Abcam markets research-grade antibodies to academic and commercial users
and is headquartered in Cambridge, UK, with a US office in Cambridge,
Massachusetts. Its online catalogue of more than 17,000 products is
supported by continually updated technical data created by the Company.

* Abcam was founded in 1998 by Dr Jonathan Milner (Chief Executive Officer),
Dr David Cleevely (Chairman) and Prof Tony Kouzarides (Non-executive
Director).

* Abcam is rapidly growing, profitable and cash generative. In the year
ending 30 June 2005, Abcam reported sales of #12.1 million (2004: #6.72m)
and pre-tax profits of #2.98 million (2004: #1.45m). The Company expects
sales in the current financial year, ending 30 June 2006, to be no less
than #18.5 million and it intends to implement a progressive dividend
policy.

* As announced on 28 October 2005, #10 million, before expenses, has been
raised for Abcam via a placing of new shares at the price of 167 pence per
share (the "Placing Price"). A further #5.25 million, before expenses, has
been raised for selling shareholders via a placing of existing shares at
the Placing Price.

* At the Placing Price, the market capitalisation of Abcam is approximately
#57.5 million (post new money). Its now circa 70 million.

* The net proceeds of the placing available to Abcam will be used to develop
future growth opportunities including the expansion of the online
catalogue, the broadening of the customer base, the penetration of new
geographic markets and the possible acquisition of existing catalogues or
complementary product lines.

* Numis Securities Limited is the Company's nominated adviser and broker.

Many thanks to DGH from the other big board for this company visit and write up.

I actually visited Abcam before christmas, as I wanted to understand the business that looked to be very promising, but had no research reports available other than the Placing Document.

From my discussions with one of the directors, which only covered non-price sensitive data as they were coming up to the close season, I concluded that this business, while highly priced on a historic basis, was a very exciting business. The analysis of turnover growth for the years 2003-2005 indicated that they had a good model. The business is essentially simple, buying in the majority of their products, manufacturing some of the more popular antibodies, and selling them at consistently high margins of 56% for bought in items and 80% for manufactured product - albeit currently only 4% of sales. Their competitors are for most part small operations, and Abcam actually sources product from many of them, acting one supposes as a selling arm for companies that are primarily research centered.

The company's backoffice approach is to ensure efficiency in handling orders, and in my tour of the premises, I was impressed with the quiet efficiency of the company.

Stocks are held in 3 or 4 fridges, about 3 times the size of a domestic fridge, but kept at -80c. The despatch department was organised with obvious efficiency, (it needs to be if the achieved 70% same day despatch policy is to be maintained).

The company trades about 50% of sales in USA, and 50% ROW with UK and Europe taking about 14% each.

In the placing document, the directors advised that with the current growth at the time, sales for the year to June 2006 should not be less than £18.5m. On the historic growth pattern of sales, this looks likely to be exceeded. As the gross profit margins are high, a substantial proportion of sales growth will drop to the bottom line.

The key points for me were:

1. Simple business to understand (even if the product is unusual)
2. Superb customer information system via their integrated ordering web-site which encourages multiple re-visits by researchers. It aims to provide an easy way for any researcher to find the product they want and so tends to have remarkable customer loyalty. No other anti-body company is focussed in this way. The aim is to be a one-stop shop.
3. A simple customer reward system to encourage customer reviews to be posted to the site.
4. Lack of any similar competitors - although there are some 300 suppliers worldwide, they are mostly fragmented with the largest taking 15% of the global market in all types of antibodies.
5. Their market is currently about 800-900m usd worldwide estimated to be growing at 10% a year.
6. Some protection from inflation - as the prices will not be particularly sensitive to the purchaser.
7. Considerable protection from recession as the research bodies who purchase the products will usually have longer term projects.
8. Few compliance issues, as the company does not sell medical grade antibodies. (although that may happen in the future, it is a different scale of business)

I purchased a shareholding following my visit, as I estimated, that operational profits this year to 30th June could easily be just under £5m and year to 30th June 07 in the order of £7.5-8.0m. If I'm right, the interims (due out in a few weeks) will tend to bear that out.

Interestingly I note that SCSW in the January issue also think that profits for this year will be close to £5m (their guesstimate is £4.7m) - they haven't yet done a full report on Abcam though.

If they do report an operating profit of £4.7-4.98m then the PE will drop to about 25-23 for 2006 and to 15-16 for 2007 which is far more reasonable than its current rating.

cheers GF.

cheers GF.

The ABC website.http://www.abcam.com/

cheers GF.

And gross margins in excess of 60% with a fixed cost base. Acquisitions to be made aswell this year from substanial cash pile.

cheers GF.

Keeping a low profile on this one for the minute, but this is worth looking at...

2003

Turnover... 3.5m
Pre-tax.....0.56m
Net profit margin.... 16%

------------------------------------

2004

Turnover....6.72m
Pretax..... 1.45m
Net profit margin.... 21.6%

-----------------------------------------

2005

Turnover........12.14m
Pretax.........2.98m
Net profit marging........24.5%

---------------------------------------------

2006

Turnover .........18.5m.......[Est. "not less than"]

------------------------------------------------

cheers Gf.

ABCAM Plc
31 January 2006


For immediate release 31 January 2006


ABCAM PLC

NOTIFICATION OF INTERIM RESULTS


Abcam plc (AIM : ABC), a rapidly growing company that markets antibodies via an
online catalogue, will announce its interim results for the six months ended 31
December 2005 on Tuesday, 14th February 2006.

An analyst meeting will be held at 10.00 am on 14th February at the offices of
Buchanan Communications, 45 Moorfields, London EC2Y 9AE.



For further information please call:

Buchanan Communications Tel: 020 7466 5000
Mark Court, Mary-Jane Johnson


cheers GF.

Excelent results...........

Divi at Abcam as sales surge
MoneyAM
Abcam, the AIM-listed bioscience company which markets antibodies via an online catalogue, said it will pay a maiden interim dividend of 0.7p after it achieved strong sales and profits growth in the first half.

The company posted pretax profits of 2.1m for the six-month period to December 31st 2005, a rise of 49% on the previous year.

Sales increased by 63% to 8.3m and Abcam said it is confident of meeting its full-year sales target of 18.5m.

The number of products available on the Abcam website stood at 18,900 at end-December 2005, up 49% from a year earlier.

Abcam said its US office made a significant contribution to sales and profits in the half year.

It also said it plans to open a new office in Japan, the world's third-largest market for research antibodies, in 2006.

cheers GF.

An interesting medium term holding I think. The recent setback is presumably not for ever. Opinions ?

M

On the move !!

Got a good write up in 'Outstanding Companies Digest' this month.

Well , I am in , lets hope its for a while. Abcam is in the Keydata AIM VCT portfolio & I believe that the manager is well thought of , hence my interest.

My thanks to Goldfinger for the excellent informative fundamental writeups.

M

NICE ONE, and NO 10B.

Potential bids for Abcam. I hope the management don't agree at a low price as this has huge potetial. I was looking to hold for 2-3 years before even thinking about selling. i don't want someone else to reap the benefit.

Tepnel Life Sciences Plc. said it has signed a two year extension to its global licensing agreement with Abcam for the worldwide distribution of its Diaclone range of diagnostic and research products.

The agreement includes a guaranteed annual minimum in sales, the UK-based life sciences products and services company said.

The distribution partnership with Abcam is a non-exclusive agreement for sales globally and Tepnel will continue to sell directly to customers in France, UK and the United States, the company added.

Nice chart.

And getting nicer.

... and nicer.

nice winner

Better still if your a long term investor......







NICE.

Oh good I can stop talking to myself now.