ABC.L Regulatory News (ABC)

Abcam plc

Consolidated Income Statement

For the year ended 30 June 2008

Year ended

Year ended

Notes

30 June 2008

30 June 2007

Restated*

£000

£000

Revenue

5

36,694 

24,519 

Cost of sales

(14,389)

(10,020)

Gross profit

22,305 

14,499 

Administration and management expenses

(12,344)

(7,590)

 excluding share based compensation charge

Share based compensation charge

(173)

(142)

Total management and administration expenses

(12,517)

(7,732)

Research and development expenses

(2,398)

(1,709)

 excluding share based compensation charge

Share based compensation charge

(19)

(20)

Total research and development expenses

(2,417)

(1,729)

OPERATING PROFIT

7,371 

5,038 

Investment revenue

5

581 

495 

PROFIT BEFORE TAXATION 

7,952 

5,533 

Tax 

11

(2,062)

(1,472)

PROFIT FOR THE PERIOD FROM CONTINUING 

6,29

5,890 

4,061 

 OPERATIONS

Earnings per share

 from continuing operations - pence

Basic

13

16.88

11.74

Diluted 

13

16.56

11.43

*Restated to reflect the adoption of IFRS as per note 30.

All profit is attributable to equity holders of the parent.

Abcam plc

Consolidated statement of recognised income and expense

For the year ended 30 June 2008

Year ended

Year ended

30 June 2008

30 June 2007

£000

£000

(Losses)/gains on cash flow hedges

(168)

168

Exchange differences on translation of foreign operations

3 

(28)

Deferred tax on outstanding share options

502 

(30)

Net income recognised directly in equity

337 

110 

Profit for the year

5,890

4,061

Total recognised income and expense for the year

6,227

4,171

Abcam plc

Consolidated Balance Sheet

At 30 June 2008

Notes

30 June 2008

30 June

2007

Restated*

£000

£000

Non-current assets

Intangible assets

14

994 

1,691 

Property, plant and equipment

15

4,204 

2,832 

5,198 

4,523 

Current assets

Inventories

17

4,506 

3,102 

Trade and other receivables

18

4,860 

4,327 

Cash and cash equivalents 

18

13,473 

10,709 

Short term deposits

18

1,020 

- 

Derivative financial instruments

19

- 

168 

23,859 

18,306 

Total Assets

29,057 

22,829 

Current Liabilities

Trade and other payables

21

(4,073)

(3,045)

Current tax liabilities

21

(382)

(248)

Provisions

22

(96)

(75)

Derivative financial instruments

19

(197)

- 

(4,748)

(3,368)

Net current assets

19,111 

14,938 

Non-current liabilities

Deferred tax liabilities

20

(78)

(188)

Deferred creditor

21

(109)

(386)

(187)

(574)

Total liabilities

(4,935)

(3,942)

Net assets

24,122 

18,887 

Equity

Share capital

23,29

351 

346 

Share premium account

24,29

10,871 

10,619 

Share based compensation reserve

29

483 

251 

Deferred tax reserve

29

758 

256 

Translation reserve

29

(33)

(36)

Hedging reserve

29

- 

168 

Retained earnings

29

11,692 

7,283 

Equity attributable to equity holders of the parent.

24,122 

18,887 

*Restated to reflect the adoption of IFRS as per note 30.

The financial information was approved by the board of directors and

authorised for issue on 8 September 2008.

They were signed on its behalf by:

Jeff Iliffe

Director

Abcam plc

Company Balance Sheet

At 30 June 2008

Notes

30 June 2008

30 June 2007

Restated*

£000

£000

Non-current assets

Intangible assets

14

994 

1,691 

Property, plant and equipment

15

3,976 

2,459 

Investments

16

45 

16 

5,015 

4,166 

Current assets

Inventories

17

4,501 

3,089 

Trade and other receivables

18

5,144 

4,572 

Cash and cash equivalents 

18

11,918 

10,055 

Short term deposits

18

1,020 

- 

Derivative financial instruments

19

- 

168 

22,583 

17,884 

Total Assets

27,598 

22,050 

Current Liabilities

Trade and other payables

21

(3,623)

(2,864)

Current tax liabilities

21

(269)

(243)

Provisions

22

(96)

(75)

Derivative financial instruments

19

(197)

- 

(4,185)

(3,182)

Net current assets

18,398 

14,702 

Non-current liabilities

Deferred tax liabilities

20

(178)

(188)

Deferred creditor

21

(109)

(386)

(287)

(574)

Total liabilities

(4,472)

(3,756)

Net assets

23,126 

18,294 

Equity

Share capital

23,29

351 

346 

Share premium account

24,29

10,871 

10,619 

Share based compensation reserve

29

444 

251 

Deferred tax reserve

29

758 

256 

Hedging reserve

29

- 

168 

Retained earnings

29

10,702 

6,654 

23,126 

18,294 

*Restated to reflect the adoption of IFRS as per note 30.

