Abcam plc Annual report and accounts for the year ended 30 June 2007
Abcam plc
332 Cambridge Science Park
Milton Road
Cambridge CB4 0FW
United Kingdom
Phone: +44 (0) 1223 696000
Fax: +44 (0) 1223 696001
www.abcam.com
For the year ended 30 June 2007
Annual report  
and accounts Abcam plc Annual report and accounts 30 June 2007
Our vision is to build the largest 
online antibody resource in the 
world while also ensuring that  
the antibodies are of excellent 
quality and commercial viability.
Welcome!
My name is Molly, I’m the resident Abcam mascot and 
appear on all our packaging and branding materials.
A lot of researchers ask where we got the idea for Molly  
the sheep. It was simply because Dolly the sheep was  
making headline news at the time, so we created the  
body out of a molecular space fill model and gave her  
antibody legs, and thus the molecular Dolly became  
Abcam’s Molly.
01  Highlights
02  Our Business at a Glance
04  Chairman’s Review
06  CEO’s Review
08  Managing Director’s Review
10  Financial Review
12  The Board
14 Corporate Directory
15 Directors’ Report
17  Corporate Governance
Contents
19  Directors’ Remuneration Report
22  Statement of Directors’ Responsibilities
23  Independent Auditors’ Report 
24 Consolidated Profit and Loss Account
25   Consolidated Statement of Total Recognised Gains and Losses
26  Consolidated Balance Sheet
27  Company Balance Sheet
28  Consolidated Cash Flow Statement
29  Notes to the Consolidated Cash Flow Statement
30  Notes to the Accounts 01 Annual report and accounts 30 June 2007 Abcam plc
Highlights
Sales increased 26.6% to £24.5m (2006: £19.4m), 
representing a 33.8% increase using constant exchange 
rates. (Average exchange rate applied to US Sales 
2007 £1: $1.92, 2006 £1: $1.77).
Pre-tax profits increased 18.1% to £5.7m (2006: £4.8m).
Product range grew to 33,900 antibodies and related 
products (2006: 23,200).
Three licensing deals agreed giving Abcam exclusive 
distribution rights to over 4,000 existing and future 
complementary products.
High-throughput production (HTP) laboratory built to  
boost the number of high-margin in-house products. 
Operations began on schedule and the first antibodies  
will be ready for sale later this calendar year.
New subsidiary in Tokyo trading well to help Abcam  
further develop its fast-growing Asia-Pacific business.
Net cash and short term investments at 30 June 2007  
of £10.7m (2006: £11.9m).
Dividend policy increased from 25% to 33% of profit 
after tax.
Final dividend up 60% to 3.19p per share (2006: 2.0p).
Basic EPS of 11.99p per share (2006: 10.73p). The EPS 
calculation for the year uses the weighted average of 
34,572,810 shares (2006: 31,914,845).
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26.6
%
 Sales increased 26.6% to £24.5 million 
33,900
  Continued expansion of product  
range to 33,900 products 
£5.7
M
  Profit before tax of £5.7 million in  
the year
2006 2007
£24.5M
£19.4M
Turnover
2006 2007
£5.7M
£4.8M
Profit
2006 2007
11.99p
10.73p
EPS Abcam plc Annual report and accounts 30 June 2007 02
Abcam plc is a producer and distributor 
of research-grade antibodies and 
associated products.
Our vision is to build the largest online 
catalogue of the best antibodies in  
the world.
Our Business at a Glance
How we work
1. We source and develop
We produce our own antibodies and 
source other excellent antibodies from 
institutes, academic laboratories and 
primary manufacturers.
Established in 1998, Abcam now has an 
online catalogue of over 25,000 antibodies 
and 8,000 related products (such as 
proteins, peptides and kits). A growing 
percentage of our products are produced  
in-house and investment in a new high 
throughput facility will see this increase 
substantially in the future. Other products 
are supplied by more than 200 leading OEM 
partners and sold under the Abcam brand.
2. We add value
Our scientists have built a catalogue  
of the best antibodies in the world and 
they provide technical support on all 
of our products to help our customers 
achieve results.
The unique relationship Abcam has with 
the scientists who use our products means 
that we can obtain a wide range of testing 
data from their feedback and enquiries.  
We publish this information in the form of 
Abreviews
SM
, which support the purchasing 
decisions of researchers looking for 
reagents. Taken across the catalogue, 
average unit sales continue to increase  
the longer they have been in our catalogue, 
a trend we attribute in part to the sheer 
quantity of product information we are  
able to gather and publish over time.
3. We deliver
We distribute Abcam products across 
the world using our fully automated 
web-enabled stock-management 
system. Our size means that we can 
invest in state-of-the-art storage and 
handling facilities, which have enabled 
us to speed up shipping times and 
increase our output. We are able to 
operate at high levels of efficiency, 
with lower handling costs.
Customers can directly access the website 
to find the status of their orders so they can 
plan their experiments more effectively.
4. We support
Our products come with an Abpromise, 
giving customers the reassurance of 
knowing that:
Our antibodies are of the highest quality 
and are backed up by an expert technical 
team, who are available to assist in initial 
product selection.
Customers can, at any time, contact 
other customers using the same antibody 
via our unique Abreviews
SM
 system.
If, after optimisation, any product does 
not perform as described on the 
datasheet, customers can contact our 
expert team to ask for advice and 
assistance.
In the unlikely event that a product is 
faulty, we will replace or provide a full 
refund if reported within 120 days  
of purchase.
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Where we operate
Abcam plc is headquartered 
in Cambridge, UK. We have 
a US office in Cambridge, 
Massachusetts, and have 
recently opened an office  
in Tokyo, Japan.
In the UK, we recently completed 
construction of a new high-throughput 
production (HTP) laboratory that will 
broaden our portfolio of high-margin 
products developed in-house. We 
continue to benefit from close links to  
the University of Cambridge, from which  
a large number of our PhD recruits 
are drawn.
Our US office has made a substantial 
contribution to sales since it was opened 
four years ago. Over the last 12 months 
we have improved service to our US 
customers by extending opening times 
and introducing Saturday working.
The opening of our Japanese office in 
December 2006 reflects our determination 
to expand in East Asia, one of the fastest-
growing antibody markets in the world. 
With a physical presence in Tokyo, we  
are radically improving the quality of the 
service we provide to customers in 
the region.
3
regions
We operate in the world’s three 
main markets Abcam plc Annual report and accounts 30 June 2007 03 Annual report and accounts 30 June 2007 Abcam plc
Where we operate
USA
The US is Abcam’s largest market, 
accounting for over 50% of sales last 
year. This is the largest market in the 
world and we have recently launched a 
new sales and marketing programme 
to further drive sales growth.
Europe
In Europe our renewed focus on 
marketing has propelled a 58.8% 
year-on-year increase in the volume  
of business. Our virtual offices are 
promoting the use of French and 
German so that many European 
customers can now contact us directly 
in their own language.
Japan
It is still early days for our Japanese 
business but we are delighted with  
its performance to date, which saw 
sales in the second half of the year of 
¥160m (£680k). We have also recently 
launched a Japanese version of our 
website.
$960
M
 Estimated US market in 2006
$525
M
Estimated European market in 2006
$175
M
Estimated Japanese market in 2006 Abcam plc Annual report and accounts 30 June 2007 04
It gives me great pleasure to report on a 
second outstanding year for Abcam as a 
public company. Building on the growth 
we enjoyed in 2006, we have produced 
another excellent set of results whilst 
making some important investments in  
the year, which will serve as a springboard 
to even greater success in the future.
First of all, the construction of our HTP 
facility in Cambridge UK has been 
completed on schedule and operations 
have already started. The facility will help 
Abcam to take advantage of new business 
opportunities, such as a better Pharma/
Biotech offering and potentially diagnostics.
In addition to the HTP facility, we officially 
opened our new office in Japan in 
December 2006. Located in a prominent 
business district of Tokyo, the office gives 
us a strong foothold in one of the most 
rapidly growing antibody markets in the 
world. Having a local presence will greatly 
improve the quality of the support we can 
provide to Abcam customers in this region. 
With this goal in mind we have also 
enhanced the Japanese version of our 
website. Whilst these are early days for 
the Japanese business, we are 
encouraged by its performance during  
its first few months.
Although we plan to enlarge our portfolio  
of antibodies produced in-house, we 
continue to build relationships with institutes, 
academic laboratories and primary 
manufacturers that supply products to be 
sold under the Abcam brand. Over the last 
financial year we have also acquired the 
exclusive rights to distribute new antibody 
product lines with three companies. In 
August 2006 we announced an exclusive 
deal with Triple Point Biologics Inc. for a 
range of 350 antibodies with the delivery of 
another 360 antibodies over the next three 
years. We followed that by signing similar 
agreements with Assay BioTechnology 
Company Inc., a US firm that tests, 
validates and markets research antibodies, 
and with Diaclone, which is part of the 
Tepnel Group and develops antibodies and 
kits in the UK. ABT have already made 500 
products available to Abcam on exclusive 
terms and are committed to adding a further 
3,000 to our portfolio over the next five 
years; Diaclone has made 341 products 
available with exclusive distribution rights  
in the Americas and Japan.
Since our last annual report we have 
continued to attract top-quality staff. We 
now employ 27 PhDs out of 131 full-time 
employees and are currently in the midst  
of a recruitment drive as we increase 
production at the HTP facility. Last July  
we announced the appointment of two new 
Non-Executive Directors: Tim Dye and 
Mark Webster. Both have proven to be 
extremely valuable additions to the Board.
After almost eight years as Finance 
Director, a period including Abcam’s 
successful IPO in 2005, Eddie Powell has 
indicated his desire to leave the Company 
to allow him to take a career break and 
subsequently to be available for consulting 
positions. We are already well under way 
in appointing Eddie’s successor. Eddie  
will be stepping down from the Board on 
20 November 2007, following which we 
will retain his services as an adviser.  
We owe him a debt of gratitude for his 
valuable contribution to building the 
Company and wish him well for the future.
Abcam is becoming increasingly visible  
on the world stage as an important 
contributor to the field of antibodies and 
related medical disciplines. Our market 
reach makes us attractive to suppliers, 
and our customer base now extends 
Chairman’s Review
Abcam is becoming increasingly visible on 
the world stage as an important contributor 
to the field of antibodies and related medical 
disciplines. Our market reach makes us 
attractive to suppliers, and our customer 
base now extends across almost 60 countries, 
thanks largely to our reputation for reliability 
and trust in the marketplace. Abcam plc Annual report and accounts 30 June 2007 05 Annual report and accounts 30 June 2007 Abcam plc
across almost 60 countries, thanks largely 
to our reputation for reliability and trust in 
the marketplace. A recent internally 
commissioned independent report named 
Abcam as one of the top five research 
antibody companies in the world, and in 
some of our Core Focus Areas (CFAs), 
such as chromatin research, we believe 
we are the market leader.
With the landmarks we have reached this 
year, and the initiatives we have unveiled, 
Abcam has laid solid foundations for 
expansion in the future. We remain firmly 
committed to our mission to build the 
largest online catalogue of the best 
antibodies in the world.
Once again I am grateful to all of our staff 
for their efforts during the year and take  
the opportunity to thank our customers, 
suppliers and shareholders for their 
continued support.
