ABCAM PLC 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 £138.2 million (H1 2019: £124.7 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 2020 target||First Half 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 £4m 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.
+44 (0) 1223 696 000
Alan Hirzel, Chief Executive Officer
Gavin Wood, Chief Financial Officer
James Staveley, VP Investor Relations
- Abcam plc
- Abcam plc