Abcam plc(ABCM)2023-03-20 11:05Revenue Growth - Reported revenue growth of 15% to £361.7 million, with constant exchange rate revenue growth of 8%[3] - In-house revenues, including BioVision and Custom Products & Licensing, grew by 26% reported and 18% on a constant exchange rate basis, representing 67% of total sales[4] - For FY23, the company anticipates reported revenues of approximately £420 million to £440 million, indicating a growth of 15% to 20%[6] - The FY2024 revenue goal is reiterated at £450 million to £525 million, with adjusted operating profit margins expected to exceed 30%[7] - Revenue for the year ended December 31, 2022, was £361.7 million, an increase from £315.4 million in 2021, representing a growth of 14.7%[32] - Revenue from the Americas increased to £162.5 million, up 24.6% from £130.4 million in the previous year[48] - The Group's revenue from catalogue sales was £339.8 million, up 14.6% from £296.4 million in the previous year[49] Profitability and Margins - Adjusted gross profit margin increased by 330 basis points to 75.5%, driven by in-house revenues[3] - Operating loss of £10.1 million due to an £18.3 million impairment charge; adjusted operating profit rose 26% to £76.3 million, with a margin of 21.1%[3] - Diluted loss per share was (£0.037), while adjusted diluted earnings per share increased by 21% to £0.249[3] - Adjusted operating profit rose by 26% to £76.3 million, up from £60.4 million in 2021, and adjusted diluted EPS increased by 21% to 24.9p[20] - Reported gross profit margin was 74.8%, with adjusted gross margin increasing by 330 basis points to 75.5% due to a favorable product mix and the BioVision acquisition[21] - Profit for the year attributable to equity shareholders was £57.7 million in 2022, compared to £47.2 million in 2021, marking a 22.0% increase[32] - Basic earnings per share for 2022 were 25.2p, up from 20.8p in 2021, representing a growth of 21.2%[32] Expenses and Costs - Selling, general and administrative expenses increased to £224.5 million from £189.7 million in 2021, with adjusted expenses rising to £176.3 million[22] - Research and development expenses were reported at £56.1 million, with adjusted expenses increasing to £20.6 million from £16.7 million in 2021[23] - The total adjusting items impacting operating profit amounted to £66.2 million in 2022, compared to £42.8 million in 2021, representing a significant increase of 55%[64] - The company incurred integration and reorganization costs of £15.7 million in 2022, significantly higher than £4.7 million in 2021, indicating increased expenses related to the BioVision acquisition[64] Cash Flow and Debt - The Group's free cash flow for the year was £28.7 million, a decrease of 54.4% compared to £62.9 million in 2021[38] - The Group's cash and cash equivalents at the end of the year were £89.0 million, down from £95.1 million at the end of 2021, a decrease of 6.4%[38] - The Group's operating activities generated £36.0 million in cash for the year, a decrease of 50.1% from £72.2 million in 2021[38] - The Group's capital expenditure for the year was £16.8 million, down from £34.5 million in 2021, a reduction of 51.3%[38] - As of 31 December 2022, the company had cash and cash equivalents of £89.0 million and net debt of £30.6 million[26] Strategic Initiatives and Investments - The company has implemented an Oracle Cloud ERP system and expanded operations in Waltham, Singapore, and Amsterdam to support future growth[5] - The company remains committed to investing in innovation, acquisitions, and partnerships to sustain long-term growth[28] - Abcam US Group Holdings Inc. acquired NKY Biotech US, Inc. for an initial cash consideration of $349.9 million (£253.8 million) plus acquisition expenses of £7.8 million[71] - The acquisition aligns with Abcam's strategic ambitions in the biochemical and cellular assay market, focusing on oncology, immuno-oncology, neuroscience, and epigenetics[71] Asset Management - Total assets as of December 31, 2022, were £1,056.6 million, an increase from £1,000.9 million in 2021, reflecting a growth of 5.6%[35] - Net current assets improved to £53.6 million in 2022, compared to £22.8 million in 2021, indicating a significant increase of 135.1%[35] - Goodwill increased to £398.3 million in 2022 from £363.5 million in 2021, reflecting a rise of 9.6%[35] - The fair value of identifiable net assets acquired totaled £65.0 million, with goodwill recognized at £175.7 million[72] Taxation - The effective tax rate on adjusted profits was 23.4% for 2022, compared to 19.7% in 2021, reflecting changes in tax regulations and profit composition[61] - The company recognized a deferred tax asset of £2.7 million related to the BioVision acquisition, indicating potential future tax benefits[69]