Dividends
The Directors’ policy since the IPO in 
November 2005 has been to distribute 
25% of earnings as dividends. However,  
in view of the continuing strong cashflow 
and growing success of the Group, the 
Directors have decided to increase the 
distribution to 33% of earnings. An interim 
dividend of 0.8p per share was paid in 
April 2007 and the Directors are therefore 
recommending a final dividend of 3.19p 
per share, making a total for the year of 
3.99p. Subject to shareholder approval at 
the annual general meeting in November, 
this dividend will be paid on 7 December 
2007 to shareholders on the register on 
9 November 2007.
Outlook
We are entering the current year with an 
exciting platform for growth and current 
trading in the first few months of the year 
has been strong. The Board is confident 
of the outlook for 2008.
David Cleevely
Chairman
28 September 2007
June 2007
December 2006
July 2006 Ongoing
06/0 7 a year in review
Over 33,000 products in 
our catalogue
The number of products available in our 
catalogue hit 33,900, including more than 
25,000 antibodies and 8,000 related 
products (such as proteins, peptides and 
kits). New products from Abcam’s own 
development facilities and external 
suppliers continue to be added on a daily 
basis to the catalogue, which has grown  
at a compounded annual rate of 54% since 
its inception in 2002.
New Japanese office
Abcam opened its second overseas office 
in Tokyo, Japan. The move represents a 
major push to increase sales in East Asia. 
It will help Abcam to improve the quality  
of the technical support it offers customers 
in the region and speed the delivery of 
Abcam products to Far East markets.
New Cambridge 
manufacturing facilities
Abcam launched a major project to expand 
its laboratory and production capabilities. 
A new development facility in Cambridge, 
UK, will allow Abcam to significantly boost 
the production of high-margin antibodies 
over the next six years.
Core Focus Area initiative
Following an in-depth study of the market 
Abcam has chosen seven Core Focus 
Areas (CFAs), each of which represents  
a research area with high market demand. 
We have vertically integrated our business 
development, manufacturing, marketing, 
sales and technical support teams around 
these areas and expect to add a further 
three CFAs by June 2008. Abcam plc Annual report and accounts 30 June 2007 06
Abcam has enjoyed another impressive 
year with sales increasing by 26.6% to 
£24.5m. This growth came despite the 
weakening dollar, without which sales 
would have grown by 33.8%. (Average 
exchange rate applied to US Sales  
2007 £1: $1.92, 2006 £1: $1.77.)
This success is due to the introduction  
of new products and the performance of 
the existing catalogue. Taken across the 
catalogue, average unit sales continue  
to increase the longer a product is listed – 
a trend we attribute in part to the sheer 
quantity of product information we are 
able to gather and publish over time. 
We should also not underestimate the 
contribution made by our highly skilled 
and committed staff, who make Abcam 
such a dynamic and motivating 
organisation.
We now have almost 34,000 products in 
our online catalogue, up from 23,200 at 
the end of June 2006. As well as listing 
over 25,000 antibodies, we sell more than 
8,000 related products, including proteins, 
peptides and kits. The rapid expansion of 
our product portfolio has been fuelled by  
a growing number of partnerships with 
leading OEM suppliers worldwide and by 
our acquisition of the exclusive rights to 
distribute antibodies developed by some 
leading international manufacturers over 
the last financial year.
Major contributions to revenue have come 
from our US operation, where longer 
opening hours and a push on sales and 
marketing activities have helped us to 
achieve a high rate of growth.
In Europe a similar focus on marketing in 
the second half of the year has propelled a 
58.8% year-on-year increase in the volume 
of business over the corresponding period 
last year. Our virtual European offices are 
promoting the use of French and German 
so that many European customers can now 
contact us directly in their own language.
Despite significant investments for the 
future, profit before taxation increased to 
£5.7m from £4.8m in 2006. While margins 
remain strong, overall profitability has 
been affected by the investment in the 
new Japanese office, the impact of the 
weaker US$, increased research and 
development costs, early-stage costs for 
the exclusive distribution deals and the 
full-year effect of the costs of operating  
as a listed company.
Work on the HTP facility meanwhile was 
finished in June 2007. The antibodies we 
develop ourselves have typically been 
among our best sellers. Whilst only 6% of 
the products sold under the Abcam brand 
are produced in-house, these represent 
16% of our sales by value and generate 
proportionately higher margins. We expect 
that the new facility will allow us to 
dramatically increase our range of 
in-house products over the next few years 
and will lead to increased sales as well  
as improved gross margins.
Abcam is expert at identifying the areas  
of research with the most promise and 
offering products specifically tailored  
to meet associated demands. These 
products fall within our Core Focus Areas 
CEO’s Review
We are now becoming a leading player in an 
important and exciting market. We have built  
a scaleable business based around our state-of-
the-art website. In addition, with our large and 
growing database of users, we can now tailor 
our marketing activities according to customer 
interest. We have almost 34,000 products in our 
online catalogue, up from 23,200 at the end of 
June 2006. The introduction of new products  
and the performance of the existing catalogue 
have driven up sales by more than 26%. Abcam plc Annual report and accounts 30 June 2007 07 Annual report and accounts 30 June 2007 Abcam plc
(CFAs). Externally we have presented at 
conferences and run marketing activities 
around these CFAs, while internally we 
have vertically integrated our technical 
service, marketing, business development 
and sales departments to take full 
advantage of them. We have found this  
to be a highly successful strategy for 
capturing market share by segment, and 
plan to develop more CFAs in the future.
We are now becoming a leading player  
in an important and exciting market. We 
have a scaleable business based around 
our state-of-the-art website. By offering 
customers access to detailed and 
up-to-date technical information on our 
products, much of which is derived from 
customers’ own reviews, we have built a 
strong reputation for trust and reliability. 
In addition, with our large and growing 
database of users, we can now tailor our 
marketing activities according to customer 
interest. The investment we have made  
in systems to link the website to product 
ordering and accounting has improved  
our efficiency, and gives us the 
confidence that we will continue to 
manage our growth effectively.
Jonathan Milner
CEO
28 September 2007
33,900 products now in our catalogue
Our products
Product categories
Our products fall into the following 
treatment categories:
cancer
cardiovascular
cell biology
chromatin
isotype/loading controls
lysates/slides/kits
neuroscience
nuclear signalling
secondary antibodies
stem cells
tags and cell markers
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Abcam has almost 34,000 
products in its catalogue and 
the number is still growing.
Our team not only adds new 
products to our catalogue 
every day but also regularly 
modifies the datasheets for 
our existing products. These 
modifications are based 
on our own testing and 
research in addition to the 
feedback of our suppliers 
and customers.
For our customers,  
all of this means:
more antibody targets
more product types
more choice
Around 6% of products sold under the 
Abcam brand are manufactured in-house, 
but these products generate 16% of our 
revenue and typically generate 
proportionately higher margins.
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Following the construction of a new 
production facility in Cambridge, UK,  
we plan to devote substantially more 
resources to in-house product 
development. By 2012, we expect  
50% of Abcam-branded products to  
be produced at our sites. This will 
significantly boost our revenue and  
gross margins.
Products sold by Abcam but not 
manufactured on our premises are 
supplied by more than 200 leading  
OEM partners around the world. Abcam plc Annual report and accounts 30 June 2007 08
The construction of our HTP facility in 
Cambridge UK was a major project this 
year, and I am delighted to report it was 
completed on time and within budget. 
At this facility we will develop a highly 
automated monoclonal antibody 
production system and continue to 
produce polyclonal antibodies. We expect 
it to become one of the most advanced 
antibody production facilities in the world, 
further proving our commitment to build 
scaleable business processes and 
products of the highest standard. The 
facility is expected to add over 35,000 new 
quality high-margin monoclonal antibodies 
to our catalogue over the next five years.
The robotic stock storage and retrieval 
system that has been so successful in the 
UK has now been replicated in the US, 
and it is delivering similar results in terms 
of the speed and reliability of order 
delivery. Using leading-edge storage and 
handling facilities, we have successfully 
cut our shipping times and increased our 
rate of output without incurring additional 
expenditure on staffing and conventional 
refrigeration systems.
Extended opening times and Saturday 
working in the US have further improved 
service levels to customers and we are 
now trialling a key-account marketing 
initiative, selling to targeted market areas 
in the country. In the UK, we recently 
launched a new service promising 
same-day delivery of antibodies to 
scientists based in the Cambridge  
area at no extra cost.
We have successfully developed and 
deployed a Japanese-language version  
of our website to take full advantage of 
our local presence in our Tokyo office. 
Priorities in the Far East include improving 
our technical support and speeding up the 
delivery of our products to customers. 
Japan is a challenging market and so  
far we have been delighted with the 
performance of the business, which has 
generated ¥160m (£680k) in revenue  
in the second half of the year.
We continue to improve the performance 
of our website in general, focusing on the 
speed of access to our global market 
We are now deploying a content caching 
and delivery solution so that our website 
can be served locally from over 25,000 
servers across 69 countries. This 
important initiative will help stabilise  
the website and improve response times 
for users, supporting the continued 
expansion of our geographical reach.
Growth of the scale we are achieving 
relies in large part on the continued 
commitment of staff. We place strong 
emphasis on responsibility for and 
communication with employees. Through 
a programme of weekly updates, quarterly 
departmental and annual strategy and 
budget presentations, we ensure that 
each employee understands his or her 
objectives and targets and how these 
relate to the Group as a whole.  
The success of the programme is 
demonstrable in the enthusiasm and 
creativity which drives the Group.
Jim Warwick
Managing Director
28 September 2007
Managing Director’s Review
Our high-throughput facility, which is one 
of the world’s most advanced antibody 
production laboratories, is designed to 
produce an increasing number of higher 
margin in-house products to add to our 
online catalogue. Abcam plc Annual report and accounts 30 June 2007 09 Annual report and accounts 30 June 2007 Abcam plc
Major expansion of manufacturing facilities
Our facilities
Abcam is massively expanding its laboratory and 
production capabilities. Its brand new laboratory 
in Cambridge, UK, covers 20,000 square feet and 
includes high throughput antibody purification and 
characterisation facilities.
The benefits
The facility is expected to add over 35,000 
new quality high-margin products to our 
catalogue over the next five years to 
complement our existing range from 
trusted suppliers, giving us the best 
catalogue in the world. With this 
development we will be able to improve 
both the range and the availability of the 
products we offer our customers and 
maintain our position as market leader for 
the provision of antibodies and reagents.
We are now recruiting key staff for the 
planning, implementation and ongoing 
management of this exciting new 
development. Abcam plc Annual report and accounts 30 June 2007 10
Gross margin
Gross margins reported for the period 
under review are 59.1% compared with 
61.3% for the previous year. The 
difference results partly from an increased 
allocation of costs to cost of sales and 
lower margins in the early stages of the 
exclusive product distribution deals signed 
in the year. As sales of products from 
these deals grow we expect margins to 
exceed those of the rest of the catalogue.
Part of the remit of our Business 
Development team is to obtain best terms 
from our suppliers and price increases in  
the year have been modest overall. As the 
Group’s sales grow we are buying more from 
our suppliers and consequently are now 
able to negotiate some price reductions.
Administrative expenses
Although administrative expenses rose 
from £6.2m to £7.6m, they fell as a 
percentage of sales, from 31.9% to 30.9%. 
The costs for the year include those 
incurred in relation to the opening of the 
Japanese office, spending our first full-year 
as a public company and as explained 
below, from the application of FRS 20.
The accounting standard FRS 20 on 
share-based payments has been applied 
to the Company’s accounts for the first 
time, and this has resulted in a charge  
of £162,000 for the period. As the first 
application of this standard is a change  
of accounting policy, the results for the 
same period last year have been restated 
by including a corresponding charge in 
the expenses for that period of £72,000.
