Abcam have announced significant changes to its management structure this week, with Chief Executive Jonathan Milner stepping down to be replaced by Alan Hirzel. The company has also reported strong financial results for the year ended 30 June 2014, as we predicted six months ago.
Revenue for the year was £128m which after adjusting for currency headwinds represented underlying growth from catalogue sales of 10% (6.0% as reported) and growth of total revenue on the same basis of 8.6% (4.7% as reported).
Back in April, we reported that Abcam shares were down 27 per cent since releasing a weaker than expected earnings report at the beginning of march, but stressed that the market share data we analyse here at CiteAb actually suggested that Abcam’s share of the research antibody market has grown steadily and significantly over the last five years.
At the time we predicted that the share drop was a temporary situation for a company going through a period of significant change and making large investments, and that we’d soon be seeing future growth and market development.
Now the company has released a statement that demonstrates the predictions we made here at CiteAb based on our antibody data were correct.
It states: “After increased investment in the business aimed at driving longer term organic growth, adjusted profit before tax was £46.8m, which is marginally higher than last year (£46.6m). Net cash inflow from operating activities before tax was strong at £51.2m.”
Our founder Andrew says: “Abcam clearly has some way to go in instilling confidence, with its current share price of 417.25 still down on February 2014’s 530.50. Management changes have also hit shares over the last 24 hours, but positive trading news is likely to help turn the tide in the long run.”
The data that we extract from CiteAb is based on the analysis of hundreds of thousands of publications which use research antibodies, so it gives us an impartial and unrivalled view of trends in the market.
In its current management changes Abcam sees Alan Hirzel take over from Jonathan Milner as Chief Executive with immediate effect. According to the company, Jonathan Milner will continue to play an active role as Deputy Chairman and will remain the largest shareholder.
You can see all of Abcam’s antibodies on CiteAb.
– David and the CiteAb team