Abcam writes:
As previously communicated, due to the ongoing COVID-19 pandemic we have seen a reduction in demand as research laboratories globally shut down temporarily or reduced activity over the course of the second half of the year. We continued to serve the needs of laboratories that remained open, but due to these actions revenue in the second half of the year declined by approximately 10% on both a reported and constant currency basis. Overall, the Group expects to report revenues of £260.0m for the full year (FY2019: £259.9m), a decline compared to prior year of approximatey 1% on a constant currency basis.
As reported on 20 April 2020, conditions in China were gradually recovering at that time and we had also begun to see the reopening of laboratories in some European countries. There has been a steady increase in activity across all regions since. Overall, monthly revenue versus prior year was –40% in April, -28% in May, and –1% in June on a constant currency basis. This revenue growth profile correlated strongly with underlying demand factors including easing of lockdown restrictions and the partial or full reopening of academic and biopharmaceutical research laboratories.
We continue to see improvement in demand, but significant macro uncertainties and regional differences remain. This uncertainty is acute in North America where case incidence of COVID-19 is currently rising in several US states with normally high research activity.
In September 2019, we set out plans to increase the rate of investment in areas including research and development, digital marketing and e-commerce, technology and global operations in order to achieve more and faster growth over the medium and long term. Despite the impact of COVID-19, we made progress across a broad range of these areas in the year, including the completion of several acquisitions that complement the existing portfolio and in which we intend to invest.
The Board and executive team have continued to support employees with full employment during the COVID-19 outbreak whilst investing in and implementing initiatives for our growth strategy. As a result, we expect that gross margin and adjusted operating margin for the full year will be approximately 69% and 16-17% respectively.
With the attractive potential from the Group’s long term growth strategy, we have also begun exploring a potential secondary listing in the United States on NASDAQ. We have not made any decisions regarding the timing or the terms of the potential secondary listing, and there is no certainty that the listing in the United States will take place.
In September with the full year results, the Group will provide a full update on the strategic growth programmes and its financial performance.
Alan Hirzel, CEO of Abcam commented: “We are proud of the role Abcam has had in supporting researchers throughout this pandemic and we are proud of the dedication of our global team to help scientists perform their vital work. Abcam’s strong brand, distinctive customer focused culture and durable financial health has meant we have been able to lead with a longer term horizon and fulfil our ambition to be the most influential company for life scientists globally. We remain confident in our long term prospects and focused on delivering our strategy.”
Notes:
This trading update is based upon unaudited management accounts and has been prepared solely to provide additional information on trading to the shareholders of Abcam plc. It should not be relied on by any other party for other purposes.
(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 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 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 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 Group offers highly validated antibodies 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.
Abcam’s worldwide customer base of approximately 750,000 life science researchers uses Abcam’s antibodies, reagents, biomarkers and assays. By actively listening to and collaborating with these researchers, the Group 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.
Founded in 1998 and headquartered in Cambridge, UK, the Company sells to more than 130 countries. Abcam was admitted to AIM in 2005 (AIM: ABC).
Please visit www.abcam.com or www.abcamplc.com to find out more.