ABCAM Plc Half Year Trading Update (6924C)

TIDMABC

RNS Number : 6924C

ABCAM Plc

21 January 2015

For immediate release 21 January 2015

ABCAM PLC

("Abcam" or "the Company")

Half Year Trading Update

Cambridge, UK: Abcam plc (AIM: ABC), a global leader in the supply of life science research tools, announces the following trading update ahead of its results for the six months ended 31 December 2014 [1].

We are pleased to report that our performance in the first half year suggests that the Company can expect to meet the Board's full year 2014/15 revenue targets.

In our core catalogue products business, we expect to report revenue growth of 16.7% [2] in the first half of the year. Growth from primary antibodies continued to outpace market growth rates, partly driven by RabMAb(R) product revenues which grew at 19.4%. Non-primary antibody product revenues grew at 29.3%. In both areas, the growth is within our full year 2014/15 guidance of 15-20% and 25-30% respectively.

Performance in China continued the trend of the results from Q4 last financial year, with revenues increasing by 67.2% as we saw benefits from opening our new office in Shanghai in February 2014. We expect these growth levels will moderate as Abcam's business in China becomes more established.

Other revenues, which represented 5.9% of the total for the period, declined by approximately GBP0.9m. This performance reflects a reduction in service income as previously indicated and the transition in the selling arrangements of IVD products to the ten year marketing agreement signed with Cell Marque in September 2014.

Overall we expect total revenue growth for the period to be 13.8% on a constant currency basis and following the adverse rates of exchange seen during the period compared to H1 2013/14, growth on a reported basis to be 7.7%. Gross margin percentages at the product and geographic levels are expected to be broadly flat and in line with management's expectations, whilst the impact of the mix means that overall they are likely to be slightly less than those seen in the same period last year.

We have made further progress in executing the strategy we outlined in September and our investment programme continues with pace, underpinned by our revenue growth. Particular milestones achieved in the period include the introduction of directly conjugated primary antibodies, launching our RabMAb pairs in immunoassays, creating the infrastructure to begin selling direct in Australia and New Zealand, and improving our distributor and sub-dealer network in China.

Abcam separately announces today that it has entered into an agreement to acquire Firefly BioWorks Inc ("Firefly"), a US-based developer of a new multiplex immunoassay platform which will strengthen Abcam's position in Kits and Assays, expand our market presence in RNA quantitation and bring in a new technology platform to leverage our RabMAb technology.

Commenting on the update Alan Hirzel CEO said:

"Abcam's core businesses continue to grow as the Company delivers against the key performance indicators we set out in September. We have continued to take steps to grow our core reagents business and develop the new platforms and technologies that will support our long-term growth and maintain Abcam's market leading position in line with the strategy we outlined in September. Our acquisition of Firefly is happening at a dynamic time for Abcam and we look forward to realising the potential of this new growth platform."

The Company will report its interim results for the period in early March 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 are provided on a constant currency basis.

 
                                                        + 44 (0) 1223 
Abcam                                                         696 000 
Alan Hirzel, Chief Executive Officer 
 Jeff Iliffe, Chief Financial Officer 
 Laura Taylor - Investor Relations 
J.P.Morgan Cazenove - Nominated Adviser & Joint      + 44 (0) 20 7742 
 Corporate Broker                                                4000 
James Mitford / Alex Bruce - Nominated Adviser 
 
 
                                                     + 44 (0) 20 7418 
Peel Hunt LLP - Joint Corporate Broker                           8900 
Clare Terlouw / Jock Maxwell MacDonald - Corporate 
 Broking 
                                                     + 44 (0) 20 7404 
Brunswick                                                        5959 
Justine Mcllroy / Will Medvei / Anna Carruth 
 

Notes for editors:

Definitions

 
 IVD                  InVitro Diagnostics 
 RabMAb(R) products   Rabbit monoclonal antibody products developed 
                       using Abcam's patented rabbit monoclonal technology 
 RNA                  Ribonucleic acid is a polymeric molecule made 
                       up of one or more nucleotides. It is implicated 
                       in various biological roles in the coding, decoding, 
                       regulation and expression of genes 
 

About Abcam plc

Abcam plc is a global leader in the supply of life science research tools, with a wide range of products and expert technical support, enabling scientists to analyse living cells at the molecular level and improving the understanding of health and disease.

Abcam is committed to providing scientists with an extensive choice of reagents and tools, with the most comprehensive, honest and up-to-date datasheets and customer reviews, fast delivery and helpful customer service & technical support. The Company's catalogue evolves with scientific research trends and is growing each year to provide customers with products to meet their research needs. The range now includes primary and secondary antibodies, proteins, peptides, lysates, biochemicals, immunoassays and other kits. Abcam also supports its customers by hosting a range of global scientific events, forums and webinars, providing opportunities for scientists to get together and present their work.

Headquartered in Cambridge, UK, Abcam has nine global subsidiary offices enabling local services and multi-language support, and sells to over 100 countries. The Company was founded in 1998, and now employs over 750 people. Abcam was admitted to AIM in 2005 (AIM: ABC).

To find out more, please visit www.abcam.

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTSEFEFSFISEIF