Abcam Annual Report and Accounts 2009
Annual Report and Accounts 
Year ended 30 June 2009
A producer and distributor of research-grade antibodies
www.abcamplc.com
330 Cambridge Science Park
Cambridge
CB4 0FL
UK
Email: corporate@abcam.com
Phone: +44 (0)1223 696000
Fax: +44 (0)1223 771600 Our vision is to build the 
largest online catalogue 
of the best antibodies in 
the world.
Directors’ Report
01 Highlights
02 At a glance
04 We source and produce
06 We add value with customer support
08 We distribute internationally
10 Another year of continued growth
12 Chairman’s Review
14 Chief Executive Officer’s Review
16 Financial Review
18 Board of Directors
20 Corporate Directory
21 Report on Affairs of the Group
24 Corporate Governance Statement
27 Directors’ Remuneration Report
34 Statement of Directors’ Responsibilities
Financials
35 Independent Auditors’ Report
36 Consolidated Income Statement
36 Consolidated Statement of Recognised Income and Expense
37 Consolidated Balance Sheet
38 Company Balance Sheet
39 Consolidated Cash Flow Statement
40 Company Cash Flow Statement
40 Company Statement of Recognised Income and Expense
41 Notes to the Consolidated Financial Statements Abcam plc   Directors’ Report 01
Revenue
£m
19.4
06
24.5
07
36.6
08
56.8
09
Earnings per share
pence
11.17
06
11.74
07
16.88
08
34.83
09
Number of products 
published
23,200
06
33,900
07
44,000
08
52,400
09
Profit before tax
£m
5.0
06
5.5
07
8.0
08
16.3
09
Abcam was established 11 years ago to meet 
the needs of the research scientist for reliable, 
validated antibodies for protein detection, a 
central function of life science research. Since 
then we have been dedicated to assisting global 
research through investment in the extension  
of our product catalogue and increased and 
improved validation of our products across an 
expanded range of applications.
David Cleevely Chairman
52,400
Number of products 
up 19. 1%
£56.8m
Revenue increased 55.2%
£16.3m
Profit before tax 
increased 105%
Revenue increased by 55.2% to £56.8m and by • 
27.8% on a constant currency basis
Pre-tax profits increased by 105.0% to £16.3m • 
Product range grew by 19.1% to approximately • 
52,400 antibodies and related products
Net cash increased by £11.0m to £25.5m • 
EPS increased by 106.3% to 34.83p per share • 
Proposed final dividend of 9.40p per share  • 
giving increase of 116.2% in total dividend  
for the year to 12.11p
Successful completion of office moves in the UK • 
and Japan to accommodate further growth
Highlights Annual Report and Accounts 2009                             Abcam plc 
 
02
At a glance
Our products
We have an online catalogue of over 52,400 antibodies and 
related products such as proteins, peptides and kits. Our 
aim is to provide high quality antibodies against as many 
protein targets as possible and to test each one in as many 
applications and species as we can. We believe that 
honesty is the best policy so publish as much information as 
we can about each of our products on our website.
Our team not only adds new products to our catalogue  
every day, but also regularly updates the data for our existing 
products. Within the year we have also initiated a project 
involving the use of a third party to accelerate the rate of 
characterisation information on products in the catalogue.
Our distribution
We process orders quickly and accurately and we ship across 
the globe using our fully automated web-based stock 
management system. We have invested in state-of-the-art 
storage and handling facilities which allow us to operate at 
high levels of efficiency and with low handling costs. 
We have made an investment in the year to enable us to ship 
products at sub-zero temperatures. We therefore now have 
the capability to extend our range beyond antibodies to 
products which must remain frozen during transportation.
Abcam produces and distributes 
research-grade antibodies and 
related products.
 No. 1
Ranked Number 1 for best experience  
in terms of product quality and  
customer service*
237
employees
* Source: The Market for Antibodies: Keys to Success for Commercial 
Suppliers, Vol. 3, May 2009 (BioInformatics). Abcam plc   Directors’ Report 03
Our market
The US is Abcam’s largest market, accounting for over 40% 
of revenue in the last year. We are focused on gaining market 
share in the most mature and competitive market in the world 
by extending our opening times and continuing to target 
regions where we have lower market penetration. 
Our European virtual offices allow European customers 
to contact us directly in their own languages, which has 
supported an increase of over 25% in revenues derived  
from this region during the year.
The contribution from our Japanese office has grown 
considerably, by over 50% in the year. However, the growing 
Asian market still represents an under-exploited opportunity 
for us. We are in the process of opening a sales and 
marketing office in Hong Kong to serve the local market  
and mainland China and we continue to build our distributor 
network in order to improve our geographic reach.
Our customers
A cornerstone of Abcam’s development has been building 
and retaining a close relationship with our customers.  
The recent establishment of our own in-house customer 
research capability means we are able to build an ever 
closer understanding of the scientific research market.
We organise world-class conferences which serve to create  
a forum for scientists to discuss and present their work, often 
leading to ground-breaking discoveries. It allows us to stay  
at the cutting edge of research so we can make the most 
relevant new antibodies and also to stay in touch with our 
customers, learning how we can best improve our products.
 1 7
Conferences organised in the year
 7 6
Countries we distribute to worldwide
 500,000
Orders fulfilled since  
our foundation
52,400+
Antibodies and related products  
on the catalogue Annual Report and Accounts 2009                             Abcam plc 
 
04
We source and produce Abcam plc   Directors’ Report 05
We strive to offer 
our customers the 
best antibodies in 
the world regardless 
of their source.
8,400
New products added to the 
catalogue this year
300+
Partners supplying products
Our own laboratory in Cambridge, UK covers 
over 17,500 sq ft providing world leading 
antibody purification and characterisation 
facilities. As well as polyclonal antibody 
production, we are focusing on targeted 
production of a range of high selling 
monoclonal antibodies.