US$ impact
The weakening dollar has had an adverse 
impact on revenue. Had the rate remained 
the same as the previous year, sales 
would have been higher at £25.9m and 
operating profit would have been £0.4m 
higher based on an average exchange 
rate applied to US Sales (2007 £1: $1.92, 
2006 £1: $1.77)
Research and Development 
expenditure
Research and Development expenditure 
increased to 7.0% of sales from 6.3% in 
2006 and this is reflected in the growing 
number of products which are produced 
in-house.
Profit
Operating profits increased 15.3% from 
£4.5m in the year ended June 2006 to 
£5.2m. The decrease as a percentage of 
sales from 23.3% to 21.2% reflects the 
impact of the additional costs outlined above. 
Interest income rose as the Company 
benefited from full-year availability of 
funds raised from the IPO.
Tax
The consolidated tax charge for the year 
was £1.6m or 27.3% of profit before tax. 
The effective tax charge for 2006 was 
29.1%, reflecting the increased amount  
of research and development undertaken 
this year and the consequent tax credits. 
The tax charge for 2006 has been 
restated from £1.2m to £1.4m as a result 
of FRS 20 (see note 22).
Inventories
Inventory levels have increased somewhat 
faster than sales partly because of inventory 
purchased as part of the product line 
agreements that provide Abcam with 
exclusive distribution rights to certain 
products and partly because of the increase 
in the number of Abcam products developed 
in-house, which involve batch sizes larger 
than required for immediate sale.
Debtors
The majority of sales continue to be on 
credit and credit control is a key function. 
Debtor days have increased slightly to  
47 days (2006: 45 days). Historically the 
Group has experienced a low level of 
bad debt.
Creditors
Total creditors rose from £3.0m to £3.8m. 
These now include amounts owing in 
relation to the deferred settlement 
arrangements on product line acquisitions 
concluded during the year. These have 
been allocated between creditors due 
within one year and amounts falling due 
after one year.
Provisions for Liabilities and Charges 
represent deferred tax balances which 
Financial Review
Pre-tax profits have risen 18.1% to £5.7m and 
Abcam’s operating cashflow, at £4.9m, 
remains strong. Abcam now employs 131 full-time staff, 
27 of whom have PhDs. In the UK, we 
are able to draw on our close links with 
the University of Cambridge from where 
many of our PhD recruits come.
Abcam remains fully committed to 
enhancing the abilities of its team 
members through its programme of  
staff training and development.
We continue to grow. With the 
construction of our laboratory in 
Cambridge, UK, we are now recruiting 
staff for key roles in the planning, 
implementation and management  
of this new business.
The strength our staff bring is 
demonstrable in the enthusiasm and 
creativity which drives the Company.
Abcam plc Annual report and accounts 30 June 2007 11 Annual report and accounts 30 June 2007 Abcam plc
have increased due to the level of 
expenditure during the year on capital 
equipment relating to the HTP facility.
Cash flow
The Group’s cashflow continues to be 
strong, with £4.9m (2006: £3.5m) 
generated from trading in the period. 
Consequently, despite spending £1.8m  
on acquiring distribution rights and £2.3m 
on facilities and equipment, the Group’s 
cash and short term investments balances 
only decreased by £1.2m.
Accounting standards
The results for the period ended 30 June 
2007 have been produced on the same 
basis as the restated statutory accounts  
at 30 June 2006. These accounts conform 
with UK Generally Accepted Accounting 
Principles. Abcam will move to report 
under International Financial Reporting 
Standards for the year ending 30 June 
2008 but this is not expected to have a 
material impact on the Group’s 
reported results.
EPS
Whilst post tax profit grew by 21.1%,  
the growth in basic EPS was only 11.74% 
reflecting the impact of the significant 
number of shares which were issued on 
the Company’s IPO in November 2005 
(see note 9).
Currency exposure
The Group continues to generate 
significant amounts of surplus dollars and 
euros and has hedging arrangements in 
place to reduce the exposure. During the 
year to 30 June 2007 the Company had 
forward exchange contracts in place to 
sell $9.6m and €3.6m at average rates  
of £1 to $1.79 and £1 to €1.47 respectively. 
For the year ending 30 June 2008 the 
Company has contracts in place to sell 
forward $7.8m and €6.5m. These 
contracts are at average rates of £1  
to $1.92 and £1 to €1.47.
Eddie Powell
Finance Director
28 September 2007
Strength through brilliant people
Our people
We take enormous pride in the calibre of our employees. 
Since its launch in 1998, Abcam has had tremendous 
success in attracting highly skilled people to its business 
and it now boasts an impressive intellectual capital base. Abcam plc Annual report and accounts 30 June 2007 12
The Board
1. 2.
3. 4.
5. 6.
7. 8.
1. David Cleevely, PhD, 54 
Chairman
David Cleevely is the founder and former 
Managing Director of Analysys Ltd. After 
its formation in 1985, he oversaw 
Analysys’ growth into Europe’s largest 
independent consultancy specialising in 
telecommunications strategy. Analysys 
was sold in August 2004 and David has 
no current involvement. David has a first 
class honours degree in Cybernetics and 
Instrument Physics with Mathematics and 
a PhD in ‘regional structure in telecoms 
demand’ from Cambridge University. In 
1982 he joined The Economist Informatics 
Intelligence Unit (EIU), becoming 
Divisional Director. He founded Abcam 
with Jonathan Milner and Tony Kouzarides 
in February 1998.
2. Jonathan Milner, PhD, 43 
Group Chief Executive
Jonathan Milner has a BSc in Applied 
Biology from Bath University and a PhD  
in Molecular Genetics from Leicester 
University. From 1992 to 1995 he was a 
research fellow for Pfizer Pharmaceuticals 
in the laboratory of Professor Tony Rees 
at the University of Bath, and from 1995 
until 1998 he was a research fellow at 
Cambridge University in the laboratory  
of Professor Tony Kouzarides, where he 
studied genes and proteins associated 
with human cancers. He founded Abcam 
with David Cleevely and Tony Kouzarides 
in February 1998.
3. Jim Warwick, BSc, 43 
Managing Director
Jim Warwick has a BSc in Computer 
Science from Cambridge University. From 
1986 to 2003 he worked for Analysys Ltd, 
a Cambridge-based telecommunications 
consultancy, heading up the IT, software 
and web development initiatives. During 
this period he also held a number of 
non-executive directorships with external 
organisations, including Workbench 
Software Ltd, a start-up with a targeted 
software package for time recording 
systems, and VBN Ltd, a web-based 
hosting company specialising in business  Abcam plc Annual report and accounts 30 June 2007 13 Annual report and accounts 30 June 2007 Abcam plc
cluster and innovation network solutions. 
He joined Abcam in 2001 as Technical 
Director, initially working part-time but as 
a permanent employee from 2003. He  
has overseen the expansion of Abcam’s 
bespoke web-based systems. Jim was 
promoted to Managing Director of Abcam 
Ltd in June 2004.
4. Eddie Powell, PhD, FCA, 59 
Finance Director
Eddie Powell has a BSc and a PhD in 
Chemistry from Cambridge University  
and qualified in 1976 as a chartered 
accountant with Peat, Marwick, Mitchell 
(now KPMG) in London. He then worked 
for two years as a financial controller in 
Frankfurt, Germany. After returning to  
the UK he joined Marconi Instruments, a 
subsidiary of GEC, as Financial Controller, 
and later Finance Director. In 1990 he 
moved to Colt, a privately owned 
international light-engineering group, as 
Group Finance Director. He joined Abcam 
in March 2000 as Finance Director.
5. Mark Webster, BSc, 45 
Commercial Director
Mark Webster has a BSc in Chemistry 
from Durham University. He joined Abbott 
Laboratories in 1988 and ran the UK 
Pharmaceutical and Hospital Divisions 
before moving to Montreal, Canada in 
1997 and then Chicago, USA in 1999,  
as Vice President of Anti-Virals, US 
Pharmaceuticals. Here he launched 
Kaletra for HIV infection, which generated 
$1bn in revenue. In 2001 he joined Shire 
Pharmaceuticals as Head of Global 
Strategic Marketing and Licensing/
Acquisitions and a member of the 
Executive Committee. He then joined 
Bayer Healthcare in Germany in 2004  
as Senior Vice President, Head of Global 
Strategic Marketing and Licensing/
Acquisitions and a member of Bayer 
Pharmaceutical’s Management 
Committee. After joining the Board as a 
Non-Executive Director in July 2006 he 
became a full-time Director of Abcam in 
March 2007. He will revert back to a 
Non-Executive role in November 2007.
6. Tony Kouzarides, FRS, PhD, 50 
Non-Executive Director
Tony Kouzarides has a BSc in Molecular 
Genetics from Leeds University and  
a PhD in Virology from Cambridge 
University. He was subsequently awarded 
a research fellowship from Fitzwilliam 
College, Cambridge. From 1986 to 1989 
he spent three years working as a 
research fellow in the laboratory of 
Professor Ed Ziff at New York University 
Medical Centre, where he discovered a 
fundamental principle underlying the 
association of proteins involved in human 
cancer. He was awarded a professorship 
at Cambridge University in 1999 and now 
oversees a group of scientists studying 
genes and proteins associated with 
human cancers. He has played a central 
role in expanding Abcam’s own antibody 
product range into the Chromatin 
research area.
7. Peter Keen, BSc, ACA, 50 
Non-Executive Director
Peter Keen is a Chartered Accountant 
with more than 20 years’ experience in  
the financing and management of 
biotechnology companies. After gaining 
experience in the agricultural 
biotechnology and medical diagnostics 
sectors, he was a co-founder and Finance 
Director of Chiroscience Group plc. He 
then helped establish Merlin Biosciences, 
being responsible for a number of 
investments including Ark Therapeutics, 
Cyclacel, ReNeuron and Vectura. More 
recently, he was Chief Financial Officer of 
Arakis Ltd until its successful trade sale in 
2005. He is a partner with the technology 
venture firm Esprit Capital Partners LLP 
and a Non-Executive Director of Ark 
Therapeutics plc, The Biotech Growth 
Trust plc and Prelude Trust plc. He also 
acts as an advisor to various other 
organisations.
8. Tim Dye, MA, 44 
Non-Executive Director
Tim Dye is currently Chairman and Chief 
Executive of William Ransom & Son plc, 
an AiM-quoted business specialising in 
the manufacture, sales and marketing  
of natural healthcare products. Through  
a series of successful acquisitions, he  
has led the transformation of William 
Ransom into one of the UK’s largest 
natural healthcare groups. Prior to joining 
Ransom in 1999, and following an early 
career as a strategy consultant, he 
founded and ran businesses in automated 
meter reading, environmental 
management and property development. 
He has an MA in Economics from 
Cambridge University. Abcam plc Annual report and accounts 30 June 2007 14
Corporate Directory
Directors
Chairman
Dr David Cleevely
CEO
Dr Jonathan Milner
Finance Director
Dr Eddie Powell
Managing Director
Mr Jim Warwick
Commercial Director
Mr Mark Webster
Non-Executive Directors
Mr Tim Dye
Mr Peter Keen
Prof Tony Kouzarides
Company Secretary and Registered Office
Mr Tom McGuire
332 Cambridge Science Park
Cambridge
CB4 0FW
Nominated Advisor and Broker
Numis Securities Limited
The London Stock Exchange Building
10 Paternoster Square
London
EC4M 7LT
Solicitors to the Company
Eversheds LLP
Senator House
85 Queen Victoria Street
London
EC4V 4JL
Auditors
Deloitte & Touche LLP
Chartered Accountants
126-130 Hills Road
Cambridge
CB2 1RY
Public Relations Advisors
Buchanan Communications Limited
45 Moorfields
London
EC2Y 9AE
Bankers
National Westminster Bank Plc
King’s Parade
Cambridge
CB2 3PU
Registrars
Capita IRG Plc
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
HD8 0LA 15 Annual report and accounts 30 June 2007 Abcam plc
Directors’ Report
The Director’s present their annual report on the affairs of the 
Group, together with the financial statements and auditors’ report, 
for the year ended 30 June 2007.
