The update reads:
The Board is pleased to report another successful year in which we have seen an acceleration of top-line growth, giving us confidence that our strategy is working: to attract and retain consumers to our business and to deliver above market revenue growth.
Compared to mid-single digit market growth rates, our core catalogue products business is expected to report revenue growth of over 16% [2], with double digit growth in each of our product categories.
In particular RabMAb® product revenues grew by over 24%, exceeding our full year guidance of 15-20%, and reflecting the leverage of our high quality product, distinctive patented technology and the introduction of a range of directly conjugated primary antibodies. Led by our kits and assays business, non-primary antibody revenues grew at over 28%, in line with our guidance for revenue growth of 25-30%.
Growth of catalogue revenues in China was over 75%, which is an increase from the 67% growth recorded in the first half of the year, as we have continued to strengthen our market position by investing to address a latent demand in this market and improve the efficiency of the way in which we serve it. We expect these growth levels will moderate as Abcam's business in China becomes more established.
In total, Group revenue growth at underlying constant currency is expected to be over 14% (over 12% on a reported basis). This performance is at the top end of management's expectations for the year.
Gross margins for the year are likely to be in line with those reported for the first half. Compared to FY2014 a slight increase has resulted from various strategic initiatives which has more than offset the impact from relative rates of exchange.
Underpinned by strong revenue growth, we will continue capital and operational investment to make targeted improvements. Over the next few years we expect to upgrade our IT to build a more flexible and scalable platform, improve our facilities to increase efficiencies, and will continue to ensure we have the right people and capabilities to deliver the next stage of growth.
Following the acquisition of Firefly BioWorks in January 2015 we are pleased to report revenues, technical milestones and market demand for the platform continue to meet our expectations.
Commenting on trading and prospects, Alan Hirzel, CEO, said "I am delighted to see the business respond positively to the strategy we outlined last year. Careful investment has driven growth in revenues and profits and Abcam is well placed for this to continue. With the right IT, infrastructure and people Abcam will continue to grow rapidly by exploiting untapped sources of growth in areas we already serve as well as in new markets."
The Company will report its preliminary results for the period on 14 September 2015.
[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 and comparisons provided are on a constant currency basis.
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For further information please contact:
Abcam
+ 44 (0) 1223 696 000
Alan Hirzel, Chief Executive Officer
Jeff Iliffe, Chief Financial Officer
Laura Taylor, Investor Relations Manager
J.P.Morgan Cazenove - Nominated Adviser & Joint Corporate Broker
+ 44 (0) 20 7742 4000
James Mitford / Alex Bruce - Nominated Adviser
Peel Hunt LLP - Joint Corporate Broker
+ 44 (0) 20 7418 8900
Clare Terlouw / Jock Maxwell MacDonald - Corporate Broking
FTI Consulting
+44 (0) 20 3727 1000
Ben Atwell / Brett Pollard / Natalie Garland-Collins
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