TIDMABC
RNS Number : 0343B
ABCAM Plc
05 January 2018
5 January 2018
ABCAM PLC
("Abcam" or "the Company")
Half Year Trading Update
Continuing to deliver double-digit revenue growth, twice
underlying market rates
Abcam plc (AIM: ABC), a global leader in the supply of life
science research tools, announces the following unaudited trading
update ahead of its results for the six months ended 31 December
2017. ([1])
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 GBP6 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.
Abcam
+ 44 (0) 1223 696 000
Alan Hirzel, Chief Executive Officer
Gavin Wood, Chief Financial Officer
James Staveley, Head of Investor Relations
J.P.Morgan Cazenove - Nominated Adviser & Corporate
Broker
+ 44 (0) 20 7742 4000
James Mitford / Candelle Chong
FTI Consulting
+44 (0) 20 3727 1000
Ben Atwell / Brett Pollard / Natalie Garland-Collins
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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