Annual report 
and accounts
for the year ended 30 June 2006
Abcam plc Annual Accounts 
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
Abcam plc Annual report and accounts for the year ended 30 June 2006 01  Highlights
02  Our Business at a Glance
04  Chairman’s Statement
06  CEO’s Review
07  Managing Director’s Review
08  CEO’s Questions and Answers
10  Financial Review
12  The Directors
14 Corporate Directory
15 Directors’ Report
17  Corporate Governance
19  Directors’ Remuneration Report
21  Statement of Directors’ Responsibilities
22  Independent Auditors’ Report
23 Consolidated Profit and Loss Account
23  Statement of Total Recognised Gains and Losses
24  Consolidated Balance Sheet
25  Company Balance Sheet
26  Consolidated Cash Flow Statement
27  Notes to the Consolidated Cash Flow Statement
28  Notes to the Accounts
Contents 	 Annual	report	and	accounts	30	June	2006	 Abcam   60%
Sales in the half year increased 
60% to £19.4 million 
23,200
Continued expansion of  
product range: 23,200 products 
£4.9m
Profit before tax of £4.9 million in the  
current year
Our vision is to build the largest 
online antibody resource in the 
world while also ensuring that 
the antibodies are of high quality 
and commercially viable.
Sales in the year increased 60% to £ 9.4 million  
(2005: £ 2. million) and pre-tax profits increased  
65% to £4.9 million (2005: £3.0 million)
Continued expansion of product range: 23,200 products 
available on the Abcam website at end June 2006, up 
4 % from  6,500 products at end June 2005
Significant contribution in sales and profits in the year 
from US office. New office just opened in Japan, the 
world’s third largest market for research antibodies
Net cash and short-term investments of £ .9 million 
as at 30 June 2006
EPS increased 34% to  .53p (2005: 8.59p)
Proposed final dividend of 2.0p a share
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Our Business at a Glance
1
We make our own antibodies and source other excellent 
antibodies from institutes, academic laboratories and 
primary manufacturers.
Abcam is on a mission to build the largest online catalogue of 
the best antibodies in the world and our scientists are 
dedicated to achieving this.
We make our own antibodies and source other excellent 
antibodies from institutes, academic laboratories, primary 
manufacturers and other suppliers.
We provide technical support on all of our products to enable 
our customers to achieve the result they should expect.
We source and develop
Our scientists have built a catalogue of the best 
antibodies in the world and provide technical support on 
all of our products to enable our customers to achieve the 
result they expect.
Abcam focuses on presenting test data. Our datasheets 
differentiate between:
successfully tested;
unsuccessfully tested; and
not tested.
Datasheets display the applications and species. Each antibody 
is successfully tested in at least one common application prior to 
release, by either ourselves or our source. Further testing data is 
predominantly obtained from our collaborators and customers.
•
•
•
We add value
2
The idea for Abcam came early in  998 out of a laboratory in the 
University of Cambridge, UK. The principal founder, Jonathan Milner, 
was working as a post-doctoral researcher studying the newly 
discovered breast cancer protein BRCA2 in Professor Tony Kouzarides’ 
laboratory. The project slowed because of problems finding quality 
antibody reagents that had honest and up-to-date information about 
their uses and limitations. It was frustrating.  	 Annual	report	and	accounts	30	June	2006	 Abcam  3
3
Our systems enable us to process orders quickly and 
accurately and we ship to any country in the world by 
express courier delivery. We keep our customers informed 
at every stage, so that they can plan their experiments.
As the Company grows, it is important that the systems and 
processes are able to take advantage of economies of scale, 
and we keep this constantly under review. In particular, at the 
moment we are progressing with our investment in robotic 
storage and handling facilities. These new facilities will enable 
us to store, pick and pack stock more efficiently than the present 
systems, and will allow us to expand output without a corresponding 
growth in staff and expensive conventional refrigeration.
We deliver
4
We provide technical help and information about immune 
response, structure and activities of antibodies, 
production, purification and applications.
Our Abpromise gives our customers the reassurance of 
knowing that:
Our antibodies are amongst the best in the world.
Our unique Abreviews
SM
 system provides contact with other 
customers for the same antibody.
Our customers are able to contact our expert technical team 
to ask for their advice.
•
•
•
We support
Global presence
Our office in Boston has made  
a significant contribution to sales  
and profit over the past two years.
The opening of our Japanese office  
will now give us a foothold in the third 
largest antibody research market  
in the world. I am delighted to present Abcam’s first 
annual report as a public company. 
We enjoyed an exciting and prosperous financial year in 
2005/06, and I am equally positive about the opportunities and 
prospects that lie ahead. 
Abcam provides antibody reagents that scientists use to identify 
proteins. Research into the roles and effects of proteins has 
grown significantly in recent years, particularly since the human 
genome project was completed. Estimates of the number and 
diversity of proteins that have important implications for health 
and disease continue to increase, and in the future we are likely 
to witness many more groundbreaking discoveries. As the 
world’s largest online antibody resource, Abcam is well placed 
to develop and supply the tools that allow such discoveries to be 
made and to contribute to mankind’s progress in understanding 
health and disease.
I am especially pleased by the contributions made by Abcam’s 
hard-working and loyal employees to the Group’s continuing 
success post flotation. Abcam is fortunate to have a first-class 
management team and dedicated staff who all work together to 
deliver the best-quality antibody reagents to our customers.
Abcam’s culture enables it to quickly recognise changes in the 
marketplace and create opportunities for the Company. I am 
proud of Abcam’s track record in identifying new products and 
Chairman’s Statement
techniques and I continue to be impressed by our team’s ability 
to innovate and expand in this exciting market.
Abcam’s goal is to deliver the best antibodies to our customers 
and to become the world’s largest research antibody supplier. 
Abcam is increasingly regarded in the industry as an attractive 
partner by smaller companies that lack our geographical and 
market penetration, and we continue to interest a growing 
number of companies that do not focus primarily on research 
antibodies. As a consequence we have established 
partnerships and supplier agreements with many of the world’s 
best sources of antibodies. With our reputation for flexibility and 
trustworthiness among suppliers, we have recently been able to 
close a number of such deals, including the recently announced 
acquisition of the rights to distribute exclusively the range of 
antibodies developed by Triple Point Biologics Inc. We will 
continue to develop our relationships with other suppliers of 
antibodies, and to look for opportunities to acquire product lines 
that we can sell either exclusively or non-exclusively.
We also provide new and unique products of the highest quality 
in the form of our own antibodies. Currently, these products 
represent a small fraction of our catalogue, but they generate 
disproportionately high revenue and profits. We have been 
building resources and developing expertise in the identification 
and production of antibodies, and we are now looking to increase 
investment in our own manufacturing capability. We are currently 
investigating the most effective way of achieving this. 
 Open for business
998
First (of many) award(s)
99
Deloittes Top 50 regional winner
FedEx tie-up boosts customer support 
02
25th employee hired
First overseas office established
British royalty visits Abcam
03
UK Online for Business
Technical Director appointed
0 New premises on the Cambridge Science Park
Finance Director appointed
0th employee hired
00
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I am optimistic about Abcam’s future: it has great potential  
to continue to expand in the medium to longer term. The 
Group’s management is very focused on profitable growth and  
I believe that they have put in place the operational processes, 
product acquisition and marketing and sales strategies to 
enable this to happen.
Corporate governance
The Board intends to follow best practice wherever practical.  
As a major step in this direction, I am pleased to welcome Tim 
Dye and Mark Webster to the Board as non-executive directors 
from 1 July 2006. 
Tim Dye is currently Chairman and Chief Executive of William 
Ransom & Son plc, a healthcare company quoted on AiM. He 
brings to the Board a wealth of experience in mergers and 
acquisitions and in growing a successful company. 
Mark Webster is a highly experienced pharmaceutical 
executive. His skills and experience in sales and marketing will 
be of enormous benefit to Abcam in the future.
Including Peter Keen, the addition of Tim Dye and Mark 
Webster brings the number of independent non-executive 
directors to three, each of whom contributes valuable and 
complementary skills and experience to the Board. 
Dividend
A dividend of 3.25p was paid during the year prior to the listing 
on AiM. In accordance with the Directors’ stated intention 
following the floatation of paying dividends from each year’s 
profits equal to 25% of that year’s profit after tax, an interim 
dividend of 0.7p for this year was paid in April 2006. The 
Directors recommend a final dividend of 2.0p per share, making 
a total of 2.7p since floatation, which equates to paying 25% of 
the profit after tax for the year ended 30 June 2006. Subject to 
shareholder approval at the annual general meeting in October, 
all shareholders on the register on 27 October 2006 will receive 
this dividend on 24 November 2006.
