ABC.L Regulatory News (ABC)

22 July 2019

ABCAM PLC

("Abcam" or "the Group")

Full Year Trading Update

Abcam plc (AIM: ABC), a global leader in the supply of life science research tools, is issuing today the following unaudited trading update for the year ended 30 June 2019 ahead of reporting its audited results on 9 September 2019.(1)

Financial performance

Overall, the Group expects to report total revenue of £259.9 million (2017/18: £233.2 million), representing growth for the year of 11.4% on a reported basis and 9.2% on a constant currency basis.(2)

Catalogue revenue, representing approximately 93% of the total, grew by 11.9% in the year on a reported basis and 9.8% on a constant currency basis, with all regions and product categories growing faster than estimated underlying market growth rates. Revenue in China grew faster than market at over 20% in the year and represents over 15% of total company sales.

Custom Products and Licensing (CP&L) revenue, representing approximately 7% of the total, grew by 4.7% on a reported basis and 0.4% on a constant currency basis, with gains in supply and licensing revenue offset by declines in custom project revenue.

The Group expects gross margin to be ahead of last year and Adjusted EBITDA(3) margin to be in line with the Board's expectations.

2018/19 delivery against strategy

The end of 2018/19 marks the fifth anniversary of the Group's 'invest-to-grow' strategy set out in 2014. Over that period, the Group made signficant strategic, operational and financial improvements to sustain double-digit growth throughout the period.

During the last twelve months, those investments and changes resulted in further market share gains in the global research reagents market, particularly from Recombinant antibodies, Immunoassays, and China. These market results came whilst delivering on plans to build organisational scale and seed investment for future growth in adjacent business areas.

Overall, the business achieved each of the strategic targets set out at the start of the year: 

1 Constant exchange rate 

Next five-year plan to 2023/24

Increasing resources dedicated to advancing medical, biopharmaceutical, and research make the outlook for Abcam's addressable markets of approximately $8bn attractive for the medium- and long-term.

The Board is currently reviewing its plans for the next five years to 2023/24 and sees significant opportunity to further grow the organisation organically through a programme of internally funded investments. The Group will provide details of the five-year plan alongside the presentation of its full year results on 9 September. An opportunity to explore the plans further will be offered in a Capital Markets event for institutional investors and analysts on 14 November 2019 at its new global headquarters on the Cambridge Biomedical Campus, UK.

Alan Hirzel, CEO of Abcam said:

"Life science research and biopharmaceutical customers globally once again showed their trust in Abcam to help them achieve their research mission. This trust made it possible for our business to expand our market leadership and achieve our strategic goals.

"The prospects for Abcam remain strong and with our focus on customers, we are confident that our investments in growth are aligned to creating long-term value for all of our stakeholders."

The Group will report its full year results for the twelve-month period ended 30 June 2019 on 9 September 2019. A live webcast of the presentation will be available on the Investor Relations section of the Group's website. A replay of the presentation will also be made available on the Company's website following the event. Further details of the Capital Markets event will be published in due course.

Abcam plc

+ 44 (0) 1223 696 000

Alan Hirzel, Chief Executive Officer

Gavin Wood, Chief Financial Officer

James Staveley, VP Investor Relations

J.P.Morgan Cazenove - Nominated Adviser & Joint Corporate Broker

+ 44 (0) 20 7742 4000

James Mitford / Hemant Kapoor

Numis - Joint Corporate Broker

+ 44 (0) 20 7260 1000

Garry Levin / Duncan Monteith

FTI Consulting

+44 (0) 20 3727 1000

Ben Atwell / Brett Pollard / Natalie Garland-Collins

Notes:

This announcement contains inside information.

This trading update is based upon unaudited management accounts and has been prepared solely to provide additional information on trading to the shareholders of Abcam plc. It should not be relied on by any other party for other purposes.

(1) This announcement, including any information included or incorporated by reference in this announcement, may contain forward-looking statements (including words such as "believe", "expect", "estimate", "intend", "anticipate" and words of similar meaning) which are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Abcam group. All statements other than statements of historical facts may be forward-looking statements and should not be treated as guarantees of future performance. These forward-looking statements involve risks and uncertainties, many of which are beyond the control of the Abcam group, and there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements speak only as at the date of this announcement and accordingly undue reliance should not be placed on such statements. The Abcam group does not assume any obligation to, and does not intend to, revise or update these forward-looking statements, except as required pursuant to applicable law.

(2) Except where otherwise indicated, all revenues are provided on an unaudited, constant currency basis.

(3) Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and adjusting income items. Adjusted figures exclude systems and process improvement costs associated with the implementation of the ERP, dual running costs associated with the move to the Group's new headquarters and the amortisation of acquired intangibles.

About Abcam plc

As an innovator in reagents and tools, Abcam's purpose is to serve life science researchers globally to achieve their mission, faster. Providing the research and clinical communities with tools and scientific support, the Group offers highly validated antibodies and assays to address important targets in critical biological pathways.

Already a pioneer in data sharing and ecommerce in the life sciences, Abcam's ambition is to be the most influential company in life sciences by helping advance global understanding of biology and causes of disease, which, in turn, will drive new treatments and improved health.

Some two-thirds of the world's 750,000 life science researchers use Abcam's antibodies, reagents, biomarkers and assays. By actively listening to and collaborating with these researchers, the Group continuously advances its portfolio to address their needs. A transparent programme of customer reviews and datasheets, combined with an industry-leading validation initiative, gives researchers increased confidence in their results.

Founded in 1998 and headquartered in Cambridge, UK, the Company sells to more than 140 countries. Abcam was admitted to AIM in 2005 (AIM: ABC).

Please visit www.abcam.com or www.abcamplc.com to find out more.