We also source other high quality antibodies 
from over 300 partners, including leading 
academic laboratories, primary manufacturers 
and other suppliers. We achieve this through  
a network of collaborators, licensing activities 
and customer suggestions.
Research areas
We focus our efforts on specific areas of 
research with high market demand and 
dedicate integrated teams to work on 
improving our product portfolio for each  
one. Each focus area has its own resource 
page on our website (an ‘Abwire’):
Cancer •	
Cardiovascular •	
Chromatin and Nuclear Signalling •	
Immunology •	
Neuroscience •	
Stem Cells •	 Annual Report and Accounts 2009                             Abcam plc 
 
06
We add value with customer support Abcam plc   Directors’ Report 07
We add value with customer support
Abcam’s customer 
service and 
scientific support 
staff aim to provide 
the best pre- and 
post-sales support.
7 4.3%
Orders fulfilled directly from stock
40+
PhDs in-house providing  
leading edge support
Abreviews
We value both positive and negative 
feedback about how our antibodies are 
performing. Our Abreviews
®
 system allows 
customers to share with us their experience 
of our products. By making this information 
available on our website, we also provide 
other scientists with useful data to help them 
select the best-suited products for their 
needs before making a purchase. We 
believe that the quality of this information 
contributes significantly to the continued 
increase in average sales of products that 
we observe over time.
Abpromise
Our products come with an ‘Abpromise’, 
giving customers the reassurance of 
knowing that: 
our antibodies are of the highest quality •	
and are backed up by an expert scientific 
support team;
they can contact other customers of  •	
the same antibody via our unique 
Abreviews
®
 system;
if, after optimisation, any product does •	
not perform as described on the 
datasheet, our scientific support team will 
be on hand to provide expert advice; and
we will replace or refund any faulty •	
products if reported within 120 days  
of purchase. Annual Report and Accounts 2009                             Abcam plc 
 
08
We distribute internationally Abcam plc   Directors’ Report 09
We ship across the 
globe using our 
fully automated 
web-based stock 
management 
system.
76
Countries we distribute  
to worldwide
24
Hours delivery for US and Europe
We have invested in state-of-the-art storage 
and handling facilities which allow us to 
operate at high levels of efficiency and with 
low handling costs. We have a global reach, 
currently shipping to 76 countries, with next 
day delivery for the US and Europe for 
in-stock orders. Our customers can directly 
access the website to monitor the status of 
their orders so they can plan their 
experiments more effectively. 
We distribute our antibodies in insulated 
packaging validated to last 48 hours. This 
ensures optimal conditions during transit and 
extends the shelf life of the product in our 
customers’ hands. This year, we have 
invested in developing the capability to ship 
products in a frozen state on dry ice. This 
gives us the opportunity for future product 
portfolio expansion to new products that  
are highly temperature sensitive such as 
active proteins. Annual Report and Accounts 2009                             Abcam plc 
 
10
Another year of continued growth
Over the past 11 years Abcam has built 
a strong, trusted brand associated with 
high quality products and is well 
positioned for further strong growth.
Aug 2002 – Automated 
web-based ordering 
facility
A new automated system was 
developed that allowed Abcam’s 
customers to benefit from a faster, more 
streamlined order processing system. 
Abcam was able to increase shipping 
capacity by more than 300% without 
the need for additional manpower.
Oct 1998 – Abcam opens 
for business
From the outset Abcam was clear 
about its market proposition: it would 
sell the best antibodies in the world 
with the most comprehensive, honest 
and up-to-date datasheets, coupled to 
fast delivery and exemplary customer 
service and technical support. 
May 2000 – 10th 
employee hired
Oct 2004 – First place in 
Deloitte’s Fast 50
Abcam’s winning ways reached new 
heights after it secured two awards in the 
space of a month. Appearing in Deloitte’s 
Regional Technology Fast 50 league table 
for the third consecutive year, Abcam 
topped the table on the strength of sales 
that grew 7,200% between 1999 and 
2003. Less than a month previously, 
Abcam had, for the second year, been 
ranked as one of Britain’s fastest growing 
technology companies in the Sunday 
Times Microsoft Tech Track 100. May 2003 – First overseas 
office established
Abcam established its first 
permanent foothold outside the UK 
with the opening of an office in 
Cambridge, Massachusetts. The 
move reflected the growing 
importance of overseas trade to the 
Company and the rapid expansion of 
its international customer base. 
Apr 2005 – Queen’s 
Award at first attempt
The Queen’s Award for Enterprise 
has been running since 1966 and is 
widely recognised as the premier 
award for outstanding business 
performance in the UK. At its first 
attempt, Abcam was just one of 135 
companies across the UK to win one 
of these coveted awards. The award 
is positive proof of the Company’s 
outstanding success as an 
international business. Abcam plc   Directors’ Report 11
Nov 2005 – IPO 
on AIM
Abcam’s flotation on the 
AIM market of the London 
Stock Exchange raised 
£10m to fund further 
growth opportunities 
including the expansion  
of our online catalogue, 
the broadening of the 
customer base, and  
the penetration of new 
geographic markets.
Jun 2009 – Abcam’s 
expansion continues
Abcam opened its new global 
headquarters at 330 Cambridge 
Science Park, Cambridge, UK, 
providing 25,000 sq ft of office 
and storage space, double the 
size of the previous building. Jim 
Warwick, Abcam’s Chief 
Operating Officer, commented: 
“This move marks another 
important milestone in the 
growth of Abcam. It represents 
the fourth time that we have 
relocated to bigger premises on 
the Science Park and underlines 
our optimism for the future.”
May 2006 – Leading edge 
storage and handling 
facilities
A new storage and retrieval system 
was introduced, greatly increasing our 
stock storage density and enabling 
further improvement to the speed and 
reliability of order delivery. 
Dec 2006 – Japan  
office opens
The opening of Abcam’s Japanese 
office reflects the determination to 
expand in East Asia, one of the 
fastest-growing antibody markets in the 
world. Technical support and customer 
service are top priorities for the office, 
supported by marketing and web 
development staff, greatly improving the 
quality of the technical support we can 
provide to customers in this region.
