Annual report  
and accounts 2008
Annual report and accounts 2008
332 Cambridge Science Park
Cambridge
CB4 0WN
UK
Email: orders@abcam.com
Phone: +44 (0)1223 696000
Fax: +44 (0)1223 696001 01 Highlights
02 Our Business at a Glance
04 Our Internet Platform
06 Chairman’s Review
08 Chief Executive  
Officer’s Review
10 Managing Director’s Review
12 Financial Review
14 Board of Directors
16 Corporate Directory
17 Directors’ Report
19 Corporate Governance
21 Directors’ Remuneration 
Report
24 Statement of Directors’ 
Responsibilities
25 Independent Auditors’ 
Report
26 Consolidated Income  
Statement
27 Consolidated Statement of 
Recognised Income and 
Expense
28 Consolidated Balance Sheet
29 Company Balance Sheet
30 Consolidated Cash Flow 
Statement
31 Company Cash Flow  
Statement
32 Notes to the Consolidated 
Financial Statements
Our vision is to build the largest 
online antibody resource in the 
world while also ensuring that 
the antibodies are of excellent 
quality and commercial viability.
Welcome!
My name is Molly, I’m the resident Abcam mascot and 
appear on all our packaging and branded materials.
A lot of researchers ask where we got the idea for Molly  
the sheep. It was simply because Dolly the sheep was  
making headline news at the time, so we created the  
body out of a molecular space fill model and gave her  
antibody legs, and thus the molecular Dolly became  
Abcam’s Molly. 2005
12.1
2006
19.4
2007
24.5
2008
36.7
Turnover (£m)
2005
3.0
2006
5.0
2007
5.5
2008
8.2*
Profit (£m) before tax
2005
8.59
2006
11.17
2007
11.74
2008
16.88
Earnings Per Share (p)
Abcam plc
Annual Report and Accounts
30 June 2008
 Highlights
44,000
Number of products  
up 29.8%
£36.7m
Sales increased 49.7%
£8.2m*
Profit before tax 
increased 48.2%
 Sales increased 49.7% to £36.7m  
(2007: £24.5m). 
 Pre-tax profits increased 48.2% to £8.2m*. 
 Product range grew 29.8% to 44,000 
antibodies and related products  
(2007: 33,900). 
 Transfer of all polyclonal production to high-
throughput production (HTP) facility 
successfully completed, further development 
of monoclonal production programme and 
significant increase in levels of product 
characterisation undertaken in-house.
 US subsidiary continued to trade well,  
and our Japanese subsidiary grew sales  
by 67.4% in the second half of the year.
•
•
•
•
•
 Net cash and short term investments at  
30 June 2008 of £14.5m (2007: £10.7m).
 EPS increased by 43.8% to 16.88p per share 
(2007: 11.74p). 
 Final dividend increased by 42.9% to 4.56p 
per share (2007: 3.19p) making a total 
dividend for the year of 5.60p (2007: 3.99p).
David Cleevely, Chairman of Abcam said  
“The year to June 2008 was another year of 
impressive growth at Abcam, reflected in our 
strong sales, profits and cash generation, and  
in the 40.4% increase in our total dividend.  
The growing international demand for research 
antibodies, combined with the strength of  
our brand, product range and strategy, means 
that the Board looks forward to the future  
with confidence.”
•
•
•
* Pre potential offer related costs of £250k. Abcam plc
Annual report and accounts 
30 June 2008
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Our Business
at a Glance
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.
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.
How we 
work
1 We source and develop
We make our own antibodies 
and source other excellent 
antibodies from institutes, 
academic laboratories and 
primary manufacturers.
Abcam now has an online 
catalogue of more than 44,000 
antibodies and related products 
(such as proteins, peptides and 
kits). An increasing number of 
products are produced in-
house at our new high 
throughput production facility in 
Cambridge, UK and the 
percentage of total sales 
represented by such products 
is expected to grow as the 
facility comes fully on stream. 
Other products are supplied by  
more than 250 leading OEM 
partners and sold under the 
Abcam Brand.
2 We add value
Our scientists have built a 
catalogue of the best antibodies 
in the world and provide technical 
support on all of our products to 
enable our customers to achieve 
the result they expect.
The unique relationship Abcam 
has with the scientists who use 
our products means that we can 
obtain a wide range of testing 
data from their feedback and 
enquiries. We publish this 
information in the form of 
Abreviews
SM
 , which report the 
purchasing decisions of 
researchers looking for 
reagents. Taken across the 
catalogue average sales per 
product continue to increase the 
longer they have been on our 
catalogue, a trend we attribute 
in part to the sheer quantity of 
information that we are able to 
gather and publish over time.
Following an in-depth study of 
the market, Abcam has chosen 
8 Core Focus Areas (CFAs), 
each of which represents a 
research area with high market 
demand. We have vertically 
integrated our business 
development, manufacturing, 
marketing sales and technical 
support teams around these 
areas and expect to add a 
further two CFAs by June 2009.
3 We deliver
Our systems enable us to 
process orders quickly and 
accurately and we ship across 
the globe using our fully 
automated web-enabled stock-
management system. Our size 
means that we can invest in 
state-of-the art storage and 
handling facilities, which have 
enabled us to speed up shipping 
times and increase our output. 
We are able to operate at high-
levels of efficiency and with low 
handling costs.
Abcam plc is a producer and distributor of 
research-grade antibodies and associated 
products.
Where we operate
Abcam is headquartered in Cambridge, UK and continues to 
benefit from close links to the University of Cambridge, from which 
a large number of our PhD recruits are drawn.
Our US office has made a substantial, increasing contribution  
to sales since it was opened four years ago, serving our largest 
single market.
We opened an office in Tokyo, Japan in December 2006 and this 
has enabled us to radically improve the quality of the service we 
provide to customers in the form of technical support and speed  
of delivery.
We are also continuing to build our distributor network in order to 
improve our geographic reach in parts of the world where an  
e-commerce model has yet to be fully embraced.  Abcam plc
Annual report and accounts 
30 June 2008
3
Customers can directly access 
the website to find the status of 
their orders so they can plan 
their experiments more 
effectively.
4 We support
Our products come with an 
Abpromise
SM
, giving customers 
the reassurance of knowing 
that:
 Our antibodies are of the 
highest quality and are 
backed up by an expert 
technical team, who are  
able to assist in initial  
product selection;
•
 Customers can, at  
any time, contact other  
customers using  
the same antibody  
via our unique  
Abreviews
SM
 system;
 If, after optimisation, any 
product does not perform as 
described on the datasheet, 
customers can contact our 
expert team to ask for advice 
assistance; and
 In the unlikely event that a 
product is faulty, we will 
replace or provide a full 
refund if reported within  
 20 days of purchase.
•
•
•
Our 
products
Abcam has over 44,000 
products in its catalogue and 
the number is still growing.
Our team not only adds new 
products to our catalogue every 
day but also regularly modifies 
the datasheets for our existing 
products. These modifications 
are based on our own testing 
and research in addition to the 
feedback of our suppliers and 
customers.
 For our customers, this means:
more antibody targets
more product types
more choice
•
•
•
Products sold by Abcam but 
not manufactured on our 
premises are supplied by more 
than 250 leading OEM partners 
around the world.
As it comes fully on stream,  
our new production facility will 
enable us to devote substantially 
more resources to in-house 
product development. In 
particular, this year has seen  
an increase in the levels of 
quality of characterisation 
which we can now provide  
with all our products. This  
is a key driver of growth.
Our people
Strength through brilliant people
We take enormous pride in the calibre of our employees. Since its 
launch in  998, Abcam has had tremendous success in attracting 
highly skilled people to its business and now boasts an impressive 
intellectual capital base.
Abcam now employs  84 full-time staff, a large proportion of who 
have PhDs. In the UK we are able to draw on our close links with the 
University of Cambridge from where many of our PhD recruits come.
Abcam remains fully committed to enhancing the abilities of its team 
members through its programme of staff training and development.
The strength our staff bring is demonstrable in the enthusiasm and 
creativity which drives the Group. Abcam plc
Annual report and accounts 
30 June 2008
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Our Internet
Platform
For many customers, the 
Internet is the most convenient 
and comprehensive method of 
finding the product they need. 
As such, search engine 
optimisation is important to 
ensure that Abcam products 
feature prominently in the 
organic (non-sponsored) 
results. Regular monitoring and 
expert design lead to 
progressively better search 
engine rankings; currently 97% 
of our catalogue is represented 
in Google. The goal for Abcam 
is for every one of its products 
to be represented in the top 
ranking positions on the major 
search engines.
The user experience, starting 
from the moment the customer 
clicks on a link to the Abcam 
website, is very important to us. 
A page request rapidly crosses 
the Internet to our data centre 
and is inspected by our security 
perimeter before being passed 
to our specialised website load 
balancer. In just a few 
milliseconds the load balancer 
has selected one of our many 
webservers, which dynamically 
creates the page and sends the 
response back to the customer 
via an optimised path through 
the Internet as determined by 
our content delivery network 
(CDN). Abcam is proud to say 
that the technical strength 
required to deliver the Abcam 
website has been built from  
the ground up by the expert  
IT team employed at Abcam. 
This in-house expertise gives 
us the ability to constantly fine-
tune our infrastructure and 
leverage specific technologies 
to our benefit.
The time it takes for a webpage 
to appear in the browser is 
constantly monitored by software 
that records the response time 
for every single page request by 
customers anywhere in the 
world. We record everything 
from the customer’s location to 
their browser type, how long the 
page took to appear on their 
screen and what speed 
broadband they are using. 
Through a combination of using 
clustered, high-powered 
webservers and the world’s 
leading CDN we deliver our 
website to customers in the USA 
in  .3 seconds, in Japan in  .4 
seconds and in Europe in  .5 
seconds. A sub-2-second 
response time worldwide is 
our benchmark.
As well as the speed of 
delivery, our IT systems also 
help to ensure that the content 
received by the user is fresh 
and constantly updated with 
images, reviews and customer 
feedback as well as pricing and 
stock availability. In order to 
show the most relevant and 
useful data, we test our website 
usability both in face-to-face 
sessions with scientists and 
using automated testing 
techniques. This enables us to 
achieve the optimal structure 
and content for the pages.
In addition to providing an 
optimal web experience to  
our users, we have invested 
heavily in our internal systems. 
Being a web-based company, 
geographical barriers are 
technically easy to deal with.  
A single database serves the 
company intranet across our 
three offices where staff can 
access all the same internal 
applications and the database 
links directly to our customer 
relationship management 
(CRM), order fulfilment and 
stock inventory systems. As with 
our web infrastructure, the 
software for these systems is 
developed in-house, meaning 
that we can react quickly to new 
requirements and tailor systems 
specifically to the job at hand. 
Our software development team 
work around the clock to 
increase the effectiveness of  
our IT systems and for each 
improvement the benefits are 
immediately realised across  
all offices. 
Finding ways of improving 
efficiency is a passion at 
Abcam; continually refining 
operational processes with 
tightly integrated in-house IT 
systems is one of the ways 
Abcam has scaled so 
effectively. In the USA, for 
instance, we have been able to 
scale to fulfilling an increase in 
orders of 38% (year on year) 
but at the same time shorten 
customer shipping times from 
several days to next-day and in 
many cases same-day delivery.
While our website is regularly 
serving millions of pageviews 
per month and operational 
systems are taking care of 
customer orders, product 
specialists add valuable data to 
our online datasheets. These 
feed automated systems that 
tailor personalised marketing 
emails to our extensive 
customer base – reminding 
them that Abcam has the 
largest online catalogue of the 
best antibodies in the world.
IT systems and the Internet underpin our 
business at Abcam. Our culture is based  
on strong technical foundations and the  
data-rich characteristics of our products  
mean that they are ideally suited to selling  
in the online marketplace.  Abcam plc
Annual report and accounts 
30 June 2008
5
For many customers, the 
Internet is the most convenient 
and comprehensive method of 
finding the product they need. 
As such, search engine 
optimisation is important to 
ensure that Abcam products 
feature prominently in the 
organic (non-sponsored) 
results. Regular monitoring and 
expert design lead to 
progressively better search 
engine rankings; currently 97% 
of our catalogue is represented 
in Google. The goal for Abcam 
is for every one of its products 
to be represented in the top 
ranking positions on the major 
search engines.
The user experience, starting 
from the moment the customer 
clicks on a link to the Abcam 
website, is very important to us. 
A page request rapidly crosses 
the Internet to our data centre 
and is inspected by our security 
perimeter before being passed 
to our specialised website load 
balancer. In just a few 
milliseconds the load balancer 
has selected one of our many 
webservers, which dynamically 
creates the page and sends the 
response back to the customer 
via an optimised path through 
the Internet as determined by 
our content delivery network 
(CDN). Abcam is proud to say 
that the technical strength 
required to deliver the Abcam 
website has been built from  
the ground up by the expert  
IT team employed at Abcam. 
This in-house expertise gives 
us the ability to constantly fine-
tune our infrastructure and 
leverage specific technologies 
to our benefit.
The time it takes for a webpage 
to appear in the browser is 
constantly monitored by software 
that records the response time 
for every single page request by 
customers anywhere in the 
world. We record everything 
from the customer’s location to 
their browser type, how long the 
page took to appear on their 
screen and what speed 
broadband they are using. 
Through a combination of using 
clustered, high-powered 
webservers and the world’s 
leading CDN we deliver our 
website to customers in the USA 
in  .3 seconds, in Japan in  .4 
seconds and in Europe in  .5 
seconds. A sub-2-second 
response time worldwide is 
our benchmark.
As well as the speed of 
delivery, our IT systems also 
help to ensure that the content 
received by the user is fresh 
and constantly updated with 
images, reviews and customer 
feedback as well as pricing and 
stock availability. In order to 
show the most relevant and 
useful data, we test our website 
usability both in face-to-face 
sessions with scientists and 
using automated testing 
techniques. This enables us to 
achieve the optimal structure 
and content for the pages.
In addition to providing an 
optimal web experience to  
our users, we have invested 
heavily in our internal systems. 
Being a web-based company, 
geographical barriers are 
technically easy to deal with.  
A single database serves the 
company intranet across our 
three offices where staff can 
access all the same internal 
applications and the database 
links directly to our customer 
relationship management 
(CRM), order fulfilment and 
stock inventory systems. As with 
our web infrastructure, the 
software for these systems is 
developed in-house, meaning 
that we can react quickly to new 
requirements and tailor systems 
specifically to the job at hand. 
Our software development team 
work around the clock to 
increase the effectiveness of  
our IT systems and for each 
improvement the benefits are 
immediately realised across  
all offices. 
Finding ways of improving 
efficiency is a passion at 
Abcam; continually refining 
operational processes with 
tightly integrated in-house IT 
systems is one of the ways 
Abcam has scaled so 
effectively. In the USA, for 
instance, we have been able to 
scale to fulfilling an increase in 
orders of 38% (year on year) 
but at the same time shorten 
customer shipping times from 
several days to next-day and in 
many cases same-day delivery.
While our website is regularly 
serving millions of pageviews 
per month and operational 
systems are taking care of 
customer orders, product 
specialists add valuable data to 
our online datasheets. These 
feed automated systems that 
tailor personalised marketing 
emails to our extensive 
customer base – reminding 
them that Abcam has the 
largest online catalogue of the 
best antibodies in the world. Abcam plc
Annual report and accounts 
30 June 2008
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Chairman’s
Review
Abcam has recently celebrated its tenth 
anniversary and I am delighted to report on 
another outstanding year as the Group 
continues to go from strength to strength. 
Demand for research antibodies 
has never been higher, nor has 
our reputation. Our highly 
developed e-commerce 
platform, offering targeted 
information and easy access  
to products, has become the 
destination of choice for 
increasing numbers of 
researchers across the world. 
Our intention is to consistently 
deliver robust growth whilst at 
the same time investing in the 
future of the business, thus 
ensuring that we have a solid 
and sustainable foundation for 
long-term development. This 
has been achieved this year 
and the business is well set for 
continued success.
We have achieved strong 
growth in all the regions in 
which we operate: sales in the 
year increased by 49.7% to 
£36.7m (49. % on a constant 
currency basis), whilst gross 
margins increased from 59. % 
to 60.8%. This outstanding 
performance is a testimony  
to the quality of the products 
and support we offer, the 
scalability of our operation and 
Abcam’s growing reputation as 
a quality supplier to the world 
scientific community. 
A key driver of our success is 
our wealth of product data. This 
set of data is a tremendous 
asset and includes technical 
information, application specific 
information, user-generated 
reviews and how our products 
have been used in published 
experiments. Using this 
relevant, easily accessible 
information, research scientists 
can identify and purchase the 
products best suited for their 
requirements. During the year, 
our catalogue increased by 
more than  0,000 products, 
from 33,900 at the end of the 
last financial year to over 
44,000 at the end of June 2008. 
Sales of individual products 
tend to increase the longer they 
are listed and as more data is 
gathered. New products 
contributed £3.2m to sales in 
the year and we expect sales 
from these new launches to 
increase in future years. 
Our investments in the year 
included the continued 
development of the high-
throughput production (HTP) 
facility. The HTP facility has 
taken on the production of new 
and existing polyclonal 
antibodies and been very 
successful in adding 
characterisation data, which is 
an important driver of growth, 
to our existing catalogue. A 
priority for this year has been 
increasing production 
efficiencies and managing 
costs. We have also continued 
development work on our 
automated monoclonal 
development programme. The 
initial level of sales of the 
monoclonal antibodies added 
to the catalogue during the year 
has been well ahead of 
David Cleevely
Chairman
> Abcam plc
Annual report and accounts 
30 June 2008
7
expectations and we will 
continue to prudently manage 
monoclonal production levels in 
line with the development of our 
production process. 
Our offices in the USA and 
Japan have both grown 
significantly in the year and our 
commitment to optimising the 
user experience has driven 
further investment in our 
website infrastructure, and the 
establishment of a dedicated  
e-commerce team. We are also 
continuing to build our 
distributor network in order to 
improve our geographic reach 
in parts of the world where an 
e-commerce model has yet to 
be fully embraced. 
We have continued to attract 
staff of the highest calibre to 
ensure that our growth is 
targeted and well managed. A 
high proportion of our staff have 
PhDs and we aim to blend a 
depth of technical knowledge 
with strong commercial 
acumen. In November 2007 we 
appointed Jeff Iliffe as Chief 
Financial Officer and, with the 
extremely valuable 
contributions from the non-
executive directors, we have a 
strong and effective Board.
Our aim is to continue 
delivering value to both our 
customers and our 
shareholders and I would like to 
thank them for their continued 
support. I would also like to 
extend thanks to our growing 
number of suppliers and finally 
to our dedicated and talented 
staff, who make these 
achievements possible. 