I would like to take this opportunity to thank all our staff for their 
efforts, and our customers, suppliers and shareholders for their 
support for Abcam.
David Cleevely
Chairman
4 September 2006
2006
Winner of Best Newcomer UK techMARK mediscience awards
Winner of Private Company of the Year, East of England Business Awards
20,000+ products, ,300 new lysates, Abpromise stats, Abupdate and news
50th employee hired
th in Deloittes Technology 500
04
£5.25 million share placing
Queen’s Award at first attempt
US office on the move
05
	 Annual	report	and	accounts	30	June	2006	 Abcam  5 Abcam has made outstanding progress in  
the last financial year. Sales increased by  
60% to £ 9.4m (from £ 2. m in 2005) and 
profit before tax increased by 65% to £4.9m  
(from £3.0m in 2005). It is satisfying to see  
that operating profit at 23.7% of sales is  
only slightly below the 24.0% achieved in 
2005. This is despite the additional costs  
of being a publicly listed company and 
reflects the ability of the Company to scale  
its operations efficiently.
CEO’s Review
Cash balances and short term investments over the year rose 
by £10.4 million to £11.9 million. £9.3 million came from the net 
proceeds of the AiM listing in November 2005, but the business 
itself continues to be very cash generative.
Our 60% growth in sales has been driven in part by the number 
of products published on the website. This grew by 41%, up 
from 16,500 at the end of June 2005 to 23,200 at the end of 
June 2006.
Products that we have published tend to sell more per month or 
per year the longer they have been available. We are therefore 
continuing not only to publish more products but also to provide 
more information about the antibodies, so as to exploit this 
dynamic. Growth in sales has also been the result of better 
market penetration, brand recognition and improved distribution. 
The Company pays considerable attention to gross margins.  
A high priority is to increase significantly the number of products 
that are owned or exclusively distributed by Abcam in the 
medium term. Profitability is also affected by cost and we 
continue to strive for greater operational efficiency. 
Abcam is fortunate to have such enthusiastic, high-quality staff. 
Through our recruitment programme, we have attracted some 
very able and experienced individuals and we have 28 biochemist 
PhD staff, many with valuable years of post-doctoral research 
experience. We are committed to further enhancing the team 
through a new programme of staff training and development.
Jonathan Milner
CEO
4 September 2006
• Highly cash-generative business 
• Double digit rate of growth in sales and profits 
• High rate of new product addition 
• Established brand 
• Rapid penetration of geographic markets 
•  Concentration on gross margins and efficiency equals 
outstanding profitability 
• Highly scalable operations 
• Talented and enthusiastic staff 
•  Commitment to staff training and development 
Abcam at a glance
 6 Abcam Annual	report	and	accounts	30	June	2006
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its business processes and systems in 
order that we can scale effectively. Central 
to this strategy is our in-house IT and 
web-development capability, which we 
have steadily expanded to ensure that we 
can continue to make such efficient and 
scalable progress in the future. 
As an example of how our IT systems integrate with our despatch 
operations, we have introduced a robotic stock-storage and 
retrieval system in the UK that greatly increases our stock-
storage density and enables us to process and deliver orders to 
our customers faster and more reliably. Once this system is fully 
implemented we will implement a second system in the US office.
We see a big opportunity to increase sales by extending our 
geographical reach, boosting our market penetration and  
raising our brand awareness. Our US office in Cambridge, 
Massachusetts, has recently lengthened its operating hours  
in order to service customers on the West Coast, and this  
has proved very effective. We have also introduced Saturday 
working in the USA so that orders placed on a Friday will reach 
customers on Monday morning.
Japan is probably the third most important market for antibodies 
after the USA and the EU, and so we are keen to improve our 
market penetration there. Implementation of our plan to have a 
Managing Director’s Review
functional sales-generating Japanese office is now well under 
way. We now have a subsidiary company incorporated with 
premises in the country, and are in the process of recruiting 
operational staff. We recognise, through our existing relationships 
with distributors, that Japan is a challenging market and that 
building our presence in it may take some time, but the long-term 
potential in the region for increased sales and margins via our 
own operation is very good.
We will also be putting in place IT systems-architecture changes 
that allow the Japanese office to operate on an entirely 
standalone IT platform. This will periodically be consolidated with 
the central UK systems, improving the local performance of the 
website (via local servers in Japan), as well as allowing us to 
develop additional regional offices more efficiently in the future.
We place considerable emphasis on responsibility for and 
communication with our employees. We keep all employees 
informed of what is happening in the Group with weekly update 
meetings. These are supplemented with presentations given 
every quarter by each head of department. Finally, Group 
strategy is agreed each year as part of the annual budget and 
planning cycle with all department heads, and they then ensure 
that employees in their department understand that department’s 
objectives and targets.
Jim Warwick
Managing Director
4 September 2006 
Abcam is a one-stop-shop 
for antibodies. The number of 
products available on our website 
stood at 23,200 up 4 % from  
the previous year. 
	 Annual	report	and	accounts	30	June	2006	 Abcam  7 Jonathan Milner answers some of the most 
frequently asked questions, by investors, 
from the past year. 
 . Why do you think antibodies are such an exciting  
market opportunity?
Research antibodies are fundamental to studying proteins at a 
cellular level and proteins are the fundamental components of 
life. Therefore, in order to understand the differences between 
health and disease, the specific functions of proteins need to be 
elucidated and the only way that this can be achieved is by 
using specific antibodies to home in and image the protein. The 
recent sequencing of the human genome has identified tens of 
thousands of new potential proteins and the research world is 
moving from genomics (the study of genomes and genes) to 
proteomics (the study of proteins and how they interact). Since 
the turn of the millennium the market for research antibodies 
has increased at between 10% and 20% per annum.
All of this put together means that there has never been so 
much excitement, opportunity and optimism as there is currently 
surrounding antibodies. 
2. Can you give me an example of how one of your 
customers may use an antibody?
Our customers are typically bioscientists working in academia 
or industry who want to answer fundamental questions about 
how their protein of interest functions at a cellular level. An 
example out of thousands would be, for instance, a cancer 
research group from the Abramson Family Research Institute  
at the University of Pennsylvania in the USA, who have recently 
published a scientific paper which sheds light on how specific 
proteins are disrupted in B cell lymphomas, and this research 
utilised and was enabled by antibodies purchased from Abcam.
3. How many antibody products are there?
There are currently tens of thousands of antibodies. Abcam  
has over 23,000 antibodies to over 6,000 proteins in its online 
catalogue, making it the largest online antibody resource in the 
world. The human genome project alone has revealed possibly 
20,000 to 25,000 genes and each gene potentially encodes  
at least one or possibly more proteins, each having a number  
of flavours and modifications, taking the number of potential 
antibodies that will be required in the future into the hundreds  
of thousands and making this an extremely exciting market.
Questions and Answers
 8 Abcam Annual	report	and	accounts	30	June	2006
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No, it is an important part of Abcam’s strategy to be able to offer 
our customers the best antibodies in the world regardless of 
their source. Practically, this means we source our products 
from trusted suppliers and from academic institutes as well as 
from our own laboratories. If we do not think a product is up to 
scratch, whether it is our own or from one of our suppliers, we 
will unpublish it. Using this strategy Abcam has succeeded in 
having a unique product offering of exceptional value to the 
customer who is assured that they are purchasing the best 
possible product.
5. What percentage of your revenues are your  
own products?
Currently it is around 13% of our revenues and we plan to 
increase this as our own production is ramped up.
6. Are there other companies doing the same as Abcam?
There are many other companies that sell antibodies but none 
as far as we can tell that has the same unique product offering. 
We have the largest online catalogue in the industry coupled 
with the most detailed datasheets and fast delivery of the best 
in the world antibodies. We do not rest on our laurels however 
and are aware that the market for antibodies does not stand still 
so we need to keep improving and modifying our product 
offering to match.
7. Are you a biotech company or a distributor?
Neither and both. Abcam’s unique product offering and 
business model means that the Company does not fit neatly  
into any one box. We manufacture our own products and we 
distribute and we are at the cutting edge of bioscience and 
biomedical research. 
8. What are the biggest opportunities for growth and what 
are the risks?