Jul 2007 – New world 
leading antibody 
facility
The facility, which is one of the 
world’s most advanced antibody 
production laboratories, is 
designed to produce an 
increasing number of products, 
enhancing the quality, range 
and availability of products 
offered to Abcam’s customers 
and maintaining Abcam’s 
position as one of the market 
leaders in the provision of 
antibodies and reagents.
Mar 2009 – 
Catalogue grows 
to over 50,000 
products
Jul 2009 – 
Market 
capitalisation 
reaches £250m
Jul 2008 – 200th 
employee hired Annual Report and Accounts 2009                             Abcam plc 
 
12
David Cleevely Chairman
It gives me particular 
pleasure to be reporting on 
an outstanding performance 
and the excellent progress 
made during the year. 
 
Trading has begun well  
in the new financial year, 
reflecting the robust  
and defensive nature of  
our markets.
We are presenting our results for the 2009 financial year against  
a backdrop of one of the most challenging global economic 
environments for many years. It therefore gives me particular 
pleasure to be reporting on an outstanding performance and the 
excellent progress made during the year. Abcam was established 
11 years ago to meet the needs of the research scientist for reliable, 
validated antibodies for protein detection, a central function of life 
science research. Since then we have been dedicated to assisting 
global research through investment in the extension of our product 
catalogue and increased and improved validation of our products 
across an expanded range of applications. Throughout that time, the 
central tenets of our business have been to build an infrastructure 
such that our expansion is controlled and sustainable, and, critically, 
to stay in close communication with our customer base so that we 
can better serve them and anticipate their future requirements.
We are proud to have built a global business that is characterised 
by a rapidly increasing demand for its products, and a strong 
customer base, located across the world. We have fulfilled over half 
a million orders since our foundation and have a huge and growing 
volume of information on our antibodies. This information, much of 
which is available on our website, is provided from our own in-house 
facility, from our customers and suppliers, and via articles (which 
are now running at over 2,000 per quarter) in independent scientific 
publications. Our strong customer focus extends into the continued 
development of our e-commerce platform, which provides easy 
access to detailed information relating to our products, and 
extensive follow-up technical support, all aimed at improving the 
experience of, and assisting, the researcher. 
Sales in the year increased by 55.2% to £56.8m and we benefited 
significantly from the weakness of Sterling, which had a positive 
impact on reported sales. Within that figure, underlying sales growth 
at constant currency rates was still very strong at 27.8% and we 
made significant progress in each of our main markets.
Our aim is to deliver sustainable growth through continued 
investment in the business. This year we have continued to develop 
the website, to optimise the user experience and, as part of our 
continued focus on being close to the markets and our customers, 
we now have our own in-house customer survey capability, which 
will play an important role in guiding new developments. 
Our North American and Japanese offices have both had excellent 
years and grown significantly. Asia represents an opportunity for us 
which is as yet relatively untapped. We are therefore in the process 
of opening a sales and marketing office in Hong Kong to serve the 
local market and mainland China. As with the opening of our 
Japanese office in 2006, this will initially be on a small scale, as  
we look to develop our market penetration and provide improved 
customer service levels. Elsewhere, our distributor network has 
been further enhanced with the addition of three new distributors 
and we now have coverage over several countries in South America. 
As indicated in the announcement accompanying our interim results 
in March, we have taken steps to refocus our monoclonal 
manufacturing resource towards more targeted production of a 
narrower range of high selling monoclonal antibodies, which we will 
supplement with the selective sourcing of monoclonal antibodies 
from third parties. Our aim is to leverage our excellent market 
position and knowledge to focus on areas of high demand, as we 
Chairman’s Review Abcam plc   Directors’ Report 13
currently do with our polyclonal production. As a consequence,  
we are taking an impairment charge of £1.1m in the year, relating  
to assets which are no longer utilised as a result of the decision to 
refocus strategy away from the higher-volume production processes. 
Our customers are the lifeblood of our business and are central  
to its operation. I would like to extend thanks to them for their  
continued support, to our suppliers who serve us so well, and 
to our shareholders.
Growth at the levels we are reporting requires dedicated and 
capable staff and I am delighted to say that we have continued to 
attract people of the highest calibre at all levels across the business. 
We thank them for their continued commitment, creativity and 
attention to detail which makes our success possible.
Dividends
The Board’s policy for the past two years has been to distribute  
33% of post-tax earnings. In light of the continued strong cash flow 
and success of the Group, the Directors are recommending that  
the distribution ratio for this year be increased to 35%. An interim 
dividend of 2.71p per share was paid in April 2009 and the Directors 
are therefore recommending a final dividend of 9.40p per share, 
making a total of 12.11p for the year, an increase of 116.2% on that 
paid last year. Subject to shareholder approval at the Annual 
General Meeting (‘AGM’) in November, the final dividend will be 
paid on 27 November 2009 to shareholders on the register on  
6 November 2009.
Outlook
The potential impact of the global recession on our business is 
difficult to assess but trading has begun well in the new financial 
year. The robust and defensive nature of our markets, particularly 
from centrally funded research, has been well demonstrated during 
the past year. Nevertheless, the current economic circumstances 
demand a degree of caution. 
Since the Company was founded, our philosophy has been market 
led, focusing on the provision of the best quality products in the 
most relevant and meaningful way for the research scientist. This 
requires an integrated approach, across all areas of the business, 
and guides all that we do. Our track record demonstrates the 
strength of this philosophy, which I am sure will continue to serve  
the Company well in the future.
I was particularly pleased to welcome Mike Redmond to the Board 
as Deputy Chairman earlier in the year. As I indicated in the 
announcement of his appointment, after 11 years it is my intention to 
step down from the Board and I will be doing so at the AGM in early 
November. I am very proud of our achievements, the strength of the 
Company which has been built and the quality of the staff we have 
been able to attract. I am sure that under Mike Redmond’s guidance 
and leadership as Chairman, Abcam will continue to thrive. 
