TIDMABC
RNS Number : 0584F
ABCAM Plc
25 July 2016
25 July 2016
ABCAM PLC
("Abcam" or "the Company")
Pre-Close Period Update
Delivering close to 16% sales growth, whilst investing for the
future
Cambridge UK: Abcam plc (AIM: ABC), a global leader in the
supply of life science research tools, announces the following
update for the year ended 30 June 2016 ahead of the publication of
its financial results on 12 September 2016.
The Board is pleased to report another successful year in which
the business has once again achieved above market revenue growth.
These results give us confidence that our strategy is working as we
invest to attract and retain consumers to Abcam.
Group revenue is expected to have grown at close to 16%([1]) on
a constant currency basis and over 19% on a reported basis.
Constant currency growth in catalogue revenues was over 14%,
with RabMAb(R) product revenues growing by over 29% and exceeding
our full year guidance of 15%-20% for this product group. This
outcome reflects the combined benefits of our high quality
products, strong customer service and digital marketing. Led by our
kits and assays business, non-primary antibody revenues grew at
30%, which is at the top end of our guidance for revenue growth of
25-30%.
Performance in China continued at above market levels with
growth of catalogue revenues of over 40%. We continue to enhance
the services we provide to Chinese researchers, and we are
benefiting from the recent investment arising from the Chinese
Government's latest five-year funding plan.
Other revenues, which represented approximately 7% of the total
for the period, increased by almost 40%. This result includes
approximately GBP1.5m of royalty and other income which is not
expected to recur in the coming year.
Reported gross margin is expected to be close to that reported
last year, with a slight reduction due to exchange rate
movements.
There has been no immediate impact on the Company's day-to-day
operations following the UK's referendum vote to leave the European
Union. However, continued weakness of Sterling against the
currencies in which the Group trades would be positive for revenues
and profitability. Our policy is to hedge a material proportion of
estimated net foreign currency cashflows, on a rolling basis.
Consequently, the earnings benefit of weak Sterling will be limited
in the 2017 financial year.
Our on-going programme of investment in our systems, facilities,
processes and people to ensure that we have the infrastructure to
support the continued growth of the business, is on track and we
will provide a fuller update on progress at the full year.
Alan Hirzel, CEO, commented:
"Abcam continues to grow into an influential global life science
business. I am pleased we have sustained above market growth
performance as we implement our multi-year growth strategy. These
successes empower us to make significant investments in systems,
facilities, processes and people to continue to build the
infrastructure that ensures our business is well positioned to
deliver."
##Ends##
([1]) Except where otherwise indicated, all revenues are
provided on a constant currency basis.
For further information, please contact:
+ 44 (0) 1223
Abcam 696 000
Alan Hirzel, Chief Executive
Officer
Jeff Iliffe, Chief Financial
Officer
Julia Wilson - Investor Relations
J.P.Morgan Cazenove - Nominated + 44 (0) 20
Advisor & Corporate Broker 7742 4000
James Mitford / Christopher
Cargill
+ 44 (0) 20
FTI Consulting 3727 1000
Ben Atwell / Brett Pollard /
Natalie Garland-Collins
Notes for editors:
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
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. Two-thirds of the world's 750,000 life science
researchers use Abcam's affinity binders, reagents, biomarkers and
assays and the Company's products are mentioned in over 20,000 of
the 56,000 peer-reviewed papers published each year in the life
sciences.
By actively listening to and collaborating with researchers, the
Company 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.
Abcam's ten offices are located in the world's leading life
science research hubs, enabling local services and multi-language
support. Founded in 1998 and headquartered in Cambridge, UK, the
Company sells to more than 100 countries. Abcam was admitted to AIM
in 2005 (AIM: ABC).
To find out more, please visit www.abcam.com and
www.abcamplc.com
Forward looking statement
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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