In the research reagent market the opportunities and risks are 
two sides of the same coin. If a company can offer a large 
catalogue of high quality research antibodies coupled with 
detailed information on each product it will succeed and win in 
this exciting market. Other risks are operational and regulatory 
in nature such as business interruption or changes in the import 
regulations for biomedical products.
Our new robotic system will 
enable us to store, pick and pack 
stock more efficiently and allow 
us to expand output without a 
corresponding growth in staff  
and expenditure.
	 Annual	report	and	accounts	30	June	2006	 Abcam  9 Equity
On 3 November 2005, the Company was admitted to the AiM.  
In the process, 5,988,024 1p ordinary shares were issued  
at a price of 167p per share, raising £10.0m gross (£9.2m  
after expenses).
Additionally, during the year 6,789 4p ordinary shares 
(equivalent to 271,560 1p ordinary shares) and 400,280 1p 
ordinary shares were also issued pursuant to the exercise of 
share options raising £118,000. Full details are set out in note 
19 to the accounts.
Sales
Sales in the year increased to £19.4m, from £12.1m in the 
previous year. Sales increases in the main territories in which 
the Company operates over the previous year were as follows:
USA and Canada 65%
UK 36%
EU (excluding UK) 39%
Japan 60%
Rest of World 58%
The increase was particularly high in the USA where the 
Company’s subsidiary, which was established in 2003, has 
successfully taken advantage of its presence in the country.
Gross margins
The Company’s gross margins, at 61.3%, remained broadly  
at the same level as the previous year’s 61.5%. While there 
were some price rises from suppliers, these were quite modest 
and were largely offset by reductions in shipping rates and  
other costs.
Administrative expenses
Although administrative expenses, which includes marketing 
and distribution costs, increased from £4.0m to £6.1m they 
decreased as a percentage of sales from 32.7% in the previous 
year to 31.5% this year despite the additional costs incurred as 
a result of Abcam being a public company.
Research and development expenses
R&D expenditure increased significantly from 4.8% of sales to 
6.3%. This is due to the Company‘s increasing drive to develop 
new products.
Profits
Operating profits increased from £2.9m in the year ended June 
2005 to £4.6m, although they fell slightly as a percentage of sales 
from 24.0% to 23.7% because of the increased R&D effort.
Interest income rose due to investment of the money raised  
at the IPO.
Financial Review
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The consolidated tax charge of £0.7m in the year ended  
30 June 2005, which was 23.4% of profits before tax, rose  
to £1.2m, which is 24.9% of profits before tax for the year ended 
30 June 2006. The main reason for the increased percentage is 
the higher proportion of the Group’s profits being earned in the 
US, where taxes on profits are higher than in the UK.
Inventories
Inventory levels rose more rapidly than sales due predominantly 
to an increase of Abcam own-produced inventories. This is 
because the production of antibodies involves batch sizes which 
are larger than the quantities required for immediate sale. 
Consequently the levels of inventories for these products is 
higher than would be the case for bought-in produts.
Debtors
Although a proportion of the Group’s customers pay by credit 
card, the majority of sales are on credit, and so credit control is 
important to the management of working capital. Debtors are 
monitored by measuring the number of debtor days, and these 
improved slightly during the year, improving from 47 in the 
previous year to just over 45.
Creditors
Creditors rose from £2.1m to £3.0m, an increase of 41%. This 
percentage increase is less than the overall increase of 60%  
of sales due to a lower level of purchases just before the end  
of the year together with a relatively lower level of accrued 
expenses at 30 June 2006 compared to the previous year.
Currency exposure
The Group generates significant amounts of surplus dollars and 
euros. The policy for dealing with these is to sell forward at the 
start of each financial year 80% of the forecast surpluses month 
by month in order to minimise variations from budget due to 
exchange rates. In order therefore to hedge the exposure during 
the year commencing 1 July 2006 the Company had forward 
exchange contracts in place to sell $9.6m and €3.6m. These 
contracts are essentially at rates of £1 to $1.79 and £1 to €1.47.
Eddie Powell
Finance Director
4 September 2006 
Hundreds of thousands  
of antibodies are likely to be  
needed in the future and Abcam 
is going to be at the forefront of 
supplying them.
	 Annual	report	and	accounts	30	June	2006	 Abcam   David Cleevely, PhD, 53 Chairman 
David Cleevely is the Chairman of the Communications 
Research Network, part of the Cambridge MIT Institute, and  
the founder and former Chairman of telecoms consultancy 
Analysys (acquired by Datatec International in 2004). In 1998, 
he co-founded Abcam with Jonathan Milner (CEO) and Tony 
Kouzarides. He has been directly involved with 3WayNetworks, 
Hotxt, Bango, Cambridge Network and Cambridge Wireless. He 
is also a member of the Ofcom Spectrum Advisory Board, the 
Expert Panel for the Department of Media, Culture and Sport 
and the IET Telecoms Sector Panel. Since selling Analysys he 
has continued to develop his business and academic interests 
and he currently holds an Industrial Fellowship at the University 
of Cambridge Computer Laboratory.
Jonathan Milner, PhD, 4 Chief Executive Officer
Jonathan Milner has a degree 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. While working at this 
research he saw the opportunity to market antibodies created 
by the human genome project over the Internet, which was 
becoming increasingly popular at that time, and in February 
1998 he proceeded to found Abcam with David Cleevely and 
Tony Kouzarides. 
The Directors
Jim Warwick, MA, 4 Managing Director 
Jim Warwick has a degree in Computer Science from 
Cambridge University. From 1986 to 2003, he worked for 
Analysys, a Cambridge-based telecoms consultancy, heading 
up their IT, software and web development initiatives. During 
this period he also held a number of external non-executive 
directorships, 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 cluster and innovation network solutions. He joined 
Abcam in 2001 as Technical Director, initially on a part-time 
basis but as a full-time 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.
Eddie Powell, PhD, FCA, 58 Finance Director 
Eddie Powell gained a first degree followed by a PhD in 
Chemistry at Cambridge and then 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 £100 million-turnover subsidiary 
of GEC, as Financial Controller, and then later became Finance 
Director. In 1990, he moved to Colt, a privately owned light 
engineering group with a turnover of £90 million and operations 
in eight countries, as Group Finance Director. He joined Abcam 
in March 2000 as Finance Director, and has there overseen the 
financial side of the Company during a period of rapid growth 
and then through the Company’s IPO.
  2 Abcam Annual	report	and	accounts	30	June	2006
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Tony Kouzarides has a degree 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 Center, 
where he discovered a fundamental principle underlying the 
association of proteins involved in human cancer. He was 
awarded a professorship at the University of Cambridge in  
1999 and now oversees a group of scientists studying genes 
and proteins associated with human cancers. He is a co-
founder of Chroma Therapeutics, a company developing cancer 
drugs. He has played a central role in expanding Abcam’s own 
antibody product range into the Chromatin research area. 
Peter Keen, BSc, ACA, 49 Non-Executive Director
Peter Keen is a Chartered Accountant with over 20 years’ 
experience in the financing and management of biotechnology 
companies. After experience in the agricultural biotechnology 
and medical diagnostics sectors he was a co-founder and 
Finance Director of Chiroscience Group plc, where he led the 
IPO in 1994. He then helped establish Merlin Biosciences, 
where he was UK Managing Director, and was responsible  
for the investment as well as being a Non-Executive Director  
of a number of companies including Ark Therapeutics, Arakis, 
Biovex, Cyclacel, Intercytex, Microscience, ReNeuron and 
Vectura. More recently, he was Chief Financial Officer of Arakis 
Ltd until its successful trade sale in 2005. He is currently a Non-
Executive Director of Ark Therapeutics plc and the Finsbury 
Emerging Biotechnology Trust plc and acts as an advisor to 
various other organisations.
Tim Dye, MA, 43 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, as well as a Director of Noble Troy Ltd. 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 a degree in 
Economics from Cambridge University.
Mark Webster, 44 Non-Executive Director
Mark Webster joined Abbott Laboratories in 1998, ran the UK 
Pharmaceutical and Hospital Divisions before moving to 
Montreal, Canada in 1997 and then Chicago, USA in 1999,  
as Vice President Anti-Virals, US Pharmaceuticals. Here he 
launched Kaletra for HIV infection which became a $1 billion 
product. In 2001 Mark joined Shire Pharmaceuticals as Head  
of Global Strategic Marketing and Licensing/Acquisitions and  
a member of the Executive Committee. He then joined Bayer 
Healthcare, based 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. Mark has a degree in Chemistry  
from Durham University.