David Cleevely, FREng
Chairman
7 September 2009 Annual Report and Accounts 2009                             Abcam plc 
 
14
Jonathan Milner CEO
We continue to validate the 
strength of our business 
model and gain market  
share through our high 
quality, highly specified 
antibodies, breadth of 
catalogue and high levels  
of service and support.
It gives me a huge amount of pleasure to report on another very 
successful year for Abcam. With sales growth of 55.2% to £56.8m 
(27.8% on a constant currency basis), we continue to validate the 
strength of our business model and gain market share. Our high 
quality, highly specified antibodies and breadth of catalogue 
continue to attract new customers and the high levels of service and 
support we provide ensure strong levels of customer retention. 
It is important that we continue to invest in the business whilst 
delivering profitable growth and as described below, we have done 
so again this year. Profit before tax increased by 118.5% from £8.0m 
to £17.4m (before a £1.1m charge associated with the restructuring 
at the production facility in the 2009 financial year).
Sales in North America grew by 23.6% to $41.8m (£26.2m) as  
we continued to gain market share in the biggest, most mature  
and competitive market in the world. We are extending our opening 
times in order to improve service levels on the West Coast and 
continue to target regions where we have lower market penetration.
Our virtual office approach to European markets and targeted 
marketing initiatives, based out of our Cambridge UK office, but 
enabling European customers to contact us directly in their own 
languages, has continued to be successful and sales to Europe grew 
by 27.7% to €18.9m (£16.3m). 
In Japan, the transition away from using our original distributor to 
dealing exclusively with sub-dealers was completed during the year. 
This has been a major exercise and means that we are now able to 
be closer to the customer, which is a key part of our strategy and 
enables us to trade at improved margins. Sales in Japan grew by 
52.4% to ¥704m (£4.6m).
We enjoyed strong growth in the UK as sales grew by 17.7% to 
£4.9m and, with the expansion of our distributor network, sales in 
the rest of the world grew by 51.0%.
Included in the rest of the world figure are sales in the Hong Kong 
and Chinese markets, which together accounted for 3.0% of our 
sales this year. We believe that we are under-represented in those 
markets and consequently are in the process of opening a small 
sales and marketing office in Hong Kong to help capitalise on 
this opportunity.
We have increased the number of products in the catalogue by 
19.1% during the year to approximately 52,400, further extending 
our product range. New products added during the year contributed 
£2.7m of sales. As information is gathered on these products we 
expect sales to increase over time, as is the case with other 
products in the catalogue. 
As our market reach grows we continue to attract new suppliers  
of quality products in what is still a relatively fragmented market.  
In addition, we enjoy the benefit of the product development 
activities of existing suppliers with whom we have more established 
relationships, and who continue to introduce new products to us. We 
are also looking to expand the breadth of antibody-related reagents 
we offer, further to which we made an investment during the year to 
enable us to ship products on dry ice. This now gives us the 
capability to extend our range to products which, unlike antibodies, 
must remain frozen during delivery. 
We have completed the restructuring of our production facility 
following the switch to more targeted monoclonal production. The 
decision to do this was taken because in the view of the Board the 
Chief Executive Officer’s Review Abcam plc   Directors’ Report 15
A cornerstone of Abcam’s development has been building and 
retaining a close relationship with our customers. We do this in part 
by categorising the research market using our Core Focus Areas, 
which target researchers at the most exciting and cutting-edge 
frontiers of science. As part of this strategy we also continue to run 
world-class conferences where ground-breaking discoveries are 
announced, often with Abcam products as the enabling technology 
in those discoveries. We organised 17 conferences in the year, 
including our first in Asia. The recent establishment of our own 
in-house customer research capability means we are able to build 
ever closer relationships with the scientific community. 
This year has seen an increase in resources applied to our newly 
formed dedicated e-commerce team, a particular focus of which 
has been improved and targeted e-mail marketing. We have also 
improved response times on the website and are attracting traffic to 
the site at increasing rates. 
We look to build our business in a way which is scalable, to 
accommodate future growth. It is important that as we do this we 
continue to focus on economies of scale in order to optimise the 
return from our activities, hence our end-to-end internal system 
development, which links the public website to our key operating 
systems. This year we completed a major move of our head office to 
a new site on the Cambridge Science Park, and also moved offices 
in Japan following the change in distribution channels. Both moves 
were undertaken to accommodate further growth and were 
completed on time, with minimal disruption.
As previously announced, David Cleevely will be stepping down 
from the Board later this year. David was instrumental in the 
founding of Abcam in 1998 and I would like to express my thanks to 
David for all he has done for the Company over that time and the 
support he has provided to me personally. He has made a huge 
contribution and without him Abcam would not be the great 
Company it is today and perhaps would not have existed at all.  
We wish him well and are very much looking forward to working  
with Mike Redmond, who will be replacing David as Chairman.
Abcam has a proven business model, dedicated staff, continuing 
strong underlying growth and significant potential. We have created 
a brand that is trusted by our customers through our focus on 
antibodies, on product quality and on customer service. We intend 
to continue to grow the number of antibodies in our catalogue and 
will consider adding related products to assist researchers in their 
quest to uncover the secrets of the cell. These are exciting times for 
Abcam, which is at the forefront of enabling life science research. 
