Abcam delivers close to 16% sales growth, while investing for the future
Abcam plc, a global leader in the supply of life science research tools, has issued an 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.
It says: 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® 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 £1.5m 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.”
(1) Except where otherwise indicated, all revenues are provided on a constant currency basis.
For further information, please contact:
+ 44 (0) 1223 696 000
Alan Hirzel, Chief Executive Officer
Jeff Iliffe, Chief Financial Officer
Julia Wilson - Investor Relations
J.P.Morgan Cazenove - Nominated Advisor & Corporate Broker
+ 44 (0) 20 7742 4000
James Mitford / Christopher Cargill
+ 44 (0) 20 3727 1000
Ben Atwell / Brett Pollard / Natalie Garland-Collins
As an innovator in reagents and tools, Abcam’s purpose is to serve life science researchers globally to achieve their mission, faster.