Principal activities and future developments
The Group’s activities consist of the development, marketing  
and selling of antibodies and closely related products. The Group 
sells through the internet to customers in most countries of the 
world. The Group operates through its parent Company Abcam 
plc and through its wholly owned subsidiaries Abcam Inc. and 
Abcam KK.
The Company is also increasing its own manufacturing capability 
through investment in a new high-throughput production (‘HTP’) 
laboratory. 
Future developments are addressed in the Chairman’s, CEO’S 
and Managing Director’s reviews at the front of this annual report.
Business review
The Group’s management uses key performance indicators (KPIs) 
to monitor the progress of the business. Important KPIs are:
 30 June  30 June 30 June 
 2007 2006 2005
Number of products  
 published 33,900 23,200 16,500
Sales per employee £000 203 223 209
Profit before tax to sales 23.3% 24.9% 24.5%
Number of debtor days 47 45 47
Sales increased by 26.6% over the previous year (33.8% on a 
constant exchange rate basis (Actual rate for 2007: £1: $1.92, 
2006: £1: £1.77) as a result of the launch of new products and 
continued increases in sales from the existing catalogue. The 
Group continued to generate strong margins, and pre-tax profits 
increased by 18.1%, reflecting the cost of investments made in 
the year, particularly in connection with acquired product lines, 
the new Japanese office, higher levels of Research and 
Development expenditure, the costs of operating as a listed 
company for the full year and the impact of the weaker US$.
The average number of employees for the year has increased  
to 121 (2006: 87). In part this is a consequence of investments 
made for the future, including those staff involved in setting up 
the HTP facility and the new office in Japan.
The Group’s cash and short term deposits remained at a strong 
level of £10.7 million (2006: £11.9m).
The Directors are confident that the Group has a solid basis  
for growth. An overview of the business is set out in the Chief 
Executive Officer’s and Managing Director’s reviews together 
with the Financial Review.
Principal risks and uncertainties
The Group faces the competitive and strategic risks that are 
inherent in a rapidly growing market, and the Group’s Board  
and executive management keep these under regular review.
The Group has an exposure to exchange rates, in particular  
the strength of sterling relative to the US dollar and the euro. 
Although there are significant natural hedges in place due to the 
fact that the Group is able to utilise a large proportion of its dollar 
and euro income to pay for outgoings in those currencies, the 
Group still generates surpluses of both currencies. The Board’s 
policy for dealing with these is to sell forward some of the 
expected surplus currencies at the start of each financial year  
in order to reduce the short term exposure. However if there are 
longer term movements in the relative strength of sterling then 
these will impact the Group’s profits. For further details on the 
use of financial instruments see note 16.
The Group’s activities involve importing and exporting its 
products across many international borders. Any changes to the 
regulations covering such movements might have an effect on 
the Group’s trading activities.
The Company has made qualifying third party indemnity 
provisions for the benefit of its Directors which were made during 
the reporting period and remain in force at the date of this report.
Research and development
The Group undertakes research and development in areas 
related to its principal activities and this is discussed in the 
Chairman’s, CEO’s and Managing Director’s reviews at the  
front of this annual report.
Post balance sheet events
None to be noted.
Dividends
The Directors propose paying a final dividend of 3.19p (2006: 
2.0p) per ordinary share, to be paid on 7 December 2007 to 
shareholders on the register on 9 November 2007. Together  
with the interim dividend of 0.8p paid on 9 April 2007, this  
makes a combined dividend of 3.99p (2006: 5.95p). Abcam plc Annual report and accounts 30 June 2007 16
Directors’ Report continued
Directors
The Directors who held office throughout the year, and their 
interests in the share capital of the Company at 30 June 2007, 
other than with respect to share options (which are detailed in  
the Directors’ Remuneration Report), were as follows:
 1p ordinary shares 1p ordinary shares  
 30 June 2007 30 June 2006
David Cleevely 4,669,760 5,054,760
Peter Keen 8,982 8,982
Tony Kouzarides 359,080 629,080
Tim Dye nil nil
Jonathan Milner 9,044,960 9,744,960
Eddie Powell 636,240 726,240
Jim Warwick 826,200 860,200
Mark Webster nil nil
David Cleevely and Jonathan Milner are required to be re-elected 
at the forthcoming Annual General Meeting.
Supplier payment policy
It is the Group’s policy that payments to suppliers are made in 
accordance with the terms and conditions agreed with them, 
provided that the supplier has provided the goods or services  
in accordance with the agreed terms and conditions.
On 30 June 2007, the Group had an average of 32 days of 
purchases (2006: 32) outstanding in trade creditors.
Charitable and political donations
The Group made charitable donations during the year of £1,020 
(2006: £2,646), principally to charities serving the communities 
in which it operates.
The Group made no political donations during the year 
(2006: £nil).
Substantial shareholdings
Other than Directors’ interests which are set out above, as at  
28 September 2007 the Company had been notified that the 
following shareholders hold 3% or more of the issued share 
capital of the Company:
Unicorn Asset Management Limited  7.3%
Aviva PLC  6.6%
Standard Life Investments Limited  5.1%
Eaglet Investment Trust PLC  3.2%
Corporate, social and ethical policies
We recognise the importance of balancing the interests of all  
our key stakeholders – our customers, our shareholders, our 
employees, our suppliers and the communities in which we 
operate. Management of the environmental and social issues  
that play a part in our business is a key factor in our strategy for 
success and in the practice of good corporate governance.
Going concern
The Directors are satisfied that the Group has adequate 
resources to continue its operations for the foreseeable  
future, and for this reason they continue to prepare the  
financial statements on a going-concern basis.
Auditors
In the case of each of the Directors of the Company at the date 
on which this report was approved:
 As far as each of the Directors is aware, there is no relevant 
audit information (as defined in the Companies Act 1985) of 
which the Company’s auditors are unaware.
 Each of the Directors has taken all the steps that he ought to 
have taken as a Director to make himself aware of any relevant 
audit information (as defined) and to establish that the 
Company’s auditors are aware of that information.
This confirmation is given and should be interpreted in 
accordance with the provision of S234ZA of the Companies  
Act 1985.
Deloitte & Touche LLP have expressed their willingness to 
continue in office as auditors and a resolution to reappoint them 
will be proposed at the forthcoming Annual General Meeting.
Approved by the Board and signed on its behalf by
David Cleevely
Chairman
28 September 2007
•
• Abcam plc Annual report and accounts 30 June 2007 17 Annual report and accounts 30 June 2007 Abcam plc
Corporate Governance
The Directors believe that effective corporate governance, 
appropriate to the Group considering its size and stage of 
development, will assist in the delivery of corporate strategy,  
the generation of shareholder value and the safeguarding of 
shareholders’ long term interests. The Directors are committed 
therefore, wherever it is reasonably practicable, to ensure that 
the Group is managed in accordance with the principles set out 
in the revised Combined Code on Corporate Governance.
The role and composition of the Board
The Board comprises a Non-Executive Chairman, who is not 
deemed to be independent because of his shareholdings, four 
full-time Executive Directors and three other Non-Executive 
Directors, two of whom are deemed to be independent because 
they have either very few or no shares or share options. Mark 
Webster moved from being Non-Executive to Executive Director 
in March 2007 and having successfully redefined and 
implemented the Company’s sales and marketing strategy, 
particularly in the North American market, will resume his  
Non-Executive responsibilities from 1 November this year.
The roles of Chairman and Chief Executive are vested in 
separate individuals, each with clear allocation of accountability 
and responsibility. The Chairman has prime responsibility for 
running the Board and the Chief Executive Officer has executive 
responsibilities for the Company’s strategic development, 
operations and results.
The structure of the Board and the integrity of each Director 
ensures that there is no one individual or group dominating  
the decision making process.
The Board holds full meetings every second month. The principal 
matters that it considers are as follows:
 Monthly management accounts and performance against 
budget.
 Regular reviews of R&D, operations and product line 
acquisition.
 An annual review of strategic objectives and Company priorities.
 The Group budget.
 Reporting including statutory accounts, dividend policy, 
dividend payments and the AGM.
 Performance of the Board and sub-Committees.
 Reports of the Audit, Nomination and Remuneration  
Committees.
 An annual review of risk-management strategy and controls  
and a six-monthly review of the risk register.
 Matters relating to the Company’s obligations as a listed 
company.
 Management of funds and major capital expenditure, including 
proposals for mergers or acquisitions of other companies or 
product lines.
•
•
•
•
•
•
•
•
•
•
In those months when the Board does not meet, members continue 
to be informed on a formal reporting basis of financial results and 
key issues. The Board is supplied with information in a timely 
manner, and in a form and of a quality appropriate to enable it to 
discharge its duties. Directors receive appropriate induction on 
joining the Board and regularly update their skills and knowledge.
The Board has a policy to set out which matters are reserved for 
the decision of the Board, and to clarify those matters which the 
Executive Directors need not refer for approval.
This policy also identifies those matters regarding which full 
delegation to a Board Committee is not normally permitted 
because a final decision on the matter is required to be taken by 
the whole Board. The terms and conditions for the appointment 
of Non-Executive Directors are available for inspection. Matters 
which the Board considers suitable for delegation are contained 
in the terms of reference of its Committees.
The Board has established the following three committees:
The Audit Committee.
The Nomination Committee.
The Remuneration Committee.
Each of the committees is described in more detail below.
The Audit Committee
The Committee is made up of three Non-Executive Directors two 
of whom are considered to be independent. The Chairman is 
Peter Keen, who is a Chartered Accountant, with David Cleevely 
and Tony Kouzarides being the other Directors on the Committee.
The Committee has responsibility for the following matters:
 To review the accounts and the key judgements and policies 
underlying them in relation to the interim and annual financial 
statements before they are submitted to the Board for final 
approval.
 To review the management’s reports on internal controls.
 To review the Group’s risk-management process, including the 
adequacy of insurance cover.
 To review the appointment of the external auditors together 
with the audit fee.
 To monitor the audit and non-audit work of the external 
auditors, including reviewing any management letters and the 
Company’s response.
As part of its procedures, the Committee discusses the interim 
and annual financial statements with the external auditors. When 
appropriate, non-Committee members are invited to attend. 
During the period the Committee has met twice on a formal basis 
and a number of times informally. The Committee is expected to 
continue to meet formally twice a year.
•
•
•
•
•
•
•
• Abcam plc Annual report and accounts 30 June 2007 18
The Nomination Committee
The Committee is made up of three Non-Executive Directors,  
one of whom is considered to be independent: David Cleevely 
(Chairman), Peter Keen and Tony Kouzarides. It is responsible 
for the following matters:
 To identify and nominate suitable candidates to fill vacancies 
on the Board.
 To review succession planning for both Directors and the 
management team.
The Remuneration Committee
The Committee is made up of three Non-Executive Directors, two 
of whom are deemed to be independent: Peter Keen (Chairman), 
David Cleevely and Tim Dye.
The Committee is responsible for the following matters:
 Setting the basic pay of Executive Directors and the 
remuneration of the Chairman.
 Setting a performance-related bonus plan for the Executive 
Directors, including determining the extent to which they 
participate in the Company’s Profit Share Scheme (PSS).
 Agreeing the allocation and term for the granting of new share 
options to Executive Directors.
 Determining the Executive Directors’ pension contributions.
 Overseeing the overall annual pay review for the Group.
The Committee aims to set levels of remuneration for Executive 
Directors that are appropriate for the size and complexity of the 
Group. It aims to see that a significant proportion of their 
remuneration package is performance-related.
The Committee is also responsible for overseeing the Company’s 
Profit Share Scheme and its share option scheme, both of which 
are reviewed each year.
•
•
•
•
•
•
•
Internal control
The Board acknowledges its responsibility for safeguarding the 
shareholders’ investment and the Group’s assets. In applying this 
principle, the Board recognises that it has overall responsibility 
for ensuring that the Group maintains a system of internal control 
to provide it with reasonable assurance regarding effective and 
efficient operation, internal financial control and compliance with 
laws and regulations.
Through the Audit Committee and meetings with the auditors, the 
Directors have reviewed the effectiveness of the internal controls, 
and taken steps to ensure that the Group has an appropriate 
control environment for its size and complexity. The management 
team will identify, evaluate and monitor risk in order to ensure 
that the internal control environment develops with the size of 
the Group.
Such systems, which are designed to manage rather than 
eliminate the risk of failure to achieve business objectives,  
will provide reasonable, though not absolute, assurance  
against material loss or misstatement.
Dialogue with shareholders
The Board believes it is important to have open communications 
with shareholders. To this end, the CEO and Finance Director, 
working in consultation with the Company’s corporate and PR 
advisors, make themselves available to, and expect to meet with, 
shareholders at least twice a year. The Board intends to give a 
presentation on progress within the Group at the AGM.
Corporate Governance continued Abcam plc Annual report and accounts 30 June 2007 19 Annual report and accounts 30 June 2007 Abcam plc
Directors’ Remuneration Report
Unaudited information
Remuneration report
The Group has a Remuneration Committee (‘the Committee’) 
which, wherever possible, is constituted in accordance with  
the recommendations of the Combined Code.
In considering the Executive Directors’ remuneration for the  
year, the Committee consulted the CEO about its proposals  
and reviewed executive compensation packages in the UK for 
AiM-listed companies of comparable size. It also referred to  
a number of specialist studies on executive remuneration.
Remuneration policy
The four main elements of the remuneration package for the 
Executive Directors are as follows:
 Basic annual salary.
 The Abcam Profit Share Scheme (PSS) and individual 
performance-related targets, which, if targets are met,  
amount to 50% of basic salary paid in cash.
 Share-option incentives.
 Pension arrangements.
The Group’s policy is that a substantial proportion of the 
remuneration of the Executive Directors should be 
performance-related.
Basic salary
An Executive Director’s basic salary is determined by the 
Committee at the beginning of each financial year. Salaries were 
reviewed in June 2007, with increases taking effect from 1 July 
2007. Executive Directors’ service contracts, which include details 
of remuneration, will be available for inspection at the AGM.
Performance-related payments
The Group operates a PSS whereby an amount is allocated to all 
employees, including the Executive Directors, on a points-based 
system. For the year under review the amount allocated was 
based on the achievement of a ratio of profit to sales, and 
increased or decreased depending on whether the target ratio 
was hit. For the year ending 30 June 2008, the amount to be paid 
through PSS is dependent on the level of pre-tax profit achieved. 
The amount allocated will vary depending on the level of 
profitability.
The basis of performance-related pay for Executive Directors for 
the year ending 30 June 2008 incorporates performance criteria 
related to the objectives for that particular individual, which are 
directly related to defined strategic objectives. If the Company 
achieves the budgeted pre-tax profit, and an Executive Director 
achieves all of his personal objectives, he may earn 50% of his 
basic salary as performance-related pay, 40% from the PSS and 
10% from the individual bonus. The PSS payment is not capped, 
•
•
•
•
and so if the Company exceeds its targets additional payments 
may be made. Payments on account from the PSS are made 
each quarter, although at no stage will they exceed 85% of the 
amount due until the audited accounts are approved.
The PSS scheme for all staff, including Executive Directors,  
is pensionable. The performance-related bonuses are non-
pensionable.
Share options
It is the intention to grant additional options on a regular basis to 
the Executive Directors under the Abcam plc 2005 plan. While 
the value of such options may vary, it is the current plan to issue 
options on an annual basis with a value equivalent to 100% of 
basic salary and with performance conditions which comply with 
guidelines and best practice governing the grant of share-based 
incentives in a listed company, to the extent to which the 
Committee considers such practice to be appropriate to the 
Group. Options will be granted to the Executive Directors on this 
basis, i.e. at 100% of base salary calculated on the market price 
at the date of grant.
For the next grant the performance conditions will be based on 
out-performance of the FTSE AiM index measured on the third 
anniversary of the date of grant. If the target is achieved, then 
options will be exercisable during the next seven years, subject  
to the rules of the scheme. If the target is not met at the third 
anniversary, then it will be monitored on certain dates over the 
next 12 months. If the target is met on any of those dates, then 
the options become exercisable. If the target is not met on any  
of those dates, the options will lapse on the fourth anniversary.
The Company has also established a non-discretionary Inland 
Revenue-approved SAYE scheme in which the Executive 
Directors may participate. Under this scheme, employees can 
contract to save any amount, up to a maximum of £250 per 
month, of their post-tax earnings for a period of either three or 
five years. At the time of entering the contract the Company will 
offer the employee the option to acquire shares, using the money 
that has been saved over the life of the contract. The price at 
which the shares can be purchased will be the market value of 
the shares on the date immediately preceding the offer at a 
discount of 20%.
In the period since listing on AiM, no share options have been 
granted to Non-Executive Directors. There are no plans for any 
such grants in the future.
Pension arrangements
In the UK, all employees, including Executive Directors, are 
invited to participate in the Group Personal Pension Plan, which 
is money-purchase in nature. The pensionable element of  Abcam plc Annual report and accounts 30 June 2007 20
Directors’ Remuneration Report continued
remuneration is basic salary plus on-target earnings from the PSS. During the year, the Group contributed 6% of on-target earnings, 
excluding the individual performance bonus, to a Group personal pension scheme in the name of each Executive Director.
Executive Directors also have the option to take a further element of their remuneration as pension contributions and a flexible 
benefits scheme was introduced on 1 July 2007 for all employees of the Company, including Executive Directors.
Audited information:
Remuneration details
     Employer’s Notional gain 
  Basic  Performance pension on options 
  salary Allowances payments contributions exercised 2007 total 2006 total 
  £000 £000 £000 £000 £000 £000 £000
David Cleevely 57 – – – – 57 74
Peter Keen 33 – – – – 33 18
Tony Kouzarides 25 – – – – 25 66
Tim Dye 25 – – – – 25 nil
Jonathan Milner 97 – 95 77 – 269 252
Eddie Powell 106 – 70 17 – 193 204
Jim Warwick 73 – 75 61 92 301 204
Mark Webster 67 3 24 3 – 97 nil
The notional gain on options exercised is the market value of the shares at date of exercise less the exercise price payable. The 
notional gain is before taking account of any tax liability that may arise.
Directors had the following interests in options over 1p ordinary shares in the Company:
 Share Number of Number of Share 
 options at options granted  options exercised options at Exercise 
 30 June 2006 in the year  in the year 30 June 2007 price Exercise period
David Cleevely 40,000 – – 40,000 125p 31/01/06 to 29/09/15
Peter Keen 60,000 – – 60,000 150p 31/01/06 to 26/10/15
Tony Kouzarides 40,000 – – 40,000 125p 31/01/06 to 29/09/15
Jonathan Milner 40,000 – – 40,000 62.5p 27/07/07 to 29/09/15
 – 53,571
(1)
 – 53,571 280p 08/09/09 to 06/09/16
Eddie Powell 40,000 – – 40,000 62.5p 27/07/07 to 29/09/15
 – 39,642
(1)
 – 39,642 280p 08/09/09 to 06/09/16
 – 4,218
(2)
 – 4,218 224p 08/09/09 to 06/09/16
Jim Warwick 36,000 – (36,000) – 25p
 32,000 – – 32,000 37.5p 16/06/07 to 15/06/13
 32,000 – – 32,000 50p 16/06/08 to 15/06/13
 40,000 – – 40,000 62.5p 27/07/07 to 29/09/15
 – 42,142
(1)
 – 42,142 280p 08/09/09 to 06/09/16
 – 4,218
(2)
 – 4,218 224p 01/11/09 to 01/05/10
Mark Webster – 167,230
(3)
 – 167,230 296p  01/11/07 to 01/01/08
(1) These options were granted under the Abcam plc 2005 plan and are subject to the performance condition that the share price outperforms the FTSE AiM Index 
at the third anniversary of grant. If this is not the case performance will be tested on certain dates over the next 12 months and if the target is not met on any of 
those dates, the options will lapse on the fourth anniversary.
(2) These options are granted under the Save As You Earn Scheme. Options under the Scheme are not subject to performance conditions.
(3) Mark Webster will become a Non-Executive Director with effect from 1 November 2007. These options are not subject to performance conditions and have a two 
month exercise period ending on 1 January 2008. Abcam plc Annual report and accounts 30 June 2007 21 Annual report and accounts 30 June 2007 Abcam plc
Directors’ contracts
The notice periods for Directors are as follows:
        Notice period 
       Date of contract (months)
David Cleevely     24 July 2007 1
Peter Keen     27 October 2005 1
Tony Kouzarides     24 July 2007 1
Tim Dye     26 May 2006 1
Jonathan Milner     10 June 2000 6
Eddie Powell     11 August 2000 1
(1)
Jim Warwick     1 September 2001 6
Mark Webster     12 March 2007 1
(2)
(1) Eddie Powell will be stepping down as Finance Director on 20 November 2007, following which he will remain as an adviser to the Company. Consequently his 
notice period has been reduced to one month.
(2) Mark Webster will become a Non-Executive Director with effect from 1 November 2007, at which point his notice period will become one month. Abcam plc Annual report and accounts 30 June 2007 22
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report 
and the financial statements in accordance with applicable law 
and regulations.
Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the Directors 
have elected to prepare the financial statements in accordance 
with United Kingdom Generally Accepted Accounting Practice 
(United Kingdom Accounting Standards and applicable law).  
The financial statements are required by law to give a true and 
fair view of the state of affairs of the Company and the Group  
and the profit or loss of the Group for that period. In preparing 
these financial statements, the Directors are required to:
 select suitable accounting policies and then apply them 
consistently;
 make judgements and estimates that are reasonable and 
prudent;
 state whether applicable UK Accounting Standards have been 
followed; and
 prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Company will 
continue in business.
•
•
•
•
The Directors are responsible for keeping proper accounting 
records that disclose with reasonable accuracy at any time the 
financial position of the Company and enable them to ensure that 
the financial statements comply with the Companies Act 1985. 
They are also responsible for safeguarding the assets of the 
Company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the 
Company’s website. Legislation in the United Kingdom governing 
the preparation and dissemination of financial statements may 
differ from legislation in other jurisdictions. Abcam plc Annual report and accounts 30 June 2007 23 Annual report and accounts 30 June 2007 Abcam plc
Independent Auditors’ Report to the Members of Abcam plc
We have audited the Group and parent Company financial 
statements (the ‘financial statements’) of Abcam plc for the year 
ended 30 June 2007, which comprise the Group Profit and Loss 
Account, the Group and Company Balance Sheets, the Group 
Cash Flow Statement, the Group Statement of Total Recognised 
Gains and Losses and the related notes 1 to 25. These financial 
statements have been prepared under the accounting policies set 
out therein.