Dividends
The Board’s policy is to 
distribute 33% of profit after tax 
as dividends. This was 
increased from 25% last year, in 
line with the strong cashflow 
and growing success of the 
Group. An interim dividend of 
 .04p per share was paid in 
April 2008 and the Directors 
are therefore recommending a 
final dividend of 4.56p per 
share, making a total for the 
year of 5.60p. Subject to 
shareholder approval at the 
Annual General Meeting in 
November, this dividend will be 
paid on 28 November 2008 to 
shareholders on the register on 
7 November 2008.
Outlook
Our track record demonstrates 
the strength of the combination 
of our highly developed  
e-commerce platform, wealth  
of product data, extensive 
range of antibodies and high-
calibre staff. We have built an 
attractive position in an exciting 
market and the Board looks to 
the future with confidence.
David Cleevely, FREng
Chairman
8 September 2008 Abcam plc
Annual report and accounts 
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Chief
Executive 
Officer’s Review
We have built a truly international reputation in 
the research community for the reliability of our 
products and the support we offer. 
The development of our 
systems and the power of the 
internet enable us to focus our 
marketing effectively and to 
provide a targeted, high-value 
service at the individual 
researcher level. At the same 
time, our product range has 
expanded to more than 44,000 
products and sales have 
increased by 49.7% to £36.7m. 
We continue to strike a balance 
between current year growth 
and investment for the future. 
Even so, profit before taxation 
increased by 48.2% from £5.5m 
to £8.2m before charging 
£250k in costs associated  
with the potential offer process 
last summer. 
What is also very exciting is the 
29.8% growth achieved in the 
number of products in the 
catalogue and the breadth 
covered by the new products. 
One of the strengths of the 
team that sources externally 
manufactured antibodies from 
original equipment 
manufacturers (OEMs) is the 
diversity of deals that they can 
cover in building the catalogue. 
This year, deals range from one 
adding almost 3,000 antibodies 
immediately to those on 
individual products from niche 
researchers. It is encouraging 
also that we have built a 
sufficient market share such 
that the desirability of pursuing 
exclusive product line 
acquisition (PLA) deals has 
reduced. We do not rule out 
doing more PLA deals in the 
future, if the deals are lucrative; 
however as a source of growth 
and capturing market share 
their role and importance has 
diminished. Overall, we are now 
managing relationships with 
more than 250 suppliers and 
see growth both from new 
products that our established 
suppliers bring to us and from 
the continued addition of new 
suppliers. We are also 
expanding the breadth of 
antibody-related reagents that 
we can cover, giving us access 
to new markets; for example, 
this year we have almost 
doubled our proteins range.
Our HTP facility is now well 
established in its new building. 
The production levels of 
polyclonal antibodies now 
exceed the levels achieved in 
our old facility, with the capacity 
to increase this in line with 
market demand. We are also 
seeing the monoclonal 
antibodies coming out of the 
developmental stages of the 
facility, and showing good initial 
sales. 
A further, particularly satisfying 
achievement is the introduction 
of high-throughput screening 
assays into the HTP facility, 
leading to increased levels and 
quality of characterisation 
which we can now provide with 
all our products. This is a key 
driver of our growth and we are 
delighted with the amount of 
characterisation data that is 
being generated.  
Both our OEM product sourcing 
strategies and HTP product 
development are driven by our 
approach to the segmentation 
of the research market into 
Core Focus Areas (CFAs). This 
year we have continued to build 
our CFA strategy through the 
development and integration of 
product, marketing, events and 
support teams within each CFA. 
We have found that the CFA 
approach is very effective in 
capturing market share and 
continue to add further CFAs in 
order to maintain this momentum. 
We started the year with six 
CFAs and we added two further 
to take our total number to eight 
fully established CFAs. 
A key area of development 
based around the CFAs is in the 
activities of the scientific events 
team, which organises and runs 
conferences and seminars. To 
help across all our CFAs we 
have also been developing an 
expert system – the Target 
Selection Database (TSDB) – to 
help in the quality of candidate 
targets that we can select. The 
TSDB is a powerful data-mining 
tool that integrates both internal 
and external scientific data 
sources to provide a 
comprehensive profile of the 
commercial potential of a target 
in half the time taken previously.
We have a highly efficient 
business, with end-to-end 
systems linking the public 
website directly through to 
product ordering, inventory 
management, logistics and 
accounting. The resulting real-
time data gives us strong 
operational and financial 
control and enables us to adopt 
an agile and responsive 
approach to the management of 
the business.
Since the creation of the 
company ten years ago our 
strong focus has been on 
serving the researcher and our 
business philosophy and 
processes are all based around 
their needs and the 
achievement of their objectives. 
During that time our products 
have been used in ground-
breaking research and 
referenced in thousands of 
publications, thus enhancing 
our international reputation. 
This commitment is also core to 
our future as through the 
development of our systems we 
build on our relationships, 
offering an ever more relevant 
service to each individual as 
our product range and 
geographic reach expand. 
Jonathan Milner
CEO
8 September 2008
Jonathan Milner
CEO
> Abcam plc
Annual report and accounts 
30 June 2008
9
The development of our 
systems and the power of the 
internet enable us to focus our 
marketing effectively and to 
provide a targeted, high-value 
service at the individual 
researcher level. At the same 
time, our product range has 
expanded to more than 44,000 
products and sales have 
increased by 49.7% to £36.7m. 
We continue to strike a balance 
between current year growth 
and investment for the future. 
Even so, profit before taxation 
increased by 48.2% from £5.5m 
to £8.2m before charging 
£250k in costs associated  
with the potential offer process 
last summer. 
What is also very exciting is the 
29.8% growth achieved in the 
number of products in the 
catalogue and the breadth 
covered by the new products. 
One of the strengths of the 
team that sources externally 
manufactured antibodies from 
original equipment 
manufacturers (OEMs) is the 
diversity of deals that they can 
cover in building the catalogue. 
This year, deals range from one 
adding almost 3,000 antibodies 
immediately to those on 
individual products from niche 
researchers. It is encouraging 
also that we have built a 
sufficient market share such 
that the desirability of pursuing 
exclusive product line 
acquisition (PLA) deals has 
reduced. We do not rule out 
doing more PLA deals in the 
future, if the deals are lucrative; 
however as a source of growth 
and capturing market share 
their role and importance has 
diminished. Overall, we are now 
managing relationships with 
more than 250 suppliers and 
see growth both from new 
products that our established 
suppliers bring to us and from 
the continued addition of new 
suppliers. We are also 
expanding the breadth of 
antibody-related reagents that 
we can cover, giving us access 
to new markets; for example, 
this year we have almost 
doubled our proteins range.
Our HTP facility is now well 
established in its new building. 
The production levels of 
polyclonal antibodies now 
exceed the levels achieved in 
our old facility, with the capacity 
to increase this in line with 
market demand. We are also 
seeing the monoclonal 
antibodies coming out of the 
developmental stages of the 
facility, and showing good initial 
sales. 
A further, particularly satisfying 
achievement is the introduction 
of high-throughput screening 
assays into the HTP facility, 
leading to increased levels and 
quality of characterisation 
which we can now provide with 
all our products. This is a key 
driver of our growth and we are 
delighted with the amount of 
characterisation data that is 
being generated.  
Both our OEM product sourcing 
strategies and HTP product 
development are driven by our 
approach to the segmentation 
of the research market into 
Core Focus Areas (CFAs). This 
year we have continued to build 
our CFA strategy through the 
development and integration of 
product, marketing, events and 
support teams within each CFA. 
We have found that the CFA 
approach is very effective in 
capturing market share and 
continue to add further CFAs in 
order to maintain this momentum. 
We started the year with six 
CFAs and we added two further 
to take our total number to eight 
fully established CFAs. 
A key area of development 
based around the CFAs is in the 
activities of the scientific events 
team, which organises and runs 
conferences and seminars. To 
help across all our CFAs we 
have also been developing an 
expert system – the Target 
Selection Database (TSDB) – to 
help in the quality of candidate 
targets that we can select. The 
TSDB is a powerful data-mining 
tool that integrates both internal 
and external scientific data 
sources to provide a 
comprehensive profile of the 
commercial potential of a target 
in half the time taken previously.
We have a highly efficient 
business, with end-to-end 
systems linking the public 
website directly through to 
product ordering, inventory 
management, logistics and 
accounting. The resulting real-
time data gives us strong 
operational and financial 
control and enables us to adopt 
an agile and responsive 
approach to the management of 
the business.
Since the creation of the 
company ten years ago our 
strong focus has been on 
serving the researcher and our 
business philosophy and 
processes are all based around 
their needs and the 
achievement of their objectives. 
During that time our products 
have been used in ground-
breaking research and 
referenced in thousands of 
publications, thus enhancing 
our international reputation. 
This commitment is also core to 
our future as through the 
development of our systems we 
build on our relationships, 
offering an ever more relevant 
service to each individual as 
our product range and 
geographic reach expand. 
Jonathan Milner
CEO
8 September 2008 Abcam plc
Annual report and accounts 
30 June 2008
 0
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Managing
Director’s
Review
Our strong performance this year is  
again a tribute to the enthusiasm and 
commitment of our staff. 
Our new HTP manufacturing 
facility in Cambridge UK has 
been open for just over a year 
and the move from our existing 
facility has gone well. The 
production processes for 
polyclonal antibodies are now 
established and the 
development programme for our 
own monoclonal manufacturing 
is well underway. During the 
year we have been 
commissioning the major pieces 
of automation equipment from 
Beckman Coulter needed for 
scaled-up production of 
monoclonals. The last of these – 
the freeze-down workstation for 
long-term storage of the clones 
– is scheduled to be 
commissioned before the end of 
this calendar year.
This year has marked an 
important transition for our 
Tokyo office, which since  
January 2008 has moved from 
transacting the majority of our 
business through our original 
distributor, to dealing directly 
with our major sub-dealers in 
the Japanese market. This 
enables us both to provide 
better support to our customers 
by shortening the communication 
chain to them and to improve 
the margin we can realise from 
selling our products. This 
transition was always part of the 
strategy for developing the 
Tokyo office but I am delighted 
to report that we have achieved 
this whilst still delivering 67.4% 
growth in sales from ¥ 59.8m 
(£0.7m) to ¥267.5m (£ .3m), 
comparing the second half of 
this financial year with the same 
period last year.
This year has also seen us 
continuing our strategy of 
developing our European  
sales through our ‘virtual 
offices’ based out of our 
Cambridge UK office,  
enabling European customers 
to contact us directly in their 
own language. The results  
have been very pleasing, 
particularly in Germany and 
France. A combination of 
targeted marketing campaigns 
and amendments to our 
discount structure in Europe 
has meant we have increased 
sales by 65.5% from €8.9m 
to € 4.7m. 
As well as contributing to our 
overall sales, the strength in 
growth of our European sales 
has contributed to the margin 
improvements we have seen 
this year.
Our North American sales 
based out of our office in 
Cambridge MA have also 
continued to grow from $24.7m 
to $33.8m, an increase of 
36.9%. We have been fortunate 
to be able to take on an 
additional 4,500 square feet of 
adjoining space that has 
become vacant at our One 
Kendall Square address. This 
will enable us to implement 
smoothly the planned 
expansion of our operations in 
North America without the 
inconvenience of relocating and 
should provide sufficient space 
to accommodate up to three 
years of projected growth.
An area which is fast maturing 
into an important cornerstone of 
our business is our scientific 
events team. We organise and 
run conferences and seminars 
in our CFAs, both as part of our 
core marketing strategy and to 
build brand awareness and 
keep us in touch with our 
customers and the scientific 
community. We have gradually 
built up our capability and 
reputation in the biological 
events arena, from running two 
major events in 2006–07 
(around Chromatin and Stem 
Cells) to four in 2007–08. In 
addition, we have run twenty 
smaller, one-day events and 
seminars this year and will 
expand these further in  
2008–09.
Our strong performance this 
year is again a tribute to the 
enthusiasm and commitment of 
our staff. We aim to provide a 
rewarding and progressive 
environment for our employees 
and we are always seeking 
ways to improve our overall 
benefits package for all our 
staff. For example, this year in 
the UK, despite still being a 
relatively small company, we 
are offering a class-leading 
self-service flexible benefits 
system where staff can choose 
from a variety of benefits, 
ranging from health care and 
pensions to cycle-to-work 
schemes, and take best 
advantage of the tax 
concessions available via 
salary sacrifice. We believe that 
continuing to develop the 
creative and innovative 
individuals who have grown up 
through a young 
entrepreneurial culture will 
enable us to grow successfully 
over the coming years. This is 
achieved by being open to both 
interdepartmental transfers and 
the career aspirations of staff, 
together with active training 
and development programmes 
utilising local initiatives and 
other opportunities open to staff.
Jim Warwick
Managing Director
8 September 2008
Jim Warwick
Managing Director
> Abcam plc
Annual report and accounts 
30 June 2008
 Our new HTP manufacturing 
facility in Cambridge UK has 
been open for just over a year 
and the move from our existing 
facility has gone well. The 
production processes for 
polyclonal antibodies are now 
established and the 
development programme for our 
own monoclonal manufacturing 
is well underway. During the 
year we have been 
commissioning the major pieces 
of automation equipment from 
Beckman Coulter needed for 
scaled-up production of 
monoclonals. The last of these – 
the freeze-down workstation for 
long-term storage of the clones 
– is scheduled to be 
commissioned before the end of 
this calendar year.
This year has marked an 
important transition for our 
Tokyo office, which since  
January 2008 has moved from 
transacting the majority of our 
business through our original 
distributor, to dealing directly 
with our major sub-dealers in 
the Japanese market. This 
enables us both to provide 
better support to our customers 
by shortening the communication 
chain to them and to improve 
the margin we can realise from 
selling our products. This 
transition was always part of the 
strategy for developing the 
Tokyo office but I am delighted 
to report that we have achieved 
this whilst still delivering 67.4% 
growth in sales from ¥ 59.8m 
(£0.7m) to ¥267.5m (£ .3m), 
comparing the second half of 
this financial year with the same 
period last year.
This year has also seen us 
continuing our strategy of 
developing our European  
sales through our ‘virtual 
offices’ based out of our 
Cambridge UK office,  
enabling European customers 
to contact us directly in their 
own language. The results  
have been very pleasing, 
particularly in Germany and 
France. A combination of 
targeted marketing campaigns 
and amendments to our 
discount structure in Europe 
has meant we have increased 
sales by 65.5% from €8.9m 
to € 4.7m. 
As well as contributing to our 
overall sales, the strength in 
growth of our European sales 
has contributed to the margin 
improvements we have seen 
this year.
Our North American sales 
based out of our office in 
Cambridge MA have also 
continued to grow from $24.7m 
to $33.8m, an increase of 
36.9%. We have been fortunate 
to be able to take on an 
additional 4,500 square feet of 
adjoining space that has 
become vacant at our One 
Kendall Square address. This 
will enable us to implement 
smoothly the planned 
expansion of our operations in 
North America without the 
inconvenience of relocating and 
should provide sufficient space 
to accommodate up to three 
years of projected growth.
An area which is fast maturing 
into an important cornerstone of 
our business is our scientific 
events team. We organise and 
run conferences and seminars 
in our CFAs, both as part of our 
core marketing strategy and to 
build brand awareness and 
keep us in touch with our 
customers and the scientific 
community. We have gradually 
built up our capability and 
reputation in the biological 
events arena, from running two 
major events in 2006–07 
(around Chromatin and Stem 
Cells) to four in 2007–08. In 
addition, we have run twenty 
smaller, one-day events and 
seminars this year and will 
expand these further in  
2008–09.
Our strong performance this 
year is again a tribute to the 
enthusiasm and commitment of 
our staff. We aim to provide a 
rewarding and progressive 
environment for our employees 
and we are always seeking 
ways to improve our overall 
benefits package for all our 
staff. For example, this year in 
the UK, despite still being a 
relatively small company, we 
are offering a class-leading 
self-service flexible benefits 
system where staff can choose 
from a variety of benefits, 
ranging from health care and 
pensions to cycle-to-work 
schemes, and take best 
advantage of the tax 
concessions available via 
salary sacrifice. We believe that 
continuing to develop the 
creative and innovative 
individuals who have grown up 
through a young 
entrepreneurial culture will 
enable us to grow successfully 
over the coming years. This is 
achieved by being open to both 
interdepartmental transfers and 
the career aspirations of staff, 
together with active training 
and development programmes 
utilising local initiatives and 
other opportunities open to staff.
Jim Warwick
Managing Director
8 September 2008 Abcam plc
Annual report and accounts 
30 June 2008
 2
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Financial
Review
During the year our Business Development  
and Marketing teams introduced a number  
of strategies to improve sales and manage  
cost increases.
Sales
Sales increased in the year by 
49.7% to £36.7m or 49. % on a 
constant currency basis i.e. if 
foreign currency exchange 
rates had remained unchanged 
from 2007. (Average exchange 
rate applied to sales: 2008  
£ : $ .997: € .374: ¥220.05 ; 
2007 £ : $ .925: € .48 : ¥229.699.)
Gross margin
Gross margins reported for the 
period under review are 60.8% 
compared with 59. % for the 
previous year. The increase of 
 .7% is attributable to improved 
pricing which more than 
compensated for price 
increases from suppliers 
(0.7%); higher sales of products 
acquired under the exclusive 
product line acquisitions 
(0.4%); and from the benefit of 
the stronger Euro during the 
period, since a relatively small 
proportion of our product costs 
are denominated in Euros (0.6%).
During the year our Business 
Development and Marketing 
teams combined to actively 
manage the margin achieved 
on sales and introduced a 
number of strategies aimed at 
working with suppliers to 
improve sales and manage cost 
increases.
Administrative 
expenses
Administrative expenses rose 
from £7.7m to £ 2.5m. This 
increase reflects the 37.2% 
growth in the average 
headcount to  66; the first full 
year of operation of the HTP 
facility; and the Japanese 
office. During the year a net 
impairment charge of £442k 
was taken to the income 
statement relating to the 
reduction in the carrying value 
of one of the exclusive product 
line acquisition deals, following 
an assessment of future 
prospects under the deal. 
The bad debt provision 
increased from £224k to £59 k 
during the year, largely as a 
result of an overseas distributor 
having financial difficulties after 
becoming involved in a local 
court action, meaning that 
recovery of the balance due is 
now considered doubtful.
Research and 
development 
expenditure
Research and Development 
expenditure increased by 
39.8%, reflecting an increase in 
investment in the development 
of the monoclonal production 
process and new polyclonal 
production development. The 
level of expenditure is expected 
to continue to increase in future 
as the level of new product 
polyclonal production grows 
and the monoclonal 
development programme 
scales-up. 
Profit
Operating profits increased by 
5 .3% from £5.0m in the year 
ended June 2007 to £7.6m after 
adding back costs of £250k 
relating to a potential offer for 
the Group as announced to the 
market in July 2007. This 
represents an increase in 
operating profit as a 
percentage of sales from 20.5% 
to 20.8% despite the impact of 
the additional costs outlined 
above.
Interest income rose as the 
Company benefited from strong 
cash generation during the year.
