Abcam reports strong revenue performance, enabling investment for future growth
Abcam plc, a global leader in the supply of life science research tools, is pleased to announce its preliminary results for the year ended 30 June 2016 (1).
Commenting on the preliminary results, Alan Hirzel, Abcam's Chief Executive Officer, said: “We continue to move toward our ambition of becoming the most influential life sciences company for researchers worldwide. It has been a significant year for Abcam where we have delivered two times or better market growth in every geography and product category in which we operate. We see further opportunities for growth and we are investing in the long term future of the Company.”
- Catalogue revenue increased by 17.4% on a reported basis to £159.0m (FY 2015: £135.4m). On a constant exchange rate (CER)* basis the increase was 14.4%
- Total revenue increased on a reported basis by 19.2% to £171.7m (FY 2015: £144.0m). On a CER basis the increase was 15.9%
- Slight reduction in gross margin at 70.2% due to exchange rates (FY 2015: 70.5%)
- Reported EBITDA margin was 33.6% (FY 2015: 37.3%. Adjusted EBITDA margin** was 34.9% (FY 2015: 37.6%), the movement in which reflects the expected operational investment in Firefly and AxioMx and the impact of foreign exchange rate movements
- Reported diluted earnings per share (EPS) was 18.53 pence (FY 2015: 18.57 pence), reflecting previously announced investment in systems and processes and acquisition and integration costs. Adjusted EPS** increased by 13.1% to 22.35 pence (FY 2015: 19.76 pence)
- Closing cash and term deposits were £70.7m (30 June 2015: £58.7m)
- Proposed full year dividend increased by 8.5% to 8.91 pence per share (FY 2015: 8.21 pence)
- RabMAb® primary antibody and non-primary antibody revenues grew on a CER basis by 29.5% and 30.3% respectively, demonstrating progress in executing our strategy, delivering at the top end of our key performance indicator (KPI) targets
- Acquisition of AxioMx completed and integration of its technology platform progressing well
- Introduced direct service in Singapore to provide technical support and customer services, expanding the Group’s presence in the Asia Pacific region
- Signed a licence and supply agreement with Horizon Discovery Group plc for knockout cell lines, raising antibody validation standards to improve quality for researchers
- Expanded existing facility in Boston, USA, with new laboratory space and relocated and integrated the Firefly team
- Relocated the Hangzhou team to a new production facility to increase handling capacity
- Our step change investment in systems and processes to scale the business for future sustained growth is underway
* CER calculated assuming that exchange rates for the currencies in which the Group trades had remained unchanged from FY 2015
** Excluding acquisition costs, acquisition integration costs, the initial incremental costs associated with the investment in systems and processes and prior year R&D tax credits. In the case of diluted earnings per share also excluding acquisition related amortisation, the expense related to the unwinding of the discount applied on deferred consideration for AxioMx and the associated tax effects of adjusting items. See the section below headed Our Financials for more detail.
For further information, please contact:
+ 44 (0) 1223 696 000
Alan Hirzel, Chief Executive Officer
Gavin Wood, 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
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.
As an innovator in reagents and tools, Abcam’s purpose is to serve life science researchers globally to achieve their mission, faster.