This report is made solely to the Company’s members, as a body, 
in accordance with section 235 of the Companies Act 1985. Our 
audit work has been undertaken so that we might state to the 
Company’s members those matters we are required to state to 
them in an auditors’ report and for no other purpose. To the 
fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the 
Company’s members as a body, for our audit work, for this  
report, or for the opinions we have formed.
Respective responsibilities of Directors and auditors
The Directors’ responsibilities for preparing the Annual Report 
and the financial statements in accordance with applicable law 
and United Kingdom Accounting Standards (United Kingdom 
Generally Accepted Accounting Practice) are set out in the 
statement of Directors’ responsibilities.
Our responsibility is to audit the financial statements in 
accordance with relevant legal and regulatory requirements  
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial 
statements give a true and fair view and are properly prepared in 
accordance with the Companies Act 1985. We also report to you 
whether in our opinion the information given in the Directors’ 
Report is consistent with the financial statements.
In addition we report to you if, in our opinion, the Company has 
not kept proper accounting records, if we have not received all 
the information and explanations we require for our audit, or if 
information specified by law regarding Directors’ remuneration 
and other transactions is not disclosed.
We read the other information contained in the Annual Report  
as described in the contents section, and consider whether it is 
consistent with the audited financial statements. This other 
information comprises only the Directors’ Report, the Chairman’s 
Review, the CEO’s review, the Managing Director’s Review, and 
the Financial Review. We consider the implications for our report 
if we become aware of any apparent misstatements or material 
inconsistencies with the financial statements. Our responsibilities 
do not extend to any further information outside the Annual 
Report.
Basis of audit opinion
We conducted our audit in accordance with International 
Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test basis, 
of evidence relevant to the amounts and disclosures in the 
financial statements. It also includes an assessment of the 
significant estimates and judgments made by the Directors in  
the preparation of the financial statements, and of whether the 
accounting policies are appropriate to the Group’s and Company’s 
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary  
in order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or other irregularity  
or error. In forming our opinion we also evaluated the  
overall adequacy of the presentation of information in the 
financial statements.
Opinion
In our opinion:
 the financial statements give a true and fair view, in 
accordance with United Kingdom Generally Accepted 
Accounting Practice, of the state of the Group’s and the parent 
Company’s affairs as at 30 June 2007 and of the Group’s profit 
for the year then ended;
 the financial statements have been properly prepared in 
accordance with the Companies Act 1985; and
 the information given in the Directors’ Report is consistent  
with the financial statements.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors
Cambridge, UK
28 September 2007
•
•
• Abcam plc Annual report and accounts 30 June 2007 24
 Year to 30/6/07  Year to 30/6/06 Restated*
    Note £000 £000 £000 £000
Turnover   2  24,519  19,362
Cost of sales     (10,020)  (7,485)
Gross profit     14,499  11,877
Expenses
Administrative expenses    (7,584)  (6,178)
Research and development expenses    (1,709)  (1,226)
      (9,293)  (7,404)
      5,206  4,473
Other operating income     –  42
Operating profit   4  5,206  4,515
Interest receivable and similar income     495  313
Profit on ordinary activities before taxation     5,701  4,828
Tax on profit on ordinary activities   6  (1,554)  (1,403)
Profit on ordinary activities after taxation   20  4,147  3,425
Earnings per share
Basic earnings per share   9  11.99p  10.73p
Diluted earnings per share   9  11.67p  10.36p
Dividends paid per share   8  3.99p  5.95p
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
All activities derive from continuing operations.
The statement of movements on reserves is shown in note 20.
Consolidated Profit and Loss Account
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007 25 Annual report and accounts 30 June 2007 Abcam plc
       Year to Year to 
       30/6/07 30/6/06 
       £000 £000
Profit for the financial year (before restatement*)      4,147 3,679
Currency translation differences on foreign currency net investments    (28) (24)
Total recognised gains and losses relating to the year     4,119 3,655
Prior year adjustment (see note 22)      (254)
Total recognised gains and losses recognised since last annual report    3,865
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
Consolidated Statement of Total Recognised Gains and Losses
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007 26
       30/6/06 
      30/6/07 Restated* 
     Note £000 £000
Fixed assets
Intangible assets     10 1,691 77
Tangible assets     11 2,832 1,094
       4,523 1,171
Current assets
Stocks     13 3,102 2,358
Debtors     14 4,327 2,762
Short term investments     16 8,500 11,000
Cash at bank and in hand     16 2,209 884
       18,138 17,004
Creditors: amounts falling due within one year    15 (3,404) (3,023)
Net current assets      14,734 13,981
Total assets less current liabilities      19,257 15,152
Creditors: amounts falling due after more than one year    15 (386) –
Provisions for liabilities and charges     18 (444) (85)
Net assets      18,427 15,067
Capital and reserves
Called up share capital     19 346 345
Share premium account     20 10,619 10,573
Other reserves     20 251 89
Foreign exchange reserve     20 (36) (8)
Profit and loss account     20 7,247 4,068
Total shareholders’ funds     21 18,427 15,067
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
These financial statements were approved by the Board of Directors and authorised for issue on 28 September 2007.
Signed on behalf of the Board of Directors.
Dr E W Powell
Finance Director
Consolidated Balance Sheet
30 June 2007 Abcam plc Annual report and accounts 30 June 2007 27 Annual report and accounts 30 June 2007 Abcam plc
       30/6/06 
      30/6/07 Restated* 
     Note £000 £000
Fixed assets
Intangible assets     10 1,691 77
Tangible assets     11 2,459 901
Investments     12 16 16
       4,166 994
Current assets
Stocks     13 3,089 2,348
Debtors     14 4,572 2,676
Short term investments      8,500 11,000
Cash at bank and in hand      1,555 312
       17,716 16,336
Creditors: amounts falling due within one year    15 (3,218) (2,705)
Net current assets      14,498 13,631
Total assets less current liabilities      18,664 14,625
Creditors: amounts falling due after more than one year    15 (386) –
Provisions for liabilities and charges     18 (444) (77)
Net assets      17,834 14,548
Capital and reserves
Called up share capital     19 346 345
Share premium account     20 10,619 10,573
Other reserves     20 251 89
Profit and loss account     20 6,618 3,541
Total equity shareholders’ funds      17,834 14,548
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
These financial statements were approved by the Board of Directors and authorised for issue on 28 September 2007.
Signed on behalf of the Board of Directors.
Dr E W Powell
Finance Director
Company Balance Sheet
30 June 2007 Abcam plc Annual report and accounts 30 June 2007 28
 Year to 30/6/07  Year to 30/6/06 Restated*
    Note £000 £000 £000 £000
Net cash inflow from operating activities   A  4,898  3,547
Returns on investments and servicing of finance
Net interest received    495  313
Net cash inflow from returns on investments and servicing  
 of finance     495  313
Taxation
Corporation tax paid    (1,473)  (954)
Tax paid     (1,473)  (954)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets    (2,316)  (597)
Payments to acquire intangible fixed assets    (1,848)  (100)
Receipts from sales of tangible fixed assets    2  6
Net cash outflow from capital expenditure and  
 financial investment     (4,162)  (691)
Equity dividends paid     (968)  (1,153)
Net cash outflow before management of liquid resources  
 and financing     (1,210)  1,062
Management of liquid resources
Decrease/(increase) in short term deposits    2,500  (10,000)
Net cash inflow/(outflow) from management of liquid resources   2,500  (10,000)
Financing
Issue of ordinary share capital    47  9,322
Net cash inflow from financing     47  9,322
Increase in cash   B/C  1,337  384
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
Consolidated Cash Flow Statement
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007 29 Annual report and accounts 30 June 2007 Abcam plc
A Reconciliation of operating profit to net cash inflow from operating activities
       Year to 
      Year to 30/6/06 
      30/6/07 Restated* 
      £000 £000
Operating profit      5,206 4,515
Depreciation and amortisation      795 355
Profit on sale of tangible fixed assets      – (3)
Movement on share based compensation reserve     162 72
Increase in stocks      (745) (1,171)
Increase in debtors      (1,565) (850)
Increase in creditors      1,045 629
Net cash inflow from operating activities      4,898 3,547
B Analysis of net funds
     At Cash Exchange At 
     01/07/06 flow movement 30/06/07 
     £000 £000 £000 £000
Cash in hand and at bank    884 1,337 (12) 2,209
Current asset investments    11,000 (2,500)  – 8,500
Total    11,884 (1,163) (12) 10,709
C Reconciliation of net cash flow to movement in net funds
     30/6/07 30/6/07 30/6/06 30/6/06 
     £000 £000 £000 £000
Increase in cash in the year    1,337  384
Cash (inflow)/outflow from (increase)/decrease in liquid resources  (2,500)  10,000
Change in net funds resulting from cash flows    (1,163)  10,384
Translation difference     (12)  (10)
Movement in net funds in the year     (1,175)  10,374
Net funds at start of year     11,884  1,510
Net funds at end of year     10,709  11,884
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
Notes to the Consolidated Cash Flow Statement
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007 30
1 Accounting policies
The financial statements are prepared in accordance with applicable United Kingdom accounting standards. The particular accounting 
policies, which have been applied consistently, are described below.
Accounting convention
The financial statements are prepared under the historical cost convention.
Basis of consolidation
The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings Abcam Inc., 
Abcam KK and Camgene Ltd.
Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation and any provision for impairment. Depreciation is provided at cost in equal 
instalments over the estimated lives of the fixed assets.
The depreciation rates generally used are shown below:
Office equipment, fixtures and fittings      20% per annum
Laboratory equipment      20% per annum
Computer equipment      33% per annum
Depreciation is accelerated if assets are deemed to have been impaired or there is a change in the residual economic life.
Intangible assets
Payments made to acquire distribution rights from certain suppliers are capitalised and are amortised over the period of the 
agreement.
The Group acquires hybridomas for generating monoclonal antibodies either by licensing them in or by developing them itself. The 
up-front fees paid for licensing in hybridomas and the cost of developing hybridomas are capitalised in line with FRS 10 and SSAP 13 
respectively. They are then amortised over their estimated minimum useful lives of three years.
Investments
Investments held as fixed assets are stated at cost less provision for any impairment in value.
Stocks
Stocks are stated at the lower of cost and net realisable value. 
The cost of Abcam own manufactured stock includes material, direct labour and an attributable portion of production overheads 
based on normal levels of activity. Net realisable value is based on the estimated selling price less further costs expected to be 
incurred to completion and disposal. Provision is made for obsolete, slow moving or defective items where appropriate.
Taxation
Current tax including UK corporation tax and foreign tax is provided at amounts expected to be paid (or recovered) using the tax rates 
and laws that have been enacted by the balance sheet date.
Deferred taxation is provided in full on timing differences which represent an obligation at the balance sheet date to pay more tax or a 
right to pay less tax at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from 
the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in 
financial statements. Deferred tax assets and liabilities are not discounted.
Notes to the Accounts
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007 31 Annual report and accounts 30 June 2007 Abcam plc
Pensions
The Group operates a defined contribution pension scheme in the UK, which is open to all employees and Directors of the Company.
The amount charged to the profit and loss account in respect of pension costs is the contribution payable in the year. Any differences 
between contributions payable in the year, and contributions actually paid are shown either as accruals or prepayments in the 
balance sheet.
The amount included in the profit and loss account in the year in respect of the pension scheme was £253,000 (2006: £105,000).  
The amounts included in creditors at 30 June 2007 in relation to the defined contribution pension scheme is £38,000 (2006: £10,000).
