Abcam plc Full Year Trading Update

Abcam plc (AIM: ABC), a global leader in the supply of life science research tools, is issuing the following unaudited trading update for the year ended 30 June 2020, ahead of reporting its audited results on 14 September 2020.(1)

As previously communicated, due to the ongoing COVID-19 pandemic we have seen a reduction in demand as research laboratories globally shut down temporarily or reduced activity over the course of the second half of the year.  We continued to serve the needs of laboratories that remained open, but due to these actions revenue in the second half of the year declined by approximately 10% on both a reported and constant currency basis. Overall, the Group expects to report revenues of £260.0m for the full year (FY2019: £259.9m), a decline compared to prior year of approximatey 1% on a constant currency basis.

As reported on 20 April 2020, conditions in China were gradually recovering at that time and  we had also begun to see the reopening of laboratories in some European countries. There has been a steady increase in activity across all regions since.  Overall, monthly revenue versus prior year was –40% in April, -28% in May, and –1% in June on a constant currency basis. This revenue growth profile correlated strongly with underlying demand factors including easing of lockdown restrictions and the partial or full reopening of academic and biopharmaceutical research laboratories.

We continue to see improvement in demand, but significant macro uncertainties and regional differences remain. This uncertainty is acute in North America where case incidence of COVID-19 is currently rising in several US states with normally high research activity.

In September 2019, we set out plans to increase the rate of investment in areas including research and development, digital marketing and e-commerce, technology and global operations in order to achieve more and faster growth over the medium and long term. Despite the impact of COVID-19, we made progress across a broad range of these areas in the year, including the completion of several acquisitions that complement the existing portfolio and in which we intend to invest.

The Board and executive team have continued to support employees with full employment during the COVID-19 outbreak whilst investing in and implementing initiatives for our growth strategy.  As a result, we expect that gross margin and adjusted operating margin for the full year will be approximately 69% and 16-17% respectively. 

With the attractive potential from the Group’s long term growth strategy, we have also begun exploring a potential secondary listing in the United States on NASDAQ. We have not made any decisions regarding the timing or the terms of the potential secondary listing, and there is no certainty that the listing in the United States will take place.

In September with the full year results, the Group will provide a full update on the strategic growth programmes and its financial performance.

Alan Hirzel, CEO of Abcam commented:

“We are proud of the role Abcam has had in supporting researchers throughout this pandemic and we are proud of the dedication of our global team to help scientists perform their vital work.  Abcam’s strong brand, distinctive customer focused culture and durable financial health has meant we have been able to lead with a longer term horizon and fulfil our ambition to be the most influential company for life scientists globally. We remain confident in our long term prospects and focused on delivering our strategy.”

Analyst and Investor Conference Call

A conference call for analysts and investors will be held at 10.00 BST, today. To participate in this call, please contact Mary Whittow at FTI Consulting (Mary.Whittow@fticonsulting.com / +44 (0) 20 3327 1366) for dial-in details.

The Group will report its Full Year Results for the twelve-month period ended 30 June 2020 on 14 September 2020.  A live webcast of the presentation will be available via 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.

This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

This announcement shall not constitute an offer to sell or solicitation of an offer to buy any securities.

This announcement is not an offer of securities for sale in the United States, and the securities referred to herein may not be offered or sold in the United States absent registration except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933, as amended. Any public offering of such securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer, which would contain detailed information about the company and management, as well as financial statements.

Abcam plc

+ 44 (0) 1223 696 000

James Staveley, VP Investor Relations

Numis – Nominated Adviser & Joint Corporate Broker

+ 44 (0) 20 7260 1000

Garry Levin / Duncan Monteith / Huw Jeremy

J.P.Morgan Cazenove – Joint Corporate Broker

+44 (0) 20 7742 4000

James Mitford / Hemant Kapoor

Morgan Stanley – Joint Corporate Broker

+ 44 (0) 207 425 8000

Tom Perry / Luka Kezic

FTI Consulting

+44 (0) 20 3727 1000

Ben Atwell / Natalie Garland-Collins