Jonathan Milner
Chief Executive Officer
7 September 2009
development of the high-volume monoclonal production process 
had the potential to absorb significant financial and management 
resources for an uncertain outcome. We will now look to supplement 
supply on a selective basis from third parties to ensure we have 
access to high quality monoclonal antibodies in order to meet 
market demand. Following the reorganisation, our polyclonal 
production activities have benefited from the additional 
development resources made available and are producing at record 
volumes. Having identified that a key driver of our growth is the 
amount of characterisation data available to scientists on the 
products in our catalogue, I am particularly pleased with the 
improvement both in throughput and breadth of applications that the 
characterisation team in our production facility can cover. There has 
been a significant increase in the amount of information added in the 
year and we have supplemented this for the first time by bringing a 
third party into our characterisation programme to help increase the 
volume and breadth of tests undertaken.  Annual Report and Accounts 2009                             Abcam plc 
 
16
Jeff lliffe Chief Financial Officer
Revenues increased  
by 55.2% to £56.8m,  
or 27.8% on a constant 
currency basis. 
 
Cash flow continues to be 
strong, with cash generated 
from operating activities  
of £14.8m. 
 
EPS growth of 106.3%  
to 34.83p.
Revenue
Revenue increased in the year by 55.2% to £56.8m, or 27.8% on a 
constant currency basis (i.e. if foreign currency exchange rates had 
remained unchanged from 2008). The weighted average exchange 
rates applied to sales in the year were £1 : $1.595, €1.160, 
¥151.880; (2008: £1 : $1.993, €1.355, ¥218.246).
Gross margin
Gross margins reported for the period under review were 65.8%, 
compared with 60.7% for the previous year. The weakness of Sterling 
has contributed to this rise through an increase in Sterling-translated 
average unit selling prices. Whilst a relatively high percentage of the 
cost of sale is US Dollar denominated, the increase in Sterling-
translated cost arising from the impact of exchange rate movements 
during the year has been mitigated by the impact of sales of 
products acquired when the Sterling exchange rate was stronger. 
On a constant currency basis, gross margins increased by 2.1% 
through increases in underlying average selling prices, the effective 
management of costs and improvement in the margins for products 
sold under Product Line Acquisition agreements.
Administration and management expenses
Administration and management expenses rose from £12.4m to 
£17.4m in the year, before a non-recurring impairment charge of 
£1.1m, which is discussed further below. The main increases relate to:
a 29% increase in average headcount, in particular to increase •	
staff resources in the Company’s IT and customer support areas 
and in pursuit of the Company’s Core Focus Area strategies;
an increase in profit-related pay to employees, following the •	
substantial increase in profit during the year;
an increase in costs associated with the remaking of previously •	
developed products to meet additional and expected demand;
additional costs arising from the new leases for the larger •	
premises now occupied in Cambridge, UK and Japan, together 
with the costs of those office moves; and 
costs arising from the commencement of an initiative involving •	
the use of a third party to accelerate the rate of addition of 
characterisation information on products in the catalogue.
The bad debt provision decreased in the year from £0.59m to 
£0.31m. Previously provided net debts of £0.24m were written off 
against the provision, £0.04m was charged to reserves to reflect 
movements in exchange rates, and £0.08m was credited back to 
profit and loss, since a lower provision was required following the 
success in cash collection during the year.
Impairment of tangible assets
An impairment charge of £1.1m was taken during the year relating to 
fixed assets associated with the high-volume production processes 
which will not now be used in the business.
Research and development expenditure
Research and development (‘R&D’) expenditure relates to the 
development of new polyclonal and monoclonal products. R&D 
expenditure increased by 27.3% to £3.1m, reflecting the increased 
investment in these areas. Whilst the level of expenditure will not 
increase at the rate previously planned, following the move away 
from high throughput monoclonal development, it will rise in line with 
the introduction of new own manufactured polyclonal antibodies and 
as the new strategy for monoclonal antibody development is pursued.
Profit
After adding back the impairment charge of £1.1m in the 2009 
financial year referred to above and the ongoing share based 
Financial Review Abcam plc   Directors’ Report 17
payments charge, operating profit expressed as a percentage of 
sales was 30.7% (2008: 20.7%), despite the impact of the additional 
administrative and R&D costs outlined above.
Investment revenue fell in the year, despite strong cash generation, 
reflecting the much reduced returns in the market on cash deposits.
Tax
The consolidated tax charge for the year was £4.0m or 24.6% of 
profit before tax, reflecting the tax credits arising from the increased 
amount of R&D undertaken and the increase in the R&D tax benefit 
from 50% to 75% of expenditure since August 2008.
Inventories
The Group has strong inventory management systems which operate 
at the individual product level and are aimed at maintaining high stock 
availability for customers whilst minimising the levels of stock held to 
achieve this. As a result, stock levels have increased slightly less than 
the growth in sales during the course of the year. Over time, the 
Company expects the levels of stock to increase relative to sales, 
since Abcam products developed in house may involve batch sizes 
larger than are required for immediate sale, and as more stock is 
built up overseas to enable higher levels of service in local markets.
Debtors
The strong debtor control processes introduced last year have 
continued to operate effectively and debtor days at the year end were 
32.0 (2008: 34.4). 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 £4.7m to £8.6m. This figure includes 
deferred income of £1.3m (2008: £0.1m), including £1.0m of the 
cash incentive of £1.1m received on entering into a new lease for the 
head office (2008: £nil), which is to be credited to profit and loss 
over the life of the lease. Excluding this deferred income, trade and 
other payables increased by 33.1% which is slightly less than the 
rate of increase in overall costs. Current tax liabilities increased to 
£1.9m (2008: £0.4m), reflecting the increase in taxable profit during 
the year.
Cash flow
The Group’s cash flow continues to be strong, with cash generated 
from operating activities of £14.8m (2008: £7.1m), including the 
receipt of £1.1m in cash referred to above, which is included in 
deferred income (2008: £nil). Consequently, despite spending £1.8m 
on property, plant and equipment and £0.3m on acquiring computer 
software and distribution rights, the Group’s cash and short-term 
investment balances increased during the year by £11.0m.
Accounting standards
This year is the first following the adoption of IFRIC 13 Customer 
Loyalty Programmes, which applies to the Abpoints scheme 
operated by the Company. This has resulted in a reduction in 
revenue and administration and management expenses of £96,000 
in the year ended 30 June 2008. The effect on the comparative 
balance sheet was to increase trade and other payables by 
£96,000, with a corresponding decrease in provisions. There is no 
overall impact on results or net assets.