Tax
The consolidated tax charge for 
the year was £2. m or 25.9% of 
profit before tax reflecting the 
tax credits arising from the 
increased amount of research 
and development undertaken. 
A credit of £ 4k was also 
received for research and 
development activities 
Jeff IIiffe
Chief Financial 
Officer
> Abcam plc
Annual report and accounts 
30 June 2008
 3
undertaken in prior years. The 
effective tax charge for the year 
was 25.9%, 2007: 26.6%. 
The tax charge for 2007 was 
£ .5m having been restated 
from £ .6m following the 
adoption of International 
Financial Reporting Standards 
(IFRS). The consolidated tax 
charge will benefit in future from 
a full year’s impact of the 
reduction in corporation tax in 
the UK from 30% to 28% and 
an increased level of research 
and development.
Inventories
The Group manages stock 
levels closely by monitoring the 
expectations of future sales for 
every product in the catalogue, 
and the time taken to restock 
either from our own production 
or from OEM suppliers. As a 
result, stock levels have 
increased less than the growth 
in sales during the course of the 
year. Over time the Group 
expects the levels of stock to 
increase relative to sales since 
Abcam products developed in-
house, involve batch sizes 
larger than required for 
immediate sale.
Debtors
A main focus for the year has 
been on debtor control and 
debtor days at the year end 
were 34.4 (2007 44.3). The 
majority of sales continue to be 
on credit and we would expect 
some increase in debtor days 
over time in line with practice in 
local markets as the geographic 
spread of sales widens.
Creditors
Current liabilities rose from 
£3.4m to £4.8m primarily 
resulting from a 33.8% increase 
in trade and other payables, 
which is slightly less than the 
increase in sales. Non-current 
liabilities fell from £0.6m to 
£0.2m, being the net effect of a 
decrease in deferred tax 
balances due to the level of 
expenditure during the year on 
capital equipment relating to 
the HTP facility and a reduction 
in the estimated amount due as 
deferred settlement on a 
product line acquisition 
concluded in 2006.
Cashflow
The Group’s cashflow continues 
to be strong, with £7. m (2007: 
£3.4m) generated from trading 
in the year. Consequently, 
despite spending £2.5m on 
facilities and equipment and 
£0.3m on acquiring distribution 
rights, the Group’s cash and 
short term investment balances 
increased by £3.8m.
Accounting standards
These are the first full year’s 
results of the Group to be 
stated under IFRS and 
consequently there are a 
number of changes to both 
presentation and content of 
these financial statements. The 
effects of the adjustments are 
explained in note 30, the 
material changes being the 
inclusion of derivative 
instruments at fair value, giving 
rise to a charge to profit and 
loss of £ 97k (2007: charge of 
£ 68k) and the recognition of a 
deferred tax asset relating to 
unexercised share options, of 
£224k (2007: liability of £46k).
EPS
The number of shares issued 
during the year for the exercise 
of share options was relatively 
small at 443,397 (2007:  58,800), 
meaning that as post tax profit 
grew by 43.7% (2007:  5.5%) 
the growth in basic EPS was 
43.8% (2007: 5.7%) and diluted 
EPS was 44.9% (2007: 6.5%). 
Currency exposure
The Group continues to 
generate significant amounts 
of dollars and euros in excess 
of payments in these currencies, 
and has hedging arrangements 
in place to reduce the exposure. 
During the year to 30 June 2008 
the Group had forward 
exchange contracts in place to 
sell $ 2.4m and € .9m at 
average rates of £ to $  .9356 
and £ to € .4054 respectively. 
Of these, contracts for $4.2m 
and €4.5m were still 
outstanding at the year end.
For the year ending 30 June 
2009 the Group has forward 
exchange contracts in place to 
sell $9.0m and €8. m at 
average rates of £ to $  .924 
and € .294.
Jeff Iliffe
Chief Financial Officer
8 September 2008 Abcam plc
Annual report and accounts 
30 June 2008
 4
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Board of
Directors
David Cleevely, FREng
Chairman
David Cleevely FREng is the 
Chairman of CRFS, the 
spectrum monitoring company, 
which he co-founded in July 
2007, and the founder and 
former Chairman of telecoms 
consultancy Analysys (acquired 
by Datatec International in 
2004). In late 2004 he co-
founded the 3G pico base 
station company, 3WayNetworks, 
which was sold to Airvana in 
April 2007. After being 
sponsored to study Cybernetics 
at Reading by Post Office 
Telecommunications, he joined 
their Long Range Studies 
Division. A PhD at Cambridge 
was then followed by the 
Economist Intelligence Unit in 
London. He is a Fellow of the 
Royal Academy of Engineering 
and a Fellow of the IET, and he 
has recently held an Industrial 
Fellowship at the University of 
Cambridge Computer 
Laboratory. He founded Abcam 
with Jonathan Milner and Tony 
Kouzarides in February  998.
Jonathan Milner, PhD
Group Chief Executive
Jonathan Milner has a BSc in 
Applied Biology from Bath 
University and a PhD in 
Molecular Genetics from 
Leicester University. From  992 
to  995 he was a research 
fellow for PfizerPharmaceuticals 
in the laboratory of Professor 
Tony Rees at the University of 
Bath, and from  995 until  998 
he was a research fellow at 
Cambridge University in the 
laboratory of Professor Tony 
Kouzarides, where he studied 
genes and proteins associated 
with human cancers. He 
founded Abcam with David 
Cleevely and Tony Kouzarides 
in February  998.
Jim Warwick, BSc
Managing Director
Jim Warwick has a BSc in 
Computer Science from 
Cambridge University. From 
 986 to 2003 he worked for 
Analysys Ltd, a Cambridge-
based telecommunications 
consultancy, heading up the IT, 
software and web development 
initiatives. During this period he 
also held a number of 
non-executive directorships 
with external organisations, 
including Workbench Software 
Ltd, a start-up with a targeted 
software package for time 
recording systems, and VBN 
Ltd, a web-based hosting 
company specialising in 
business cluster and innovation 
network solutions. He joined 
Abcam in 200 as Technical 
Director, initially working part-
time but as a permanent 
employee from 2003. He has 
overseen the expansion of 
Abcam’s bespoke web-based 
systems. Jim was promoted to 
Managing Director of Abcam 
Ltd in June 2004.
Jeff Iliffe, Bsc, ACA
Chief Financial Officer
Jeff Iliffe is a qualified 
accountant who worked as a 
corporate financier in life 
sciences at Panmure Gordon & 
Co between  989 and  996. He 
then moved into industry, 
holding a number of financial 
positions at companies 
including the environmental 
consultancy Enviros Group 
Limited and the biotechnology 
company Plethora Solutions 
plc. Prior to joining Abcam as a 
financial consultant, he was 
chief financial officer at St 
Minver Limited, an e-commerce 
company that operates online 
gaming networks.  Abcam plc
Annual report and accounts 
30 June 2008
 5
Mark Webster, BSc
Non-Executive Director
Mark Webster has a BSc in 
Chemistry from Durham 
University. He joined Abbott 
Laboratories in  988 and ran 
the UK Pharmaceutical and 
Hospital Divisions before 
moving to Montreal, Canada in 
 997 and then Chicago, USA in 
 999, as Vice President of Anti-
Virals, US Pharmaceuticals. 
Here he launched Kaletra for 
HIV infection, which generated 
$ bn in revenue. In 200 he 
joined Shire Pharmaceuticals 
as Head of Global Strategic 
Marketing and Licensing/
Acquisitions and a member of 
the Executive Committee. He 
then joined Bayer Healthcare in 
Germany in 2004 as Senior 
Vice President, Head of Global 
Strategic Marketing and 
Licensing/Acquisitions and a 
member of Bayer 
Pharmaceutical’s Management 
Committee. After joining the 
Board as a Non-Executive 
Director in July 2006 he 
became a full-time Director of 
Abcam in March 2007 and 
reverted back to a Non-
Executive role in November 
2007. Mark is currently Head of 
North America and Global 
Marketing for ProStrakan.
Tony Kouzarides, PhD
Non-Executive Director
Tony Kouzarides has a BSc in 
Molecular Genetics from Leeds 
University and a PhD in Virology 
from Cambridge University. He 
was subsequently awarded a 
research fellowship from 
Fitzwilliam College, Cambridge. 
From  986 to  989 he spent 
three years working as a 
research fellow in the laboratory 
of Professor Ed Ziff at New York 
University Medical Centre, 
where he discovered a 
fundamental principle 
underlying the association of 
proteins involved in human 
cancer. He was awarded a 
professorship at Cambridge 
University in  999 and now 
oversees a group of scientists 
studying genes and proteins 
associated with human 
cancers. He has played a 
central role in expanding 
Abcam’s own antibody product 
range into the Chromatin 
research area. 
Peter Keen, BSc, ACA
Non-Executive Director
Peter Keen is a Chartered 
Accountant with more than 24 
years’ experience in the 
financing and management of 
biotechnology companies. After 
gaining experience in the 
agricultural biotechnology and 
medical diagnostics sectors, he 
was a co-founder and Finance 
Director of Chiroscience Group 
plc. He then helped establish 
Merlin Biosciences, being 
responsible for a number of 
investments including Ark 
Therapeutics, Cyclacel, 
ReNeuron and Vectura. More 
recently, he was Chief Financial 
Officer of Arakis Ltd until its 
successful trade sale in 2005 
and a Partner with the 
technology venture firm DFJ 
Esprit. He is currently 
Corporate Development and 
Finance Director of the private 
biotechnology company 
Serentis Ltd and a Non-
Executive Director of Ark 
Therapeutics plc and The 
Biotech Growth Trust plc.
Tim Dye, MA
Non-Executive Director
Tim Dye is a former Chief 
Executive of William Ransom & 
Son plc, a position he held until 
January 2008. Through a series 
of acquisitions, he led the 
transformation of William 
Ransom into one of the UK’s 
largest natural healthcare 
groups. Prior to joining Ransom 
in  999, and following an early 
career as a strategy consultant, 
he founded and ran businesses 
in automated meter reading, 
environmental management 
and property development. He 
has an MA in Economics from 
Cambridge University. Abcam plc
Annual report and accounts 
30 June 2008
16
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Directors
Chairman 
Dr David Cleevely, FREng
Chief Executive Officer 
Dr Jonathan Milner 
Chief Financial Officer
Mr Jeff Iliffe
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 McGuire
332 Cambridge Science Park
Cambridge
CB4 0FW
Nominated Advisor and Broker
Numis Securities Limited
The London Stock Exchange Building
10 Paternoster Square
London
EC4M 7LT
Solicitors to the Company
Eversheds LLP
Senator House
85 Queen Victoria Street
London 
EC4V 4JL
Auditors
Deloitte & Touche LLP
Chartered Accountants
Cambridge 
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
Corporate 
Directory Abcam plc
Annual report and accounts 
30 June 2008
17
Directors’ Report
The Directors present their annual report on the affairs of the 
Group, together with the financial statements and auditors’ report, 
for the year ended 30 June 2008.
Principal activities and future developments
The Group’s activities consist of the development, marketing and 
selling of antibodies and closely related products. The Group sells 
through the internet to customers in most countries of the world. The 
Group operates through its parent company Abcam plc and 
through its wholly owned subsidiaries Abcam Inc. and Abcam KK.
The Company is also increasing its own manufacturing capability 
through continued investment in a high-throughput production 
(“HTP”) laboratory. 
Future developments are addressed in the individual director’s 
reviews at the front of this annual report.
Business review
The Group’s management uses key performance indicators (KPIs) 
to monitor the progress of the business. Important KPIs are:
 30 June  30 June 30 June
 2008 2007 2006
Number of products published 44,000 33,900 23,200
Sales per employee £000 221 203 223
Profit before tax to sales 22.3%
1
 22.6% 24.9%
Number of debtor days at  
 year end 34 44 45
Sales increased by 49.7% in the year (49.1% on a constant 
exchange rate basis) as a result of the launch of new products and 
continued increases in sales from the existing catalogue. The 
Group continued to generate strong margins, and pre-tax profits 
increased by 48.2%
1
, reflecting the cost of investments made in the 
year and higher levels of research and development expenditure.
1  after adding back £0.25m costs relating to the potential offer process 
undertaken in the summer of 2007
The Group’s cash and short term deposits remained at a strong 
level at £14.5m (2007: £10.7m).
The Directors are confident that the Group has a solid basis for growth. 
An overview of the business is set out in the chief executive officer’s 
and managing director’s reviews together with the financial review.
Principal risks and uncertainties
The Group faces the competitive and strategic risks that are 
inherent in a rapidly growing market, and the 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 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 
generates surpluses of both currencies. The Board’s policy for 
dealing with these is to sell forward some of the expected surplus 
currencies in order to reduce the short term exposure. However if 
there are longer term movements in the relative strength of sterling 
then these will impact the Group’s profits. For further details of the 
Group’s risk management strategy see note 26.
The Group’s activities involve importing and exporting its products 
across many international borders. Any changes to the regulations 
covering such movements might have an effect on the Group’s 
trading activities.
The Company has made qualifying third party indemnity provisions 
for the benefit of its Directors which were made during the reporting 
period and remain in force at the date of this report.
Research and development
The Group undertakes research and development in areas related 
to its principal activities and this is discussed in the individual 
Director’s reviews at the front of this annual report. During the year 
the Group spent £2.4m (2007: £1.7m) on research and 
development. 
Dividends
The Directors propose paying a final dividend of 4.56p (2007: 
3.19p) per ordinary share, to be paid on 28 November 2008 to 
shareholders on the register on 7 November 2008. Together with 
the interim dividend of 1.04p paid on 18 April 2008, this makes a 
combined dividend for the year of 5.60p (2007: 3.99p)
Capital structure
Details of the authorised and issued share capital, together with 
details of the movements in the Company’s issued share capital 
during the year are shown in notes 23 and 24. The Company has 
one class of ordinary shares which carries no right to fixed income. 
Each share carries the right to one vote at general meetings of the 
Company.
There are no specific restrictions on the size of a holding nor on the 
transfer of shares, which are both governed by the general 
provisions of the Articles of Association and prevailing legislation.
With regard to the appointment and replacement of directors, the 
Company is governed by the Articles of Association, the Combined 
Code, the Companies Act and related legislation.
Directors
The interests of the Directors in the share capital of the Company at 
30 June 2008, other than with respect to share options (which are 
detailed in the Directors’ Remuneration Report), were as follows:
  1p ordinary 1p ordinary 
  shares on shares on 
   30 June 2008 30 June 2007
David Cleevely  3,569,760 4,669,760
Tim Dye  nil nil 
Peter Keen  8,982 8,982
Tony Kouzarides  114,244 359,080
Mark Webster  nil nil
Jonathan Milner  8,044,960 9,044,960 
Jim Warwick  836,200 826,200
Jeff Iliffe  nil nil
In line with the principles set out in the Combined Code on Corporate 
Governance, David Cleevely and Tony Kouzarides, who have each 
been Directors of the Company since April 1998, will offer themselves 
for re-election at the forthcoming Annual General Meeting. At the 
meeting Jim Warwick will also stand for re-election, as will Jeff Iliffe 
who was appointed as a Director during the year. Abcam plc
Annual report and accounts 
30 June 2008
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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 2008, the Group had an average of 30 days of 
purchases (2007: 55) outstanding in trade creditors.
Charitable and political donations and 
community support
Abcam participates actively in the community of entrepreneurial 
businesses clustered around Cambridge. Abcam supports both  
the Cambridge Network and the University of Cambridge and the 
Judge Business School both by giving talks and presentations on 
our business as well as hosting projects for MBA students. Abcam 
takes students from secondary education on work-experience 
programmes as well as occasional international exchange students 
on placement. 
The Company encourages employees to get involved in local 
charitable activities; we allocate 0.1% of pre-tax profit for charitable 
donations, which are split between the US, UK and Japanese 
offices. These are allocated by a committee of staff volunteers 
working within guidelines set down by the Directors. 
The Group made no political donations (2007: nil) and made £4,272 
charitable donations (2007: £1,907).
Substantial shareholdings
Other than Directors’ interests which are set out above, at 28 August 
2008 shareholders with a greater than 3% interest in the issued 
share capital of the Company were:
Standard Life Investments Limited 11.87%
Artemis Investment Management 7.67%
BlackRock Investment Management 5.90%
Morley Fund Management 4.17% 
UBS Zurich 3.42% 
Fidelity Investments 3.22%
Corporate, social and ethical policies
Abcam recognises the importance of balancing the interests of all 
our key stakeholders – our customers, shareholders, employees, 
suppliers and the communities in which we operate. Management 
of the environmental and social issues that play a part in our 
business is a key factor in our strategy for success and in the 
practice of good corporate governance. 
The Group places considerable value on the involvement of its 
employees and has continued to keep them informed of the various 
factors affecting the performance of the Group. This is achieved 
through formal and informal meetings. Equity based incentives are 
made available to all employees of the Group. In addition, there is a 
profit sharing scheme based on the overall profitability of the 
Group.
Applications for employment by disabled persons are always fully 
considered, bearing in mind the aptitudes of the applicant 
concerned. It is the policy of the Group that the training, career 
development and promotion of disabled employees should, as far 
as possible, be identical to that of other employees. The Group 
needs highly-qualified staff and does not see age, colour, disability, 
ethnic origin, gender, political or other opinion as a barrier to 
employment.
The Group aspires to carry out its business to the highest of ethical 
standards treating employees, suppliers and customers in a 
professional, courteous and honest manner. The Group has an 
ethical policy which is reviewed by the Board and which we apply 
to our products. This includes reviewing and, where appropriate, 
visiting our suppliers to check the standards they follow in their 
products and services. 
Health & Safety and environment
Abcam seeks to provide and maintain safe and healthy working 
conditions, equipment and systems for all our employees as far as 
is reasonably practicable and to provide such information, training 
and supervision as may be needed for this purpose. 
The Group complies with legislation, however where best practice 
demands higher standards, it endeavours to apply these wherever 
reasonably practicable. 
Health & Safety (H&S) in the Group is ultimately the responsibility of 
the CEO and is run by a Health & Safety Co-ordinator as chair of the 
H&S committee; this committee uses appropriate advice from 
external H&S specialist consultants. 
Abcam seeks wherever possible to minimise its impact on the 
environment for the benefit of its staff and the public at large. The 
Group is committed to complying with environmental regulations 
and encourage and support staff in waste recycling within our 
offices.
Going concern
The Directors are satisfied that the Group has adequate resources 
to continue its operations for the foreseeable future, and for this 
reason they continue to prepare the financial statements on a 
going-concern basis.
Auditors
In the case of each of the Directors of the Company at the date on 
which this report was approved:
 As far as each of the Directors is aware, there is no relevant audit 
information (as defined in the Companies Act 1985) of which the 
Company’s auditors are unaware.
 Each of the Directors has taken all the steps that he ought to have 
taken as a Director to make himself aware of any relevant audit 
information (as defined) and to establish that the Company’s 
auditors are aware of that information.
