9th Sep 2014 07:12
LONDON (Alliance News) - Abcam PLC said Tuesday posted a rise in pretax profit for the year to end-June and said it has promoted Alan Hirzel to the position of chief executive officer, succeeding Jonathan Milner who will take up the role of deputy chairman.
Hirzel moves to the position from his previous role as chief marketing officer. Milner, who held the role for sixteen years, said that he remains "fully committed" to Abcam and expressed his "full confidence" in Hirzel.
Abcam posted a pretax profit of GBP34.0 million, up from GBP32.7 million in the previous year, as revenue rose 4.5% to GBP128.0 million from GBP122.2 million, although this was partly offset by higher operating expenses. Revenue growth was hit by the strength of sterling, and at constant exchange rates revenue growth would have been 8.6%.
The increase in operating expenses was primarily as a result in investments in the business during the year, including the opening of a new office in Shanghai in February. It also added 11,521 new products during the year, taking its total catalogue to over 133,00 products.
The life science research tool supplier raised its total dividend for the year to 7.75 pence, up from 7.04 pence.
Abcam said that in western territories the environment for government-funded research was more challenging due primarily to fiscal deficits. However, it said it was seeing signs of stability in the US as modest funding increases are approved.
Although the company remains cautious that funding growth will recover to historical levels, it said that the new year has started well, and expressed optimism that its continued investment in new products and capabilities, alongside increased geographic presence, will continue to drive its sales.
Shares in Abcam were trading up 3.5% at 422.49 pence early Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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