EPS
The number of shares issued during the year for the exercise of 
share options and for shares issued into the employee benefit trust, 
was relatively small at 458,669 (2008: 443,397), meaning that as 
post-tax profit grew by 108.7% (2008: 45.0%) the growth in basic 
EPS was 106.3% (2008: 43.8%) and in diluted EPS was 106.3% 
(2008: 44.9%). 
Currency exposure
The Group continues to generate significant amounts of US Dollars, 
Euros and Japanese Yen in excess of payments in these currencies, 
and has arrangements in place to reduce the exposure to currency 
fluctuations. During the year to 30 June 2009 the Group had forward 
exchange contracts which matured to sell $14.1m and €11.4m at 
average rates of £1 to $1.760 and £1 to €1.246 respectively. For the 
year ending 30 June 2010 the Group has forward exchange 
contracts in place to sell $15.9m, €14.2m and ¥300.0m at average 
rates of £1 to $1.496, €1.138 and ¥157.09, of which $1.5m and 
€1.5m were marked to market rates at 30 June 2009, the balance 
being treated as hedged contracts. The Group also has contracts  
in place maturing in the year ending 30 June 2011 of $4.2m,  
€4.2m and ¥75.0m at average rates of £1 : $1.510, €1.138,  
¥156.30 respectively.
Jeff Iliffe
Chief Financial Officer
7 September 2009 Annual Report and Accounts 2009                             Abcam plc 
 
18
David Cleevely, FREng, Chairman
David Cleevely is an entrepreneur and business angel who has founded a series of companies 
and acted as government advisor. His business and internet expertise were central to the 
formation of Abcam, which he co-founded in 1998. He is the founding director of the Centre for 
Science and Policy at the University of Cambridge. He is chairman of CRFS Ltd, the spectrum 
monitoring company, which he co-founded in July 2007, and the founder and former chairman 
of telecoms consultancy Analysys Ltd (acquired by Datatec International Ltd in 2004). In late 
2004 he co-founded the 3G pico base station company, 3Way Networks Ltd, which was sold 
to Airvana Inc in April 2007. He joined the board of Trutap Ltd (formerly Hotxt Ltd) a mobile 
phone social networking provider in October 2005 and joined the board of Ionscope Ltd in 
2007, becoming chairman in May 2008. He has been a prime mover behind Cambridge 
Network Ltd, co-founder of Cambridge Wireless Ltd, co-founder and member of the board of 
Cambridge Angels Ltd and is a member of the IET Telecoms Sector Panel. For eight years 
until March 2009 he was a member of the Ofcom Spectrum Advisory Board, and recently 
held an Industrial Fellowship at the University of Cambridge Computer Laboratory.
Mike Redmond, Non-Executive Deputy Chairman
Michael Redmond, who joined Abcam in February 2009, has substantial international 
experience in the pharmaceutical industry gained in both executive and non-executive 
capacities at businesses ranging from multinational organisations to start-up companies. He 
is currently chairman of Dechra Pharmaceuticals plc and his recent chairmanships include 
Synexus Clinical Research plc, Arakis Ltd and Microscience Ltd. His executive career 
began at Glaxo Group plc in 1967 and he has held senior executive positions in marketing 
and management at companies including Schering Plough Corporation and Fisons plc. 
Jonathan Milner, PhD, Chief Executive Officer
Jonathan Milner is a highly experienced entrepreneur and business leader with a background 
in genetic research. He gained his doctorate in Molecular Genetics at Leicester University after 
graduating in Applied Biology at Bath University. From 1992 to 1995 he was a research fellow 
for Pfizer Pharmaceuticals at Bath University, following which he was a research fellow at the 
University of Cambridge in the laboratory of Professor Tony Kouzarides, studying genes and 
proteins associated with human cancers. Whilst working in research he identified the potential 
market opportunity in supplying high quality antibodies to support protein interaction studies. 
He founded Abcam, with David Cleevely and Professor Tony Kouzarides, in February 1998 as 
an internet-based business to supply this rapidly growing market. He is an active member of 
the Cambridge business community and is chairman of Cambridge Temperature Concepts Ltd, 
a privately held medical device company developing a reliable system for ovulation monitoring. 
Jim Warwick, MA, Chief Operating Officer
Jim Warwick has an MA in Computer Science from the University of Cambridge. From 1986 
to 2003 he worked for Analysys Ltd, a Cambridge-based telecommunications consultancy, 
heading up the IT, software and web development initiatives. During this period he also held 
a number of non-executive directorships with external organisations, including VBN Ltd, a 
web-based hosting company specialising in business cluster and innovation network 
solutions. Jim joined Abcam in 2001 as Technical Director, focusing on the development of 
the website and the systems integral to support it, and took over operational management of 
the UK office as Managing Director in June 2004. In this capacity he worked on both 
cost-saving and efficiency improvement projects, including the bar-coding and automation 
of inventory handling within the Group. Jim is responsible for building infrastructure on a 
scalable basis, and he has overseen the strategy and implementation of Abcam’s overseas 
office expansion in Japan, which has been instrumental in delivering improved volumes and 
margins to the business. In 2009, Jim took on the role of Chief Operating Officer, with 
operational responsibility for the Group as a whole.
Board of Directors 19 Abcam plc   Directors’ Report 
Mark Webster, Non-Executive Director
Mark Webster is an experienced pharmaceutical marketeer who joined Abcam’s Board as a 
non-executive director in July 2006. He is a Chemistry graduate from Durham University who 
has worked at a number of international pharmaceutical companies including Abbott 
Laboratories Ltd, Shire Pharmaceuticals Group plc, Bayer AG and ProStrakan Group plc, 
where as head of global marketing and North America he was responsible for setting up 
ProStrakan’s US business. At Bayer he held the position of senior vice president global 
marketing and licensing/acquisitions and was also a member of Bayer Pharmaceutical’s 
management committee. As vice president of anti-virals, US pharmaceuticals at Abbott he 
launched the HIV drug Kaletra, which generated more than $1bn in revenue.
