22 Jul 2014 07:00
For immediate release 22 July 2014
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 2014.
The Board is delighted to report another successful year for Abcam and anticipates adjusted profit before tax to be slightly higher than consensus expectation. As in recent statements, this trading update covers our catalogue, non-catalogue and overall Group revenues.
During the past year, Abcam has made progress implementing the organic growth strategy which was outlined in September 2013. The underlying constant currency growth from catalogue revenues in the second half of the year was 10.6% compared to 9.3% in the first half. The full year underlying catalogue revenue growth on a constant currency basis is expected to be 10.0% (6.0% on a reported basis). These results reflect a combination of progress with our strategy and some strengthening in the macro environment of the regional markets.
The initiative to strengthen our position in China with our new Shanghai office delivered over 20% year-on-year revenue growth in Q4 following a period of transition in Q3. In the US, our largest market, we are cautiously optimistic that there is more certainty around the level of centrally funded research expenditure and we are starting to see the combined benefits of our initiatives and organic growth. In Europe, Japan, and the rest of the world, we continue to see above market growth.
Components of our Group revenue that are not included in our catalogue revenues are Custom Services, IVD, and Royalties. At the half-year results we said that whilst we are working to reposition the Custom Service line of our business to be more closely aligned to the overall strategic direction of the Group, our key growth initiatives remain focused on driving catalogue sales. These other components performed in line with guidance for the year.
In total, Group revenue growth at underlying constant currency for the year was 8.6% (4.7% on a reported basis).
Abcam remains focused on tight cost control and we anticipate that gross margins for the year will be broadly in line with those reported at the interim stage, as the higher margins from the growing portfolio of own-manufactured products were offset by the rapidly growing sales of non-primary antibody products, expansion into new geographies and the impact of exchange rate movements.
Net cash and term deposits at the year-end were £56.8m (30 June 2013: £38.3m), and the company remains debt free.
As previously stated, Abcam has undertaken significant reorganisation and investment in the Group structure during the year to provide the scalability needed to execute its strategy. We are pleased to announce that the critical senior roles identified during this process have been filled and we are confident that we have in place the organisation to deliver on our organic growth strategy.
The Company will report its preliminary results for the period on 9 September 2014.
Abcam | + 44 (0) 1223 696 000 |
Jonathan Milner, Chief Executive Officer Jeff Iliffe, Chief Financial Officer
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Numis Securities - Nominated Adviser & Joint Broker | + 44 (0) 20 7260 1000 |
Michael Meade - Nominated Adviser | |
James Black - Corporate Broking
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Peel Hunt LLP - Joint Broker | + 44 (0) 20 7418 8900 |
Clare Terlouw / Jock Maxwell MacDonald
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Brunswick | +44 (0) 20 7404 5959 |
Justine Mcllroy / Robin Wrench |
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 130,000 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 by detailed, up-to-date and unbiased data on our website.
Headquartered in Cambridge, UK, Abcam has nine global subsidiary offices and ships to over 100 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