RNS Number : 4206I
25 July 2012
For immediate release 25 July 2012
("Abcam" or "the Company")
Pre-Close Trading Update
Cambridge, UK: Abcam plc (AIM: ABC), a global leader in the supply of protein research tools, announces the following pre-close trading update ahead of its results for the financial year ended 30 June 2012.
The Board is pleased to report another successful trading year and it anticipates that profit before tax will be slightly ahead of expectations, before one-off costs incurred during the year relating to the acquisitions of Ascent Scientific Limited ("Ascent") and Epitomics International Inc ("Epitomics") of approximately GBP3.4m, and amortisation of the associated intangible assets.
During the year we have made significant steps in our strategy to drive growth by extending our product ranges, both through the two acquisitions closed in the period as well as by broadening the number and range of products in the catalogue. Through our recent acquisitions we have also opened up new opportunities in the In Vitro Diagnostic Immunohistochemistry ("IVD IHC"), immunoassays, custom service and bio-active small molecules markets.
Our online catalogue has continued to grow strongly, comprising 92,456 products at the year end, representing growth of 25.5% over the previous year, as we took advantage of a number of one-off opportunities to add product ranges. This number includes 656 products from Ascent and 1,452 new products added in the year from Epitomics.
As has been reported elsewhere, centrally funded academic research budgets remain under pressure as Governments address fiscal deficits, which in turn creates funding uncertainties for researchers in the US and Europe. The US position is unlikely to be clearer until after the Presidential election later this year, whilst in Europe the likely timing and outcome of the issues faced by the single currency add further uncertainty to the situation.
Despite these pressures we are pleased to report revenue growth for the year of approximately 17.0%. This includes revenues of over GBP3.0m from Epitomics in the two and a half months since acquisition, and approximately GBP1.4m from Ascent, which was acquired in September 2011. Excluding revenues from these two acquisitions, constant currency growth for the year was approximately 11.5%, compared to an equivalent figure of 12.3% at the interim stage.
Tight cost control has enabled us to broadly maintain gross margins in line with those reported at the interim stage (prior to the positive impact from Epitomics), and to increase operating margins over those reported at that time (before the acquisition related costs indicated above).
Net cash at the year end was over GBP17.0m and there was no bank debt outstanding.
The Company will report its results for the year ending 30 June 2012 in mid September.
For further information please contact:
Abcam + 44 (0) 1223 696000
Jonathan Milner, Chief Executive Officer
Jeff Iliffe, Chief Financial Officer
Numis Securities - Nominated Advisor
and Joint Broker + 44 (0) 20 7260 1000
Michael Meade / Nick Westlake - Nominated
James Black - Corporate Broking
Peel Hunt LLP - Joint Broker + 44 (0) 207 418 8900
Andy Crossley - Corporate Broking
Buchanan + 44 (0) 20 7466 5000
Mark Court / Fiona Henson / Sophie Cowles
Notes for editors:
About Abcam plc
Abcam is a producer and distributor of high quality protein research tools. These tools enable life scientists to analyse components of living cells at the molecular level, which is essential in understanding health and disease.
Headquartered in Cambridge (UK), Abcam has subsidiary offices in Bristol (UK), Cambridge, MA (USA), Eugene, OR (USA), San Francisco, CA (USA), Tokyo (Japan), Hangzhou and Hong Kong (both in China), allowing it to serve a global customer base in over 85 countries. Abcam employs over 600 staff across its eight operating companies.
Abcam now has an online catalogue of over 92,500 products sourced from over 300 suppliers. The catalogue includes a growing range of non-primary antibody products such as secondaries, proteins, peptides, lysates, immunoassays and other kits. Products are available for life science research and distributed to academic and commercial users. A highly developed eCommerce platform, which includes regional websites for the Chinese and Japanese markets, allows customers to access up-to-date and detailed technical product data sheets at the Company's website www.abcam.com.
Abcam was admitted to AIM in November 2005 and trades under the ticker symbol ABC. The Company's vision is to be the world's leading life science tools company.
This information is provided by RNS
The company news service from the London Stock Exchange