The company writes:
Overall, we expect to report revenue growth for the first half of approximately 11% (2) on a constant currency basis and approximately 10% on a reported basis. We remain on track to deliver against our constant currency revenue growth target of around 10% for the full year.
Catalogue revenue grew by over 11% in the first half of the year, with all product categories growing ahead of estimated underlying market growth rates.
Custom products and licensing revenue, which represented over 6% of the total for the period, increased by approximately 8%.
Our business in China continues to operate well and we expect revenue growth of over 24% in the first half, ahead of the market growth rate in the territory.
Investments in R&D, our organisation, global ERP system, and facilities continue according to plan, and underlying gross margins remain in line with our expectations.
Delivering against our strategic KPIs
Performance against the Group’s three strategic KPIs, as set out at the start of our financial year, is as follows:
|
|
H1 2018 |
FY 2018 target |
|
Recombinant antibody revenue growth |
23% |
20–25% |
|
Immunoassay revenue growth |
23% |
20–25% |
|
Customer engagement: transactional NPS |
64% |
55–65% |
Impact of the US Tax Cuts and Jobs Act (“the Act”)
In December, the US agreed new legislation to reform its tax regime. Whilst the full implications of this new legislation are still being reviewed, we anticipate that, as a whole, the Act will reduce our group effective tax rate by low single digit percentage points from FY18/19.
It is also expected that the Act will result in a one-off, exceptional non-cash tax credit in our current financial year of between £6 and 7 million relating to the restatement of certain deferred tax assets and liabilities.
We will continue assessing the full impact of the Act and expect to provide a further update at our half year results, along with a fuller update on the Company’s progress.
Commenting on the update Alan Hirzel, CEO of Abcam said: “It has been another period of good progress for Abcam, as we have delivered on our financial goals and expect to report total constant currency revenue growth of approximately 11%. Our focus remains on better serving researchers to achieve their mission faster. We are committed to further develop our product portfolio and continue to enhance our organisational capabilities to support our ambition of becoming the most influential life sciences company for research communities globally.”
The Company will report its interim results for the six-month period ended 31 December 2017 on 5 March 2018. In addition, Alan Hirzel, Abcam’s CEO, will be presenting at the 36th Annual JP Morgan Healthcare Conference on Wednesday 10 January 2018 at 4.30 pm PST 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 Company's website. A replay of the presentation will also be made available on the Company’s website within 24 hours following the event.
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) Except where otherwise indicated, all revenues are provided on an unaudited, constant currency basis.
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 eleven locations 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