises as a lateral flow CRO (Contract Research Organisation) and CDMO (Contract Development and Manufacturing Organisation).
The company, with 83 employees primarily in York and a secondary site in Doncaster, primarily generates revenue through its contract service business, accounting for 95% of its income. Additionally, Abingdon Health has diversified into self-test products.
Under Yates' leadership, the company has seen substantial revenue growth, reporting just under £5.5 million in the last 12 months and a cash position of nearly £2 million at 2023's end. The firm's expertise in lateral flow test technology, significantly recognised during the COVID-19 pandemic, positions it well in a market expected to expand considerably over the next decade. Abingdon Health's services encompass the full spectrum of product development, from initial ideas to commercial success, including regulatory and analytical laboratory support.
A key element of Abingdon Health's strategy is its focus on CRO and CDMO services, offering a broad portfolio of customers and a significant pipeline of opportunities. The company's business model, which enables long-term revenue through manufacturing customers, is set to drive future growth. Furthermore, the firm has launched self-test products under the "Abingdon Simply Test" brand and provides end-to-end support for retailers creating their own branded products.
In the first half of the financial year, Abingdon Health reported £2.4 million in revenue, with expectations of surpassing the £2.9 million revenue from the second half of the previous year. The company has successfully collaborated with numerous businesses, including 52 North and Sellingnostics, contributing to the development of innovative tests for stroke diagnosis and sepsis.
Looking ahead, Yates anticipates continued growth across the CRO and CDMO customer base, expansion of the self-test product range, and further development of services like analytical testing. While not yet breakeven, Abingdon Health is strategically driving towards this goal in the next six to twelve months, underpinned by its focused strategy, revenue growth, and cost control measures. The lateral flow market's evolution and the shift towards self-testing present significant opportunities for Abingdon Health, solidifying its position as a leader in lateral flow technology application across various sectors.
