TIDMABC
RNS Number : 3664Z
ABCAM PLC
10 January 2020
10 January 2020
ABCAM PLC
("Abcam" or "the Group")
Half Year Trading Update
Abcam plc (AIM: ABC), a global leader in the supply of life
science research tools, announces the following unaudited trading
update ahead of reporting its results for the six months ended 31
December 2019 on 9 March 2020(1).
Overall, the Group expects to report total first half revenue of
GBP138.2 million (H1 2019: GBP124.7 million), representing growth
of 10.8% on a reported basis and 8.3% on a constant currency basis.
Based on the expected revenue phasing for the year, we are
tightening our constant currency revenue growth target for the full
year to 9-10%(2)(3) .
Catalogue revenue, representing approximately 95% of the total,
grew by 11.6% in the first half on a reported basis and 9.1% 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 17.4% in the year on a
constant currency basis, representing over 17% of total company
sales.
Custom Products and Licensing (CP&L) revenue, which
represents approximately 5% of total sales, declined by 1.3% on a
reported basis and 4.9% on a constant currency basis due to the
phasing of a few large in-vitro diagnostic supply orders.
The Group expects gross margin to be broadly in line with the
first half of last year (H1 2019: 70.2%).
Reflecting a rapid start to the implementation of our multi-year
strategic growth plans and associated investments detailed in our
2019 Full Year Results and recent Capital Market's Event, Adjusted
Operating Profit(4) margin is expected to be towards the lower end
of our guidance of 25-28% for the full year.
Strategic Performance Indicators
Performance against the Group's strategic KPIs, as set out at
the start of our financial year, is as follows:
Full Year First Half
2020 target 2020 outcome
Catalogue constant currency revenue
growth from in-house products 12-15% 14%
------------- --------------
Customer engagement: transactional
NPS 54-60% 52%
------------- --------------
Successful conclusion of acquisition of Expedeon businesses
The Group closed the acquisition of Expedeon Ltd, Innova
Biosciences Ltd. and TGR BioSciences from Expedeon AG on 1 January
2020. These businesses are expected to contribute approximately
GBP4m of incremental revenue in the current fiscal year (FY2020)
and be neutral to adjusted earnings(4) .
Commenting on the first half performance, Alan Hirzel, CEO of
Abcam said:
"We have recently set out ambitious plans to double the scale of
our business and we are making good progress in investing in, and
scaling up, the company. Earlier this month, we completed our
largest acquisition in the last five years, securing a portfolio of
leading protein conjugation technologies and products. I am pleased
to report that we have continued to gain market share and sustain
profitable growth in the period, whilst investing in the
business."
Seperately, Alan Hirzel, Abcam's CEO, will be presenting at the
38th Annual JP Morgan Healthcare Conference on Wednesday 15 January
2020 at 1000 PST (1800 GMT) at the Westin St Francis Hotel, San
Francisco, California. 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.
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 & 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 / Natalie Garland-Collins
This announcement contains inside information.
(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) Before the impact of the Expedeon acquisition
(3) Note: if current spot rates to Pound Sterling are maintained
in the second half, the positive impact on revenue from foreign
exchange experienced in the first half will reverse for the full
year. Analysis based on spot rates to Pound Sterling as of 9
January 2020 (USD: 1.31; EUR: 1.18; RMB: 9.1; JPY: 143.0)
(4) Adjusted measures exclude systems and process improvement
costs, amortisation of acquired intangibles and acquisition and
integration related costs
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
biological binders 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.
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END
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