The financial information was approved by the board of directors and

authorised for issue on 8 September 2008.

They were signed on its behalf by:

Jeff Iliffe

Director

Abcam plc

Consolidated cash flow statement

For the year ended 30 June 2008

Year ended

Year ended

Notes

30 June 2008

30 June 2007

Restated*

£000

£000

Net cash from operating activities

28

7,142

3,426

Investing activities

Interest received

581 

495 

Proceeds on disposal of property,

 plant and equipment

(1)

2 

Purchase of property,

 plant and equipment

(2,445)

(2,316)

Purchase of intangible

 assets

(274)

(1,848)

Net cash used in investing activities

(2,139)

(3,667)

Financing activities

Dividends paid

(1,481)

(968)

Proceeds on issue of shares

257 

47 

Increase in short term deposits

(1,020)

- 

Net cash used in financing activities

(2,244)

(921)

Net increase/(decrease) in cash and cash equivalents

2,759 

(1,162)

Cash and cash equivalents at beginning 

 of year

10,709 

11,884 

Effect of foreign exchange rates

5 

(13)

Cash and cash equivalents at end of year

13,473 

10,709 

*Restated to reflect the adoption of IFRS as per note 30.

Abcam plc

Company cash flow statement

For the year ended 30 June 2008

Year ended

Year ended

Notes

30 June 2008

30 June 2007

Restated*

£000

£000

Net cash from operating activities

28

5,858

2,736

Investing activities

Interest received

561 

504 

Proceeds on disposal of property,

 plant and equipment

1 

4 

Purchases of property,

 plant and equipment

(2,434)

(2,000)

Purchases of intangible

 assets

(251)

(1,848)

Investment in subsidiary

(29)

- 

Dividends received

401 

269 

Net cash used in investing activities

(1,751)

(3,071)

Financing activities

Dividends paid

(1,481)

(968)

Proceeds on issue of shares

257 

46 

Increase in short term deposits

(1,020)

- 

Net cash used in financing activities

(2,244)

(922)

Net increase/(decrease) in cash and cash equivalents

1,863 

(1,257)

Cash and cash equivalents at beginning 

 of year

10,055 

11,312 

Cash and cash equivalents at end of year

11,918 

10,055 

*Restated to reflect the adoption of IFRS as per note 30.

Abcam plc

Notes to the consolidated financial information

For the year ended 30 June 2008

1.General information

Abcam plc is a company incorporated in the England and Wales under the Companies Act 1985. 

The address of the registered office is 332 Cambridge Science Park, Milton Road, Cambridge,

CB4 OFW United Kingdom.

The Group's activities consist of the development, marketing and selling of antibodies and closely

related products.The Group sells through the internet to customers in most countries of the

world. The Group operates through its parent company Abcam plc and through its wholly owned 

subsidiaries Abcam Inc. and Abcam KK.

This financial information is presented in pounds sterling because that is the currency of the 

Primary economic environment in which the Group operates. Foreign operations are included in 

accordance with the policies set out in note 2.

2.Significant accounting policies

Basis of Accounting

The financial information set out in the announcement does not constitute the company's statutory accounts for the years ended 30 June

2008 or 2007. The financial information for the year ended 30 June 2007 is derived from the statutory accounts for that year which have

been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not draw attention

to any matters by way of emphasis without qualifying their report and did not contain a statement under s237(2) or (3) Companies Act

1985.

Property, plant and equipment

Property, plant and equipment is stated at cost less depreciation and any provision for

impairment. Depreciation is provided at cost in equal instalments over the estimated lives 

of the fixed assets.

The depreciation rates applied are shown below:

Office equipment, fixtures and fittings

20% per annum

Laboratory equipment

20% per annum

Computer equipment

33% per annum

Hybridomas

33% per annum

Depreciation is accelerated if assets are deemed to have been impaired or there is a 

change in the residual economic life.The remaining useful lives of assets are re-assessed at each

balance sheet date.