Tony Kouzarides, PhD, Non-Executive Director
Tony Kouzarides is a co-founder of Abcam and has played a key role in expanding Abcam’s 
antibody product range into the chromatin research area. Professor Kouzarides holds the 
Royal Society Napier Professorship in Cancer Biology at the University of Cambridge, UK, 
where he leads a laboratory that investigates the basic cellular role of chromatin-modifying 
enzymes and their role in human cancer. He is a co-founder of Chroma Therapeutics Ltd, 
which identifies drugs against cancer, and is the founder and director of cancer charity 
Conquer Cancer, operating in Spain. 
Peter Keen, ACA, Non-Executive and Senior Independent Director
Peter Keen is a chartered accountant with more than 24 years’ experience in the financing 
and management of biotechnology companies. He joined Abcam’s Board in October 2005, 
prior to the Company’s IPO. 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 of The Biotech Growth Trust plc. Peter has a notable track record in 
the UK biotechnology sector. He was co-founder and finance director of Chiroscience Group 
plc after which he helped establish Merlin Biosciences Ltd, where he was responsible for a 
number of investments including Ark Therapeutics plc, Cyclacel Ltd, ReNeuron plc and 
Vectura Group plc. 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 LLP. 
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 1999, and 
following an early career as a strategy consultant, he founded and ran businesses in 
automated meter reading, environmental management and property development. He has 
an MA in Economics from the University of Cambridge.
Jeff Iliffe, ACA, Chief Financial Officer
Jeff Iliffe is a qualified accountant who was appointed as Abcam’s Chief Financial Officer in 
November 2007, having previously worked for the Company as a financial consultant. He 
has extensive relevant experience of the City, industry and internet-based business. Jeff 
was a corporate financier in life sciences at Panmure Gordon & Co between 1989 and 1996. 
He then moved into industry, holding a number of financial positions at companies including 
the environmental consultancy Enviros Group Ltd and the biotechnology company Plethora 
Solutions plc. Prior to joining Abcam, he was chief financial officer at the e-commerce 
company St Minver Ltd.  Annual Report and Accounts 2009                             Abcam plc 
 
20
Corporate Directory
Registered office
330 Cambridge Science Park
Milton Road
Cambridge
CB4 0FL
Registered number
3509322
Company secretary
Tom McGuire
Nominated advisor and broker
Numis Securities Limited
The London Stock Exchange Building
10 Paternoster Square
London
EC4M 7LT
Solicitor
Eversheds LLP
1 Wood Street
London 
EC2V 7WS
Auditor
Deloitte LLP
Chartered Accountants
Cambridge, UK
Public relations advisor
Buchanan Communications Limited
45 Moorfields
London
EC2Y 9AE
Banker
National Westminster Bank plc
King’s Parade
Cambridge
CB2 3PU
Registrar
Capita Registrars
Northern House 
Woodsome Park
Fenay Bridge
Huddersfield 
HD8 0GA
  21 Abcam plc   Directors’ Report 
Report on Affairs of the Group
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 2009.
Principal activities and future developments
The Group’s activities consist of the development, marketing and 
selling of antibodies and 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.
Antibodies are sourced from over 250 of the world’s largest primary 
manufacturers, as well as academic laboratories and institutes,  
and the Group also produces its own antibodies in its production 
facility in Cambridge, UK. During the year, the restructuring of the 
production facility was completed following the switch to more 
targeted monoclonal production and the Group will now look to 
supplement supply on a selected basis from third parties to ensure 
it has access to high quality monoclonal antibodies in order to  
meet market demand. Following the reorganisation, the Group’s 
polyclonal production activities have benefited from the additional 
development resources made available and are producing at  
record volumes. 
Further future developments are addressed in the Chairman’s 
Review, Chief Executive Officer’s Review and Financial Review on 
pages 12 to 17. 
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 
 2009 2008 2007
Number of products published 52,400 44,000 33,900
Number of publications referencing  
 Abcam products
1
 8,224 3,639 2,771
Revenue per employee £265,000 £220,000 £203,000
Profit before tax to revenue 30.6%
2
 21.72% 22.6%
Number of debtor days at year end 32 34 44
Orders fulfilled directly from stock 74.3% 68.5% 70.9%
Sales increased by 55.2% in the year (27.8% on a constant 
exchange rate basis) as a result of continued increases in sales 
from the existing catalogue, as well as the launch of new products. 
The Group continued to generate strong margins, and pre-tax 
profits for the year increased to £17.4m
2
 (2008: £8.0m).
Cash generation remained strong throughout the year, with the 
Group’s closing cash and short-term deposits standing at £25.5m 
(2008: £14.5m).
Further analysis of the year’s results, as well as the outlook for the 
coming year is set out in the Chairman’s Review, the Chief Executive 
Officer’s Review and the Financial Review on pages 12 to 17.
1 Source: Thomson ISI Web of Knowledge (http://isiwebofknowledge.com).
2 After adding back £1.1m impairment of tangible assets associated with the 
higher volume production processes which will not now be implemented.
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 regularly review the future strategy of the business.
The Group has an exposure to exchange rate fluctuation, in 
particular the strength of Sterling relative to the US Dollar, Euro and 
Japanese Yen. Although there are natural hedges in place due to 
the fact that the Group is able to utilise a proportion of its income in 
foreign currencies, in particular the Dollar, to pay for outgoings in 
those currencies, the Group generates surpluses of each currency. 
The Board’s policy is to sell forward some of the expected surplus  
in order to reduce the short-term exposure. However, longer-term 
movements in the relative strength of Sterling will impact the Group’s 
profits. For further details of the Group’s risk management strategy 
see note 25.
