Abcam growth rates outstrip markets
Cambridge business Abcam, which supplies life science research tools globally from its UK HQ, is outstripping the growth rates of every market in which it operates.
CEO Alan Hirzell delivered a pre-close period update for the year to June 30 which sent the share price north to 1,005p and took the market cap to £2.05 billion ($2.69bn).
He said the business continues to grow at double digit rates and that group revenue was expected to have grown at close to 27 per cent on a reported basis and over 10 per cent on a constant currency basis.
Overall group reported gross margin is expected to be 70 per cent, in line with market expectations.
Constant currency growth in catalogue revenues was over 11 per cent, with RabMAb® product revenues growing by over 25 per cent; that was in the middle of the full year guidance range of 23-27 per cent for this product group. With more than 11,000 RabMAb® products in the catalogue, they continue to be a strong driver for the business.
Led by its kits and assays business, non-primary antibody revenues grew at 16 per cent on a constant currency basis, which was in the range of Abcam’s revenue growth guidance of 15-20 per cent. Core primary antibodies products grew at over five per cent on a constant currency basis.
Hirzel said performance in China also continued to exceed market levels with growth of catalogue revenues of approximately 29 per cent on a constant currency basis. Custom product and licensing revenues were flat during the year, which is in line with guidance.
The continued weakness of Sterling against the currencies in which the technology group trades has boosted reported revenues. However, the company’s hedging policy is likely to largely offset these topline gains from currency at the reported profit line.
Abcam says it is continuing to make progress with its ongoing programme of investment in systems, facilities and processes to ensure the group has the infrastructure to support the continued growth of the business.
Hirzel said: “Our profitable growth this year arises from our customer focus, product portfolio improvements, and enhancement of our organisational capabilities. As market leaders in our field, we are investing to sustain this success for Abcam customers, employees and shareholders.”
• PHOTOGRAPH SHOWS: Alan Hirzel