This confirmation is given and should be interpreted in accordance 
with the provision of S234ZA of the Companies Act 1985.
Deloitte & Touche LLP have expressed their willingness to continue 
in office as auditors and a resolution to reappoint them will be 
proposed at the forthcoming Annual General Meeting.
Approved by the board and signed on their behalf by
David Cleevely, FREng
Chairman
8 September 2008
•
•
Directors’ Report
continued Abcam plc
Annual report and accounts 
30 June 2008
19
Corporate Governance
Although not required to do so by the AIM listing rules, the Directors 
have chosen to provide selected corporate governance disclosures 
with this report, which they consider valuable to the readers.
The Directors believe that effective corporate governance, 
appropriate to the Group considering its size and stage of 
development, will assist in the delivery of corporate strategy, the 
generation of shareholder value and the safeguarding of 
shareholders’ long-term interests. The Directors are committed 
therefore, wherever it is reasonably practicable, to ensure that the 
Group is managed in accordance with the principles set out in the 
revised Combined Code on Corporate Governance (“the Code”).
The role and composition of the Board
The Board comprises a Non-Executive Chairman, who is not 
deemed to be independent because of his shareholding, three  
full-time Executive Directors and four other Non-Executive 
Directors, two of whom are deemed not to be independent: Tony 
Kouzarides because of the size of his shareholding and Mark 
Webster because he has been employed in an executive capacity 
during the last five years. 
The roles of Chairman and Chief Executive are vested in separate 
individuals, each with clear allocation of accountability and 
responsibility. The Chairman has prime responsibility for running 
the Board and the Chief Executive Officer has executive 
responsibilities for the Company’s strategic development, 
operations and results. 
The structure of the Board and the integrity of each Director 
ensures that there is no one individual or group dominating the 
decision making process.
The Board holds full meetings every second month. The principal 
matters that it considers are as follows:
 Monthly management accounts, key performance indicators and 
performance against budget;
 Regular reviews of R&D, operations and product line acquisitions;
 An annual review of strategic objectives and Group priorities;
 The Group budget;
 Reporting including statutory accounts, dividend policy, dividend 
payments and the AGM;
 Performance of the Board and sub-Committees;
 Reports of the Audit, Nomination and Remuneration Committees;
 An annual review of risk-management strategy and controls and 
a six-monthly review of the risk register;
 Matters relating to the Company’s obligations as a listed 
Company; and
 Management of funds and major capital expenditure, including 
proposals for mergers or acquisitions of other companies or 
product lines.
In those months when the Board does not meet, members continue 
to be informed on a formal reporting basis of financial results and 
key issues. The Board is supplied with information in a timely 
manner, and in a form and of a quality appropriate to enable it to 
discharge its duties. Directors receive appropriate induction on 
joining the Board and regularly update their skills and knowledge.
The Board has a policy to set out which matters are reserved for the 
decision of the Board, and to clarify those matters which the 
Executive Directors need not refer for approval. 
•
•
•
•
•
•
•
•
•
•
This policy also identifies those matters regarding which full 
delegation to a Board Committee is not normally permitted because 
a final decision on the matter is required to be taken by the whole 
Board. The terms and conditions for the appointment of non-
executive Directors are available for inspection. Matters which the 
Board considers suitable for delegation are contained in the terms 
of reference of its Committees.
The Board has established the following three committees:
The Audit Committee;
The Nomination Committee; and
The Remuneration Committee.
The membership and role of each committee is described in more 
detail below.
The Audit Committee
The Committee is made up of three Non-Executive Directors one of 
whom, the Chairman, is considered to be independent. The 
Chairman is Peter Keen, who is a Chartered Accountant, with David 
Cleevely and Tony Kouzarides being the other Directors on the 
Committee.
The Committee has responsibility for the following matters:
 To review the accounts and the key judgements and policies 
underlying them in relation to the interim and annual financial 
statements before they are submitted to the Board for final 
approval;
 To review the management’s reports on internal controls;
 To review the Group’s risk-management process, including the 
adequacy of insurance cover;
 To review the appointment of the external auditors together with 
the audit fee; and
 To monitor the audit and non-audit work of the external auditors, 
including reviewing any management letters and the Company’s 
response.
As part of its procedures, the Committee discusses the interim and 
annual financial statements with the external auditors. When 
appropriate, non-Committee members are invited to attend. During 
the period the Committee has met twice on a formal basis and a 
number of times informally. The Committee is expected to continue 
to meet formally twice a year.
The Nomination Committee
During the year under review the Committee was made up of three 
Non-Executive Directors, one of whom was considered to be 
independent: David Cleevely was the Chairman, and Peter Keen 
and Tony Kouzarides were the other Directors on the Committee. 
From 1 September 2008 Tim Dye, an independent director, took 
over as Chairman with David Cleevely remaining as a member of 
the Committee.
 The Committee is responsible for the following matters:
 To identify and nominate suitable candidates to fill vacancies on 
the Board; and
 To review succession planning for both Directors and the 
management team.
•
•
•
•
•
•
•
•
•
• Abcam plc
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30 June 2008
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The Remuneration Committee 
The Committee is made up of three Non-Executive Directors, two of 
whom are deemed to be independent including the Chairman: Peter 
Keen is the Chairman, and David Cleevely and Tim Dye are 
members.
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;
 Agreeing the allocation and term for the granting of share based 
incentives to Executive Directors;
 Determining the Executive Directors’ pension contributions; and
 Overseeing the overall annual pay review for the Group.
The Committee aims to set levels of remuneration for Executive 
Directors that are appropriate for the size and complexity of the 
Group. It aims to see that a significant proportion of their 
remuneration package is performance-related. 
The Committee is also responsible for overseeing the Company’s 
profit share and its equity based incentive schemes, 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, the Directors have reviewed the 
effectiveness of the internal controls, and taken steps to ensure that 
the Group has an appropriate control environment for its size and 
complexity. The management team will ensure that the internal 
control environment develops with the size of the Company, with 
respect to the identification, evaluation and monitoring of risk. 
•
•
•
•
•
Such systems, which are designed to manage rather than eliminate 
the risk of failure to achieve business objectives, will provide 
reasonable, though not absolute, assurance against material loss or 
misstatement.
The Board is committed to transparency in financial reporting, 
internal control and external audit as demonstrated, amongst other 
things, by its reviewing of the Group’s arrangements for its 
employees to raise concerns, in confidence, about possible 
wrongdoing in these areas, which are formalised in a 
“whistleblowing” policy circulated to all employees, and through the 
adoption of its policies and procedures for financial reporting.
Board performance evaluation
The Board has recently undertaken an evaluation of its own 
performance. The review involved detailed interviews with each 
Director and the Company Secretary and covered the functioning of 
the Board as a whole, and the operation of each of the committees. 
The review confirmed the high level of commitment and 
professionalism exercised by the Board in the strategic and 
commercial leadership of the Group. It also concluded that the 
Board and its individual members continue to perform effectively 
and operate within a framework of sound governance and 
practices, which wherever it is reasonably practicable, are 
consistent with the principles set out in the Code.
All Directors are subject to election by shareholders at the first 
Annual General Meeting after their appointment, and to re-election 
thereafter at intervals of no more than three years.
Dialogue with shareholders
The Board believes it is important to have open communications 
with shareholders. To this end, the Chief Executive Officer and 
Chief Financial Officer, working in consultation with the Company’s 
corporate and PR advisors, make themselves available and expect 
to meet with shareholders at least twice a year. The Board intends 
to give a presentation on the Group’s progress at the forthcoming 
AGM in November.
Corporate Governance
continued Abcam plc
Annual report and accounts 
30 June 2008
21
Directors’ Remuneration  
Report
Unaudited information:
Remuneration report
Although not required by the AIM listing rules, the Directors have 
chosen to provide directors remuneration disclosures in this report 
which they consider valuable to the readers.
The Group has a Remuneration Committee (“the Committee”) 
which, wherever possible, is constituted in accordance with the 
recommendations of the Code.
During the course of the year independent consultants were 
retained to advise on remuneration policy and to benchmark the 
Executive Directors’ remuneration against that of a comparator 
group of companies with similar characteristics to Abcam in terms 
of their size, nature of operations, historic growth achieved and 
market capitalisation.
Its recommendations on salary were implemented during the year 
and those on revised bonus arrangements have been implemented 
for the 2008/09 financial year. A long term incentive plan for senior 
management, including the Executive Directors, is to be put to 
shareholders at the forthcoming AGM.
The review also covered the all employee share schemes and a 
share based incentive plan for all employees based in the UK will 
be adopted during the course of the current financial year, details  
of which are set out below. Amendments are also proposed to the 
share option scheme for US based employees to make it more tax 
efficient for them, which will also be put to shareholders at the AGM. 
Remuneration policy
The four main elements of the remuneration package for the 
Executive Directors during the year were as follows:
Basic annual salary;
A performance based bonus; 
Equity based incentives; and
Pension contributions
The Group’s policy is that a substantial proportion of the remuneration 
of the Executive Directors should be performance-related. 
For future years the Committee will ensure that:-
 It maintains a competitive package of total compensation, 
commensurate with comparable packages available in similar 
companies; and
 The interests of the Executive Directors are closely aligned with 
those of the Company’s shareholders through the provision of 
share based incentives.
Basic salary
An Executive Director’s basic salary is determined by the 
Committee and normally reviewed on 1 July each year. Following 
the independent review, adjustments were made to the then 
existing salary levels during the year and annual increases were 
made with effect from 1 July 2008, in line with the recommendations 
of the review. Executive Directors’ service contracts, which include 
details of remuneration, will be available for inspection at the AGM.
•
•
•
•
•
•
Performance-related payments
The bonus payable to Executive Directors is based on the financial 
performance of the Group and the achievement of individual 
performance targets related to the strategic objectives for each 
individual. In the 2007/08 financial year the financial performance 
based element was paid under the Abcam Profit Share Scheme 
(PSS). Under this scheme an amount is allocated to employees on a 
points based system. For the year under review the amount to be 
paid through PSS was dependent on the level of pre-tax profit 
achieved, the amount allocated varying depending on the level of 
profitability. 
The PSS payment was not capped, and payments on account from 
the PSS were made each quarter, although at no stage did they 
exceed 85% of the amount due until the audited accounts were 
approved. The scheme applied to all staff, including Executive 
Directors, and bonuses were pensionable up to the “on target” 
profit level. 
If financial and personal targets were met the bonus payable to 
Executive Directors was 50% of basic salary, paid in cash.
In the 2008/09 financial year these arrangements have been 
amended and the total “on target” bonus for Executive Directors will 
be 37.5% of basic salary, paid in cash in a single payment once the 
audited accounts are approved. 80% of the bonus is based on the 
achievement of a target profit figure and 20% on achievement of 
individual strategic objectives. No payment is due under the profit 
based bonus if performance is less than 90% of target and the 
maximum payment is due at 105% of target. The total bonus is 
capped at 75% of basic salary and none of the bonus is 
pensionable. 
The PSS scheme will operate for the 2008/09 financial year for all 
other employees of the Group on the same basis as the year under 
review, with increased profit targets. The amount payable under 
PSS is no longer pensionable.
Equity based incentives
Existing arrangements
The principal form of equity based incentive used by the Group 
since its flotation in November 2005 has been the Abcam plc 2005 
plan. All options granted under the plan since flotation have been 
based on out-performance of the FTSE AIM index measured on the 
third anniversary of the date of grant. If the target is achieved, then 
options will be exercisable during the next seven years, subject to 
the rules of the scheme. If the target is not met at the third 
anniversary, then it will be monitored on certain dates over the next 
12 months. If the target is met on any of those dates, then the 
options become exercisable. If the target is not met on any of those 
dates, the options will lapse on the fourth anniversary. 
In the year under review options were granted under the Abcam plc 
2005 plan to the Executive Directors. Abcam plc
Annual report and accounts 
30 June 2008
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The following graph shows the performance against the AIM index 
for the options issued since flotation which have not been forfeited 
subsequently. If all the options had crystalised at 30 August 2008 
then all performance conditions in relation to the options would 
have been met. Details of these options are set out in note 25 to  
the financial statements. 
SepOct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
FTSEALLSHAREINDEX ABCAM FTSEALLSHAREINDEX ABCAM FTSEALLSHAREINDEX ABCAM
2.0
1.8
1.6
1.4
1.2
1.0
0.8
0.6
Index
2006 2007 2008
The Company has also established a non-discretionary Inland 
Revenue-approved SAYE scheme in which the Executive Directors 
could participate. Under this scheme, employees could 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 offered 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 could be 
purchased will be the market value of the shares on the date 
immediately preceding the offer at a discount of 20%. The recent 
take-up under the scheme has not been high since many employees 
are already at the allowable investment limits and it is not proposed 
to make any further offers to employees under this scheme.
There were no options granted to Executive Directors under this 
scheme in the year under review.
New arrangements
It is the intention to grant additional equity based incentives on a 
regular basis to the Executive Directors. 
For the 2008/09 financial year it is proposed that a long term 
incentive plan (“LTIP”) be introduced for senior executives 
including the Executive Directors, 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. 
As part of the process to define the LTIP a consultation exercise has 
been undertaken with major shareholders to seek their views.
Under the LTIP, awards will take the form of “nil paid” options and 
are subject to the achievement over three years of the following 
performance conditions:-
 50% of the award will depend on the Company’s total 
shareholder return (“TSR”) as compared to a comparator group 
of companies. Where the Company’s TSR is below the fiftieth 
percentile, the option or award will not vest. Where the 
Company’s TSR is at the seventy fifth percentile or higher of the 
Comparator Group, the option or award will vest in its entirety. 
Where the Company’s TSR is between the fiftieth and the 
seventy-fifth percentile, a proportion of the option or award will 
•
vest, starting with 30% at the fiftieth percentile and rising 
proportionally to 100% at the seventy-fifth percentile.
 50% of the award will depend on growth in earnings per share. At 
an average of less than 25% growth per annum, equating to 
95.3% growth over the period, the amount vesting under the 
award will be nil. At average growth per annum of 33%, equating 
to total growth of 135.3%, the award will vest in full. At growth 
rates between these two figures, the award will vest proportionately. 
More information on the LTIP can be found in the Notice convening 
the Annual General Meeting in November, at which shareholders 
will be asked to approve the adoption of the plan and award to 
Executive Directors.
Share incentive plan 
An HMRC approved share incentive plan (“SIP”) will be introduced 
in October this year for all UK employees. Under the plan awards 
will be made as follows:-
Share award
It is intended that annual awards will be made to UK based staff to 
a market value of up to £3,000 each. Awards will take the form of an 
option with a nil exercise price and will vest after three years 
employment with the Company.
Partnership shares
All UK based employees will be given the opportunity to invest up to 
£1,500 per annum to acquire new shares in the Company at market 
value. If these shares are held for three years and the employee 
remains with the Company during that time then they will also receive 
an additional share for each share acquired. The total market value of 
the investment from employees will be capped at £90,000.
The Abcam plc 2005 Plan
Options will also be granted under the existing Abcam plc 2005 
Plan to certain senior employees in the UK excluding the Executive 
Directors where the HMRC limits on the SIP are not considered to 
provide appropriate levels of incentive. 
It is also intended that the plan will also be amended to make it 
more tax efficient for US based employees. To comply with US 
legislation, these amendments will be put before shareholders at 
the Annual General Meeting in November. 
In the period since listing on AIM, no equity based incentives have 
been granted to Non-Executive Directors and 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 in the 
year under review was basic salary plus on-target earnings from the 
PSS. During the year, the Group contributed 6% of on-target 
earnings, excluding the individual performance bonus, to a Group 
personal pension scheme in the name of each Executive Director. 
From 2008/09 onwards payments due under the PSS to all 
employees are no longer pensionable and the contribution to be 
made to the Group personal pension scheme will be 12% of basic 
salary for each Executive Director.
A flexible benefits scheme was introduced on 1 July 2007 for all 
employees of the Company, including Executive Directors, under 
which the option to switch part of their basic pay into additional 
pension contributions or other benefits is available. 
•
Directors’ Remuneration 
Report
continued Abcam plc
Annual report and accounts 
30 June 2008
23
Audited information:
Remuneration details
    Employer’s Notional gain
 Basic  Performance pension on options
 salary Allowances
1
 payments contributions
2
 exercised
3
 2008 total 2007 total
 £000 £000 £000 £000 £000 £000 £000
David Cleevely 65 – – – – 65 57
Peter Keen 37 – – – – 37 33
Tony Kouzarides 29 – – – – 29 25
Tim Dye 27 – – – – 27 25
Mark Webster (as Executive Director)
4
 48 – 29 4 – 81 81
Mark Webster (as Non-Executive Director)
4
 17 – – – – 17 17
Jonathan Milner 12 1 127 212 – 352 269
Jim Warwick 52 – 111 135 188 486 301
Jeff Iliffe (appointed 20 November 2007) 8 13 59 103 – 183 –
Eddie Powell
5
 (retired 20 November 2007) 38 – – 81 101 220 193
1  Allowances paid to Jeff Iliffe were in respect of relocation expenses and to Jonathan Milner in respect of travel.
2  The Directors are remunerated through the Company’s flexible benefits scheme under which they can elect to switch basic salary into pension contributions 
and other benefits, to which the Company adds the reduction in its National Insurance contribution arising from the election having been made. The basic 
salary entitlement of each Executive Director during the year was: Mark Webster (as Executive Director) £47k, Jonathan Milner £186k, Jim Warwick £162k, 
Jeff Iliffe £93k and Eddie Powell £48k. 
3  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.
4  Mark Webster joined the Board as non executive Director on 1 July 2006. From 14 March 2007 to 30 October 2007 he served as an executive director before 
moving back to serve in a non executive capacity.
5  The pension contribution made on behalf of Eddie Powell included an ex-gratia contribution of £50k which was made on his retirement from the Company.
Directors had the following interests in options over 1p ordinary shares in the Company:
    
 Share Number of Number of Share    
 options at options granted  options exercised options at Exercise
 30 June 2007 in the year  in the year 30 June 2008 Price Exercise period
David Cleevely 40,000 – – 40,000 125p 31/01/06 to 29/09/15
Peter Keen 60,000 – – 60,000 150p 31/01/06 to 26/10/15
Tony Kouzarides 40,000 – – 40,000 125p 31/01/06 to 29/09/15
Jonathan Milner 40,000 – – 40,000 62.5p 27/07/07 to 29/09/15
 53,571
1
 – – 53,571 280p 08/09/09 to 06/09/16
 – 46,004
1
 – 46,004 413p 08/05/11 to 07/05/18
Jim Warwick 32,000 – (32,000) – 37.5p 16/06/07 to 15/06/13
 32,000 – – 32,000 50p 16/06/08 to 15/06/13
 40,000 – (40,000) – 62.5p 27/07/07 to 29/09/15
 42,142
1
 – – 42,142 280p 08/09/09 to 06/09/16
 4,218
2
 – – 4,218 224p 01/11/09 to 01/05/10
 – 41,602
1
 – 41,602 312p 08/11/10 to 07/11/17
Jeff Iliffe – 89,743
1
 – 89,743 312p 08/11/10 to 07/11/17
Mark Webster  167,230
1,3
 – – – 296p  01/11/07 to 01/01/08
1  These options were granted under the Abcam plc 2005 plan and are subject to the performance condition that the share price outperforms the FTSE AIM 
Index at the third anniversary of grant. If this is not the case performance will be tested on certain dates over the next 12 months and if the target is not met 
on any of those dates, the options will lapse on the fourth anniversary.