	 Annual	report	and	accounts	30	June	2006	 Abcam   3 	 14 	 Abcam 	 Annual report and accounts 30 June 2006
Corporate	Directory
Directors
Chairman 
Dr David Cleevely 
Chief Executive Officer 
Dr Jonathan Milner 
Finance Director 
Dr Eddie Powell
Managing Director 
Mr Jim Warwick
Non-Executive Directors 
Mr Tim Dye
Mr Peter Keen
Prof Tony Kouzarides
Mr Mark Webster
Company	Secretary	and	Registered	Office
Mr Tom Maguire
332 Cambridge Science Park
Cambridge
CB4 0FW
Nominated	Advisor	and	Broker
Numis Securities Limited
Cheapside House
Cheapside
London 
EC2V 6LH
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  Annual report and accounts 30 June 2006 Abcam		 15
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 2006.
Principal	activities
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 subsidiary Abcam Inc. 
It recently incorporated a wholly owned subsidiary in Japan in 
order to support its Japanese distributor and to service that 
market directly.
The Company is increasing its investment in research  
and development in order to strengthen its catalogue of  
own products.
Business	review
As shown in the Group’s profit and loss account sales increased 
by 60% over the previous year and pre-tax profits increased  
by 65%. The Group’s cash and short term deposits rose from 
£1.5 million at 30 June 2005 to £11.9 million at 30 June 2006 
with £9.3 million of the increase coming from the issue of  
new shares net of expenses.
A more detailed review of the business is set out in the Chief 
Executive Officer’s and Managing Director’s reports together 
with the Financial 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 
KPI 2006 2005 2004
Number of products  
 published 23,200 16,500 10,300
Sales per employee £000 223 209 187
Profit before tax to sales 25.3% 24.5% 21.6%
Number of debtor days 45 47 41
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 future strategy under regular review.
The Group has an exposure to exchange rates, in particular  
the strength of sterling relative to the US dollar and to 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 80% of the 
expected surplus currencies at the start of each financial year in 
order to eliminate most of 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 its products across  
many borders. Any changes to the regulations covering such 
movements might have an effect on the Group’s trading activities.
Post	balance	sheet	events
On 11 August 2006 the Company entered into an agreement 
with Triple Point Biologics Inc. Under the terms of the deal, 
Abcam will acquire the exclusive worldwide distribution rights  
to distribute that company’s complete range of products for a 
period of ten years for an initial payment of $2 million plus an 
earn-out payment based on a percentage of sales achieved 
during the first four years, subject to a cap of $8 million. The 
Directors’ expect the provision for the earn-out payment will 
amount to approximately $1.4 million. In addition Abcam will  
pay a royalty based on a percentage of sales for the entire  
10 year term
Dividends
The Directors recommend a final dividend of 2.0p per ordinary 
share to be paid on 22 November 2006 to shareholders on the 
register on 27 October 2006, which, together with the interim 
dividends of 3.25p paid on 28 October 2005 and 0.7p paid on  
7 April 2006, makes a total of 5.95p (2005: 4.79p) for the year.
Directors
The Directors who held office during the year, and their interests 
in the share capital of the Company on 30 June 2006, other 
than with respect to share options (which are detailed in the 
Directors’ Remuneration Report), were as follows:
 	 4p ordinary shares 
 1p	 ordinary	 shares	 on 30 June 2005 
 on	 30	 June	 2006 or date of appointment
David Cleevely 5,054,760 238,669
Peter Keen 8,982	 nil
Tony Kouzarides 629,080 15,727
Jonathan Milner 9,744,960 275,477
Eddie Powell 726,240 32,036
Jim Warwick 860,200 20,925
Peter Keen was appointed to the Board on 27 October 2005.
On 1 July 2006 Tim Dye and Mark Webster were appointed  
to the Board as Non-Executive Directors.
All of the Directors will retire and offer themselves for  
re-election 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 2006, the Group had an average of 32 days of 
purchases (2005: 29) outstanding in trade creditors. 	 16 	 Abcam 	 Annual report and accounts 30 June 2006
Charitable	and	political	donations
The Group made charitable donations during the year of £2,646 
(2005: £nil), principally to charities serving the communities in 
which it operates.
The Group made no political donations during the year (2005: £nil).
Substantial	shareholdings
Other than Directors’ interests, which are set out above, no 
shareholders have notified the Company that they hold 3%  
or more of the issued share capital of the Company at  
23 August 2006.
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 
when this report is approved:
As far as each of the Directors are 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.
By order of the Board
David Cleevely
Chairman
4 September 2006
•
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Directors’	Report continued  Annual report and accounts 30 June 2006 Abcam		 17
The Board will in future meet bi-monthly and in those months 
when the Board does not meet members will continue to be 
informed on a formal reporting basis of financial results and  
key issues. 
The Board has introduced 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. 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.
Following the appointment of Tim Dye and Mark Webster as 
Independent Non-Executive Directors it is the intention of the 
Board to review the membership of the committees in 2007.
Each of the committees is described in more detail below.
The	Audit	Committee
The Committee is made up of three Non-Executive Directors. 
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 auditor 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. In future, the 
Committee is expected to meet formally twice a year.
•
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•
The Company believes that effective corporate governance, 
appropriate to the Company considering its size and stage  
of development, will assist in delivering shareholder value. In 
the admission document issued prior to admission to AiM, the 
Directors stated their intention that, wherever it was reasonably 
practicable, the Company should be managed according to the 
principles set out in the revised Combined Code on Corporate 
Governance. The details of how the Company follows the Code 
are set out below.
The	role	of	the	Board
During the four years leading up to the Company’s admittance 
to AiM, the Board comprised three Executive Directors and two 
Non-Executive Directors, none of whom was deemed to be 
independent. In October 2005, shortly before the Company was 
admitted to AiM, an independent Director – Peter Keen – joined 
the Board, and he took on the responsibility of chairing the Audit 
and Remuneration Committees. The Board continued to seek 
additional independent Directors and evaluated the ideal skill 
sets that would enhance its operation, and on 1 July 2006 two 
new members – Tim Dye and Mark Webster – were appointed. 
They will contribute their expertise in public companies, 
operations, manufacturing and sales and marketing. 
The Board now comprises a Non-Executive Chairman, who is 
not deemed to be independent because of his shareholdings, 
three full-time Executive Directors and four other Non-Executive 
Directors, three of whom are deemed to be independent 
because they have either very few or no shares or share 
options. The roles of Chairman and Chief Executive Officer are 
vested in separate individuals.
Throughout the period since listing, the Board has met on  
a monthly basis. 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 Company 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.
•
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Corporate	Governance 	 18 	 Abcam 	 Annual report and accounts 30 June 2006
The	Nomination	Committee
The Committee consists of three Non-Executive Directors: 
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 Committee has been active over the last few months in 
handling the recruitment of the two Non-Executive Directors 
who have now been appointed to the Board. This process 
involved identifying a wide range of potential candidates through 
various intermediaries, including Board members of other 
companies, professional investors and corporate advisors. The 
Committee interviewed a number of candidates and then drew 
up a shortlist of four to be interviewed by the rest of the Board. 
Final selection was then made by the whole Board.
The	Remuneration	Committee	 During the year, the Committee consisted of three Non-
Executive Directors: Peter Keen (Chairman), David Cleevely 
and Tony Kouzarides. 
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 PSS 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 have undertaken an exercise to ensure that the 
Group have an appropriate control environment for the size and 
complexity of the company. The management team intend to 
ensure that the internal control environment develops with the 
size of the company, in respect of the identification, evaluation 
and monitoring of risk. 
Such a system is designed to manage rather than eliminate  
the risk of failure to achieve business objectives, and can  
only provide reasonable, and 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 on a regular basis and 
expect to meet with shareholders at least twice a year. The 
Board intends to give a presentation on progress within the 
Company at the AGM.
Corporate	Governance continued  Annual report and accounts 30 June 2006 Abcam		 19
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 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 
amended at the time of the listing of the Company on AiM in 
November 2005, and were reviewed in June 2006, with 
increases taking effect from 1 July 2006. Executive Directors’ 
service contracts, which include details of remuneration, will be 
available for inspection at the AGM.
Outside of basic salary and pension contributions, the Executive 
Directors currently receive no benefits in kind. 
Performance-related	 payments
The Group operates a PSS whereby 10% of profits above a 
minimum ratio of net profit to sales are allocated to all employees, 
including the Executive Directors, on a points system. 
During the year under review, all of the Executive Directors’ 
performance-related payments were derived from their 
participation in the PSS. For the year ending 30 June 2007, this 
has been amended to incorporate performance criteria related to 
the objectives for that particular individual, which are directly 
related to defined strategic objectives. If the Company achieves 
the budgeted profit to sales ratio, 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. 
•
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•
Share	 options
No options over ordinary shares have been granted since the 
IPO in November 2005.
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, which is anticipated to be within the window of 15 
days following publication of this report. 
Options in the past have not been performance-linked. For this 
grant the performance conditions are 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 are 
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 is 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 were 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 
remuneration is basic salary plus on-target earnings from the 
PSS. During the year, the Group contributed a maximum of 5% 
of basic salary for Executive Directors to a Group personal 
pension scheme in the name of each Executive Director. For the 
year ending 30 June 2007, this has been increased for Executive 
Directors to 6% of on-target earnings, excluding the individual 
performance bonus. 
Directors’	Remuneration	Report 	 20 	 Abcam 	 Annual report and accounts 30 June 2006
Remuneration	details
    Employer’s Notional gain   
 Basic Benefits Performance pension on options   
 salary in kind payments contributions exercised 2006 total 2005 total 
 £000 £000 £000 £000 £000 £000 £000
David Cleevely 43 – – – 31 74 30
Peter Keen 18 – – – – 18 nil
Tony Kouzarides 20 – – – 46 66 10
Jonathan Milner 126 5 46 7 68 252 150
Eddie Powell 87 – 56 10 51 204 115
Jim Warwick 90 – 46 15 53 204 114
Directors had the following interests in options over the ordinary shares in the Company:
     Option  
   Share options Share options  exercise 
   held at 30 June held at 30 June  price for  
   2006 over 1p  2005 over 4p  1p ordinary 
   ordinary shares ordinary shares shares  Exercise period
David Cleevely   40,000 500 125p 31/01/06 to 29/09/15
Peter Keen   60,000 nil 150p 31/01/06 to 26/10/15
Tony Kouzarides   40,000 738 125p 31/01/06 to 29/09/15
Jonathan Milner   40,000 1,200 62.5p 27/07/07 to 29/09/15
Eddie Powell   40,000 900 62.5p 27/07/07 to 29/09/15
Jim Warwick   40,000 5,335 62.5p 27/07/07 to 29/09/15
Directors were granted and they exercised the following numbers of share options during the year:
     Numbers  
     of options   
     converted from   
   Number of Number of  4p ordinary Number of Number of 
  Class of options at  options shares to options options at 
  ordinary 30 June granted 1p ordinary exercised 30 June 
  share 2005 in year shares in year 2006
David Cleevely  4p 500 1,000 (1,500) – –
  1p – – 60,000 (20,000) 40,000
Peter Keen  4p – 1,500 (1,500) – –
  1p – – 60,000 – 60,000
Tony Kouzarides  4p 738 1,000 (1,738) – –
  1p – – 69,520 (29,520) 40,000
Jonathan Milner  4p 1,200 1,000 (2,200) – –
  1p – – 88,000 (48,000) 40,000
Eddie Powell  4p 900 1,000 (1,900) – –
  1p – – 76,000 (36,000) 40,000
Jim Warwick  4p 5,335 1,000 (4,425) (1,910) –
  1p – – 177,000 (37,000) 140,000
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.
During the year the Company’s shares were reorganised, with each 4p ordinary share effectively being replaced with 40 1p ordinary 
shares. See note 19 to the accounts for a detailed reconciliation of the reorganisation.
Directors’	 contracts
The notice periods for directors are as follows:
      Notice period  
     Date of contract (months)
David Cleevely     28 October 2002 1
Peter Keen     27 October 2005 1
Tony Kouzarides     28 October 2002 1
Jonathan Milner     10 June 2000 6
Eddie Powell     11 August 2000 6
Jim Warwick     1 September 2001 6 
Directors’	Remuneration	Report	 continued  Annual report and accounts 30 June 2006 Abcam		 21
The Directors are responsible for preparing the Annual Report 
and the financial statements. The Directors have chosen to 
prepare the accounts for the Company and the Group in 
accordance with United Kingdom Generally Accepted 
Accounting Practice.
United Kingdom Company law requires the Directors to prepare 
such financial statements for each financial year which give a 
true and fair view, in accordance with United Kingdom Generally 
Accepted Accounting Practice, of the state of affairs of the 
company and of the group and of the profit or loss of the 
company for that period and comply with UK GAAP and the 
Companies Act 1985. In preparing those financial statements, 
the directors are required to:
(a) select suitable accounting policies and then apply  
them consistently; 
(b) make judgements and estimates that are reasonable  
and prudent; 
(c) state whether applicable accounting standards have been 
followed; and
(d) 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 which disclose with reasonable accuracy at any time 
the financial position of the Company and to 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.
Statement	of 	Directors’	Responsibilities 	 22 	 Abcam 	 Annual report and accounts 30 June 2006
We have audited the Group and individual Company financial 
statements (the ‘financial statements’) of Abcam plc for the year 
ended 30 June 2006 which comprise the consolidated profit and 
loss account, the consolidated statement of total recognised 
gains and losses, the consolidated and individual Company 
balance sheets, the consolidated cash flow statement, the notes 
to the consolidated cash flow statement and the related notes  
1 to 24. 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 United Kingdom 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, in accordance with the 
relevant financial reporting framework, and are properly 
prepared in accordance with the Companies Act 1985. We 
report to you whether in our opinion the information given in the 
Directors’ Report is consistent with the financial statements. We 
also 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 Directors’ report and the other information 
contained in the annual report for the above year as described 
in the contents section and consider the implications for our 
report if we become aware of any apparent misstatements or 
material inconsistencies with the financial statements. 
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 judgements made by the Directors  
in the preparation of the financial statements, and of whether 
the accounting policies are appropriate to the circumstances  
of the Company and the Group, 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 
individual Company’s affairs as at 30 June 2006 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 
5 September 2006
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Independent	Auditors’	Report	to	the	Members	of 	Abcam	plc	  Annual report and accounts 30 June 2006 Abcam		 23
      Year	 to Year to 
      30/6/06 30/6/05 
     Note £000 £000
TURNOVER     2 19,362 12,135
Cost of sales      (7,485) (4,678)
GROSS	 PROFIT      11,877 7,457
EXPENSES
Administrative expenses      (6,106) (3,972)
Research and development expenses      (1,226) (582)
      (7,332) (4,554)
      4,545 2,903
Other operating income      42 15
OPERATING	 PROFIT     4 4,587 2,918
Interest receivable and similar income      313 59
PROFIT	 ON	 ORDINARY	 ACTIVITIES	 BEFORE	 TAXATION	    4,900 2,977
Tax on profit on ordinary activities     6 (1,221) (696)
PROFIT	 ON	 ORDINARY	 ACTIVITIES	 AFTER	 TAXATION	   20	 3,679 2,281
EARNINGS	 PER	 SHARE
Basic earnings per share     9 11.53p 8.59p
Fully diluted earnings per share      11.13p 8.47p
Dividends paid per share     8 5.95p 4.79p
All activities derive from continuing operations.
The statement of movements on reserves is shown in note 20.
Consolidated	Statement	of 	Total	Recognised	Gains	and	Losses
Year ended 30 June 2006
      Year	 to Year to 
      30/6/06 30/6/05 
      £000 £000
Profit for the financial year     	 3,679 2,281
Foreign exchange differences      (23) 11
Total recognised gains and losses since the last annual report    3,656 2,292
Consolidated	Profit	and	Loss	Account
Year ended 30 June 2006 	 24 	 Abcam 	 Annual report and accounts 30 June 2006
      30/6/06 30/6/05 
     Note £000 £000
FIXED	 ASSETS
Intangible assets     10 77	 –
Tangible assets     11 1,094 835
       1,171 835 
CURRENT	 ASSETS
Stocks     13 2,358	 1,187 
Debtors     14 2,762	 1,912 
Short term investments     16 11,000	 1,000 
Cash at bank and in hand     16 884	 510 
      17,004	 4,609 
CREDITORS:	 amounts	 falling	 due	 within	 one	 year    15 (3,023) (2,149)
NET	 CURRENT	 ASSETS      13,981	 2,460 
TOTAL	 ASSETS	 LESS	 CURRENT	 LIABILITIES     15,152	 3,295 
PROVISIONS	 FOR	 LIABILITIES	 AND	 CHARGES    18 (112) (80)
NET	 ASSETS      15,040	 3,215 
CAPITAL	 AND	 RESERVES
Called up share capital     19 345	 28 
Share premium account     20 10,573	 1,568 
Other reserves     20 335	 335 
Foreign exchange reserve     20 (8) 15
Profit and loss account     20 3,795	 1,269
TOTAL	 EQUITY	 SHAREHOLDERS’	 FUNDS	    21 15,040	 3,215 
These financial statements were approved by the Board of Directors on 4 September 2006.
