ABCAM PLC Half Year Trading Update (3732M)

TIDMABC

RNS Number : 3732M

ABCAM PLC

08 January 2019

8 January 2019

ABCAM PLC

("Abcam" or "the Group")

Half Year Trading Update

Double-digit growth delivered in H1; on track to achieve FY19 goals

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 2018.([1])

The Group expects to report total revenue growth for the first half of approximately 11% on a reported basis and 10%([2]) on a constant currency basis. We remain on track to deliver against our full year financial and strategic targets.

This performance is a result of the multiyear invest-to-grow strategy that has guided the business over the last five years. Abcam continues to gain market share in the global research market particularly from recombinant antibodies, immunoassays, and expansion in China. First half performance against Abcam's strategic KPIs confirms that the business remains on track for full year performance in these areas:

 
 Strategic KPI                         FY 2019 target   H1 2019 outturn 
 Recombinant antibody revenue 
  growth                                    20%+              20% 
                                      ---------------  ---------------- 
 Immunoassay revenue growth                 20%+              27% 
                                      ---------------  ---------------- 
 Customer engagement: transactional 
  NPS                                      57-67%          64%([3]) 
                                      ---------------  ---------------- 
 

Overall, Catalogue revenue grew by over 11% on a reported basis and over 10% on a constant currency basis. Custom Products and Licensing (CP&L) revenue, which represented 6% of the total for the period, increased by approximately 5% on a reported basis and 2% on a constant currency basis, reflecting the timing and phasing of certain projects.

The Group expects to report gross margin for the first half modestly ahead of last year, in line with the Board's expectations.

Investments in R&D, our organisation, global ERP system, and facilities continue according to plan. In addition, the Group has begun implementing contingency plans ahead of a potential 'no-deal' Brexit in order to minimise the risk of disruption to customers.

Commenting on the update Alan Hirzel, CEO of Abcam said:

"Global demand is strong for precision life science tools and Abcam has once again gained market share in these growing markets. Our business is on track to achieve double-digit growth for the year.

"During the half we have continued to focus on improving our service for customers. We have further developed our product portfolio and we have continued to enhance our organisational capabilities to support our ambition of becoming the most influential company for life scientists, supporting research, diagnostic and therapeutic discovery."

The Group will report its interim results for the six-month period ended 31 December 2018 on 4 March 2019. In addition, Alan Hirzel, Abcam's CEO, will be presenting at the 37th Annual JP Morgan Healthcare Conference on Wednesday 09 January 2018 at 1100 PST (1900 GMT) 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 Group's website. A replay of the presentation will also be made available on the Company's website following the event.

Abcam plc

+ 44 (0) 1223 696 000

Alan Hirzel, Chief Executive Officer

Gavin Wood, Chief Financial Officer

James Staveley, VP Investor Relations

J.P.Morgan Cazenove - Nominated Adviser & Corporate Broker

+ 44 (0) 20 7742 4000

James Mitford

FTI Consulting

[phone]

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.

([3]) Average July to October 2018

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 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.

Some two-thirds of the world's 750,000 life science researchers use 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 140 countries. Abcam was admitted to AIM in 2005 (AIM: ABC).

Please visit www.abcam.com or www.abcamplc.com to find out more.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

TSTSSFFSWFUSEDF

(END) Dow Jones Newswires

January 08, 2019 02:00 ET (07:00 GMT)