Abcam plc(ABCM)2022-09-11 16:00Revenue and Profitability - Revenue for the six-month period ended 30 June 2022 was £185.2 million, representing a 23% increase compared to £150.2 million in H1 2021[2] - Adjusted operating profit for H1 2022 was £42.6 million, a significant increase from £26.5 million in H1 2021, resulting in an adjusted operating profit margin of 23%[2] - Adjusted net profit reached £32.2 million, up from £16.2 million in H1 2021, while reported net profit was £5.8 million compared to £2.9 million in H1 2021[23] - Total comprehensive income for the period was £61.5 million, significantly up from a loss of £2.6 million in the same period last year[32] - Adjusted profit attributable to equity shareholders for the six months ended June 30, 2022, is £32.2 million, compared to £16.2 million for the same period in 2021, representing a 99% increase[59] Gross Profit and Margins - Adjusted gross profit margin increased to 75.6%, up from 71.4% in H1 2021, driven by a favorable product mix and the inclusion of BioVision[3] - The gross profit for the six months ended June 30, 2022, was £140.0 million, compared to £107.2 million in the same period of 2021[30] - The Group's gross profit for the six months ended June 30, 2022 was £140.0 million, up from £107.2 million in the prior year, indicating a gross margin improvement[51] Revenue Growth by Region - The Americas region saw a 39% revenue increase, with total revenue from this region reaching £74.6 million[19] - Revenue from the Americas reached £82.2 million, a 34.3% increase compared to £61.2 million in the prior year[49] - The Group's revenue from China increased to £31.6 million, a 22.5% rise from £25.8 million in the previous year[49] Costs and Expenses - Adjusted operating costs increased to £97.4 million, representing a 21% growth compared to H1 2021's £80.7 million[21] - Total reported operating costs rose to £128.0 million, a 32% increase from H1 2021's £96.9 million[21] - Research and development expenses for the six months ended June 30, 2022 totaled £10.1 million, compared to £8.0 million in the same period of 2021[51] - Share-based payment charges for the six months ended June 30, 2022 amounted to £13.0 million, compared to £6.7 million in the same period of 2021[52] Cash Flow and Financial Position - Cash position improved to £109.6 million, an increase of £14.5 million from £95.1 million at the end of 2021[24] - Free cash flow for the period was £8.0 million, slightly down from £9.5 million in the same period last year[37] - The company reported a net cash inflow from operating activities of £29.8 million, down from £38.2 million in the previous year[37] - The company made a net cash outflow from investing activities of £13.9 million, compared to £23.2 million in the same period last year[37] Debt and Liabilities - The net debt position improved to £(9.8) million compared to £219.9 million in H1 2021, reflecting the impact of the BioVision acquisition[2] - Total liabilities increased to £337.1 million, up from £330.0 million at the end of 2021, a rise of 2.1%[34] - The company has outstanding borrowings of £119.4 million due to the acquisition of BioVision, resulting in a net debt of £9.8 million[24] Assets and Equity - Total assets increased to £1,064.7 million as of 30 June 2022, up from £986.1 million at 31 December 2021, representing a growth of 7.9%[34] - Net current assets improved to £54.0 million, compared to £24.3 million at the end of 2021, indicating a significant increase of 121.5%[34] - Retained earnings reached £304.4 million, up from £289.6 million, marking an increase of 5.9%[35] Shareholder Information - The company plans to seek shareholder approval for the cancellation of its AIM listing, focusing solely on its NASDAQ listing[7] - The company aims to generate revenue between £450 million and £525 million for the year ending December 31, 2024[25] Customer Satisfaction and Innovation - Customer satisfaction rates remained high at 99.0% for H1 2022, compared to 98.8% in H1 2021[4] - The company launched over 1,800 new products in H1 2022, supporting its innovation strategy[5] Risks and Uncertainties - The company continues to face principal risks and uncertainties that have not changed over the interim period and are not expected to change in the next six months[77] - The risk of competitors introducing new technologies and strengthening product offerings is significant for the company[78] - The company faces risks related to overvaluation of acquisition targets and integration challenges[78] - There is a risk of failing to recruit and develop personnel to support the company's strategy effectively[78] - The company is undertaking transformational growth projects, including ERP implementation and digital channel reinvention, which carry associated risks[78] - Cybersecurity and IT infrastructure risks could impact the company's operational effectiveness[78] - Unfavorable geopolitical or economic changes may lead to reduced funding for life sciences research in key territories[78] - Disruptive events at key facilities pose a risk to the company's ability to serve customers[78] - Compliance with legislation and regulations in various markets is critical to mitigate legal risks[78] - The company must maintain high standards of quality and ethical business practices to avoid reputational risks[78]