Abcam trades well ahead of previous year and launches growth review
Abcam, which supplies life science research tools globally, traded well ahead of last year for the 12 months ended June 30.
The group expects to report total revenue of £259.9 million (2017/18: £233.2m), representing growth for the year of 11.4 per cent on a reported basis and 9.2 per cent on a constant currency basis.
A trading update from the business revealed that catalogue revenue, representing approximately 93 per cent of the total, grew by 11.9 per cent in the year on a reported basis.
All Abcam’s regions and product categories grew faster than estimated underlying market growth rates. Revenue in China grew faster than the market at over 20 per cent in the year and represents over 15 per cent of total company sales.
The group expects gross margin to be ahead of last year and adjusted EBITDA margin to be in line with the board’s expectations.
The end of 2018/19 marks the fifth anniversary of Abcam’s ‘invest-to-grow’ strategy set out in 2014. Over that period, the group says it made signficant strategic, operational and financial improvements to sustain double-digit growth throughout the period.
During the last 12 months, those investments and changes resulted in further market share gains in the global research reagents market, particularly from recombinant antibodies, immunoassays, and China.
These market results came whilst delivering on plans to build organisational scale and seed investment for future growth in adjacent business areas.
The board is currently reviewing its plans for the next five years to 2023/24 and sees significant opportunity to further grow the organisation organically through a programme of internally funded investments.
The group will provide details of the five-year plan alongside the presentation of its full year results on September 9.
CEO Alan Hirzel said: “Life science research and biopharmaceutical customers globally once again showed their trust in Abcam to help them achieve their research mission. This trust made it possible for our business to expand our market leadership and achieve our strategic goals.
“The prospects for Abcam remain strong and with our focus on customers, we are confident that our investments in growth are aligned to creating long-term value for all of our stakeholders.”