Research and development
Research and development expenditure, other than the development costs for internally produced hybridomas (see intangible assets 
above), is charged to the profit and loss account as incurred.
Leases
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such 
a basis.
Foreign exchange
Transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of the transactions. 
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated at the rates ruling at that 
date or, if appropriate, at the forward contract rate.
These translation differences are dealt with in the profit and loss account.
The results of the operations of the Company’s overseas subsidiaries, Abcam Inc and Abcam KK, are translated at the average rate of 
exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on the 
translation of the opening net assets and results of operations are reported in the statement of total recognised gains and losses. All 
other exchange differences are included in the profit and loss account.
Derivative financial instruments
The Group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The Group 
does not hold or issue derivative financial instruments for speculative purposes.
Government grants
Amounts receivable under government grants are credited to the profit and loss account as the related expenditure is incurred, and is 
included in other operating income. £nil has been recognised in the profit and loss account in the year (2006: £42,000) in relation to a 
grant for the Epitron project, which is for the research and technological development of an epigenetic treatment for neoplastic disease.
2 Turnover
Turnover represents the amounts derived from the provision of goods and services which fall within the Group’s ordinary activities 
after deduction of trade discounts and value added tax.
Revenue is recognised on despatch to the customer.
1 Accounting policies continued Abcam plc Annual report and accounts 30 June 2007 32
3 Information regarding employees
Group      Year to Year to 
      30/6/07 30/6/06 
      Number Number
Average monthly number of employees (including Executive Directors):
Administrative, marketing and distribution      101 74
Laboratory      20 13
       121 87
       Year to 
      Year to 30/6/06 
      30/6/07 Restated* 
      £000 £000
Staff costs during the year (including Directors)
Wages and salaries      4,369 3,122
Social security costs      466 351
Pension costs      253 105
Charge in respect of share options granted      162 72
       5,250 3,650
Company        
      Year to Year to 
      30/6/07 30/6/06 
      Number Number
Average monthly number of employees (including Executive Directors):
Administrative, marketing and distribution      69 54
Laboratory      20 13
       89 67
       Year to 
      Year to 30/6/06 
      30/6/07 Restated* 
      £000 £000
Staff costs during the year (including Directors)
Wages and salaries      3,511 2,434
Social security costs      359 279
Pension costs      233 88
Charge in respect of share options granted      162 72
       4,265 2,873
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
Notes to the Accounts continued
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007 33 Annual report and accounts 30 June 2007 Abcam plc
4 Operating profit
Operating profit is after charging/(crediting):      Year to Year to 
      30/6/07 30/6/06 
      £000 £000
Depreciation – owned assets      561 332
Profit on disposal of fixed assets      – (3)
Amortisation of intangible assets      234 23
Auditors remuneration:
 Fees payable to the Group’s auditors for the audit of the annual accounts    79 51
 Fees payable to the Group’s auditors for other services to the Group, being tax services   73 84
R&D expenditure      1,709 1,226
Rentals under operating leases:
Land and buildings      237 246
5 Segmental reporting
Geographical segmental analysis:
    30/6/07 30/6/07 30/6/07 30/6/06 30/6/06 
    UK US Japan UK US 
    £000 £000 £000 £000 £000
Net assets/(liabilities)   17,834 676 (83) 14,548 519
The Company operates only one class of business.
An analysis of turnover and profit before tax by class of business and geographical location is not presented as in the opinion of the 
directors such disclosure would be prejudicial to the interests of the Group.
6 Tax on profit on ordinary activities
       Year to 
      Year to 30/6/06 
      30/6/07 Restated* 
      £000 £000
Current tax
UK corporation tax at 30% (2006: 30%)      871 1,146
Foreign tax      324 256
Adjustments in respect of prior periods – UK tax      – (9)
Total current tax      1,195 1,393
Deferred tax
Timing differences origination and reversal – UK tax     366 7
Timing differences origination and reversal – foreign tax     (7) 3
Total deferred tax      359 10
       1,554 1,403
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22. Abcam plc Annual report and accounts 30 June 2007 34
The standard rate of current tax for the year is 30% (2006: 30%). The current tax charge for the year reconciles to the standard rate 
as follows:
       Year to 
      Year to 30/6/06 
      30/6/07 Restated* 
      £000 £000
Profit on ordinary activities before tax      5,701 4,828
Tax on profit on ordinary activities at standard rate of 30%     1,710 1,448
Factors affecting charge for the year:
Capital allowances for year in excess of depreciation     (411) (23)
Other timing differences      13 5
Expenses not deductible for tax purposes      8 51
Revenue items capitalised      (2) (2)
R&D tax credit uplift      (199) (120)
Deduction for exercise of share options      (35) (22)
Adjustment in respect of prior years       – (9)
Losses in foreign subsidiary not subject to tax      27  –
Differences in tax rates      84 65
Current tax charge for the year      1,195 1,393
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
In March 2007 the UK Government announced that they would introduce legislation that would reduce the corporation tax rate to 28% 
with effect from 1 April 2008. This legislation has been substantively enacted in June 2007. In future any deferred tax balances will be 
stated at 28% of those amounts.
The effective tax rate for the year to 30 June 2008 is expected to reduce accordingly.
7 Profit attributable to the Company
As permitted by Section 230 of the Companies Act 1985, the profit and loss account of the parent Company is not presented as part 
of these accounts. The parent’s profit for the financial year before dividends amounted to £3,776,000 (2006: £3,029,000).
8 Dividends
      Year to Year to 
      30/6/07 30/6/06 
      £000 £000
Final dividend for the year ended 30 June 2006 of 2.0p (2006 first interim: 3.25p) per share   691 912
Interim dividend for the year ended 30 June 2007 of 0.80p (2006 second interim: 0.70p) per share  277 241
       968 1,153
Proposed final dividend for the year ended 30 June 2007 of 3.19p (2006: 2.0p)    1,105 689
The proposed dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability 
in these financial statements.
Notes to the accounts continued
Year ended 30 June 2007
6 Tax on profit on ordinary activities continued Abcam plc Annual report and accounts 30 June 2007 35 Annual report and accounts 30 June 2007 Abcam plc
9 Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
       Year to 
      Year to 30/6/06 
      30/6/07 Restated* 
      £000 £000
Profit for the financial year      4,147 3,425
       Number Number 
       of shares of shares
Weighted average number of shares:
Basic earnings per share      34,572,810 31,914,845
Assumed exercise of share options      943,674 1,135,585
Fully diluted earnings per share      35,516,484 33,050,430
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
10 Intangible assets
Group and Company 
      Development 
      costs and 
      up-front licence 
      fees for 
      monoclonal Distribution 
      antibodies rights Total 
      £000 £000 £000
Cost
As at 1 July 2006     100 – 100
Additions in the year     50 1,798 1,848
At 30 June 2007     150 1,798 1,948
Accumulated amortisation
As at 1 July 2006     23 – 23
Charge for the year     45 189 234
At 30 June 2007     68 189 257
Net book value
At 30 June 2007     82 1,609 1,691
At 30 June 2006     77 – 77 Abcam plc Annual report and accounts 30 June 2007 36
11 Tangible fixed assets
      Laboratory Office 
      and equipment, 
     Computer operations fixtures and 
     equipment equipment fittings Total 
     £000 £000 £000 £000
Group
Cost
At 1 July 2006    251 717 674 1,642
Additions in year    207 1,824 285 2,316
Disposals in year    (1) (1) – (2)
Exchange difference    (3) (9) (11) (23)
At 30 June 2007    454 2,531 948 3,933
Accumulated depreciation
At 1 July 2006    136 134 278 548
Charge for the year    85 214 262 561
Disposals in year    – (1) – (1)
Exchange difference    (3) (1) (3) (7)
At 30 June 2007    218 346 537 1,101
Net book value
At 30 June 2007    236 2,185 411 2,832
At 30 June 2006    115 583 396 1,094
Company
Cost
At 1 July 2006    206 599 579 1,384
Additions in year    139 1,690 171 2,000
Disposals in year    (1) (3) – (4)
At 30 June 2007    344 2,286 750 3,380
Accumulated depreciation
At 1 July 2006    115 123 245 483
Charge for the year    65 170 204 439
Disposals in year    – (1) – (1)
At 30 June 2007    180 292 449 921
Net book value
At 30 June 2007    164 1,994 301 2,459
At 30 June 2006    91 476 334 901
Notes to the accounts continued
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007 37 Annual report and accounts 30 June 2007 Abcam plc
12 Fixed asset investments
The Company’s subsidiaries at 30 June 2007 are:
       Proportion Proportion 
     Nature of Country of of shares of voting 
     business incorporation owned power held
Abcam Inc  Sale and distribution of antibodies USA 100% 100%
Abcam KK  Sale and distribution of antibodies Japan 100% 100%
Camgene  Dormant UK 100% 100%
As at 30 June 2007 the called up share capital and reserves of Camgene were £10 (2006: £10). The company is dormant.
13 Stocks
     Group Company Group Company 
     30/6/07 30/6/07 30/6/06 30/6/06 
     £000 £000 £000 £000
Goods for resale    3,102 3,089 2,308 2,298
Work in progress    – – 50 50
     3,102 3,089 2,358 2,348
14 Debtors
     Group Company Group Company 
     30/6/07 30/6/07 30/6/06 30/6/06 
     £000 £000 £000 £000
Trade debtors    3,315 1,708 2,386 1,164
Owed by subsidiary undertaking    – 1,461 – 1,165
Other debtors and prepayments    1,012 1,403 376 347
     4,327 4,572 2,762 2,676
All amounts are due within one year.
15. Creditors
Amounts falling due within one year
     Group Company Group Company 
     30/6/07 30/6/07 30/6/06 30/6/06 
     £000 £000 £000 £000
Trade creditors    1,382 1,324 1,160 1,133
Corporation tax    284 279 562 411
Other taxes and social security    124 124 89 89
Other creditors    337 321 127 98
Accruals and deferred income    1,277 1,170 1,085 974
     3,404 3,218 3,023 2,705 Abcam plc Annual report and accounts 30 June 2007 38
Amounts falling due after more than one year    Group Company Group Company 
     30/6/07 30/6/07 30/6/06 30/6/06 
     £000 £000 £000 £000
Other creditors    386 386 – –
16 Financial instruments
The Group does not undertake any speculative trading in financial instruments. Financial instruments comprise cash and short term 
investments together with debtors, creditors and accruals. The risks that arise from these instruments are currency exposure, interest 
rate and liquidity, and the policies followed throughout the year are as follows:
Currency risk
The Group trades in US dollars and euros as well as in sterling, having both income and expenses in all of these currencies, and this 
trading results in a surplus of dollars and euros. The Group hedges these surpluses at the start of each financial year in order to 
minimise the impact on that year’s trading from exchange rate fluctuations. This is done by arranging forward exchange contracts 
month by month to sell a portion of the expected surpluses.
Interest rate risk
The Group places most of its liquid assets on deposit for periods of between one and six months. These deposits are with recognised 
UK high street banks. During the year the average interest rate received on these deposits was 5.12% (2006: 4.45%).
Liquidity risk
Liquidity is maintained by placing cash on deposit having regard to the Group’s liquidity requirements which are assessed on a regular 
basis.
At 30 June the Group held the following liquid assets:
       30/6/07 30/6/06 
       £000 £000
Sterling cash deposits      8,500 11,000
Cash – sterling      1,017 205
Cash – US dollars      697 610
Cash – euros      40 59
Cash – yen      455 10
       10,709 11,884
At the balance sheet date Abcam plc was contracted to sell $7,750,000 (2006: $9,624,000) and €6,450,000 (2006: €3,577,000).  