Signed on behalf of the Board of Directors.
Eddie Powell
Finance Director
Consolidated	Balance	Sheet
30 June 2006  Annual report and accounts 30 June 2006 Abcam		 25
      30/6/06 30/6/05 
     Note £000 £000
FIXED	 ASSETS
Intangible assets     10 77	 –
Tangible assets     11 901	 724 
Investments     12 16	 6 
       994 730 
CURRENT	 ASSETS
Stocks     13 2,348  1,182 
Debtors     14 2,676	 1,932 
Short term investments      11,000	 1,000 
Cash at bank and in hand      312  208 
      16,336	 4,322 
CREDITORS:	 amounts	 falling	 due	 within	 one	 year    15 (2,705) (1,909)
NET	 CURRENT	 ASSETS      13,631  2,413 
TOTAL	 ASSETS	 LESS	 CURRENT	 LIABILITIES     14,625	 3,143 
PROVISIONS	 FOR	 LIABILITIES	 AND	 CHARGES    18 (103) (74)
NET	 ASSETS      14,522	 3,069 
CAPITAL	 AND	 RESERVES
Called up share capital     19 345	 28 
Share premium account     20 10,573	 1,568 
Other reserves     20 335	 335 
Profit and loss account     20	 3,269 	 1,138 
TOTAL	 EQUITY	 SHAREHOLDERS’	 FUNDS	     14,522	 3,069 
These financial statements were approved by the Board of Directors on 4 September 2006.
Signed on behalf of the Board of Directors.
Eddie Powell
Finance Director
Company	Balance	Sheet	
30 June 2006  	 26 	 Abcam 	 Annual report and accounts 30 June 2006
   	 Year 	 to	 Year 	 to Year to Year to 
    30/6/06	 30/6/06 30/6/05 30/6/05 
   Note £000	 £000 £000 £000
Net	 cash	 inflow	 from	 operating	 activities   A	 	 3,547   2,571 
Returns	 on	 investments	 and	 servicing	 of	 finance
Interest received    313	 	 59 
Net	 cash	 inflow	 from	 returns	 on	 investments	 and	 	 servicing	 of	 finance 	 	 	 	 313 	  59 
Taxation 
Corporation tax paid    (954)	 (700)
Tax	 paid   	 	 (954)  (700)
Capital	 expenditure	 and	 financial	 investment
Payments to acquire tangible fixed assets   	 (597)	 (847)
Payments to acquire intangible fixed assets   	 (100)
Receipts from sales of tangible fixed assets   	 6	 22 
Net	 cash	 outflow	 from	 capital	 expenditure	 and	 financial	 investment 	 	 (691)  (825)
Equity	 dividends	 paid   	 	 (1,153)  (1,317)
Net	 cash	 outflow	 before	 management	 of	 liquid	 resources	 	 and	 financing	 	 	 	 	 1,062 	  (212)
Management	 of	 liquid	 resources
Increase in short term deposits   	 (10,000) 	 	 (150)
Net	 cash	 outflow	 from	 management	 of	 liquid	 resources 	 	 	 (10,000)  (150)
Financing
Issue of ordinary share capital   	 9,322	 570 
Net	 cash	 inflow	 from	 financing   	 	 9,322  570 
Increase	 in	 cash   B,C	 	 384 	 	 208 
Consolidated	Cash	Flow	Statement
Year ended 30 June 2006  Annual report and accounts 30 June 2006 Abcam		 27
A	 Reconciliation	of	operating	profit	to	net	cash	inflow	from	operating	activities	
      Year	 to Year to 
      30/6/06 30/6/05 
      £000 £000
Operating profit      4,587	 2,918 
Depreciation and amortisation      355	 153 
(Profit)/loss on sale of tangible fixed assets       (3) 12 
Increase in stocks      (1,171) (629)
Increase in debtors      (850) (911)
Increase in creditors      629 1,028 
Net	 cash	 inflow	 from	 operating	 activities      3,547	 2,571 
B	 Analysis	of	net	funds	
    At Cash  Exchange At	    01/7/05 Flow movement 30/6/06	    £000 £000 £000 £000
Cash in hand and at bank    510  384  (10) 884	 Current asset investments    1,000  10,000   11,000	 Total    1,510  10,384  (10) 11,884 
C	 Reconciliation	of	net	cash	flow	to	movement	in	net	funds	
   	 Year 	 to	 Year 	 to Year to Year to 
   	 30/6/06	 30/6/06 30/6/05 30/6/05 
    £000	 £000 £000 £000
Increase	 in	 cash	 in	 the	 year    384	 	 208  
Cash outflow from decrease in liquid resources   10,000	  150  
Change	 in	 net	 funds	 resulting	 from	 cash	 flows	  	 10,384 	  358 
Translation difference     (10)  28 
Movement	 in	 net	 funds	 in	 the	 year     10,374	  386 
Net	 funds	 at	 start	 of	 year     1,510	  1,124 
Net	 funds	 at	 end	 of	 year     11,884	  1,510
Notes	to	the	Consolidated	Cash	Flow	Statement
Year ended 30 June 2006 	 28 	 Abcam 	 Annual report and accounts 30 June 2006
1	 Accounting	policies
The financial statements are prepared in accordance with applicable United Kingdom accounting standards. The particular 
accounting policies adopted, 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
Motor vehicles 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
The Company acquires hybridomas for generating monoclonal antibodies either by licensing them in or by developing them itself. 
The up-front fees paid for licensing hybridomas in and the cost of developing hybridomas themselves are capitalised in line with 
SSAP 13, and these costs are then amortised over their estimated minimum useful lives of three years.
Provision is made for any impairment.
Investments
Investments held as fixed assets are stated at cost less provision for any impairment in value.
Current asset investments are held at the lower of cost and net realisable value.
Stocks
Stocks are stated at the lower of cost and net realisable value.
Costs include materials, direct labour and an attributable portion of production overheads based on normal levels of activity. Net 
realisable value is based on 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 2006  Annual report and accounts 30 June 2006 Abcam		 29
1	 Accounting	policies	 continued
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 contributions 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 £88,000 (2005: £47,000).  
The amounts included in creditors at 30 June 2006 in relation to the defined contribution pension scheme is £10,000 (2005: £3,000).
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. 
For a forward foreign exchange contract to be treated as a hedge, the instrument must be related to actual foreign currency assets or 
liabilities or to a probable commitment. It must involve the same currency as the hedged item, and must also reduce the risk of foreign 
currency exchange movements on the Group’s operations. Gains and losses on these contracts are deferred and recognised in the 
profit and loss account only when the hedged transaction has itself been reflected in the Group’s financial statements.
If an instrument ceases to be accounted for as a hedge, for example because the underlying position is eliminated, the instrument 
is marked to market and any resulting profit or loss recognised at that time. 
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. £42,000 has been recognised in the profit and loss account in the period (2005 – £nil)  
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.  	 30 	 Abcam 	 Annual report and accounts 30 June 2006
3	 Information	regarding	employees
Group
      Year	 to Year to 
      30/6/06 30/6/05 
      No. No.
Average	monthly	number	of	employees	(including	Executive	Directors):
Administrative, marketing and distribution      74 50
Laboratory      13 8
      87 58
 
     	 £000 £000
Staff	 costs	 during	 the	 year	 (including	 Directors)
Wages and salaries      3,122 1,999
Social security costs      351 173
Pension costs      105 55
Charge in respect of share options granted      – 17
      3,578 2,244
Company
      No. No.
