CAMBRIDGE, England and WALTHAM, Mass., Jan. 30,
2023 /PRNewswire/ -- Abcam plc ("Abcam," "Company,"
"Group") (Nasdaq: ABCM), a global leader in the supply of life
science research tools, today provides the following preliminary
trading update for the year ending 31
December 2022.
Abcam concluded the third year of its five-year growth plan by
further building capabilities to drive long term and profitable
growth. Investment in innovation brought thousands of new products
to the market during the period. New and existing partnerships can
enable Abcam's reach into potential clinical applications, thereby
accelerating the impact of discovery tools on society. The Company
completed major business transformation projects including opening
a Singapore business hub, full
integration of BioVision, installing a new order to cash ERP system
and completing the transition of all the trading of its shares from
AIM to Nasdaq.
The overall demand environment in the second half supported
double digit revenue growth over prior year; however, two factors
impacted revenue growth1. First, the implementation of
the new ERP system disrupted revenue in September and October.
Financial performance improved as the Company exited FY22. Second,
China revenues were impacted by
COVID-19 controls and outbreaks.
Revenue
|
FY2022
|
Total reported
revenues
|
~£360
million
|
In-house product sales mix and moderating operating expense
enabled adjusted operating profit margin expansion as compared to
FY21.
The Company will release full results for the second half and
full year 2022 on 20 March 2023.
FY2023 GUIDANCE
The Company anticipates 15% to 20% constant exchange rate
revenue growth from FY22's total reported revenues of approximately
£360 million. In addition, the Company expects continued expansion
of adjusted operating profit margin.
FY2024 GOAL
The Company is reiterating its 2024 revenue goals of £450m-£525m
with adjusted operating profit margins of greater than 30%.
Alan Hirzel, CEO of Abcam
commented:
"2022 was a pivotal year in the Company's evolution. We
accelerated our innovation rates, strengthened our clinical
partnerships, implemented new once in a generation ERP technology,
and transitioned the company's shares entirely to Nasdaq. We expect
to serve our customers as normal in 2023 and continue to be well
positioned to achieve our 2024 goals."
1 Estimated revenue impacts: ERP (ex. China) £15-£20M & China £10-£12M
Abcam plc
+1 617-577-4205
tommy.thomas@abcam.com
Tommy Thomas, CPA – Vice President,
Investor Relations
Note:
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. All figures are
provisional and subject to further review. It should not be relied
on by any other party for other purposes.
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 Company offers highly validated
antibodies, assays, and other research tools 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.
Abcam's worldwide customer base of approximately 750,000 life
science researchers' uses Abcam's antibodies, reagents, biomarkers,
and assays. By actively listening to and collaborating with these
researchers, the Company continuously advances its portfolio to
address their needs. A transparent program of customer reviews and
datasheets, combined with industry-leading validation initiatives,
gives researchers increased confidence in their results.
Founded in 1998 and headquartered in Cambridge, UK, the
Company has served customers in more than 130 countries. Abcam's
American Depositary Shares (ADSs) trade on the Nasdaq Global Select
Market (Nasdaq: ABCM).
For more information, please
visit www.abcam.com or www.abcamplc.com
Forward-Looking Statements
This announcement contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Any express or implied statements contained in this announcement
that are not statements of historical fact may be deemed to be
forward-looking statements, including, without limitation,
statements regarding Abcam's portfolio and ambitions, and
our future results of operations and financial position such as our
guidance for FY2023 and performance goals for FY2024 are
neither promises nor guarantees, but involve known and unknown
risks and uncertainties that could cause actual results to differ
materially from those projected, including, without
limitation: potential changes from unaudited management
accounts, which are provisional and subject to review, to our
audited financial statements; regional or global health pandemic,
including the novel coronavirus ("COVID-19"), which has adversely
affected elements of our business, and could severely affect our
business, including due to impacts on our operations and supply
chains; challenges in implementing our strategies for revenue
growth in light of competitive challenges; developing new or
enhancing existing products, adapting to significant technological
change and responding to the introduction of new products by
competitors to remain competitive; failing to successfully identify
or integrate acquired businesses or assets into our operations or
fully recognize the anticipated benefits of such businesses or
assets; risks that our customers discontinue or spend less on
research, development, production or other scientific endeavors
with us; failing to successfully use, access and maintain
information systems and implement new systems to handle our
changing needs; cyber security risks and any failure to maintain
the confidentiality, integrity and availability of our computer
hardware, software and internet applications and related tools and
functions; failing to successfully manage our current and potential
future growth; failing to successfully increase access to the U.S.
