22 Jul 2013 07:00
For immediate release 22 July 2013
ABCAM PLC
("Abcam" or "the Company")
Pre-Close Trading Update
Cambridge, UK: Abcam plc (AIM: ABC), a global leader in the supply of protein research tools, announces the following pre-close trading update ahead of its results for the financial year ended 30 June 2013.
The Board is pleased to report on another successful year for Abcam.
We have a strong business which has performed well and expect to report revenue growth for the year of just under 25%, which is almost 26% on a constant currency basis. This includes the full year contributions from the acquisitions of Ascent Scientific Limited ("Ascent") in September 2011 and Epitomics International Inc ("Epitomics") in April 2012. Taking into account the unaudited revenues of these businesses for the same period last year, we estimate that this represents underlying constant currency growth of approximately 11.8%.
However, we should note that centrally funded academic research budgets remain under pressure as Western Governments address fiscal deficits. In the US, which is our largest single market, sequestration was finally passed into law on 1 March 2013 and is taking place over the course of the period to 30 September 2013, at which point the next spending review is scheduled. This means that funding uncertainties look like being a feature of the US market for some time to come.
The positive impact of the addition of the Epitomics business means that we expect to report increased gross margins. Whilst we continue to make targeted investments aimed at future growth, and have seen an increase in the levels of Research and Development expenditure as a percentage of revenues, our focus on tight cost control means that we anticipate that profit before tax will be slightly ahead of consensus expectations, before one-off costs incurred during the year relating to the acquisition and integration of Epitomics, and amortisation of acquisition related intangible assets.
The integration of the Epitomics business has been a major focus for the year. Revenue growth from RabMAbs® is going well and the successful switch from the distributor arrangements in place pre-acquisition has helped to grow revenues and margins. With the exception of revenues from the former Epitomics business in China, we have now completed our plans to move catalogue sales to the Abcam platform, and have over 4,900 Epitomics generated RabMAbs® for sale. We have a number of further integration initiatives for the business scheduled for the 2013/14 financial year.
Elsewhere the enhancement of our product ranges has continued apace, and during the year (including RabMAbs®) we added 29,102 products to our online catalogue, which at 30 June 2013 comprised 121,558 products. This represents growth of 31.5% over the year.
Net cash at the year end was just over £38m and there was no bank debt outstanding.
The Company will report its results for the year ending 30 June 2013 on 10 September 2013.
For further information please contact:
Abcam | + 44 (0) 1223 696000 |
Jonathan Milner, Chief Executive Officer Jeff Iliffe, Chief Financial Officer www.abcam.com | |
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Numis Securities - Nominated Advisor and Joint Broker | + 44 (0) 20 7260 1000 |
Michael Meade / Freddie Barnfield - Nominated Advisor James Black - Corporate Broking | |
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Peel Hunt LLP - Joint Broker | + 44 (0) 207 418 8900 |
Andy Crossley - Corporate Broking | |
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Buchanan | + 44 (0) 20 7466 5000 |
Mark Court / Fiona Henson / Sophie Cowles |
Notes for editors:
About Abcam plc
Abcam plc is a leading provider of protein research tools and services, with a wide range of products and expert technical support, enabling scientists to analyse living cells at the molecular level to improve the understanding of health and disease.
Abcam is committed to providing scientists with access to the correct reagents and tools for their research. The Company's catalogue currently comprises more than 122,000 products and is continually evolving to meet customer needs. The range offered includes primary and secondary antibodies, proteins, peptides, lysates, biochemicals, immunoassays and other kits. Abcam products are supported with detailed, up-to-date and unbiased data on our website.
Headquartered in Cambridge, UK, Abcam has eight global subsidiary offices and ships to over 130 countries. The Company was founded in 1998, and now employs over 700 people. Abcam is quoted on the AIM market of the London Stock Exchange (AIM: ABC).
To find out more, please visit www.abcam.com