Average	 monthly	 number	 of	 employees	 (including	 Executive	 Directors):
Administrative, marketing and distribution      54 38
Laboratory      13 8
      67 46
      £000 £000
Staff	 costs	 during	 the	 year	 (including	 Directors)
Wages and salaries      2,434 1,663
Social security costs      279 142
Pension costs      88 47
Charge in respect of share options granted      – 17
      2,801 1,869
4	 Operating	profit
Operating profit is after charging:
      Year	 to Year to 
      30/6/06 30/6/05 
      £000 £000
Depreciation – owned assets      332 153
(Profit)/loss on disposal of fixed assets      (3) 12
Amortisation of intangible assets      23 –
Auditors’ remuneration for audit services – Group and Company    51 26
Fees paid to the auditors for other services to the Group and the Company:    84 –
R&D expenditure      1,226 582
Rentals under operating leases:
Land and buildings      246 198
Notes	to	the	Accounts continued
Year ended 30 June 2006  Annual report and accounts 30 June 2006 Abcam		 31
5	 Segmental	reporting
Geographical segmental analysis:
    30/6/06 30/6/06 30/6/05 30/6/05 
    UK US UK US 
    £000 £000 £000 £000
Net assets    14,522 518 3,069 146
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 30/6/05 
      £000 £000
Current	tax
UK corporation tax at 30% (2005: 30%)      942 662
Foreign tax      256	 97
Adjustments in respect of prior periods – UK tax     (9) (135)
Adjustments in respect of prior periods – foreign tax     – (6)
Total current tax      1,189 618
Deferred	 tax
Timing differences origination and reversal – UK tax     29	 72
Timing differences origination and reversal – foreign tax     3	 6
Total deferred tax      32	 78
      1,221 696
 
The standard rate of current tax for the year is 30% (2005: 30%).
The current tax charge for the year reconciles to the standard rate as follows:
      Year	 to Year to 
      30/6/06 30/6/05 
      £000 £000
Profit on ordinary activities before tax      4,900	 2,977 
Tax on profit on ordinary activities at standard rate of 30%     1,470 893
Factors affecting charge for the year:
Capital allowances for year in excess of depreciation     (23) (68)
Other timing differences       5 3
Expenses not deductible for tax purposes      28 66
Revenue items capitalised      (2)	 –
R&D tax credit uplift      (120) (66)
Deduction for exercise of share options      (225) (97)
Adjustment in respect of prior years      (9) (141)
Differences in tax rates      65 28
Current tax charge for the year      1,189 618  	 32 	 Abcam 	 Annual report and accounts 30 June 2006
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 £3,284,000 (2005: £2,118,000).
8	 Dividends
      Year	 to Year to 
      30/6/06 30/6/05 
      £000 £000
First interim dividend for the year ended 30 June 2006 of 3.25p (2005: 2.29p) per share   912 623
Second interim dividend for the year ended 30 June 2006 of 0.70p (2005: 2.50p) per share  241 694
      1,153 1,317
Proposed final dividend for the year ended 30 June 2006 of 2.0p (2005: nil)    689 –
The proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a 
liability in these financial statements.
9	 Earnings	per	share
The calculation of the basic and diluted earnings per share is based on the following data:
      2006 2005 
      £000 £000
Profit for the financial year      3,679 2,281
      Number Number 
      of shares of shares
Weighted number of shares:
Basic earnings per share      31,914,845 26,538,889
Assumed exercise of share options      845,725 353,907
Fully diluted earnings per share      33,050,430 26,932,877
Notes	to	the	Accounts continued
Year ended 30 June 2006  Annual report and accounts 30 June 2006 Abcam		 33
10	 Intangible	assets
Group and Company
       Development 
       costs and 
       up-front licence 
       fees for 
       monoclonal 
       antibodies 
       £000
Cost
As at 1 July 2005
Additions in the year       100
At	 30	 June	 2006	 	 	 	 	 	 	 100
Accumulated	 amortisation
As at 1 July 2005
Charge for the year       23
At	 30	 June	 2006	 	 	 	 	 	 	 23
Net	 book	 value
At	 30	 June	 2006	 	 	 	 	 	 	 77
At 30 June 2005       –
The amortisation period for development costs and up-front licence fees is three years. 	 34 	 Abcam 	 Annual report and accounts 30 June 2006
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 2005    155  262  639  1,056 
Additions in year    101  458  38  597 
Disposals in year    (4) (2) –  (6)
Exchange difference    (1) (1) (3) (5)
At	 30	 June	 2006	 	 	 	 251 	 	 717 	 	 674 	 	 1,642	 Accumulated	 depreciation
At 1 July 2005    85  67  69  221 
Charge for the year    54  69  209  332 
Disposals in year    (3) (2) –  (5)
At	 30	 June	 2006	 	 	 	 136 	 	 134 	 	 278 	 	 548	 Net	 book	 value
At	 30	 June	 2006	 	 	 	 115 	 	 583 	 	 396 	 	 1,094	 At 30 June 2005    70  195  570  835 
Company
Cost
At 1 July 2005    133  239  550  922 
Additions in year    77  363  29  469 
Disposals in year    (4) (3) –  (7)
At	 30	 June	 2006	 	 	 	 206 	 	 599 	 	 579 	 	 1,384	 Accumulated	 depreciation
At 1 July 2005    77  61  60  198 
Charge for the year    41  63  185  289 
Disposals in year    (3) (1) –  (4)
At	 30	 June	 2006	 	 	 	 115 	 	 123 	 	 245 	 	 483	 Net	 book	 value
At	 30	 June	 2006	 	 	 	 91 	 	 476 	 	 334 	 	 901	 At 30 June 2005    56  178  490  724 
Notes	to	the	Accounts continued
Year ended 30 June 2006  Annual report and accounts 30 June 2006 Abcam		 35
12	 Fixed	asset	investments	
Company
       Subsidiary 
       undertakings 
       £000
At 1 July 2005       6
Investment in Abcam KK       10
At	 30	 June	 2006	 	 	 	 	 	 	 16
Abcam KK was incorporated on 9 June 2006, and did not trade in the year.
The Company’s subsidiaries at 30 June 2006 are:
      Proportion Proportion 
    Nature of Country of of shares of voting 
    business incorporation owned power held
Abcam Inc.    Sale and USA 100% 100%
    distribution of   
    antibodies
Abcam KK    Dormant Japan 100% 100%
Camgene    Dormant UK 100% 100%
As at 30 June 2006 the called up share capital and reserves of Camgene were £10 (2005: £10). The company is dormant. All 
subsidiary companies have one class of ordinary shares.
13	 Stocks
    Group Company Group Company 
    30/6/06 30/6/06 30/6/05 30/6/05 
    £000 £000 £000 £000
Goods for resale    2,308 2,298 946 941
Work in progress    50 50 241 241
    2,358 2,348 1,187 1,182
14	 Debtors
    Group Company Group Company 
    30/6/06 30/6/06 30/6/05 30/6/05 
    £000 £000 £000 £000
Trade debtors    2,386 1,164 1,733 805
Owed by subsidiary undertaking    – 1,165 – 955
Other debtors and prepayments    376 347 179 172
    2,762 2,676 1,912 1,932
All amounts are due within one year. 	 36 	 Abcam 	 Annual report and accounts 30 June 2006
15	 Creditors:	amounts	falling	due	within	one	year
    Group Company Group Company 
    30/6/06 30/6/06 30/6/05 30/6/05 
    £ £ £ £
Trade creditors    1,160 1,133 835 743
Corporation tax    562 411 327 251
Other taxes and social security    89 89 62 54
Other creditors    127 98	 109	 91
Accruals and deferred income    1,085 974 816 770
    3,023 2,705 2,149 1,909
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. Short term debtors and creditors have been excluded from the 
following disclosures other than the currency disclosures The risks that arise from these instruments are currency exposure, 
interest rate, credit, and liquidity, and the policies followed throughout the year are as follows:
Currency risk
The Group operates 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 the majority 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 and are all floating rate financial 
assets. These deposits are with recognised UK high street banks. Interest rates are based upon prevailing market rates. During the 
year the weighted average interest rate received on these deposits was 4.45% and the weighted average period to maturity for 
each currency was 13 days (2005-nil days).
Credit risk
The Group’s main financial assets are cash deposits, bank accounts and trade debtors. 
Credit risk is primarily attributable to its trade debtors. The average credit period taken on sales of goods is 45 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. 
The credit risk on cash deposits and bank accounts is limited because the counterparties are leading UK banks.
