(Alliance News) - Abcam PLC said Friday it expects to report strong revenue growth in its first half, with the core Catalogue unit achieving good sales growth, though it is cautious on margin guidance.
For the six months to the end of 2019, the life science research tools supplier said revenue totalled GBP138.2 million, 11% higher than the GBP124.7 million generated the year before.
On a constant currency basis, revenue grew 8.3% in the first half. As a result, and based on some expected phasing, Abcam is tightening full-year constant currency revenue growth guidance to between 9% and 10%.
Catalogue revenue, which represents 95% of group revenue, grew by 12% in the first half. Abcam said all regions and product categories grew faster than estimated underlying market growth rates.
Revenue in China grew faster than the market at 17% in the year on a constant currency basis, representing over 17% of total company sales, Abcam noted.
Custom Products & Licensing revenue, which represents about 5% of total sales, declined by 1.3%, due to the phasing of a few large in-vitro diagnostic supply orders.
Abcam expects its gross margin for the first half to be broadly in line with the year before, when it stood at 70.2%.
"We have recently set out ambitious plans to double the scale of our business and we are making good progress in investing in, and scaling up, the company," Chief Executive Alan Hirzel said.
He continued: "Earlier this month, we completed our largest acquisition in the last five years, securing a portfolio of leading protein conjugation technologies and products. I am pleased to report that we have continued to gain market share and sustain profitable growth in the period, whilst investing in the business."
Abcam closed the acquisition of Expedeon Ltd, Innova Biosciences Ltd and TGR BioSciences from Expedeon AG on January 1. Abcam expects these businesses to contribute about GBP4 million of incremental revenue in the current financial year and be neutral to adjusted earnings.
Looking ahead, Abcam is guiding for 12% to 15% full year constant currency revenue growth from its Catalogue unit and expects the adjusted operating profit margin to be towards the lower end of its 25% to 28% guided range.
Shares in Abcam were down 5.8% in early trading in London on Friday at 1,345.00 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
