Interim Results delivering double digit sales growth
– Revenue growth of 30.4% (10.0% constant currency)1 continued to exceed market growth
– Maintain guidance of 9–11% constant currency revenue growth for full year
Cambridge, UK: Abcam plc (AIM: ABC), a global leader in the supply of life science research tools announces its interim results for the six-month period ended 31 December 2016*.
• Total revenue growth of 30.4% on a reported basis to £102.5m (H1 2016: £78.6m) and 10.0% on a constant currency basis
• Catalogue revenue growth of 31.2% on a reported basis to £95.6m (H1 2016: £72.9m) and 10.7% on a constant currency basis
o RabMAb® revenues grew by 50.0% to £19.2m on a reported basis and by 26.6% on a constant currency basis
o Non-primary antibody revenues grew by 37.1% to £19.5m on a reported basis and by 15.6% on a constant currency basis
• Reported gross margin of 69.7% following the reclassification of certain expenses from operating expenses to gross margin. On a like-for-like basis, gross margin was 70.7% (H1 2016: 69.3%)
• EBITDA margin of 34.5% (H1 2016: 32.5%) and 35.1% (H1 2016: 34.5%) on an adjusted basis2
• Reported operating margin of 27.6% (H1 2016: 26.8%) and adjusted3 operating margin of 31.2% (H1 2016: 30.7%). Profit before tax (PBT) on a reported basis was £25.1m (H1 2016: £20.9m) and £32.1m (H1 2016: £24.3m) on an adjusted basis4
• Reported diluted earnings per share (EPS) increased by 16.3% to 9.72 pence (H1 2016: 8.36 pence). Adjusted5 diluted EPS increased by 33.4% to 12.86 pence (H1 2016: 9.64 pence)
• Interim dividend increased by 20.0% to 2.825 pence (2016: 2.354 pence)
• Leading industry discussions to develop industry quality standards; established new standards for quality through knockout validation and other techniques
• Used the Firefly platform to expand the kits/assays range by introducing 93 validated antibody pairs and validated a range of these pairs in multiplex immunoassays
• Further expanded our addressable market in custom products and licensing by providing ‘Abcam Inside’ for multiple diagnostic development partners, building on the success we established with PD-L1 last year
• Accelerated AxioMx technology milestone payments in recognition of technical success that the team demonstrated with the unique antibody development capabilities at AxioMx
• Completed the detailed design phase of the global ERP system, broadened the scope and moved into the build and deployment phases of the project
• Completed recruitment of the Executive Leadership Team with the addition of leaders in information technology and the newly formed manufacturing and supply chain organisation
• Planning permission granted and lease agreed for a new purpose-built facility for Abcam’s global HQ at the expanding Biomedical Campus in Cambridge, UK, with expected occupancy in FY 2019
Commenting on the interim results, Alan Hirzel, Abcam’s Chief Executive Officer, said:
“We are pleased to have delivered double-digit sales growth and our profit goals in the first half. These results arise from the quality products and service our team offers researchers globally. Collectively, they are making it possible for Abcam to become the most influential life science company for researchers worldwide. We continue to invest in our teams, our systems and our facilities to allow us to grow; and, as we look to the traditionally stronger second half of this financial year, we remain confident in our long-term strategy and the progress we are making in achieving our annual goals.”
1. Constant currency is calculated by applying prior period’s actual exchange rates to this period’s results.
2. Excluding acquisition and integration costs, the change in fair value of contingent consideration and the initial incremental costs associated with the investment in systems and processes.
3. Excluding acquisition costs, the change in fair value of contingent consideration, amortisation of acquisition-related intangible assets, acquisition integration costs and the initial incremental costs associated with the investment in systems and processes.
4. Excluding acquisition costs, the change in fair value of contingent consideration, unwinding of discount factor on contingent consideration and fees, amortisation of acquisition-related intangible assets, acquisition integration costs and the initial incremental costs associated with the investment in systems and processes.
5. Excluding acquisition and integration costs, the initial incremental costs of system and process improvements, unwinding of discount factor on contingent consideration and fees, the change in fair value of contingent consideration, amortisation of acquisition-related intangible assets and the tax effect of adjusting items.
See Notes 7 and 13 for detailed reconciliations between reported and adjusted measures.
*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.
For further information please contact:
Abcam + 44 (0) 1223 696 000
Alan Hirzel, Chief Executive Officer
Gavin Wood, Chief Financial Officer
Julia Wilson, Investor Relations
J.P. Morgan Cazenove – Nominated Advisor & Corporate Broker + 44 (0) 20 7742 4000
James Mitford / Chris Cargill
FTI Consulting + 44 (0) 20 3727 1000
Ben Atwell / Brett Pollard / Natalie Garland-Collins