2  These options are granted under the Save As You Earn Scheme. Options under the Scheme are not subject to performance conditions. 
3  These options lapsed on 31 December 2007.
Directors’ contracts
The notice periods for Directors are as follows:
       Notice period 
      Date of contract (months)
David Cleevely      24 July 2007 1
Peter Keen      27 October 2005 1
Tony Kouzarides      24 July 2007 1
Tim Dye      26 May 2006 1
Jonathan Milner      10 June 2000 6
Jeff Iliffe      6 November 2007 6
Jim Warwick      1 September 2001 6
Mark Webster      10 July 2007 1 Abcam plc
Annual report and accounts 
30 June 2008
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The Directors are responsible for preparing the Annual Report, 
Directors’ Remuneration Report and the financial statements in 
accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements 
for each financial year. The Directors are required by the IAS 
Regulation to prepare the group financial statements under 
International Financial Reporting Standards (IFRSs) as adopted  
by the European Union and have also elected to prepare the parent 
company financial statements in accordance with IFRSs as adopted 
by the European Union. The financial statements are also required 
by law to be properly prepared in accordance with the Companies 
Act 1985 and Article 4 of the IAS Regulation. 
International Accounting Standard 1 requires that financial 
statements present fairly for each financial year the company’s 
financial position, financial performance and cash flows. This 
requires the faithful representation of the effects of transactions, 
other events and conditions in accordance with the definitions and 
recognition criteria for assets, liabilities, income and expenses set 
out in the International Accounting Standards Board’s “Framework 
for the preparation and presentation of financial statements”. In 
virtually all circumstances, a fair presentation will be achieved by 
compliance with all applicable IFRSs. However, directors are also 
required to:
properly select and apply accounting policies;
 present information, including accounting policies, in a manner 
that provides relevant, reliable, comparable and understandable 
information; and 
 provide additional disclosures when compliance with the  
specific requirements in IFRSs are insufficient to enable  
users to understand the impact of particular transactions,  
other events and conditions on the entity’s financial  
position and financial performance.
•
•
•
The Directors are responsible for keeping proper accounting 
records that disclose with reasonable accuracy at any time the 
financial position of the company and enable them to ensure that 
the financial statements comply with the Companies Act 1985. They 
are also responsible for safeguarding the assets of the company 
and hence for taking reasonable steps for the prevention and 
detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the Company’s 
website. Legislation in the United Kingdom governing the 
preparation and dissemination of financial statements may differ 
from legislation in other jurisdictions.
By order of the Board
David Cleeveley, FREng Jeff Iliffe
Chairman   Chief Financial Officer
Statement of Directors’ 
Responsibilities Abcam plc
Annual report and accounts 
30 June 2008
25
We have audited the Group and Parent Company financial 
statements (the “financial statements”) of Abcam plc for the year 
ended 30 June 2008 which comprise the Group Income Statement, 
the Group statement of recognised income and expense, the Group 
and Parent Company Balance Sheets, the Group and Parent 
Company Cash Flow Statements, and the related notes 1 to 30. 
These financial statements have been prepared under the 
accounting policies set out therein. We have also audited the 
information in the Directors’ Remuneration Report that is described 
as having been audited.
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, the 
Directors’ Remuneration Report and the financial statements in 
accordance with applicable law and International Financial 
Reporting Standards (IFRSs) as adopted by the European Union 
are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements and the part of 
the Directors’ Remuneration Report to be audited in accordance 
with relevant legal and regulatory requirements and International 
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial statements 
give a true and fair view and whether the financial statements and 
the part of the Directors’ Remuneration Report to be audited have 
been properly prepared in accordance with the Companies Act 
1985 and, as regards the group financial statements, Article 4 of  
the IAS Regulation. We also report to you whether in our opinion  
the information given in the Directors’ Report is consistent with the 
financial statements.
In addition we report to you if, in our opinion, the company has not 
kept proper accounting records, if we have not received all the 
information and explanations we require for our audit, or if 
information specified by law regarding Directors’ remuneration and 
other transactions is not disclosed.
We read the other information contained in the Annual Report as 
described in the contents section and consider whether it is 
consistent with the audited financial statements. The other 
information comprises only the Directors’ Report, the Chairman’s 
Review, the CEO’s review, the Managing Director’s review and the 
Financial Review. We consider the implications for our report if we 
become aware of any apparent misstatements or material 
inconsistencies with the financial statements. Our responsibilities 
do not extend to any further information outside the Annual Report.
Basis of audit opinion
We conducted our audit in accordance with International  
Standards on Auditing (UK and Ireland) issued by the Auditing 
Practices Board. An audit includes examination, on a test basis, of 
evidence relevant to the amounts and disclosures in the financial 
statements and the part of the Directors’ Remuneration Report to  
be audited. It also includes an assessment of the significant 
estimates and judgments made by the Directors in the preparation 
of the financial statements, and of whether the accounting policies 
are appropriate to the group’s and company’s circumstances, 
consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary in 
order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements and the part of the 
Directors’ Remuneration Report to be audited 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 and the part of the Directors’ Remuneration Report to  
be audited. 
Opinion
In our opinion:
 the Group financial statements give a true and fair view, in 
accordance with IFRSs as adopted by the European Union,  
of the state of the group’s affairs as at 30 June 2008 and of its 
profit for the year then ended;
 the Parent Company financial statements give a true and fair 
view, in accordance with IFRSs as adopted by the European 
Union as applied in accordance with the provisions of the 
Companies Act 1985, of the state of the Parent company’s affairs 
as at 30 June 2008; 
 the financial statements and the part of the Directors’ 
Remuneration Report to be audited have been properly  
prepared in accordance with the Companies Act 1985 and, as 
regards the group financial statements, Article 4 of the IAS 
Regulation; and
 the information given in the Directors’ Report is consistent with 
the financial statements.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors 
Cambridge, United Kingdom
8 September 2008
•
•
•
•
Independent Auditors’ Report  
to the Members of Abcam plc Abcam plc
Annual report and accounts 
30 June 2008
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      Year ended Year ended
      30/6/08 30/6/07
       Restated*
     Notes £000 £000
Revenue     5 36,694  24,519 
Cost of sales      (14,389) (10,020)
Gross profit      22,305  14,499 
Administration and management expenses      
 excluding share based compensation charge     (12,344) (7,590)
Share based compensation charge      (173) (142)
Total management and administration expenses     (12,517) (7,732)
Research and development expenses      
 excluding share based compensation charge     (2,398) (1,709)
Share based compensation charge      (19) (20)
Total research and development expenses      (2,417) (1,729)
Operating profit      7,371  5,038 
Investment revenue     5 581  495 
Profit before taxation       7,952  5,533 
Tax      11 (2,062) (1,472)
Profit for the period from continuing operations    6,29 5,890  4,061 
Earnings per share from continuing operations – pence
Basic     13 16.88 11.74
Diluted      13 16.56 11.43
* Restated to reflect the adoption of IFRS as per note 30.
All profit is attributable to equity holders of the parent.
Consolidated Income Statement
For the year ended 30 June 2008  Abcam plc
Annual report and accounts 
30 June 2008
27
      Year ended Year ended
      30/6/08 30/6/07
      £000 £000
(Losses)/gains on cash flow hedges      (168) 168
Exchange differences on translation of foreign operations     3  (28)
Deferred tax on outstanding share options      502  (30)
Net income recognised directly in equity      337  110 
Profit for the year      5,890 4,061
Total recognised income and expense for the year     6,227 4,171
Consolidated Statement  
of Recognised Income  
and Expense  
For the year ended 30 June 2008  Abcam plc
Annual report and accounts 
30 June 2008
28
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      30/6/08 30/6/07
       Restated*
     Notes £000 £000
Non-current assets
Intangible assets     14 994  1,691 
Property, plant and equipment     15 4,204  2,832 
      5,198  4,523 
Current assets
Inventories     17 4,506  3,102 
Trade and other receivables     18 4,860  4,327 
Cash and cash equivalents      18 13,473  10,709 
Short term deposits     18 1,020   –
Derivative financial instruments     19 – 168 
      23,859  18,306 
Total Assets      29,057  22,829 
Current Liabilities
Trade and other payables     21 (4,073) (3,045)
Current tax liabilities     21 (382) (248)
Provisions     22 (96) (75)
Derivative financial instruments     19 (197) –
      (4,748) (3,368)
Net current assets      19,111  14,938 
Non-current liabilities
Deferred tax liabilities     20 (78) (188)
Deferred creditor     21 (109) (386)
      (187) (574)
Total liabilities      (4,935) (3,942)
Net assets      24,122  18,887 
Equity
Share capital     23,29 351  346 
Share premium account     24,29 10,871  10,619 
Share based compensation reserve     29 483  251 
Deferred tax reserve     29 758  256 
Translation reserve     29 (33) (36)
Hedging reserve     29  – 168 
Retained earnings     29 11,692  7,283 
Equity attributable to equity holders of the parent     24,122  18,887
* Restated to reflect the adoption of IFRS as per note 30.
The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2008.
They were signed on its behalf by:
Jeff Iliffe
Director
Consolidated Balance Sheet 
At 30 June 2008  Abcam plc
Annual report and accounts 
30 June 2008
29
      30/6/08 30/6/07
       Restated*
     Notes £000 £000
Non-current assets
Intangible assets     14 994  1,691 
Property, plant and equipment     15 3,976  2,459 
Investments     16 45  16 
      5,015  4,166 
Current assets
Inventories     17 4,501  3,089 
Trade and other receivables     18 5,144  4,572 
Cash and cash equivalents      18 11,918  10,055 
Short term deposits     18 1,020  –
Derivative financial instruments     19 – 168 
      22,583  17,884 
Total Assets      27,598  22,050 
Current Liabilities
Trade and other payables     21 (3,623) (2,864)
Current tax liabilities     21 (269) (243)
Provisions     22 (96) (75)
Derivative financial instruments     19 (197) –
      (4,185) (3,182)
Net current assets      18,398  14,702 
Non-current liabilities
Deferred tax liabilities     20 (178) (188)
Deferred creditor     21 (109) (386)
      (287) (574)
Total liabilities      (4,472) (3,756)
Net assets      23,126  18,294 
Equity
Share capital     23,29 351  346 
Share premium account     24,29 10,871  10,619 
Share based compensation reserve     29 444  251 
Deferred tax reserve     29 758  256 
Hedging reserve     29 – 168 
Retained earnings     29 10,702  6,654 
      23,126  18,294
* Restated to reflect the adoption of IFRS as per note 30.
The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2008.
They were signed on its behalf by:
Jeff Iliffe
Director
Company Balance Sheet 
At 30 June 2008  Abcam plc
Annual report and accounts 
30 June 2008
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      Year ended Year ended
      30/06/08 30/06/07
       Restated*
     Notes £000 £000
Net cash from operating activities     28 7,142 3,426
Investing activities
Interest received      581  495 
Proceeds on disposal of property, plant and equipment     (1) 2 
Purchase of property, plant and equipment      (2,445) (2,316)
Purchase of intangible assets      (274) (1,848)
Net cash used in investing activities      (2,139) (3,667)
Financing activities
Dividends paid      (1,481) (968)
Proceeds on issue of shares      257  47 
Increase in short term deposits      (1,020)  –
Net cash used in financing activities      (2,244) (921)
Net increase/(decrease) in cash and cash equivalents     2,759  (1,162)
Cash and cash equivalents at beginning of year     10,709  11,884 
Effect of foreign exchange rates      5  (13)
Cash and cash equivalents at end of year      13,473  10,709
* Restated to reflect the adoption of IFRS as per note 30.
Consolidated Cash Flow 
Statement
For the year ended 30 June 2008  Abcam plc
Annual report and accounts 
30 June 2008
31
      Year ended Year ended
      30/06/08 30/06/07
       Restated*
     Notes £000 £000
Net cash from operating activities     28 5,858 2,736
Investing activities
Interest received      561  504 
Proceeds on disposal of property, plant and equipment     1  4 
Purchases of property, plant and equipment     (2,434) (2,000)
Purchases of intangible assets      (251) (1,848)
Investment in subsidiary      (29) –
Dividends received      401  269 
Net cash used in investing activities      (1,751) (3,071)
Financing activities
Dividends paid      (1,481) (968)
Proceeds on issue of shares      257  46 
Increase in short term deposits      (1,020) –
Net cash used in financing activities      (2,244) (922)
Net increase/(decrease) in cash and cash equivalents     1,863  (1,257)
Cash and cash equivalents at beginning of year     10,055  11,312 
Cash and cash equivalents at end of year      11,918  10,055 
* Restated to reflect the adoption of IFRS as per note 30.
Company Cash Flow Statement
For the year ended 30 June 2008  Abcam plc
Annual report and accounts 
30 June 2008
32
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Notes to the Consolidated 
Financial Statements
For the year ended 30 June 2008
1. General information
Abcam plc is a company incorporated in England and Wales under the Companies Act 1985. The address of the registered office is 332 
Cambridge Science Park, Milton Road, Cambridge, CB4 0FW, United Kingdom.
The Group’s activities consist of the development, marketing and selling of antibodies and closely related products. The Group sells through 
the internet to customers in most countries of the world. The Group operates through its parent company Abcam plc and through its wholly 
owned subsidiaries Abcam Inc. and Abcam KK.
These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which the 
Group operates. Foreign operations are included in accordance with the policies set out in note 2.
2. Significant accounting policies
Basis of accounting
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) for the first time. The 
disclosures required by IFRS 1 concerning the transition from UK GAAP to IFRS are given in note 30.
At the date of authorisation of these financial statements, the following Standards and Interpretations which have not been applied in these 
financial statements were in issue but not yet effective:
IFRS 8 Operating segments
IFRIC 12 Service concession arrangements
IFRIC 13 Customer loyalty programmes
IFRIC 14 IAS 19 The limit of a defined benefit asset, minimum funding requirements and their interaction.
IFRS 2 Share based payment (amendment)
IFRS 3 Business combination (amendment)
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (amendment)
IAS1 Presentation of Financial Statements (amendment)
IAS 16 Property, Plant and Equipment (amendment)
IAS 19 Employee benefits (amendment)
IAS 20 Accounting for Government Grants and Disclosures of Government Assistance (amendment)
IAS 23 Borrowing costs (amendment)
IAS 27 Consolidated and Separate Financial Statements (amendment)
IAS 28 Investments in Associates (amendment)
IAS 29 Financial Reporting in Hyperinflationary Economies (amendment)
IAS 31 Interests in Joint Ventures (amendment)
IAS 32 Financial Instruments: Presentation (amendment)
IAS 36 Impairment of Assets (amendment)
IAS 38 Intangible Assets (amendment)
IAS 39 Financial Instruments and Measurement (amendment)
IAS 40 Investment Property (amendment)
IAS 41 Agriculture (amendment)
The directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the 
financial statements of the Group except for additional disclosures on capital and financial instruments when the relevant standards come 
into effect for periods commencing on or after 1 April 2008.
The financial statements have been prepared under the historical cost convention, except for the revaluation of certain financial instruments. 
The principal accounting policies adopted are set out below.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company made 
up to 30 June each year. Control is achieved where the Company has the power to govern the financial and operating policies of an 
investee entity so as to obtain benefits from its activities.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
Property, plant and equipment
Property, plant and equipment is 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. Abcam plc
Annual report and accounts 
30 June 2008
33
2. Significant accounting policies continued
The depreciation rates applied are shown below: 
Office equipment, fixtures and fittings 20% per annum
Laboratory equipment 20% per annum
Computer equipment 33% per annum 
Hybridomas 33% per annum
Depreciation is accelerated if assets are deemed to have been impaired or there is a change in the residual economic life. The remaining 
useful lives of assets are re-assessed at each balance sheet date.
Intangible assets
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Payments made to acquire distribution rights from third parties are capitalised and are amortised over the period of the agreement.
These assets are amortised on a straight line basis over their estimated minimum useful lives of 3 years.
Intangible assets are reviewed for impairment both annually and when there is an indication that an asset may be impaired when events or 
changes in circumstances indicate that the carrying value may not be recoverable. The assets’ residual values, useful lives, and methods of 
valuation are reviewed and adjusted, if appropriate, at each financial year end.
Investments
Investments held as fixed assets are stated at cost less provision for any impairment in value.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is calculated using the actual cost of the product when acquired  
or manufactured.
The cost of Abcam own manufactured inventory includes material, direct labour and an attributable portion of production overheads based 
on normal levels of activity and is calculated using the standard cost method.
Net realisable value is based on the estimated selling price less further costs expected to be incurred to completion and disposal. Provision 
is made for obsolete, slow moving or defective items where appropriate.
Trade and other receivables
Trade receivables are measured at initial recognition at fair value. Appropriate allowances for estimated irrecoverable amounts are 
recognised in the income statement when there is objective evidence that the asset is impaired. When a trade receivable is considered 
uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against 
the allowance account. Changes in the carrying amount of the allowance account are recognised in the income statement.
Derivative financial instruments
Forward contracts are used by the Group to manage its exposure to the risk associated with the variability in cash flows in relation to both 
recognised assets or liabilities and forecast transactions. All derivative financial instruments are measured at the balance sheet date at their 
fair value.
Where derivative financial instruments are not designated as or not determined to be effective hedges, any gain or loss on the 
remeasurement of the fair value of the instrument at the balance sheet date is taken to the income statement.
At the inception of the hedge relationship, the Group documents the relationship between the hedging instrument and the hedged item, 
along with its risk management objectives and its strategy for undertaking various hedge transactions. Furthermore, at the inception of the 
hedge and on an ongoing basis, the Group documents whether the hedging instrument that is used in a hedging relationship is effective in 
offsetting changes in cash flows of the hedged item.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the profit and loss immediately, 
together with any changes in the fair value of the hedged item that is attributable to the hedged risk. 
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are deferred in equity. 
The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts deferred in equity are recycled in 
profit or loss in the periods when the hedged item is recognised in profit or loss. Abcam plc
Annual report and accounts 
30 June 2008
34
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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2. Significant accounting policies continued
Hedge accounting is discontinued when the Group revokes the hedging relationship, the hedging instrument expires or is sold, terminated 
or exercised, or no longer qualifies for hedge accounting. The adjustment to the carrying amount of the hedged item arising from the 
hedged risk is amortised to the income statement from that date. Any cumulative gain or loss deferred in equity at that time remains in 
equity and is recognised when the forecast transaction is ultimately recognised in the income statement. When a forecast transaction is no 
longer expected to occur, the cumulative gain or loss that was deferred in equity is recognised immediately in the income statement.