Intangible assets

Expenditure on research activities is recognised as an expense in the period

in which it is incurred.

Payments made to acquire distribution rights from third parties are capitalised and

are amortised over the period of the agreement.

These assets are amortised on a straight line basis over their estimated minimum useful lives of 3 years.

Intangible assets are reviewed for impairment both annually and when there is an indication that 

an asset may be impaired when events or changes in circumstances indicate that the carrying 

value may not be recoverable. The assets' residual values, useful lives, and methods of 

valuation are reviewed and adjusted, if appropriate, at each financial year end.

Investments

Investments held as fixed assets are stated at cost less provision for any impairment in value.

Inventories

Inventories are stated at the lower of cost and net realisable value.Cost is calculated using the

actual cost of the product when acquired or manufactured.

The cost of Abcam own manufactured inventory includes material, direct labour and an attributable 

portion of production overheads based on normal levels of activity and is calculated using

the standard cost method.

Net realisable value is based on the estimated selling price less further costs expected

to be incurred to completion and disposal. Provision is made for obsolete, slow moving or 

defective items where appropriate.

Trade and other receivables

Trade receivables are measured at initial recognition at fair value. Appropriate allowances for

estimated irrecoverable amounts are recognised in the profit and loss account when there is 

objective evidence that the asset is impaired. When a trade receivable is considered uncollectible, 

it is written off against the allowance account. Subsequent recoveries of amounts previously written off

are credited against the allowance account. Changes in the carrying amount of the allowance

account are recognised in the income statement.

Derivative financial instruments

Forward contracts are used by the Group to manage its exposure to the risk associated with the variability 

in cash flows in relation to both recognised assets or liabilities and forecast transactions. All derivative 

financial instruments are measured at the balance sheet date at their fair value.

Where derivative financial instruments are not designated as or not determined to be effective 

hedges, any gain or loss on the remeasurement of the fair value of the instrument at the 

balance sheet date is taken to the income statement.

At the inception of the hedge relationship, the Group documents the

relationship between the hedging instrument and the hedged item, along with its risk 

management objectives and its strategy for undertaking various hedge transactions.

Furthermore, at the inception of the hedge and on an ongoing basis, the Group documents 

whether the hedging instrument that is used in a hedging relationship is effective in 

offsetting changes in cash flows of the hedged item.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges 

are recorded in the profit and loss immediately, together with any changes in the 

fair value of the hedged item that is attributable to the hedged risk. 

The effective portion of changes in the fair value of derivatives that are designated and qualify as

cash flow hedges are deferred in equity. The gain or loss relating to the ineffective portion

is recognised immediately in profit or loss and is included in the "other gains and losses" line of the 

income statement. Amounts deferred in equity are recycled in profit or loss in the periods

when the hedged item is recognised in profit or loss.

Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging 

instrument expires or is sold, terminated or exercised, or no longer qualifies for hedge accounting. 

The adjustment to the carrying amount of the hedged item arising from the hedged risk is amortised

to the profit and loss from that date and is included in the "other gains and losses" line of the 

income statement. Any cumulative gain or loss deferred in equity at that time

remains in equity and is recognised when the forecast transaction

is ultimately recognised in profit or loss. When a forecast transaction is no longer expected to occur,

the cumulative gain or loss that was deferred in equity is recognised immediately in profit or loss.

A derivative is presented as a non-current asset or non-current liability if the remaining maturity 

of the instrument is more than 12 months and is not expected to be realised or settled within 

12 months. Other derivatives are presented as current assets or liabilities.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net 

profit as reported in the income statement because it excludes some items of income 

or expense that are taxable or deductible in other years and it further excludes items that are

never taxable or deductible. The Group's liability for current tax is calculated using tax rates that 

have been enacted or substantively enacted by the balance sheet date.