capital markets, which we anticipated would provide greater
liquidity potential than AIM; any significant interruptions in our
operations; risks that our products fail to satisfy applicable
quality criteria, specifications and performance standards; failing
to maintain our brand and reputation; our dependence upon
management and highly skilled employees and risks that we are
unable to attract and retain these highly skilled employees; and
the other important factors discussed under the caption "Risk
Factors" in Abcam's Annual Report on Form 20-F filed with
the U.S. Securities and Exchange Commission ("SEC") on
14 March 2022, as amended, which is
available on the SEC website at www.sec.gov, as such factors may be
updated from time to time in Abcam's subsequent filings
with the SEC. Any forward-looking statements contained in this
announcement speak only as of the date hereof and accordingly undue
reliance should not be placed on such
statements. Abcam disclaims any obligation or
undertaking to update or revise any forward-looking statements
contained in this announcement, whether as a result of new
information, future events or otherwise, other than to the extent
required by applicable law.
Use of Non-IFRS Financial Measures
To supplement our unaudited financial results prepared in
accordance with International Financial Reporting Standards
("IFRS") we present adjusted operating profit, adjusted operating
profit margin, and constant exchange rate revenue, which are
financial measures not prepared in accordance with IFRS. We believe
that these measures provide useful information about operating
results, enhance the overall understanding of past financial
performance and future prospects, and allow for greater
transparency with respect to key measures used by management in its
financial and operational decision making. These non-IFRS financial
measures are supplemental in nature as they include and/or exclude
certain items not included and/or excluded in the most directly
comparable IFRS financial measures and should not be considered in
isolation, or as a substitute for, financial measures prepared in
accordance with IFRS. Further, other companies may calculate these
non-IFRS financial measures differently than we do, which may limit
the usefulness of those measures for comparative purposes.
Management believes that the presentation of (a) adjusted
operating profit and adjusted operating profit margin provide
useful information to investors and others as management regularly
reviews these measures as important indicators of our operating
performance and makes decisions based on them, and (b) constant
exchange rate revenue provides useful information to investors and
others as management regularly reviews this measure to identify
period-on-period or year-on-year performance of the business and
makes decisions based on it.
We define adjusted operating profit as profit for the period /
year before taking account of finance income, finance costs, tax,
exceptional items, share-based payments, and amortization of
acquisition intangibles. Exceptional items consist of certain cash
and non-cash items that we believe are not reflective of the normal
course of our business. We identify and determine items to be
exceptional based on their nature and incidence or by their
significance. As a result, the composition of exceptional items may
vary from period to period / year to year.
We define adjusted operating profit margin as adjusted operating
profit calculated as a percentage of revenue.
We define constant exchange rate revenue growth as our total
revenue growth from one fiscal period / year to the next on a
constant exchange rate basis.
Management is unable to present quantitative reconciliations of
adjusted operating profit, adjusted operating profit margin, and
constant exchange rate revenue to their respective most directly
comparable IFRS financial measures of operating profit, operating
profit margin and reported revenues on a forward-looking basis,
because items that impact these IFRS financial measures are not
within our control and/or cannot be reasonably predicted. Such
information may have a significant, and potentially unpredictable,
impact on our future financial results.
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SOURCE Abcam PLC