A derivative is presented as a non-current asset or non-current liability if the remaining maturity of the instrument is more than 12 months 
and is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets or liabilities.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 
because it excludes some items of income or expense that are taxable or deductible in other years and it further excludes items that are 
never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively 
enacted by the balance sheet date.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount of assets and liabilities in the 
financial statements and the corresponding tax bases used in the calculation of the taxable profit, and is accounted for using the balance 
sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are 
recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be 
utilised. Such assets and liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill or from the 
initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable 
that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is charged or credited in the 
income statement, except where it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in 
equity.
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 income statement in respect of pension costs is the contribution payable in the year. 
Any differences between contributions payable in the year, and contributions actually paid are shown either as accruals or prepayments in 
the balance sheet.
The amount included in the income statement in the year in respect of the pension scheme was £815,000 (2007: £253,000). The amounts 
included in creditors at 30 June 2008 in relation to the pension scheme is £65,000 (2007: £38,000).
Leases
Leases are classified as financial leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the 
lessee. All other leases are classified as operating leases.
Rentals payable under operating leases are charged to income on a straight-line basis over the term of the relevant lease. Benefits received 
and receivable under an operating lease are also spread on a straight-line basis over the lease term.
Assets held under finance leases are recognised as assets of the Group at their fair value or, if lower, at the present value of the minimum 
lease payments, each determined at the inception of the lease. The corresponding liability to the lessor is included in the balance sheet as 
a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to 
achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income. Abcam plc
Annual report and accounts 
30 June 2008
35
2. Significant accounting policies continued
Foreign exchange
The individual financial statements of each group company are presented in the currency of the primary economic environment in which it 
operates (its functional currency). For the purposes of the consolidated financial statements, the results and financial position of each group 
company are expressed in pounds sterling which is the functional currency of the Company, and the presentation currency for the 
consolidated financial statements.
In preparing the financial statements of the individual companies, transactions in currencies other than the entity’s functional currency 
(foreign currencies) are recorded at the rates of exchange prevailing at the dates of the transactions. At each balance sheet date, monetary 
assets and liabilities that are denominated in foreign currencies are retranslated to the rates prevailing at the balance sheet date. Non-
monetary items carried at fair value are translated at the rates prevailing at the date when the fair value was determined. Non-monetary 
items that are measured in terms of historical cost in a foreign currency are not retranslated.
For the purpose of presenting consolidated financial statements, 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 classified as 
equity and recognised in the Group’s foreign currency translation reserve.
The treatment of exchange differences on transactions entered into to hedge certain foreign currency risks is detailed under derivative 
financial instruments above.
All other differences are included in the income statement in the period in which they arise.
Share based payments
The Group has applied the requirements of IFRS 2 Share-based payment. In accordance with the transitional provisions, IFRS 2 has been 
applied to all grants of equity instruments after 7 November 2002 that were unvested at 1 July 2006.
The Group issues equity-settled share based payments to certain employees. Equity-settled share based payments are measured at the 
fair value (excluding the effect of non-market based vesting conditions) at the date of the grant. The fair value determined at the grant date 
of the equity-settled share based payments is expensed on a straight line basis over the vesting period, based on the Group’s estimate of 
the number of shares that will eventually vest. There are both market and non-market based performance conditions attached to the vesting 
and exercising of equity instruments. Fair value is measured by the use of the Monte Carlo Simulation. The expected life used in the model 
has been adjusted, based on management’s best estimate, for the effects of the non-transferability, exercise restrictions and behavioural 
considerations. Charges made to the income statement in respect of share-based payments are credited to retained earnings.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and 
services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
Sales of goods are recognised when goods are delivered and title has passed.
Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and demand deposits, and other short term highly liquid investments that are readily 
convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
Trade and other receivables
Trade and other receiveables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for 
estimated irrecoverable amounts.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that the Group will be 
required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material. Abcam plc
Annual report and accounts 
30 June 2008
36
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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3. Critical accounting judgements and estimates
In the application of the Group’s accounting policies, which are described in note 2, the Directors are required to make estimates and 
assumptions, in accordance with IFRS, that affect the amounts reported as assets and liabilities as at the date of reporting the financial 
statements, and the reported amounts of revenues and expenditure during the year. In preparation of the consolidated financial statements, 
estimates and assumptions have been made by the Directors concerning the fair value of share options, the estimated useful lives of fixed 
assets, accruals and provisions required, the carrying value of investments, the recoverability of deferred tax assets, the carrying value of 
intangible assets and other similar evaluations. Actual amounts that result could differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the 
period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision 
affects both current and future periods.
Key sources of estimation uncertainty
The key assumptions concerning the future and other sources of estimation uncertainty at the balance sheet date, that have a risk of 
causing a material adjustment to the carrying amounts of assets and liabilities or the most significant effect on the amounts recognised  
in financial statements are:
Impairment of intangibles
During the year, management renegotiated a product line acquisition deal. Consequently, it was considered that the carrying value of the 
intangible was overstated and it was adjusted to take account of the anticipated future sales and the risk associated with the contract.
Fair value of derivatives and other financial instruments
As described in Note 26, the Directors use their judgement in selecting an appropriate valuation technique for financial instruments not 
quoted in an active market. Valuation techniques commonly used by market practitioners are applied. For derivative financial instruments, 
assumptions are made based on quoted market rates adjusted for specific features of the instrument. Other financial instruments are valued 
using a discounted cash flow analysis based on assumptions supported, where possible, by observable market prices or rates.
Valuation of own manufactured inventory
The standard costs used for the valuation of own manufactured inventory require a number of assumptions concerning the allocation of 
overheads. These assumptions are based primarily on management’s estimates of time spent in each relevant area of activity.
Provision for obsolete stock
The provision for obsolete stock is based on management’s estimation of the commercial life of inventory lines and is applied on a prudent 
basis. In assessing this, management takes in to consideration the sales history of products and the length of time that they have been 
available for resale.
4. Income statement for the Company
The profit for the financial year dealt with in the financial statements of the Company was £5,126,000 (2007: £3,687,000).
5. Business and geographical segments
Geographical segments
The Group’s operations are located in the UK, USA and Japan.
Business segments
The Directors consider that there are no identifiable business segments that are engaged in providing individual products or services or a 
group of related products and services that are subject to risks and returns that are different to the core business. Abcam plc
Annual report and accounts 
30 June 2008
37
5. Business and geographical segments continued
   North  UK and  
   America Europe rest of world Japan Total
   Year ended Year ended Year ended Year ended Year ended
   30/6/08 30/6/08 30/6/08 30/6/08 30/6/08
   £000 £000 £000 £000 £000
Revenue
Total revenue   16,947  10,748  6,884  2,115  36,694 
Result
Segment result   1,046  5,198  3,327  215  9,786 
Unallocated corporate expenses       (2,415)
Operating profit       7,371 
Investment revenues       581 
Profit before tax       7,952 
Tax       (2,062)
Profit after tax       5,890 
Other information
Capital additions   28   – 2,744  4  2,776 
Depreciation and amortisation   172   – 1,255  10  1,437 
Impairment losses recognised in income   – – 642  – 642 
Balance sheet
Assets
Segment assets   2,946   – 25,384  727  29,057 
Consolidated total assets       29,057 
Liabilities
Segment assets   (307)  – (4,377) (251) (4,935)
Consolidated total liabilities       (4,935) Abcam plc
Annual report and accounts 
30 June 2008
38
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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5. Business and geographical segments continued
   North  UK and  
   America Europe rest of world Japan Total
   Year ended Year ended Year ended Year ended Year ended
   30/6/07 30/6/07 30/6/07 30/6/07 30/6/07
   £000 £000 £000 £000 £000
Revenue
Total revenue   12,815  5,899  5,077  728  24,519
Result
Segment result   768  3,254  2,823  (78) 6,767
Unallocated corporate expenses       (1,729)
Operating profit       5,038
Investment revenues       495
Profit before tax       5,533
Tax       (1,472)
Profit after tax       4,061
Other information
Capital additions   285   – 3,848  31  4,164
Depreciation and amortisation   117   – 673  5  795
Balance sheet
Assets
Segment assets   2,133   – 20,131  565  22,829
Consolidated total assets       22,829
Liabilities
Segment liabilities   (154)  – (3,757) (31) (3,942)
Consolidated total liabilities       (3,942)
6. Profit for the year
Profit for the year has been arrived at after charging (crediting):
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
Net foreign exchange losses/(gains)      136 (283)
Operating lease rentals – land and buildings (note 9)     545 237
Depreciation and amortisation of owned assets     1,437 795
Impairment loss on Intangible assets      642  –
Cost of inventories recognised as an expense     13,850 9,692
Write-down of inventories recognised as an expense     539 328
Staff costs (note 8)      7,308 5,250
Impairment loss recognised on trade receivables     367 153
Legal fees associated with potential offer for group     250  –
Auditors’ remuneration (note 7)      91 152 Abcam plc
Annual report and accounts 
30 June 2008
39
7. Auditors’ remuneration
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
The analysis of the auditors’ remuneration is as follows:
Fees payable to the company’s auditors for the audit of the company’s annual accounts   75 79
Total audit fees      75 79
Fees payable to the company’s auditors for other services to the group
– Tax services       13 73
– Employment benefits      3  –
Total non-audit fees      16 73
8. Staff costs
Group
The average monthly number of employees (including executive directors) was:
      Year  Year
      ended ended
      30/6/08 30/6/07
      Number Number
Management, administrative, marketing and distribution     130 101
Laboratory      36 20
      166 121
Their aggregate remuneration comprised:
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
Wages and salaries      5,776 4,369
Social security costs      525 466
Pension costs      815 253
Charge in respect of share options granted      192 162
      7,308 5,250
Company
The average monthly number of employees (including executive directors) was:
      Year  Year
      ended ended
      30/6/08 30/6/07
      Number Number
Management, administrative, marketing and distribution     88 69
Laboratory      36 20
      124 89 Abcam plc
Annual report and accounts 
30 June 2008
40
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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8. Staff costs continued
Their aggregate remuneration comprised:
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
Wages and salaries      4,508 3,511
Social security costs      350 359
Other pension costs      776 233
Charge in respect of share options granted      162 162
      5,796 4,265
9. Operating lease arrangements
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
Minimum lease payments under operating leases recognised as an expense in the year   545 237
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable operating 
leases, which fall due as follows:
Group
      30/6/08 30/6/07
      £000 £000
Within one year       651 197
In the second to fifth years inclusive      1,615 631
      2,266 828
Company
      30/6/08 30/6/07
      £000 £000
Within one year       392 197
In the second to fifth years inclusive      996 631
      1,388 828
10. Other gains or losses 
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
Loss/(Gain) in fair value of forward exchange contracts
– On contracts used as hedging instruments      – (1)
– On other contracts (see accounting policy note for derivative financial instruments.)   197  – Abcam plc
Annual report and accounts 
30 June 2008
41
11. Tax
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
Current tax       1,632 1,159
Deferred tax (note 20)      430 313
      2,062 1,472
Corporation tax is calculated at 29.5% (2007: 30%) of the estimated assessable profit for the year.
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
The charge for the year can be reconciled to the profit per the income statement as follows:
    Year  Year  Year  Year 
    ended ended ended ended
    30/6/08 30/6/08 30/6/07 30/6/07
    £000 % £000 %
Profit before tax     7,952  5,533 
Tax at the UK corporation tax rate of 29.5% (2007: 30%)   2,346  29.50% 1,660  30.00%
Effect of different tax rates of subsidiaries operating in different jurisdictions 158  1.99% 110  1.99%
Tax effect of expenses that are not deductible in determining taxable profit  75  0.94% 9  0.16%
R&D Tax credit uplift    (325) (4.09%) (199) (3.60%)
Deduction for exercise for share options    (122) (1.53%) (108) (1.95%)
Prior year adjustments    (70) (0.88%)  –  –
Tax expense and effective rate for the year     2,062  25.93% 1,472 26.60%
12. Dividends
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 30 June 2007 of 3.19p (2006: 2.00p) per share   1,116 691
Interim dividend for the year ended 30 June 2008 of 1.04p (2007: 0.80p) per share   365 277
      1,481 968
Proposed final dividend for the year ended 30 June 2008 of 4.56p (2007: 3.19p) per share   1,599 1,105
The proposed final dividend is subject to approval of the shareholders at the Annual General Meeting and has not been included as a 
liability in these financial statements. Abcam plc
Annual report and accounts 
30 June 2008
42
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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13. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
      Year  Year
      ended ended
      30/6/08 30/6/07
      £000 £000
Earnings
Earnings for the purposes of basic and diluted earnings      
 per share being net profit attributable to equity holders of the parent    5,890 4,061
Number of shares
Weighted average number of ordinary shares for the purposes of the basic earnings per share  34,902,538 34,572,810
Effect of dilutive potential ordinary shares:
 Share options      671,614 943,674
Weighted average number of ordinary shares for the purposes of diluted earnings per share  35,574,152 35,516,484
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of 
shares outstanding during the year. Diluted earnings per share is calculated on the same basis as the basic earnings per share but with a 
further adjustment for the weighted average shares in issue to reflect the effect of all dilutive potential ordinary shares. The number of 
dilutive potential ordinary shares is derived from the number of share options granted to employees where the exercise price is less than 
the average market price of the Company’s ordinary shares during the year.
14. Intangible assets
Group and Company
     Upfront Distribution
     licence fees Rights Total
     £000 £000 £000
Cost
At 1 July 2007     150 1,798 1,948
Additions     15  237 252
Disposals     (1)  – (1)
Revaluation for impairment      – (642) (642)
At 30 June 2008     164 1,393 1,557
Amortisation 
At 1 July 2007     68 189 257
Charge for the year     53 254 307
Disposals     (1)  – (1)
At 30 June 2008     120 443 563
Carrying amount
At 30 June 2007     82 1,609 1,691
At 30 June 2008     44 950 994
The amortisation period for the upfront licence fees is 3 years. The amortisation period for the distribution rights is the term of the deal. The 
impairment loss is in respect of the reduction in the forecast revenues and profits of one of the distribution rights agreements. Abcam plc
Annual report and accounts 
30 June 2008
43
15. Property, plant and equipment
Group
     Office
     equipment,   
   Computer Laboratory fixtures 
   equipment equipment and fittings Hybridomas Total
   £000 £000 £000 £000 £000
Cost
At 1 July 2007   454 2,531 948  – 3,933
Additions   158 2,168 166 22 2,514
Exchange differences   4 1 2  – 7
Disposals   (28) (21) (5)  – (54)
At 30 June 2008   588 4,679 1,111 22 6,400
Accumulated depreciation
At 1 July 2007   218 346 537  – 1,101
Charge for the year   149 709 269 3 1,130
Exchange differences   (23) (9) (5)  – (37)
Eliminated on disposals   1  – 1  – 2
At 30 June 2008   345 1,046 802 3 2,196
Carrying amount
At 30 June 2007   236 2,185 411  – 2,832
At 30 June 2008   243 3,633 309 19 4,204
Company
     Office
     equipment,   
   Computer Laboratory fixtures 
   equipment equipment and fittings Hybridomas Total
   £000 £000 £000 £000 £000
Cost
At 1 July 2007   344 2,286 750  – 3,380
Additions   143 2,161 156 22 2,482
Disposals   (26) (20) (2)  – (48)
At 30 June 2008   461 4,427 904 22 5,814
Accumulated depreciation
At 1 July 2007   180 292 449  – 921
Charge for the year   113 660 172 3 948
Eliminated on disposals   (21) (9) (1)  – (31)
At 30 June 2008   272 943 620 3 1,838
Carrying amount
At 30 June 2007   164 1,994 301  – 2,459
At 30 June 2008   189 3,484 284 19 3,976 Abcam plc
Annual report and accounts 
30 June 2008
44
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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16. Investments
The company’s subsidiaries at 30 June 2008 are:
      Proportion Proportion 
     Country of of shares of voting 
     incorporation held power held
Abcam Inc     USA 100% 100%
Abcam KK     Japan 100% 100%
Camgene     UK 100% 100%
Abcam Inc and Abcam KK are involved in the sale and distribution of antibodies. Camgene is dormant.
Analysis of changes in Investments
       £000
Cost
At 1 July 2007       16
Additions       29
At 30 June 2008       45
Investments are held at cost less provision for impairment. All additions represent share based payment charges for share options issued 
by the Company to employees of the subsidiaries.
17. Inventories
    Group Company Group Company
    30/6/08 30/6/08 30/6/07 30/6/07
    £000 £000 £000 £000
Goods for resale    4,506 4,501 3,102 3,089
18. Financial assets
    Group Company Group Company
    30/6/08 30/6/08 30/6/07 30/6/07
    £000 £000 £000 £000
Trade and other receivables:
Amounts receivable for the sale of goods    4,288  2,470  3,539  1,905 
Allowance for doubtful debts    (591) (413) (224) (197)
    3,697  2,057  3,315  1,708 
Owed by subsidiary undertakings     – 2,169   – 1,461 
Other debtors    499  292  543  979 
Prepayments    664  626  469  424 
    4,860  5,144  4,327  4,572 
The average credit period taken for sales is 34.4 days (2007: 44.3 days). No interest is charged on the receivables. Trade receivables are 
provided for based on estimated irrecoverable amounts determined by reference to past default experience. The Group and Company have 
provided fully for all amounts over 120 days because historical experience is such that receivables that are past due 120 days are not 
generally recoverable. Trade receivables between 30 days and 120 days are provided for based on estimated irrecoverable amounts from 
the sale of goods determined by reference to past default experience.
Credit limits for each customer are reviewed on a monthly basis. There are no customers who represent more than 5% of the total balance 
of trade receivables.
The analysis below show the balances included in debtors which are past due at the reporting date for which the Group or Company has 
not provided as there has not been a significant change in credit quality and the amounts are still considered recoverable. Abcam plc
Annual report and accounts 
30 June 2008
45
18. Financial assets continued
Ageing of past due but not impaired receivables
    Group Company Group Company
    30/6/08 30/6/08 30/6/07 30/6/07
    £000 £000 £000 £000
30-60 days    242 111 297 144
60-90    48 48 231 121
>90 days     –  – 331 181
Total    290 159 859 446
During the year the Group has formalised and improved the credit control procedures. This has resulted in a noticeable improvement in the 
ageing of the debtors.
Movement in the allowance for doubtful debts
    Group Company Group Company
    30/6/08 30/6/08 30/6/07 30/6/07
    £000 £000 £000 £000
Balance at the beginning of the year    224 198 85 46
Impairment losses recognised    367 215 139 152
Balance at the end of the year    591 413 224 198
In determining the recoverability of a trade receivable the Group and Company consider any change in the credit quality of the receivable 
from the date credit was initially granted up to the reporting date. The concentration of credit risk is limited due to the customer base being 
large and unrelated. Accordingly the directors believe that there is no further credit provision required in excess of the allowance for 
doubtful debts.