Deferred tax is the tax expected to be payable or recoverable on differences between the 

carrying amount of assets and liabilities in the financial information and the corresponding tax 

bases used in the calculation of the taxable profit, and is accounted for using the balance sheet 

liability method. Deferred tax liabilities are generally recognised for all taxable temporary 

differences and deferred tax assets are recognised to the extent that it is probable that taxable 

profits will be available against which deductible temporary differences can be utilised. Such 

assets and liabilities are not recognised if the temporary difference arises from the initial 

recognition of goodwill or from the initial recognition of other assets and liabilities in a transaction

 that affects neither the taxable profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the 

liability is settled or the asset is realised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced 

to the extent that it is no longer probable that sufficient taxable profits will be available to allow 

all or part of the asset to be recovered. Deferred tax is charged or credited in the income

statement, except where it relates to items charged or credited directly to equity, in which 

case the deferred tax is also dealt with in equity.

Pensions

The Group operates a defined contribution pension scheme in the UK, which is 

open to all employees and directors of the company. 

The amount charged to the income statement in respect of pension costs is the contribution 

payable in the year. 

Any differences between contributions payable in the year, and contributions actually paid are 

shown either as accruals or prepayments in the balance sheet.

The amount included in the income statement in the year in respect of the pension scheme was £815,000

(2007:£253,000). The amounts included in creditors at 30 June 2008 in relation to the defined contribution

pension scheme is £65,000 (2007:£38,000)

Leases

Leases are classified as financial leases whenever the terms of the lease transfer substantially 

all the risks and rewards of ownership to the lessee. All other leases are classified as 

operating leases.

Rentals payable under operating leases are charged to income on a straight-line basis over the 

term of the relevant lease. Benefits received and receivable under an operating lease are also

spread on a straight-line basis over the lease term.

Assets held under finance leases are recognised as assets of the Group at their fair value or, if lower, 

at the present value of the the minimum lease payments, each determined at the inception of the lease. 

The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease

payments are apportioned between finance charges and reduction of the lease obligation so as to achieve

a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly

against income.

Foreign exchange

The individual financial information of each group company are presented in the currency of 

the primary economic environment in which it operates (its functional currency). For the

purposes of the consolidated financial information, the results and financial position of each

group company are expressed in pounds sterling which is the functional currency of the 

Company, and the presentation currency for the consolidated financial information.

In preparing the financial information of the individual companies, transactions in currencies

other than the entity's functional currency (foreign currencies) are recorded at the rates 

of exchange prevailing at the dates of the transactions. At each balance sheet date, monetary

assets and liabilities that are denominated in foreign currencies are retranslated to the rates 

prevailing at the balance sheet date. Non-monetary items carried at fair value are translated at 

the rates prevailing at the date when the fair value was determined. Non-monetary items 

that are measured in terms of historical cost in a foreign currency are not retranslated.

For the purpose of presenting consolidated financial information, the results 

of the operations of the Company's overseas subsidiaries, Abcam Inc and Abcam KK, are 

translated at the average rate of exchange during the period and their balance sheets at the 

rates ruling at the balance sheet date. Exchange differences arising on the translation of the 

opening net assets and results of operations are classified as equity and recognised in the 

Group's foreign currency translation reserve.

The treatment of exchange differences on transactions entered into to hedge certain foreign 

currency risks is detailed under derivative financial instruments above.

All other differences are included in the income statement in the period in which they arise.

Share Based Payments

The Group has applied the requirements of IFRS 2 Share-based payment. In accordance 

with the transitional provisions, IFRS 2 has been applied to all grants of equity instruments

after 7 November 2002 that were unvested at 1 July 2006.

The Group issues equity-settled share based payments to certain employees. Equity-settled 

share based payments are measured at the fair value (excluding the effect of non-market based 

vesting conditions) at the date of the grant. The fair value determined at the grant date of the 

equity-settled share based payments is expensed on a straight line basis over the vesting 

period, based on the Group's estimate of the number of shares that will eventually vest. There 

are both market and non-market based performance conditions attached to the vesting and

exercising of equity instruments. Fair value is measured by the use of the Monte Carlo 

Simulation. The expected life used in the model has been adjusted, based on management's 

best estimate, for the effects of the non-transferability, exercise restrictions and behavioural 

considerations. Charges made to the income statement in respect of share-based payments 

are credited to retained earnings.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents

amounts receivable for goods and services provided in the normal course of business, net of 

discounts, VAT and other sales related taxes.

Sales of goods are recognised when goods are delivered and title has passed.

Interest income is accrued on a time basis, by reference to the principal outstanding and the 

effective interest rate applicable.

Dividend income from investments is recognised when the shareholders' rights to receive 

payment have been established.

