ABCAM PLC Half Year Trading Update (3664Z)

TIDMABC

RNS Number : 3664Z

ABCAM PLC

10 January 2020

10 January 2020

ABCAM PLC

("Abcam" or "the Group")

Half Year Trading Update

Abcam plc (AIM: ABC), a global leader in the supply of life science research tools, announces the following unaudited trading update ahead of reporting its results for the six months ended 31 December 2019 on 9 March 2020(1).

Overall, the Group expects to report total first half revenue of GBP138.2 million (H1 2019: GBP124.7 million), representing growth of 10.8% on a reported basis and 8.3% on a constant currency basis. Based on the expected revenue phasing for the year, we are tightening our constant currency revenue growth target for the full year to 9-10%(2)(3) .

Catalogue revenue, representing approximately 95% of the total, grew by 11.6% in the first half on a reported basis and 9.1% on a constant currency basis, with all regions and product categories growing faster than estimated underlying market growth rates. Revenue in China grew faster than market at 17.4% in the year on a constant currency basis, representing over 17% of total company sales.

Custom Products and Licensing (CP&L) revenue, which represents approximately 5% of total sales, declined by 1.3% on a reported basis and 4.9% on a constant currency basis due to the phasing of a few large in-vitro diagnostic supply orders.

The Group expects gross margin to be broadly in line with the first half of last year (H1 2019: 70.2%).

Reflecting a rapid start to the implementation of our multi-year strategic growth plans and associated investments detailed in our 2019 Full Year Results and recent Capital Market's Event, Adjusted Operating Profit(4) margin is expected to be towards the lower end of our guidance of 25-28% for the full year.

Strategic Performance Indicators

Performance against the Group's strategic KPIs, as set out at the start of our financial year, is as follows:

 
                                         Full Year      First Half 
                                         2020 target    2020 outcome 
 Catalogue constant currency revenue 
  growth from in-house products            12-15%           14% 
                                       -------------  -------------- 
 Customer engagement: transactional 
  NPS                                      54-60%           52% 
                                       -------------  -------------- 
 

Successful conclusion of acquisition of Expedeon businesses

The Group closed the acquisition of Expedeon Ltd, Innova Biosciences Ltd. and TGR BioSciences from Expedeon AG on 1 January 2020. These businesses are expected to contribute approximately GBP4m of incremental revenue in the current fiscal year (FY2020) and be neutral to adjusted earnings(4) .

Commenting on the first half performance, Alan Hirzel, CEO of Abcam said:

"We have recently set out ambitious plans to double the scale of our business and we are making good progress in investing in, and scaling up, the company. Earlier this month, we completed our largest acquisition in the last five years, securing a portfolio of leading protein conjugation technologies and products. I am pleased to report that we have continued to gain market share and sustain profitable growth in the period, whilst investing in the business."

Seperately, Alan Hirzel, Abcam's CEO, will be presenting at the 38th Annual JP Morgan Healthcare Conference on Wednesday 15 January 2020 at 1000 PST (1800 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

[phone]

Alan Hirzel, Chief Executive Officer

Gavin Wood, Chief Financial Officer

James Staveley, VP Investor Relations

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

[phone]

James Mitford / Hemant Kapoor

Numis - Joint Corporate Broker

[phone]

Garry Levin / Duncan Monteith

FTI Consulting

[phone]

Ben Atwell / 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) Before the impact of the Expedeon acquisition

(3) Note: if current spot rates to Pound Sterling are maintained in the second half, the positive impact on revenue from foreign exchange experienced in the first half will reverse for the full year. Analysis based on spot rates to Pound Sterling as of 9 January 2020 (USD: 1.31; EUR: 1.18; RMB: 9.1; JPY: 143.0)

(4) Adjusted measures exclude systems and process improvement costs, amortisation of acquired intangibles and acquisition and integration related costs

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

TSTSSDFAUESSEIF

(END) Dow Jones Newswires

January 10, 2020 02:00 ET (07:00 GMT)