2019 Full Year Results: Continued growth from in-house innovation; Revenue doubled in last five years

September 2019

Long-term plan announced, incorporating investment to achieve revenue of £450-500m by FY24

Cambridge, UK: Abcam (AIM: ABC, “Abcam” or “The Group”), a global leader in the supply of life science research tools, today announces its preliminary results for the 12 months ended 30 June 2019.

FINANCIAL HIGHLIGHTS

  • Total revenue up 11.4% on a reported basis and 9.2% on a constant exchange rate (CER) basis
  • Gross margin up 60 basis points to 70.5%, benefiting from an increasing mix of in-house products
  • EBITDA margin of 32.4% (2017/18: 35.0%), with Adjusted EBITDA margin of 35.6% (2017/18: 37.9%), reflect planned strategic investments in the business
  • Operating profit margin of 21.6% (2017/18: 29.5%), after a £12.8m non-cash impairment charge relating to historic Enterprise Resource Planning (ERP) development costs. Adjusted operating profit margin of 32.2% (2017/18: 34.9%)
  • Reported PBT declined to £56.4m (2017/18: £69.1m). Adjusted PBT grew 2.8% to £83.9m
  • Reported diluted EPS was 21.8p whilst adjusted diluted EPS grew 0.6% to 32.6p
  • Net cash inflow from operating activities of £70.2m (2017/18: £63.3m)
  • Proposed final dividend of 8.58p (2017/18: 8.58p), taking the proposed total annual dividend to 12.13 pence per share, an increase of 1.1%

OPERATIONAL HIGHLIGHTS

  • All product categories growing above underlying market rates and all strategic performance targets achieved:
    – Recombinant antibody revenue growth (CER) of +22.4% (target 20%+)
    – Immunoassay product revenue growth (CER) of +21.9% (target 20%+)
    – 12-month rolling transactional Net Promotor Score (tNPS) of 59%3 (target 57-67%)
  • Continued in-house innovation, with in-house product revenue growth of 13.6% (CER) and the introduction of the Group’s 18,000th recombinant antibody
  • Further enhancements made to product quality through knockout validation, recombinant antibodies, and other initiatives to improve quality
  • Ongoing development of our addressable market in Custom Products and Licensing (CP&L), with 57 new agreements entered into with biopharmaceutical and diagnostic partners and over 160 custom projects completed during the year
  • Implemented the financial and non-stock procurement modules of our global ERP system
  • Successfully relocated to our new global headquarters in Cambridge, UK

Alan Hirzel, Abcam’s Chief Executive Officer, said:

“Our dedication to customer needs, team performance and our long-term investment perspective has helped Abcam to achieve sustained growth and expand its reach and influence over the last five years. Today, we are in a better position than ever before to pursue opportunities to continue to invest in, build and grow a successful global company.”

“We are reassured that there is more to do and excited about the future prospects for our industry and our business. We are eager to enter a new phase of growth in the coming five years to extend further our impact on research discovery and clinical applications to improve patient lives”

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About Abcam

Abcam is a producer and marketer 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 a wide range of fields including drug discovery, diagnostics, and basic research.

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As an innovator in reagents and tools, Abcam offers highly validated binders and assays to address important targets in critical biological pathways.

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