Included in the allowance for doubtful debts are individually impaired trade receivables with a balance of £289,000 (2007: £121,000) 
relating to companies in financial difficulties. The impairment recognised represents the difference between the carrying amount of these 
trade receivables and the present value of the expected litigation proceeds. Neither the Group or the Company hold collateral over these 
balances.
Ageing of impaired receivables
      30/6/08 30/6/07
      £000 £000
60-90 days      38  –
>90 days      553 224
Total      591 224
The directors consider that the carrying amount of trade and other receivables approximates their fair value.
Cash and cash equivalents, and short term deposits
    Group Company Group Company
    30/6/08 30/6/08 30/6/07 30/6/07
    £000 £000 £000 £000
Cash and cash equivalents, and short term deposits   14,493 12,938 10,709 10,055
Cash and cash equivalents and short term deposits comprise cash held by the Group and short-term deposits with an original maturity of 
three months or less. The carrying amount of these assets approximates their fair value. Abcam plc
Annual report and accounts 
30 June 2008
46
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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19. Derivative financial instruments
Group and Company
      Current 
      30/6/08 30/6/07
      £000 £000
Derivatives that are designated and effective as hedging instruments carried at fair value
 Forward exchange contracts       – 168
Derivatives carried at fair value through profit and loss (FVTPL)
 Forward exchange contracts      (197)  –
      (197) 168
On 22 April 2008, all hedging instruments were de-designated and the fair value adjustments on the outstanding forward exchange 
contracts were charged through the profit and loss.
20. Deferred tax
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior 
reporting period.
Group
    Accelerated Share Other
    tax based timing
    depreciation payment differences Total
    £000 £000 £000 £000
At 1 July 2006    (152) 317  40  205
Charge to income    (397) 46  15  (336)
Charge to equity     – (57)  – (57)
At 30 June 2007    (549) 306  55  (188)
Charge to income    (332) (224) 126 (430)
Credit to equity     – 540   – 540
At 30 June 2008    (881) 622  181  (78)
Company
    Accelerated Share Other
    tax based timing
    depreciation payment differences Total
    £000 £000 £000 £000
At 1 July 2006    (152) 317  40  205
Charge to income    (397) 46  15  (336)
Charge to equity     – (57)  – (57)
At 30 June 2007    (549) 306  55  (188)
Charge to income    (338) 54  54 (230)
Credit to equity     – 240   – 240
At 30 June 2008    (887) 600  109  (178)
At the balance sheet date, the aggregate amount of temporary differences associated with undistributable earnings of subsidiaries for 
which a deferred tax liability has not been recognised is £1,028,000 (2007: £595,000). No liability has been recognised in respect of these 
differences because the Group is in a position to control the timing of the reversal of temporary differences and it is probable that such 
differences will not reverse in the foreseeable future. Abcam plc
Annual report and accounts 
30 June 2008
47
21. Other financial liabilities
    Group Company Group Company
    30/6/08 30/6/08 30/6/07 30/6/07
    £000 £000 £000 £000
Trade and other payables
Trade creditors and accruals    3,638  3,221  2,474  2,309
Deferred creditor    86  86  110  110
Corporation tax    382  269  248  243
Other taxes and social security    160  159  124  124
Other creditors    189  157  337  321
    4,455  3,892  3,293  3,107
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period 
taken for trade purchases is 17 days (2007: 32 days). At the end of the previous financial year, it was decided that suppliers should be paid 
on a more frequent basis.
Most suppliers do not charge interest for the first 60 days of the invoice. The Group has financial risk management policies in place to 
ensure that all payables are paid within the credit time frame.
The deferred creditor represents the earn-out payable on sales of products under a distribution agreement (see note 14). The portion 
payable in more than 12 months is included in non-current liabilities. (2008: £109,000 2007: £386,000)
The Directors consider that the carrying amount of the trade and other payables approximates to their fair value.
22. Provisions
    Group Company Group Company
    30/6/08 30/6/08 30/6/07 30/6/07
    £000 £000 £000 £000
Amounts payable under the loyalty scheme
Opening balance    75 75 45 45
Awarded in year     314 314 245 245
Expired in year    (184) (184) (133) (133)
Redeemed in year    (109) (109) (82) (82)
Closing balance    96 96 75 75
This represents amounts awarded to customer under a loyalty scheme.
23. Share Capital
Group and Company
      30/6/08 30/6/07
      £000 £000
Authorised:
1,000,000 ordinary shares of 1p each      1,000 1,000
Issued and fully paid:
35,066,781 (2007: 34,623,384) ordinary shares of 1p each     351 346
The Company operates a number of share option schemes for certain employees of the Group. Details are provided in note 25. Abcam plc
Annual report and accounts 
30 June 2008
48
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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24. Share Premium
Group and Company
       £000
Balance at 1 July 2006       10,573
Premium arising on issue of equity shares       46
Balance at I July 2007       10,619
Premium arising on issue of equity shares       252
Balance at 30 June 2008       10,871
There were no costs of issue.
25. Share-based payments
Equity-settled share option scheme
The Company operates a number of share option schemes for certain employees of the Group. The share based compensation charge is 
made up from option awards from the EMI plan, Unapproved share option plan, the US employees share option plan and the SAYE plan. 
Option grants under each scheme have been aggregated.
The vesting period is from one to three years other than for those options with performance criteria, which vest when the criteria are met. If 
the options remain unexercised after a period of ten years from the date of grant the options expire. Options are forfeited if the employee 
leaves the Group before the options vest. The fair value of the options at the date of grant is the market price.
The volatility of the options is based on the long term average volatility in the share price of five quoted companies that are considered to 
have a reasonable comparability with Abcam plc. The dividend yield is based on Abcam’s actual dividend yield in the past.
The risk free rate is the yield on UK Government Gilts at each date of grant.
The employee exercise multiple is based on published statistics for a portfolio of companies.
The employee exit rate is based on management’s expectations and, in accordance with IFRS 2, is applied after vesting.
Details of the share options outstanding during the year are as follows:
Summary of all schemes
Options outstanding as at 30 June 2008 had an exercise price of between 10p and 413p (2007: 10p and 280p). The weighted average 
remaining contractual life is 8.12 years (2007:5.92 years). The weighted average fair value of the options outstanding at the end of the year 
was 65.24p (2007: 46.27p). The group recorded total expenses of £192,000 (2007: 162,000).
    2008 Weighted 2007 Weighted
    No. of average No. of average
    Share exercise price Share exercise price
    options p options p
Outstanding at beginning of year    1,497,902 152.83 1,085,160 47.40
Granted during the year    514,349 320.08 651,393 280.00
Forfeited during the year    (260,287) 233.19 (79,851) 280.00
Exercised during the year    (441,815) 57.37 (158,800) 30.00
Outstanding at the end of the year    1,310,149 219.32 1,497,902 152.83
Exercisable at end of year    302,640 43.07 657,960 46.55 Abcam plc
Annual report and accounts 
30 June 2008
49
25. Share-based payments continued
Enterprise management incentive scheme
    2008 Weighted 2007 Weighted
    No. of average No. of average
    Share exercise price Share exercise price
    options p options p
Outstanding at beginning of year    966,191 131.51 768,480 39.20
Granted during the year    284,851 312.00 352,240 281.40
Forfeited during the year    (90,177) 161.41 (37,089) 280.00
Exercised during the year    (327,337) 53.80 (117,440) 31.80
Outstanding at the end of the year    833,528 206.94 966,191 131.51
Exercisable at end of year    262,640 40.11 547,040 43.66
The growth in the net assets of the Group means that the Group will shortly exceed the limits set by the Inland Revenue for the tax 
incentives available under the Enterprise management incentive scheme.
Unapproved share option scheme
    2008 Weighted 2007 Weighted
    No. of average No. of average
    Share exercise price Share exercise price
    options p options p
Outstanding at beginning of year    427,504 194.71 261,360 82.60
Granted during the year    148,338 340.30 168,246 292.70
Forfeited during the year    (137,375) 288.34 (742) 280.00
Exercised during the year    (83,558) 71.76 (1,360) 62.50
Outstanding at the end of the year    354,909 223.66 427,504 194.71
Exercisable at end of year    40,000 62.50 80,000 62.50
Abcam Inc share scheme
    2008 Weighted 2007 Weighted
    No. of average No. of average
    Share exercise price Share exercise price
    options p options p
Outstanding at beginning of year    104,207 185.56 55,320 62.50
Granted during the year    81,160 312.00 90,907 280.00
Forfeited during the year    (32,735) 312.00 (42,020) 248.74
Exercised during the year    (30,920) 56.33  –  –
Outstanding at the end of the year    121,712 291.47 104,207 185.56
Exercisable at end of year     –  – 30,920 62.50 Abcam plc
Annual report and accounts 
30 June 2008
50
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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25. Share-based payments continued
During the year the company issued 1p ordinary shares as follows:
      Exercise  Total
     Number Price Paid
Date issued     of shares p £
October 2007     760 10.0 76
October 2007     20,640 25.0 5,160
October 2007     32,000 37.5 12,000
October 2007     235,080 62.5 146,933
November 2007     61,800 25.0 15,450
November 2007     20,000 30.0 6,000
December 2007     7,200 25.0 1,800
December 2007     2,120 62.5 1,325
February 2008     14,495 280.0 40,586
March 2008     10,000 25.0 2,500
March 2008     3,640 56.3 2,049
March 2008     4,040 62.5 2,525
April 2008     9,160 56.3 5,157
April 2008     2,760 62.5 1,725
May 2008     18,120 56.3 10,202
May 2008     1,582* 224.0 3,544
     443,397  257,032
*Issued under SAYE scheme.
Fair value calculation
The fair value of the option schemes, other than those options with market based performance criteria, has been calculated using the 
Trinomial method. The inputs into the Trinomial model are as follows:
EMI Scheme
Grant date  16/6/03 16/6/03 5/7/04 17/12/04 27/5/05 5/9/05
Share price at grant-pence  10 10 25 30 62.5 62.5
Fair value at valuation date-pence  2.6 2.6 8.5 12.3 19.2 19.1
Exercise price-pence  25 37.5 25 25 62.5 62.5
Expected volatility  40% 40% 35% 35% 30% 30%
Expected life-years  3 3.08 2 2.88 2 2
Expected dividend yield  1.1 1.1 1.1 1.1 1.1 1.1
Risk free rate  3.97% 3.97% 5.08% 4.49% 4.31% 4.15%
Employee exercise multiple  2 2 2 2 2 2
Employee exit rate  10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Unapproved scheme
Grant date   20/12/04 20/12/04 30/9/05 30/9/05 27/10/05
Share price at grant-pence   30 30 62.5 62.5 167
Fair value at valuation date-pence   11.2 11.6 18.9 10.2 55.77
Exercise price-pence   25 25 62.5 125 150
Expected volatility   35% 35% 30% 30% 30%
Expected life-years   1.54 2 1.82 1.82 1.635
Expected dividend yield   1.1 1.1 1.1 1.1 1.1
Risk free rate   4.46% 4.46% 4.29% 4.29% 4.40%
Employee exercise multiple   2 2 2 2 2
Employee exit rate   10.00% 10.00% 10.00% 10.00% 10.00% Abcam plc
Annual report and accounts 
30 June 2008
51
25. Share-based payments continued
The fair value of options issued after September 2006, with market based performance criteria, are calculated using the Monte Carlo model. 
The inputs into the Monte Carlo model are as follows:
Grant date     7/9/06 8/11/07 7/5/08
Share price at grant-pence     280 312 413
Fair value at valuation date-pence     84 0.59 1.23
Exercise price-pence     280 312 413
Expected volatility     30% 30% 30%
Expected life-years     3 3.01 3
Expected dividend yield     1.1 1.5 1.5
Risk free rate     4.57% 4.80% 4.79%
Employee exercise multiple     2 2 2
Employee exit rate     9.53% 12.00% 12.00%
26. Financial instruments
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns whilst maximising the return to 
stakeholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of cash and cash 
equivalents and equity attributable to the equity holders of the parent, comprising issued capital, reserves and retained earnings as 
disclosed in the Consolidated Statement of Changes in Equity.
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the 
basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are 
disclosed in relevant note to the financial statements.
Categories of financial instruments
All financial instruments are held for trading.
      
 Group carrying value  Company carrying value 
 
    30/6/08 30/6/07 30/6/08 30/6/07
    £000 £000 £000 £000
Financial assets
Loans and receivables
Amounts owed by Group undertakings     –  – 2,033 1,461
Trade receivables    3,697 3,315 2,057 1,708
VAT Recoverable (included in other debtors)   234 440 234 440
    3,931 3,755 4,324 3,609
Cash and cash equivalents
Deposits held to maturity    12,587 8,500 11,520 8,500
Cash and cash equivalents    1,906 2,209 1,418 1,555
    14,493 10,709 12,938 10,055
Financial liabilities
Other financial liabilities at amortised cost
Amounts owed by Group undertakings     –  – 93  –
Trade payables    1,994 1,719 1,784 1,324
Corporation tax payable    382 248 269 564
Other taxes and social security    160 124 160 124
Accruals    2,014 1,277 1,680 1,170
Deferred creditor (shown under Non-Current liabilities)   109 386 109 386
    4,659 3,754 4,095 3,568
The Directors consider there to be no material difference between the book value and the fair value of the Group’s financial assets and 
liabilities. This is because most of the financial assets and liabilities are short term. Abcam plc
Annual report and accounts 
30 June 2008
52
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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26. Financial Instruments continued
Risk in relation to the use of financial instruments
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group or the 
Company. Trade receivables consist of a large number of customers spread across diverse geographical areas. The Group does not have 
any significant credit risk exposure to any single counterparty. Ongoing credit evaluation is performed on the financial condition of accounts 
receivable and consideration is given as to whether there is any impairment in the value of any amounts owing.
The standard payment terms for receivables other than intragroup balances are 30 days. Any variation in these terms requires authorisation 
by senior management. Year end debtor days are 34.4 (2007: 44.3). All overdue debts are provided for where collectability is considered 
doubtful or the value of the debt is impaired. Objective evidence of impairment could include the Group’s past experience of collecting 
payments, an increase in the number of delayed payments in the portfolio past the average credit period of 34.4 days, as well as 
observable changes in international or local economic conditions.
The standard payment terms for intragroup receivables is 45 days. There is not considered to be any risk of impairment of these receivables 
unless the financial assets of the entity holding the corresponding liability are impaired.
The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings 
assigned by international credit-rating agencies. Funds are split between at least two institutions.
Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group 
enters into forward exchange contracts to hedge the exchange rate risk arising on the sales of goods and services denominated in Dollars 
and Euros.
Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies. The Group’s policy is to maintain natural hedges, where 
possible, by matching foreign currency revenue and expenditure. Exchange rate exposures are managed within approved policy 
parameters utilising forward exchange contracts.
The carrying amounts of the Group’s foreign currency denominated monetary assets and liabilities at the reporting date are as follows:
      
 Liabilities  Assets 
 
    30/6/08 30/6/07 30/6/08 30/6/07
    £000 £000 £000 £000
Euros    79 79 1,655 1,183
Dollars    821 752 3,886 1,511
Yen    17 32 539 455
    917 863 6,080 3,149
Foreign currency sensitivity analysis
The Group’s principal functional currency is pound sterling. The Group is mainly exposed to US dollars and Euros but has an increasing 
exposure to Japanese Yen. The following table details the Group’s sensitivity to an 8% increase and decrease in Sterling against the 
relevant foreign currencies. 8% is considered by management to be a reasonably possible change in foreign exchange rates after giving 
consideration to changes in exchange rates over the last 12 months. 
The sensitivity analysis includes only outstanding foreign currency denominated financial assets and liabilities and the cash flow hedging 
reserve and adjusts their translation at the period end for an 8% change in foreign exchange rates. The analysis below shows the increase 
or decrease in profit and the change in equity when the Sterling weakens or strengthens 8% against the relevant currency. Abcam plc
Annual report and accounts 
30 June 2008
53
26. Financial Instruments continued
 Euro currency impact  Dollar currency impact
    2008 2007 2008 2007
    £000 £000 £000 £000
Impact of 8% strengthening
– foreign currency financial assets and liabilities   (117) (82) (227) (56)
– Cash flow hedging reserve     – 316   – 176 
Impact of 8% weakening
– foreign currency financial assets and liabilities   137  96  266  66 
– Cash flow hedging reserve     – (396)  – (562)
The Group’s sensitivity to foreign currency has increased during the period due to increased sales levels. This increase has been 
proportionately more than the increase in US dollar purchases. In management’s opinion, the sensitivity analysis is representative of the 
inherent foreign exchange risk at year end. The Group’s policy is to maintain natural hedges, where possible, by matching US dollar 
revenue with US dollar expenditure.
Forward exchange contracts
It is the policy of the Group to enter into forward exchange contracts to manage the risk associated with anticipated sales transactions 
within 30% to 80% of the exposure generated.
The Group uses a rolling hedging strategy with contracts with terms up to 12 months. Upon maturity of a forward contract, the Group may 
enter in to a new contract designated as a separate hedging relationship.
Foreign currency forward contracts are measured using quoted forward exchange rates matching maturities of the contracts.
Outstanding contracts
     Foreign  Contract Fair
    Average currency value value
    rate 30/6/08 30/6/08 30/6/08
    30/6/08 000’s 000’s 000’s
Sell US Dollars
Less than 3 months    1.97 $1,200 £608 £3
3 to 6 months    1.96 $2,400 £1,222 £2
7 to 12 months    1.94 $600 £309 £2
    1.96 $4,200 £2,139 £7
Sell Euros
Less than 3 months    1.33 €1,700 £1,278 £(70)
3 to 6 months    1.34 €2,800 £2,088 £(133)
7 to 12 months     –  –  –  –
    1.34 €4,500 £3,366 £(203)
Total of outstanding forward contracts      £5,505 £(196)
     Foreign  Contract Fair
    Average currency value value
    rate 30/6/07 30/6/07 30/6/07
    30/6/07 000’s 000’s 000’s
Sell US Dollars
Less than 3 months    1.92 $1,200 £624 £25
3 to 6 months    1.92 $2,250 £1,171 £46
7 to 12 months    1.76 $3,950 £2,245 £85
    1.83 $7,400 £4,040 £156
Sell Euros
Less than 3 months    1.48 €400 £268  –
3 to 6 months    1.47 €3,950 £2,685 £4
7 to 12 months    1.46 €2,100 £1,441 £8
    1.47 €6,450 £4,394 £12
Total of outstanding forward contracts      £8,434 £168 Abcam plc
Annual report and accounts 
30 June 2008
54
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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26. Financial Instruments continued
The analysis below shows the increase or decrease in profit and the change in equity when the Sterling weakens or strengthens 8% against 
the relevant currency.
