Abcam plc(ABCM)2021-09-12 16:00Revenue Performance - Revenue for the 12-month period ended June 30, 2021, was £297.7 million, a 14% increase from £260.0 million in 2020[3]. - H2 constant exchange rate (CER) revenue growth was 29% (23% reported) compared to the prior year, with in-house CER revenue growth of 41% (35% reported) in H2[4]. - Total revenues for the six months ended June 30, 2021 increased by 29% CER (23% reported) to £150.2m, driven by recovery in laboratory activity and demand for in-house products[23]. - For the 12-month period, total revenue grew by 18% CER (14% reported) to £297.7m, with adjusted diluted EPS declining to 13.5p[19][25]. - Catalogue revenue, which comprises around 94% of total revenue, grew 31.2% CER in the six months ended June 30, 2021, with in-house products showing a CER growth of 47.7%[24]. - The Americas contributed £119.8 million in revenue for the twelve months ended June 30, 2021, up from £112.4 million in the prior year, representing a growth of 6.1%[80]. - Catalogue revenue reached £280.3 million for the twelve months ended June 30, 2021, compared to £243.1 million for the year ended June 30, 2020, marking a 15.3% increase[81]. Profitability Metrics - Gross profit margin increased to 71.1% for the 12-month period, up from 69.3% in 2020, with H2 gross margin at 71.4%[4]. - Operating profit for H2 was £10.3 million, with adjusted operating profit increasing by 78% to £19.8 million, resulting in an adjusted operating margin of 13.2%[4]. - Adjusted operating profit rose 78% to £19.8m, while adjusted diluted EPS increased by 33% to 4.8p for the same period[19]. - The adjusted operating profit for the twelve months ended June 30, 2021, was £45.8 million, compared to £44.5 million in the previous year, reflecting a growth of 2.9%[59]. - Operating profit for the twelve months ended June 30, 2021, was £28.2 million, significantly higher than £10.5 million for the year ended June 30, 2020[98]. - Profit attributable to equity shareholders for the twelve months ended June 30, 2021, was £16.2 million, up from £12.5 million in the previous year, representing a 29.6% increase[62]. Cash Flow and Financial Position - Net cash position at the end of the period was £219.9 million, significantly up from £80.9 million in 2020, with a net cash inflow from operating activities of £71.9 million[4]. - The Group achieved a 14.1% increase in cash inflows from operating activities, totaling £71.9m for the 12 months ended June 30, 2021, compared to £63.0m in 2020[37]. - Free Cash Flow for the 12 months ended June 30, 2021 was £16.1m, down from £19.0m in 2020[37]. - Cash and cash equivalents at the end of the period increased to £219.9 million from £187.3 million, reflecting a net increase of £35.0 million[67]. - The Group generated £77.0 million in cash from operations for the twelve months ended June 30, 2021, compared to £65.4 million for the previous year, marking an increase of 17.5%[98]. Strategic Initiatives and Acquisitions - The company announced an agreement to acquire BioVision, Inc. for cash consideration of 340m is expected to enhance the company's strategic execution and focus on in-house innovation[21]. - The Group expects to incur approximately £8m of additional acquisition, integration, and reorganization costs related to the BioVision acquisition by the end of 2021[33]. - The Group entered into a definitive agreement to acquire BioVision, Inc. for cash consideration of $340 million, pending approval[111]. Future Outlook and Growth Targets - Long-term revenue target for the year ending December 31, 2024, is set between £425 million and £500 million[8]. - The company aims to generate revenue between £425 million and £500 million for the year ending December 31, 2024[51]. - The company plans to continue investing in innovation and partnerships to sustain long-term growth despite a moderation in the rate of investment[9]. - The company continues to invest in innovation, acquisitions, and partnerships to sustain growth, with a moderated rate of investment expected moving forward[52]. Taxation and Compliance - The effective tax rate for the six-month period was 41.7%, significantly higher than the 19.8% in H2 2020, primarily due to the restatement of deferred tax balances[35]. - The total income tax charge for the twelve months ended June 30, 2021, was £9.2 million, compared to a credit of £4.1 million for the previous year, indicating a significant shift in tax liability[90]. - The effective tax rate on reported profits for the twelve months ending June 30, 2021, was approximately 36.2%, compared to (48.8%) for the twelve months ending June 30, 2020[91]. Operational Performance - The Group executed over 90 outbound commercial agreements in the period, up from 56 in 2020, including approximately 30 new service and commercial supply agreements[45]. - The Group introduced over 4,000 recombinant antibody-based products in the last 12 months, a 50% increase compared to the previous year[43]. - Non-primary antibody products accounted for approximately 20% of total catalogue revenue, with a 30% CER revenue growth in this segment over the last 12 months[44]. - The in-house product revenue as a percentage of total catalogue revenue increased to 54% in 2021, up from 47% in 2020[49]. Risk Management - The Group's principal risks include competition, acquisitions, and cyber security, which have not changed over the interim period[112][113]. - The Group's hedging arrangements are in place to mitigate currency fluctuation risks[104].