The Directors consider there to be no material difference between the book value and the fair value of the Group’s financial assets  
as at the balance sheet date.
Credit risk
Credit risk is primarily attributable to the Groups’s trade debtors. The average credit period taken on sales goods is 47 days. 
An allowance has been made for potential bad debts in arriving at the amounts stated in the balance sheet. The Group has  
no significant concentration of credit risk in its debtors as the exposure is spread over a very wide range of customers.
Notes to the accounts continued
Year ended 30 June 2007
15. Creditors continued Abcam plc Annual report and accounts 30 June 2007 39 Annual report and accounts 30 June 2007 Abcam plc
17 Financial commitments
Operating lease commitments
At 30 June 2007 the following payments were committed to be paid during the next year in respect of operating leases:
       30/6/07 30/6/06 
       Land and Land and 
       buildings buildings 
       £000 £000
Group
Leases which expire:
Within 12 months      197 66
Within two to five years      631 –
After five years      – 209
       828 275
Company
Leases which expire:
Within 12 months      197 66
Within two to five years      631 –
After five years      – 209
       828 275
18 Deferred tax
Company and Group
Deferred taxation provided is as follows:
 Group  Company
     30/6/06  30/6/06 
    30/6/07 Restated* 30/6/07 Restated* 
    £000 £000 £000 £000
Accelerated capital allowances    549 152 534 110
Other timing differences    (105) (67) (90) (33)
Deferred tax liability    444 85 444 77
       30/6/07 
       £000
Group
At 1 July 2006 (Restated*)       85
Charge in year       359
At 30 June 2007       444
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22. Abcam plc Annual report and accounts 30 June 2007 40
       30/6/07 
       £000
Company
At 1 July 2006 (Restated*)       77
Charge in year       367
At 30 June 2007       444
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
19 Called up share capital
       30/6/07 30/6/06 
       £000 £000
Authorised
100,000,000 (2006: 100,000,000) ordinary shares of 1p each     1,000 1,000
Called up, allotted and fully paid
34,623,384 (2006: 34,464,584) ordinary shares of 1p each     346 345
The Company operates a number of share option schemes for certain employees of the Group. The share based compensation 
charge is made up from option awards from the EMI plan, unapproved share option plan, the US employees share option plan and  
the SAYE plan. Information is shown for these schemes in aggregate. 
The vesting period is from 1–3 years other than for those options with performance criteria, which vest when the criteria are met.  
If the options remain unexercised after a period of 10 years from the date of grant the options expire. Options are forfeited if the 
employee leaves the Group before the options vest. 
Details of the share options outstanding during the year are as follows:
      Weighted  Weighted 
     2007 average 2006 average 
     No. of exercise price No. of exercise price 
     share options Pence share options Pence
Outstanding at beginning of period    1,085,160 47.4 1,176,080 12.5
Granted during the period    651,393 280 612,520 53
Forfeited during the period    79,851 280 31,600 12.5
Exercised during the period    158,800 30 671,840 14
Outstanding at the end of the period    1,497,902 144 1,085,160 47.4
Exercisable at end of period    162,080 35.75 419,400 34.12
Notes to the accounts continued
Year ended 30 June 2007
18 Deferred tax continued Abcam plc Annual report and accounts 30 June 2007 41 Annual report and accounts 30 June 2007 Abcam plc
Under the Company’s Enterprise Management Incentive Scheme employees of Abcam plc held options at 30 June 2007 for 966,191 
unissued 1p ordinary shares (2006: 728,480). During the year options for 117,440 1p ordinary shares were exercised and 37,089 
1p ordinary shares lapsed. The options outstanding at the end of the year were as follows:
   Option price Date of 
Date of grant  Number of 1p shares per share vesting
April 2003   8,280 12.5p April 2005
June 2003   64,000 25.0p to 50.0p June 2007
July 2004   61,920 25.0p November 2005
December 2004   220,000 25.0p November 2007
July 2005   196,840 62.5p July 2007
September 2005   60,000 62.5p September 2007
September 2006   321,368 280.0p September 2009
March 2007   33,783 296.0p March 2010
Employees of Abcam plc also held options under an unapproved scheme at 30 June 2007 for 427,504 unissued ordinary shares 
(2006: 261,360) at exercise prices of 62.5p to 296p per share. 1,360 options for 1p ordinary shares were exercised during the year, 
742 options for 1p ordinary shares lapsed and 168,246 options for 1p ordinary shares were granted. The options vest over the period 
January 2006 to March 2010.
Employees of Abcam Inc held options under an unapproved scheme at 30 June 2007 for 104,207 unissued 1p ordinary shares 
(2006: 55,320) at an exercise price between $1.125 and $5.26. During the year 42,020 options for 1p ordinary shares lapsed and 
90,907 options for 1p ordinary shares were granted. The options vest over the period July 2007 and September 2009.
An option for 40,000 1p ordinary shares granted to a scientific advisor in 2003 was exercised in July 2006 at a price of 25p per share.
During the year the Company issued 1p ordinary shares as follows:
      Exercise Total 
      Number price paid 
Date issued     of shares £ £
July 2006     40,000 0.25 10,000
September 2006     20,000 0.25 5,000
September 2006     36,000 0.25 9,000
September 2006     3,360 0.25 840
September 2006     4,320 0.25 1,080
November 2006     20,000 0.25 5,000
March 2007     1,360 0.625 850
March 2007     2,160 0.625 1,350
March 2007     1,960 0.625 1,225
April 2007     4,320 0.25 1,080
May 2007     2,160 0.625 1,350
May 2007     4,000 0.25 1,000
May 2007     6,720 0.625 4,200
June 2007     5,200 0.625 3,250
June 2007     3,240 0.625 2,025
June 2007     4,000 0.25 1,000
      158,800  48,250
19 Called up share capital continued Abcam plc Annual report and accounts 30 June 2007 42
Fair value calculation:
The fair value of the options schemes has been calculated using the Trinomial model, other than those options with market based 
perfomance criteria. The inputs into the Trinomial model are as follows:
       30/6/07 30/6/06
Weighted average share price      £2.74 £1.82
Weighted average exercise price      £0.90 £0.60
Expected volatility      30%–40% 30%
Expected life      2–5 years 3 years
Expected dividend yield      1.10% 1.10%
Risk free rate      3.97%–5.08% 4.31–4.72%
The fair value of options issued in September 2006 with market based performance criteria, are calculated using the Monte Carlo 
model. 
The inputs into the Monte Carlo model are as follows:
       30/6/07 30/6/06
Weighted average share price      £2.80 –
Weighted average exercise price      £2.80 –
Expected volatility      12%–30% –
Expected life      3 years –
Expected dividend yield      1.10% –
Risk free rate      4.57% –
20 Statement of movements on reserves
       Profit 
    Share Other Foreign and loss 
    premium reserves exchange account 
    account Restated* reserve Restated* 
    £000 £000 £000 £000
Group
As at 1 July 2006    10,573 89 (8) 4,068
Retained profit for the year    – – – 4,147
Dividends paid (note 8)    – – – (968)
Premium on shares issued    46 – – –
Share based compensation charge    – 162 – –
Currency translation difference on foreign currency net investments  – – (28) –
At 30 June 2007    10,619 251 (36) 7,247
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
19 Called up share capital continued
Notes to the accounts continued
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007 43 Annual report and accounts 30 June 2007 Abcam plc
       Profit 
    Share Other  and loss 
    premium reserves  account 
    account Restated*  Restated* 
    £000 £000  £000
Company
As at 1 July 2006    10,573 89  3,541
Retained profit for the year    – –  3,776
Dividends paid (note 8)    – –  (968)
Dividend received    – –  269
Share based compensation charge    – 162  –
Premium on shares issued    46 –  –
At 30 June 2007    10,619 251  6,618
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
21 Reconciliation of movements in Group shareholders’ funds
       2006 
      2007 Restated* 
      £000 £000
Profit for the year      4,147 3,425
Other recognised gains and losses relating to the year (net)     (28) (24)
       4,119 3,401
Dividends paid      (968) (1,153)
Current tax charge on share based compensation charge     – 204
Share based compensation reserve      162 89
Issue of shares net of issuing costs      47 9,322
Net addition to shareholders’ funds      3,360 11,863
Opening shareholders’ funds      15,067 3,204
Closing shareholders’ funds      18,427 15,067
* Restated for the effects of FRS 20 ‘Share based payment’ as explained in note 22.
20 Statement of movements on reserves continued Abcam plc Annual report and accounts 30 June 2007 44
22 Prior year adjustment
The Group adopted FRS 20 ‘Share based payment’ for the year ended 30 June 2007. This resulted in a prior period adjustment to 
expense the fair value of the options granted being £162,000 for the year ended 30 June 2006 and £89,000 for the prior periods.
The effects of this change is summarised below:
       Group and 
       Company 
       2006 
       £000
Profit and loss account:
Administrative expenses as previously stated       6,106
Share based compensation charge       72
Administrative expenses as restated       6,178
   
Taxation as previously stated       (1,221)
Share based compensation charge       (182)
Taxation as restated       (1,403)
Balance sheet:   
Provisions for liabilities and charges as previously stated      (112)
Deferred tax on share based compensation charge      27
Provisions for liabilities and charges as restated       (85)
23 Post balance sheet events
There were no Post Balance Sheet events that are considered relevant for the purposes of these accounts.
24 Ultimate controlling party
There was no ultimate controlling party in either year.
25 Related party transactions
Until September 2005 Dr E W Powell was a director of Cambridge Theranostics Ltd. which, during the year, purchased products from 
Abcam to a value of nil (2006: £4,274). During the year £19,000 (2006: nil) was paid to a relative of David Cleevely for consultancy 
work. Under a New Product Development agreement with a laboratory associated with Tony Kouzarides, Abcam provided products 
from its catalogue free of charge, with a resale value of £14,000 (2006: £22,000) and paid £23,000 in royalties (2006: £17,000). 
£5,000 of these royalties were outstanding at the year end (2006: £4,000).
Notes to the accounts continued
Year ended 30 June 2007 Abcam plc Annual report and accounts 30 June 2007
Our vision is to build the largest 
online antibody resource in the 
world while also ensuring that  
the antibodies are of excellent 
quality and commercial viability.
Welcome!
My name is Molly, I’m the resident Abcam mascot and 
appear on all our packaging and branding materials.
A lot of researchers ask where we got the idea for Molly  
the sheep. It was simply because Dolly the sheep was  
making headline news at the time, so we created the  
body out of a molecular space fill model and gave her  
antibody legs, and thus the molecular Dolly became  
Abcam’s Molly.
01  Highlights
02  Our Business at a Glance
04  Chairman’s Review
06  CEO’s Review
08  Managing Director’s Review
10  Financial Review
12  The Board
14 Corporate Directory
15 Directors’ Report
17  Corporate Governance
Contents
19  Directors’ Remuneration Report
22  Statement of Directors’ Responsibilities
23  Independent Auditors’ Report 
24 Consolidated Profit and Loss Account
25   Consolidated Statement of Total Recognised Gains and Losses
26  Consolidated Balance Sheet
27  Company Balance Sheet
28  Consolidated Cash Flow Statement
29  Notes to the Consolidated Cash Flow Statement
30  Notes to the Accounts Abcam plc Annual report and accounts for the year ended 30 June 2007
Abcam plc
332 Cambridge Science Park
Milton Road
Cambridge CB4 0FW
United Kingdom
Phone: +44 (0) 1223 696000
Fax: +44 (0) 1223 696001
www.abcam.com
For the year ended 30 June 2007
Annual report  
and accounts