      30/06/08 30/06/07
      £000 £000
Fair value of outstanding contracts should sterling strengthen by 8%
US Dollars      154  176
Euros      440  316
      594  492
      30/06/08 30/06/07
      £000 £000
Fair value of outstanding contracts should sterling weaken by 8%
US Dollars      (196) (562)
Euros      (72) (396)
      (268) (958)
At 30 June 2007, all of the contracts were held as cash flow hedges. At 30 June 2008, none of the contracts were held as cash flow hedges.
Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk 
management framework for the management of the Group’s short-, medium- and long-term funding and liquidity management requirements. 
The Group manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring cash flows and 
matching the maturity profiles of financial assets and liabilities.
The Group and Company hold cash deposits at call or with a maturity of up to 12 months. At 30 June 2008, the average maturity of 
balances was 35 days of fixed rate deposits not sensitive to changes in interest rates.
All funds are readily available to the Company to meet operational requirements.
The amount owing from subsidiaries is payable on demand and is classified as being payable within 1 month. Trade payables are normally 
payable within 30 days of invoice. Abcam plc
Annual report and accounts 
30 June 2008
55
26. Financial Instruments continued
Liquidity and interest risk tables – financial liabilities
(All balances are capital and do not include accrued interest)
   Weighted
   average
   interest On demand 1 to 3 3 months
   rate 1 month months to 1 year Total
   % £000 £000 £000 £000
Group
2008
Trade payables    – 1,110 603 4 1,717
Accruals    – 1,561  – 474 2,035
    2,671 603 478 3,752
Company
2008
Trade payables    – 1,610 25  – 1,635
Accruals    – 1,284  – 418 1,702
    2,894 25 418 3,337
   Weighted
   average
   interest On demand 1 to 3 3 months
   rate 1 month months to 1 year Total
   % £000 £000 £000 £000
Group
2007
Trade payables    – 1,184 225  – 1,409
Accruals    – 988  – 262 1,250
    2,172 225 262 2,659
Company
2007
Trade payables    – 1,194 217  – 1,411
Accruals    – 848  – 235 1,083
    2,042 217 235 2,494
Interest rate risk sensitivity analysis
An increase of 1% in the average interest rate during the year would have resulted in an increase in interest received by the Group of 
£113,000 (2007: £111,000) and by the Company of £103,000 (2007: £111,000).
A decrease of 1% in the average interest rate during the year would have resulted in an equal and opposite impact on interest received by 
the Group and the Company as described above.
Fair value of financial instruments
The fair values of the financial assets and liabilities are determined as follows:
Foreign exchange contracts are measured using quoted forward exchange rates and the yield curves derived from quoted interest rates 
matching maturities of these contracts.
The Directors consider there to be no material difference between the book value and the fair value of the Group’s financial assets and 
liabilities at the balance sheet date. This is because most of the financial assets and liabilities are short term. Abcam plc
Annual report and accounts 
30 June 2008
56
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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27. Related party transactions
Under a New Product Development agreement with a laboratory associated with Tony Kouzarides, (a Non-Executive Director of the 
Company) Abcam provided products from its catalogue free of charge, with a resale value of £16,714 (2007: £14,000) and paid £36,148 in 
royalties (2007: £23,000). £6,632 of these royalties were outstanding at year end (2007: £7,000).
      
Eddie Powell, who retired as Finance Director on 20 November 2007 was subsequently employed as an independent contractor for which 
he was paid £15,322.
Remuneration of key personnel
The remuneration of the Directors, who are the key management personnel of the Group, is set out below in aggregate for each of the 
categories specified in IAS 24 “Related Party Disclosures”.
Group and Company
      30/6/08 30/6/07
      £000 £000
Short term employee benefits and fees      1,221 843
Share-based payment      50 29
      1,271 872
28. Notes to the cash flow statement
Group
      30/6/08 30/6/07
      £000 £000
Operating profit for the year      7,371 5,038
Adjustments for:
Depreciation of property, plant and equipment     1,092 561
Impairment losses on intangible assets      642  –
Amortisation of intangible assets      309 234
Share based compensation charge      232  163
Operating cash flows before movements in working capital     9,646 5,996
Increase in inventories      (1,405) (744)
Increase in receivables      (533) (1,566)
Increase in payables      772  1,045
Decrease in derivative financial instruments     365   –
(Decrease)/Increase in hedging reserve      (168) 168
Cash generated by operations      8,677 4,899
Income taxes paid      (1,535) (1,473)
Net cash from operating activities      7,142 3,426
Company
      30/6/08 30/6/07
      £000 £000
Operating profit for the year      6,113 4,343
Adjustments for:
Depreciation of property, plant and equipment     917 439
Impairment losses on intangible assets      642  –
Amortisation of intangible assets      306 234
Share based compensation charge      192  163
Operating cash flows before movements in working capital     8,170 5,179
Increase in inventories      (1,412) (741)
Increase in receivables      (572) (1,896)
Increase in payables      503  1,031
Decrease in derivative financial instruments     365   –
(Decrease)/increase in hedging reserve      (168) 168
Cash generated by operations      6,886 3,741
Income taxes paid      (1,028) (1,005)
Net cash from operating activities      5,858 2,736 Abcam plc
Annual report and accounts 
30 June 2008
57
29. Reconciliation of movements in equity
Group
    Share-based
 Share Share Translation compensation Hedging Deferred tax Retained
 capital premium reserve
1
 reserve
2
 reserve
3
 reserve
4
 earnings Total
 £000 £000 £000 £000 £000 £000 £000 £000
Balance as at  
 1 July 2006 345  10,573  (8) 89   – 286  4,190  15,475 
Exchange  
 differences  
 on translating  
 foreign operations  –  – (28)  –  –  –  – (28)
Share-based  
 compensation  –  –  – 162   –  –  – 162 
Deferred tax on  
 outstanding  
 share options  –  –  –  –  – (30)  – (30)
Profit for the year  –  –  –  –  –  – 4,061  4,061 
Total income and  
 expense for the year  –  – (28) 162   – (30) 4,061  4,165 
Issue of share capital 1  46   –  –  –  –  – 47 
Movement on  
 hedging reserve  
 for the adoption  
 of hedge accounting  –  –  –  – 168   –  – 168 
Payment of  
 dividends (note 12)  –  –  –  –  –  – (968) (968)
Balance as at  
 30 June 2007 346  10,619  (36) 251  168  256  7,283  18,887 
        
Exchange  
 differences  
 on translating  
 foreign operations  –  – 3   –  –  –  – 3 
Share-based  
 compensation  –  –  – 232   –  –  – 232 
Deferred tax on  
 outstanding  
 share options  –  –  –  –  – 502   – 502 
Profit for the year  –  –  –  –  –  – 5,890  5,890 
Total income and  
 expense for the year  –  – 3  232   – 502  5,890  6,627 
Issue of share capital 5  252   –  –  –  –  – 257 
Utilisation of  
 derivative instruments  –  –  –  – (168)  –  – (168)
Payment of  
 dividends (note 12)  –  –  –  –  –  – (1,481) (1,481)
Balance as at  
 30 June 2008 351  10,871  (33) 483   – 758  11,692  24,122 
1. Exchange differences on translation of overseas operations.
2. IFRS 2 Charge for fair value of share options.
3. Gains and losses recognised on cash flow hedges.
4. Portion of deferred tax asset arising on outstanding share options and share options exercised and not taken to profit and loss in accordance with IAS12. Abcam plc
Annual report and accounts 
30 June 2008
58
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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29. Reconciliation of movements in equity continued
Company
   Share-based
 Share Share compensation Hedging Deferred tax Retained
 capital premium reserve
1
 reserve
2
 reserve
3
 earnings Total
 £000 £000 £000 £000 £000 £000 £000
Balance as at 1 July 2006 345  10,573  89   – 286  3,663  14,956 
Share-based compensation  –  – 162   –  –  – 162 
Deferred tax on outstanding  
 share options  –  –  –  – (30)  – (30)
Profit for the year  –  –  –  –  – 3,687  3,687 
Total income and expense for the year  –  – 162   – (30) 3,687  3,819 
Issue of share capital 1  46   –  –  –  – 47 
Movement on hedging reserve for  
 the adoption of hedge accounting  –  –  – 168   –  – 168 
Payment of dividends (note 12)  –  –  –  –  – (968) (968)
Receipt of dividends  –  –  –  –  – 272  272 
Balance as at 30 June 2007 346  10,619  251  168  256  6,654  18,294 
Share-based compensation  –  – 193   –  –  – 193 
Deferred tax on outstanding share  
 options  –  –  –  – 502   – 502 
Profit for the year  –  –  –  –  – 5,126  5,126 
Total income and expense for the year  –  – 193   – 502  5,126  5,821 
Issue of share capital 5  252   –  –  –  – 257 
Utilistation of derivative instruments  –  –  – (168)  –  – (168)
Payment of dividends (note 12)  –  –  –  –  – (1,481) (1,481)
Receipt of dividends  –  –  –  –  – 403  403 
Balance as at 30 June 2008 351  10,871  444   – 758  10,702  23,126 
1. IFRS 2 Charge for fair value of share options.
2. Gains and losses recognised on cash flow hedges.
3. Portion of deferred tax asset arising on outstanding share options and share options exercised and not taken to profit and loss in accordance with IAS12.
30. Explanation of the transition to IFRS
This is the first year that the Company has presented its financial statements under IFRS. The following disclosures are required in the year 
of transition. The last financial statements under UK GAAP were for the year ended 30 June 2007 and the date of transition to IFRS was 
therefore 1 July 2006.
The principal impact of IFRS on these financial statements has been in relation to the following:
a. The scope of IAS 32 and IAS 39, Financial Instruments: Presentation and Financial Instruments: Recognition and 
measurement respectively
IAS 32 and IAS 39 require the company to recognise derivative financial instruments at their fair value on the balance sheet (under UK 
GAAP, these were off balance sheet items). There may also be a corresponding hedging reserve within equity on the balance sheet if 
hedge accounting is applied. 
The Group designates foreign exchange contracts as cash flow hedges and has implemented hedge accounting.
b. The scope of IAS 12: Income taxes
Under IAS 12, a deferred tax asset arises on the unexercised share options issued to employees. Under UK GAAP the tax charge is only 
recognised in the income statement when the tax becomes payable. Abcam plc
Annual report and accounts 
30 June 2008
59
30. Explanation of the transition to IFRS continued
Reconciliation of income statement for the year ended 30 June 2007
Group
      IFRS 
     UK GAAP adjustment IFRS
    Notes £000 £000 £000
Revenue     24,519   – 24,519 
Cost of Sales     (10,020)  – (10,020)
Gross Profit     14,499   – 14,499 
Administration and management expenses    
 excluding share based compensation charge    a (7,422) (168) (7,590)
Share based compensation charge     (142)  (142)
Total management and administration expenses    (7,564) (168) (7,732)
Research and Development expenses     
 excluding share based compensation charge    (1,709) –  (1,709)  
Share based compensation charge     (20) –  (20)
Total research and development expenses     (1,729)  – (1,729)
Operating profit     5,206  (168) 5,038 
Investment revenue     495   – 495 
Profit before taxation      5,701  (168) 5,533 
Tax     b (1,554) 82  (1,472)
Profit for the period from continuing operations    4,147  (86) 4,061 
Reconciliation of equity as at 1 July 2006 and 30 June 2007
     Notes 1/7/06 30/6/07
Total Equity under UK GAAP      15,067 18,427
Loss/gains arising on derivatives in a designated cash flow hedge   a 118 204 
Loss/gains arising on deferred tax on outstanding options    b 290 256 
Total Equity under IFRS      15,475 18,887 Abcam plc
Annual report and accounts 
30 June 2008
60
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
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30. Explanation of the transition to IFRS continued
Reconciliation of balance sheet presentation at 1 July 2006
Group
      IFRS 
     UK GAAP adjustment IFRS
    Notes £000 £000 £000
Non-current assets
Intangible assets     77   – 77 
Property, plant and equipment     1,094   – 1,094 
     1,171   – 1,171 
Current assets
Inventories     2,358   – 2,358 
Trade and other receivables     2,762   – 2,762 
Cash and cash equivalents      11,884   – 11,884 
Derivative financial instruments    a  – 169  169 
     17,004  169  17,173 
Current liabilities
Trade and other payables     (2,461)  – (2,461)
Current tax liabilities    a (562) (51) (613)
     (3,023) (51) (3,074)
Net current assets     13,981  118  14,099 
Total assets less current liabilities     15,152  118  15,270 
Non-current liabilities
Deferred tax liabilities    b (85) 290  205 
Net assets     15,067  408  15,475 
Equity
Share capital     345   – 345 
Share premium account     10,573   – 10,573 
Translation reserve     89   – 89 
Share based compensation reserve     (8)  – (8)
Retained earnings    a,b 4,068  408  4,476 
Total equity     15,067  408  15,475  Abcam plc
Annual report and accounts 
30 June 2008
61
30. Explanation of the transition to IFRS continued
Reconciliation of balance sheet presentation at 1 July 2006
Company
      IFRS 
     UK GAAP adjustment IFRS
    Notes £000 £000 £000
Non-current assets
Intangible assets     77   – 77 
Property, plant and equipment     901   – 901 
Investments     16   16 
     994   – 994 
Current assets
Inventories     2,348   – 2,348 
Trade and other receivables     2,676   – 2,676 
Cash and cash equivalents      11,312   11,312 
Derivative financial instruments    a  – 169  169 
     16,336  169  16,505 
Current liabilities
Trade and other payables     (2,294)  – (2,294)
Current tax liabilities    a (411) (51) (462)
     (2,705) (51) (2,756)
Net current assets     13,631  118  13,749 
Total assets less current liabilities     14,625  118  14,743 
Non-current liabilities
Deferred tax liabilities    b (77) 290  213 
Net assets     14,548  408  14,956 
Equity
Share capital     345   – 345 
Share premium account     10,573   – 10,573 
Share based compensation reserve     89   – 89 
Retained earnings    a,b 3,541  408  3,949 
Total equity     14,548  408  14,956  Abcam plc
Annual report and accounts 
30 June 2008
62
Notes to the Consolidated 
Financial Statements 
continued
For the year ended 30 June 2008
Job:	 11373	ABCAM	-	BACK_AW	 Proof:	 05	 Proof Read by:
Operator:	tim	 Date:	 23.09.2008	
Server:	 Studio	I	 Set-up:	 Tim	 First	Read/Revisions
30. Explanation of the transition to IFRS continued
Reconciliation of balance sheet presentation at 30 June 2007
Group
      IFRS 
     UK GAAP adjustment IFRS
    Notes £000 £000 £000
Non-current assets
Intangible assets     1,691   – 1,691 
Property, plant and equipment     2,832   – 2,832 
     4,523   – 4,523 
Current assets
Inventories     3,102   – 3,102 
Trade and other receivables     4,327   – 4,327 
Cash and cash equivalents     a 10,709   10,709 
Derivative financial instruments      – 168  168 
     18,138  168  18,306 
Current liabilities
Trade and other payables     (3,404) 36  (3,368)
     (3,404) 36  (3,368)
Net current assets     14,734  204  14,938 
Total assets less current liabilities     19,257  204  19,461 
Non-current liabilities
Deferred creditor     (386)  – (386)
Deferred tax liabilities    b (444) 256  (188)
Net assets     18,427  460  18,887 
Equity
Share capital     346   – 346 
Share premium account     10,619   – 10,619 
Translation reserve     (36)  – (36)
Share based compensation reserve     251   – 251 
Deferred tax reserve    b  – 256  256 
Hedging reserve    a  – 168  168 
Retained earnings    a 7,247  36  7,283 
Total equity     18,427  460  18,887  Abcam plc
Annual report and accounts 
30 June 2008
63
30. Explanation of the transition to IFRS continued
Reconciliation of balance sheet presentation at 30 June 2007
Company
      IFRS 
     UK GAAP adjustment IFRS
    Notes £000 £000 £000
Non-current assets
Intangible assets     1,691   – 1,691 
Property, plant and equipment     2,459   – 2,459 
Investments     16   – 16 
     4,166   – 4,166 
Current assets
Inventories     3,089   – 3,089 
Trade and other receivables     4,572   – 4,572 
Cash and cash equivalents      10,055   – 10,055 
Derivative financial instruments    a  168  168 
     17,716  168  17,884 
Current liabilities
Trade and other payables     (2,939)  – (2,939)
Current tax liabilities    a (279) 36  (243)
     (3,218) 36  (3,182)
Net current assets     14,498  204  14,702 
Total assets less current liabilities     18,664  204  18,868 
Non-current liabilities
Deferred creditor     (188)  – (188)
Deferred tax liabilities    b (642) 256  (386)
Net assets     17,834  460  18,294 
Equity
Share capital     346   – 346 
Share premium account     10,619   – 10,619 
Share based compensation reserve     251   – 251 
Deferred tax reserve    b  – 256  256 
Hedging reserve    a  – 168  168 
Retained earnings    a 6,618  36  6,654 
Total equity     17,834  460  18,294 
Explanation of material adjustments to the cash flow statement for 2007
Cash held on short term deposits is included in cash and cash equivalents under IFRS. Under previous GAAP, these amounts were 
excluded from the cash flow statement. There are no other material differences between the cash flow statement presented under IFRS and 
the cash flow statement presented under previous GAAP. Abcam plc
Annual report and accounts 
30 June 2008
64
Notes 01 Highlights
02 Our Business at a Glance
04 Our Internet Platform
06 Chairman’s Review
08 Chief Executive  
Officer’s Review
10 Managing Director’s Review
12 Financial Review
14 Board of Directors
16 Corporate Directory
17 Directors’ Report
19 Corporate Governance
21 Directors’ Remuneration 
Report
24 Statement of Directors’ 
Responsibilities
25 Independent Auditors’ 
Report
26 Consolidated Income  
Statement
27 Consolidated Statement of 
Recognised Income and 
Expense
28 Consolidated Balance Sheet
29 Company Balance Sheet
30 Consolidated Cash Flow 
Statement
31 Company Cash Flow  
Statement
32 Notes to the Consolidated 
Financial Statements
Our vision is to build the largest 
online antibody resource in the 
world while also ensuring that 
the antibodies are of excellent 
quality and commercial viability.
Welcome!
My name is Molly, I’m the resident Abcam mascot and 
appear on all our packaging and branded materials.
A lot of researchers ask where we got the idea for Molly  
the sheep. It was simply because Dolly the sheep was  
making headline news at the time, so we created the  
body out of a molecular space fill model and gave her  
antibody legs, and thus the molecular Dolly became  
Abcam’s Molly. Annual report  
and accounts 2008
Annual report and accounts 2008
332 Cambridge Science Park
Cambridge
CB4 0WN
UK
Email: orders@abcam.com
Phone: +44 (0)1223 696000
Fax: +44 (0)1223 696001