Cash and cash equivalents 

Cash and cash equivalents comprise cash on hand and demand deposits, and other short term 

highly liquid investments that are readily convertible to a known amount of cash and are subject

to an insignificant risk of changes in value.

Trade and other receivables

Trade and other receiveables do not carry any interest and are stated at their nominal value as

reduced by appropriate allowances for estimated irrecoverable amounts.

Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event, 

and it is probable that the Group will be required to settle the obligation at the balance sheet 

date, and are discounted to present value where the effect is material.

3.Critical accounting judgements and estimates

In the application of the Group's accounting policies, which are described in note 2, the Directors 

are required to make estimates and assumptions, in accordance with IFRS, that affect the 

amounts reported as assets and liabilities as at the date of reporting the financial information, 

and the reported amounts of revenues and expenditure during the year. In preparation of the 

consolidated financial information, estimates and assumptions have been made by the Directors

concerning the fair value of share options, the estimated useful lives of fixed assets, accruals 

and provisions required, the carrying value of investments, the recoverability of deferred tax 

assets, the carrying value of intangible assets and other similar evaluations. Actual amounts

that result could differ from those estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to 

accounting estimates are recognised in the period in which the estimate is revised if the revision

affects only that period, or in the period of the revision and future periods if the revision affects 

both current and future periods.

Key sources of estimation uncertaintly

The key assumptions concerning the future and, and other key sources of estimation uncertainty at the 

balance sheet date, that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities

the most significant effect on the amounts recognised in financial information.

Impairment of intangibles

During the year,management renegotiated a product line agreement. Consequently, it was considered that

the carrying value of the intangible was overstated and it was adjusted to take account of the 

anticipated future sales and the risk associated with the contract.

Fair value of derivatives and other financial instruments

As described in Note 26, the directors use their judgement in selecting an appropriate valuation technique for financial 

instruments not quoted in an active market. Valuation techniques commonly used by market practioners

are applied. For derivative financial instruments, assumptions are made based on quoted market rates adjusted for 

specific features of the instrument. Other financial instruments are valued using a discounted cash flow analysis based 

on assumptions supported, where possible, by observable market prices or rates.

Valuation of own manufactured inventory

The standard costs used for the valuation of own manufactured inventory requires a number of assumptions concerning 

the allocation overheads. These assumptions are based primarily on managements estimates of time spent in 

each relevant area of activity.

Provision for obsolete stock

The provision for obsolete stock is based on managements estimation of the commercial life of inventory lines and 

is applied on a prudent basis. In assessing this, management takes in to consideration the sales history

of products and the length of time that they have been available for resale.

4.Income statement for the Company

The profit for the financial year dealt with in the financial information of the Company was £5,126,000

(2007:£3,687,000). 

5.Business and geographical segments

Geographical segments

The Group's operations are located in the UK, USA and Japan.

Business segments

The Directors consider that there are no identifiable business segments that are engaged in 

providing individual products or services or a group of related products and services that are 

subject to risks and returns that are different to the core business.

North

Europe

UK and

Japan

Total

America

rest of world

Year ended

Year ended

Year ended

Year ended

Year ended

30 Jun 2008

30 Jun 2008

30 Jun 2008

30 Jun 2008

30 Jun 2008

£000

£000

£000

£000

£000

Revenue

External sales

16,947 

10,748 

6,884 

2,115 

36,694 

Total revenue

16,947 

10,748 

6,884 

2,115 

36,694 

Result

Segment result

1,046 

5,198 

3,327 

215 

9,786 

Unallocated corporate expenses

(2,415)

Operating profit

7,371 

Investment revenues

581 

Profit before tax

7,952 

Tax

(2,062)

Profit after tax

5,890 

Other information

Capital additions

28 

- 

2,744 

4 

2,776 

Depreciation and amortisation

172 

- 

1,255 

10 

1,437 

Impairment losses recognised 

 in income

642 

Balance sheet

Assets

Segment assets

2,946 

- 

25,384 

727 

29,057 

Consolidated total assets

29,057 

Liabilities

Segment assets

(307)

- 

(4,377)

(251)

(4,935)

Consolidated total liabilities

(4,935)

North

Europe

UK and

Japan

Total

America

rest of world

Year ended

Year ended

Year ended

Year ended

Year ended

30 Jun 2007

30 Jun 2007

30 Jun 2007

30 Jun 2007

30 Jun 2007

£000

£000

£000

£000