Abcam plc Release: Half Year Trading Update
Momentum maintained in H1 FY2016 with market beating sales growth
Cambridge, UK: Abcam plc (AIM: ABC), a global leader in the supply of life science research tools, announces the following trading update ahead of its results for the six months ended 31 December 2015 [1].
In our catalogue products business, we expect revenue growth approaching 16% [2] in the first half of the year. Growth from primary antibodies continued to outpace market growth rates; largely driven by RabMAb® product revenues, which grew over 30% (ahead of our full year 2015/16 guidance of 15-20%). Non-primary antibody product revenues also grew by over 30% (ahead of our full year guidance of 25-30%).
We continued to make good progress in China with revenue growth of over 50%, reflecting some moderation as our business there becomes more established, but remaining well ahead of the market growth rate in the territory.
Other revenues, which represented almost 7% of the total for the period, increased by over 30%. This performance reflects an increase in revenues and royalty streams from our IVD (in vitro diagnostics) products, as well as from our Custom Services, which is now more closely aligned to the overall strategic direction of the business.
Overall we expect to report revenue growth of around 16.5% on a constant currency basis and over 17% on a reported basis. Gross margins remain strong, reducing slightly from the same period last year, principally due to unfavourable relative exchange rates in each of the main currencies in which Abcam trades.
We continue to capture market share with growth rates of 3-4 times that of the market. This gives us confidence in our reported strategy and we are increasing investment in areas which can further drive this growth, namely people, infrastructure, processes and information technology. We will give additional detail on the last of these at the time of our Interim results in March. These investments, together with those in Firefly Bioworks and AxioMx, we believe, will ensure that we are well positioned to take advantage of the many opportunities which we see.
Commenting on the update Alan Hirzel CEO said:
"We maintained strong revenue growth in every region we serve and there is now significant momentum across the business. We have taken substantial steps over the period to broaden our offering with geographical expansion and new product ranges and have successfully launched more Abcam technology derived products with our RabMAb® and Firefly technologies. Our recent acquisition of AxioMx extends that technology suite and provides us with a unique, cost-effective and proprietary platform to produce recombinant monoclonal antibodies. Overall, we are successfully implementing our strategy to continue to grow ahead of the market and to build an exciting and forward thinking business for the future.”
The Company will report its interim results for the six month period ended 31 December 2015 on 7 March 2016.
[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 a constant currency basis.
Cambridge, UK: Abcam plc (AIM: ABC), a global leader in the supply of life science research tools, announces the following trading update ahead of its results for the six months ended 31 December 2015 [1].
In our catalogue products business, we expect revenue growth approaching 16% [2] in the first half of the year. Growth from primary antibodies continued to outpace market growth rates; largely driven by RabMAb® product revenues, which grew over 30% (ahead of our full year 2015/16 guidance of 15-20%). Non-primary antibody product revenues also grew by over 30% (ahead of our full year guidance of 25-30%).
We continued to make good progress in China with revenue growth of over 50%, reflecting some moderation as our business there becomes more established, but remaining well ahead of the market growth rate in the territory.
Other revenues, which represented almost 7% of the total for the period, increased by over 30%. This performance reflects an increase in revenues and royalty streams from our IVD (in vitro diagnostics) products, as well as from our Custom Services, which is now more closely aligned to the overall strategic direction of the business.
Overall we expect to report revenue growth of around 16.5% on a constant currency basis and over 17% on a reported basis. Gross margins remain strong, reducing slightly from the same period last year, principally due to unfavourable relative exchange rates in each of the main currencies in which Abcam trades.
We continue to capture market share with growth rates of 3-4 times that of the market. This gives us confidence in our reported strategy and we are increasing investment in areas which can further drive this growth, namely people, infrastructure, processes and information technology. We will give additional detail on the last of these at the time of our Interim results in March. These investments, together with those in Firefly Bioworks and AxioMx, we believe, will ensure that we are well positioned to take advantage of the many opportunities which we see.
Commenting on the update Alan Hirzel CEO said:
"We maintained strong revenue growth in every region we serve and there is now significant momentum across the business. We have taken substantial steps over the period to broaden our offering with geographical expansion and new product ranges and have successfully launched more Abcam technology derived products with our RabMAb® and Firefly technologies. Our recent acquisition of AxioMx extends that technology suite and provides us with a unique, cost-effective and proprietary platform to produce recombinant monoclonal antibodies. Overall, we are successfully implementing our strategy to continue to grow ahead of the market and to build an exciting and forward thinking business for the future.”
The Company will report its interim results for the six month period ended 31 December 2015 on 7 March 2016.
[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 a constant currency basis.