Liquidity risk
Liquidity is maintained by placing cash on deposit for relatively short periods of time in order to ensure that cash is available when 
the Group requires it. At 30 June the Group held the following liquid assets:
      30/6/06 30/6/05 
      £000 £000
Sterling cash deposits      11,000 1,000
Cash – sterling      205 80
Cash – US dollars      610 356
Cash – euros      59 74
Cash – yen      10	 –
      11,884 1,510
At the balance sheet date Abcam plc was contracted to sell £5,362,000 of US$ (2005: £5,057,000) and £2,433,000 of euros 
(2005: £2,320,000). 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.
Notes	to	the	Accounts continued
Year ended 30 June 2006  Annual report and accounts 30 June 2006 Abcam		 37
17	 Financial	commitments
Operating lease commitments
At 30 June 2006 the following payments were committed to be paid during the next year in respect of operating leases:
      30/6/06 30/6/05 
      Land	 and Land and 
      buildings buildings 
      £000 £000
Group
Leases which expire:
Within 12 months      66	 –
Within two to five years      – 68
After five years      209 177
      275 245
Company
Leases which expire:
After five years      275 177
18	 Deferred	tax	 	 Company and Group
Deferred taxation provided is as follows:
 Group  Company
    30/6/06 30/6/05 30/6/06 30/6/05 
    £000 £000 £000 £000
Accelerated capital allowances    152  107  110	 78 
Other timing differences    (40) (27) (7) (4)
Deferred tax liability    112	 80  103	 74 
     
       £000
Group   
At 1 July 2005       80
Charge in year       32
At	 30	 June	 2006	 	 	 	 	 	 	 112
Company	 	 	 At 1 July 2005       74
Charge in year       29
At	 30	 June	 2006	 	 	 	 	 	 	 103
There are no unprovided deferred tax amounts. 	 38 	 Abcam 	 Annual report and accounts 30 June 2006
19	 Called	up	share	capital
      30/6/06 30/6/05 
      £000 £000
Authorised
100,000,000 (2005: 4,000,000) ordinary shares of 1p each (2005: 4p)    1,000 160
Called	 up,	 allotted	 and	 fully	 paid
34,464,584 (2005: 695,118) ordinary shares of 1p each (2005: 4p)    345 28
Under the Company’s Enterprise Management Incentive Scheme employees of Abcam plc held options at 30 June 2006 for 
728,480 unissued 1p ordinary shares (2005: 23,788 4p ordinary shares). During the year options for 6,789 4p ordinary shares and 
229,760 1p ordinary shares were exercised. Options for 7,308 4p ordinary shares were granted and options for 178 4p ordinary 
shares and 6,920 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  100,000 25.0p to 50.0p June 2005 to June 2006
July 2004  121,920 25.0p July 2006
December 2004  220,000 25.0p 2 years after a listing
July 2005  218,280 62.5p July 2007
September 2005  60,000 62.5p September 2007
Employees of Abcam plc also held options under an unapproved scheme at 30 June 2006 for 261,360 unissued ordinary shares 
(2005: 4,263 4p ordinary shares) at exercise prices of 62.5p to 150p per share. 170,520 options for 1p ordinary shares were 
exercised during the year, and 6,534 options for 4p ordinary shares were granted. The options vest over the period January 2006 
to July 2007. Employees of Abcam Inc. also held options under an unapproved scheme at 30 June 2006 for 55,320 unissued 
ordinary shares (2005: nil) at an exercise price of $1.125. An option for 40,000 (2005: 1,000 4p ordinary shares) 1p ordinary shares 
has been granted to a scientific advisor at an exercise price of 25p per share. The option vested in May 2005. 
Reconciliation of 1p ordinary shares to 4p ordinary shares
On 20 October 2005 a bonus issue of one 4p ordinary share for each 4p ordinary share took place. On 3 November 2005 each  
4p ordinary share was split into four 1p ordinary shares. This was then immediately followed by a bonus issue of four 1p ordinary 
shares for each 1p ordinary share. The cumulative effect of these steps was that one 4p ordinary share before 20 October 2005 
became 40 1p ordinary shares on or shortly before 3 November 2005.
During the period from 1 July 2005 to 2 November 2005 the Company issued ordinary 4p shares as follows:
      Exercise 
     Number price Total paid 
Date issued     of shares £ £
4 July 2005     3,913 5.00 19,565
6 September 2005     100 5.00 500
22 September 2005     270 5.00 1,350
23 September 2005     70 10.00 700
28 September 2005     255 5.00 1,275
29 September 2005     975 5.00 4,875
29 September 2005     935 10.00 9,350
3 October 2005     68 5.00 340
7 October 2005     203 5.00 1,015
     6,789  38,970
Notes	to	the	Accounts continued
Year ended 30 June 2006  Annual report and accounts 30 June 2006 Abcam		 39
19	 Called	up	share	capital	 continued
During the period from 3 November 2005 to 30 June 2006 the company issued ordinary 1p shares as follows:
      Exercise 
     Number price Total paid 
Date issued     of shares £ £
3 November 2005     5,988,024 1.67 10,000,000
3 November 2005     146,120 0.125 18,265
3 November 2005     217,280 0.25 54,320
26 April 2006     1,400 0.25 350
31 May 2006     7,680 0.25 1,920
12 June 2006     20,000 0.125 2,500
27 June 2006     7,800 0.25 1,950
      6,388,304   10,079,305
 
20	 Statement	of	movements	on	reserves
    Share  Foreign Profit 
    premium Other exchange  and loss 
    account reserves reserve account 
    £000 £000 £000 £000
Group
As at 1 July 2005    1,568 335 15 1,269
Retained profit for the year    – – – 3,679
Dividends paid    – – – (1,153)
Bonus issues    (253) – – –
Premium on shares issued    10,056 – – –
Expenses of share issues    (798) – – –
Currency translation difference on foreign currency net investments  – – (23) –
At	 30	 June	 2006	 	 	 	 10,573	 335	 (8)	 3,795
    Share   Profit 
    premium Other  and loss 
    account reserves  account 
    £000 £000  £000
Company
As at 1 July 2005    1,568 335  1,138
Retained profit for the year    – –  3,284
Dividends paid    – –  (1,153)
Bonus issues    (253) –  –
Premium on shares issued    10,056 –  –
Expenses of share issues    (798) –  –
At	 30	 June	 2006	 	 	 	 10,573	 335	 	 3,269 	 40 	 Abcam 	 Annual report and accounts 30 June 2006
21	 Reconciliation	of	movements	in	Group	shareholders’	funds
      2006 2005 
      £000 £000
Profit for the year      3,679 2,281
Other recognised gains and losses relating to the year (net)     (23) 11
Add back: charge in respect of share options      – 17
      3,656 2,309
Dividends paid      (1,153) (1,317)
Issue of shares net of issuing costs      9,322 570
Net addition to shareholders’ funds     	 11,825 1,562
Opening shareholders’ funds      3,215 1,653
Closing shareholders’ funds     	 15,040 3,215
22	 Post	balance	sheet	events
On 11 August 2006 the Company entered an agreement with Triple Point Biologics Inc. Under the terms of the deal, Abcam will 
acquire the worldwide distribution rights for a period of 10 years for an initial payment of $2 million plus an earn-out payment based 
on a percentage of sales achieved during the first four years, subject to a cap of $8 million. Based on current estimates of future 
sales the Directors expect the provision for the earn-out payment will amount to approximately $1.4 million. In addition Abcam will 
pay a royalty based on a percentage of sales for the entire 10 year term.
23	 Ultimate	controlling	party
There was no ultimate controlling party in either year.
24	 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 £4,274 (2005: £52,031).
Notes	to	the	Accounts continued
Year ended 30 June 2006 01  Highlights
02  Our Business at a Glance
04  Chairman’s Statement
06  CEO’s Review
07  Managing Director’s Review
08  CEO’s Questions and Answers
10  Financial Review
12  The Directors
14 Corporate Directory
15 Directors’ Report
17  Corporate Governance
19  Directors’ Remuneration Report
21  Statement of Directors’ Responsibilities
22  Independent Auditors’ Report
23 Consolidated Profit and Loss Account
23  Statement of Total Recognised Gains and Losses
24  Consolidated Balance Sheet
25  Company Balance Sheet
26  Consolidated Cash Flow Statement
27  Notes to the Consolidated Cash Flow Statement
28  Notes to the Accounts
Contents Annual report 
and accounts
for the year ended 30 June 2006
Abcam plc Annual Accounts 
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
Abcam plc Annual report and accounts for the year ended 30 June 2006