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.
Directors’ indemnities
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 R&D in areas related to its principal activities 
and this is discussed in the Financial Review on pages 16 to 17. 
During the year the Group spent £3.1m (2008: £2.4m) on R&D. 
Dividends
The Directors have taken the decision to increase the total annual 
dividend to 12.11p (2008: 5.60p). This represents a distribution of 
35% of profit after tax, compared with the previous policy of a 33% 
annual distribution. 
The Directors therefore propose paying a final dividend of 9.40p 
(2008: 4.56p) per ordinary share, to be paid on 27 November 2009 
to shareholders on the register on 6 November 2009. Together with 
the interim dividend of 2.71p paid on 17 April 2009, this makes a 
combined dividend for the year of 12.11p (2008: 5.60p).
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 26 and 27. 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 Companies 
Act and related legislation, and although not obliged to do so as an  Annual Report and Accounts 2009                             Abcam plc 
 
22
AIM listed company, has chosen to follow the principles set out in 
the Combined Code on Corporate Governance wherever possible.
Directors
The interests of the Directors in the share capital of the Company at 
30 June 2009, other than with respect to share based options and 
awards and shares conditionally awarded through the Share 
Incentive Plan (which are detailed in the Directors’ Remuneration 
Report on page 33), were as follows:
  1p ordinary 1p ordinary  
  shares on shares on 
   30 June  30 June 
  2009 2008
David Cleevely  2,559,760 3,569,760
Mike Redmond  – –
Jonathan Milner  7,085,280 8,044,960
Jim Warwick  853,520 836,200
Jeff Iliffe  320 –
Mark Webster  – –
Tony Kouzarides  114,244 114,244
Peter Keen  8,982 8,982
Tim Dye  – –
There have been no changes in the Directors’ interests in shares of 
the Company between 30 June 2009 and 7 September 2009. 
In line with the principles set out in the Combined Code on 
Corporate Governance, which state that a non-executive director 
should stand for re-election annually when his length of service 
exceeds nine years, Tony Kouzarides, who has been a Director of 
the Company since April 1998, will offer himself for re-election at the 
forthcoming AGM. Peter Keen, Tim Dye and Mark Webster will retire 
from the Board by rotation and offer themselves for re-election.  
Mike Redmond, having been appointed by the Directors during the 
year, will offer himself for election at the AGM. Following formal 
performance evaluation, the Chairman has determined that each 
individual continues to demonstrate commitment to his role and  
to display unremitting effective performance; he is therefore 
recommending re-election of all non-executive directors standing  
at this year’s AGM.
As previously announced, David Cleevely has made the decision to 
step down from the Board before the end of 2009. He has decided 
to retire following completion of the AGM and accordingly is not 
seeking re-election. 
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. At 30 June 2009, 
the Group had an average of 19 days of purchases (2008: 17 days) 
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 the  
Cambridge Network, 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 Group encourages employees to get involved in local charitable 
activities; a maximum of 0.1% of the previous year’s pre-tax profit is 
allocated 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 (2008: nil) and made 
charitable donations in the year of £4,113 (2008: £4,272) principally 
to children’s and local charities serving the communities in which 
the Group operates.
Substantial shareholdings
Other than Directors’ interests which are set out above, at 18 August 
2009 shareholders with a greater than 3% interest in the issued 
share capital of the Company were:
  Number Percentage 
  of ordinary of issued 
  shares held share capital
Standard Life Investments  3,265,747 9.19%
BlackRock Investment Management  2,529,619 7.12%
Artemis Investment Management  2,134,819 6.01%
Fidelity Investments  1,977,039 5.56%
Baillie Gifford  1,814,576 5.11%
Wasatch Advisors  1,355,083 3.81%
UBS Private Banking  1,194,500 3.36%
Corporate, social and ethical policies
Abcam recognises the importance of balancing the interests of all 
its key stakeholders – its customers, shareholders, employees, 
suppliers and the communities in which it operates. Management of 
the environmental and social issues that play a part in the business 
is a key factor in the Group’s 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 or similar 
incentives are currently 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, or political or other opinion as a barrier to employment.
Report on Affairs of the Group continued Abcam plc   Directors’ Report 23
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 is applied 
to its products. This includes reviewing and, where appropriate, 
visiting our suppliers to check the standards they follow in their 
products and services. 
Health and safety and environment
Abcam seeks to provide and maintain safe and healthy working 
conditions, equipment and systems for all 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 and safety (‘H&S’) in the Group is ultimately the responsibility 
of the Chief Executive Officer and is run by an H&S coordinator who 
is the chairman of the H&S committee; this committee uses 
appropriate advice from external 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 encourages and supports staff in waste recycling within  
its offices.
Going concern
The Group’s business activities, together with the factors likely to 
affect its future development, performance and position are set out 
in the Chairman’s Review, the Chief Executive Officer’s Review and 
the Financial Review on pages 12 to 17. Notes 21, 24 and 25 include 
a description of the Group’s objectives, policies and processes for 
managing its capital; its financial risk management objectives; 
details of its financial instruments and hedging activities; and its 
exposure to credit risk and liquidity risk. 
The Group has considerable financial resources and through a 
diverse customer base is exposed not only to the Western 
economies but also Japan, China and, to a lesser extent, South 
America. As a consequence, the Directors believe that the Group is 
well placed to manage its business risks successfully despite the 
current uncertain economic outlook.
After making enquiries, the Directors have a reasonable expectation 
that the Group has adequate resources to continue in operational 
existence for the foreseeable future. For this reason, they continue to 
adopt the going concern basis in preparing the financial statements.
Auditors
Deloitte LLP have expressed their willingness to continue in office as 
auditors and a resolution to reappoint them will be proposed at the 
forthcoming AGM.
Directors’ statement as to disclosure of information to 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 of which the Company’s auditors are unaware; and
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 s418 of the Companies Act 2006.
Approved by the Board and signed on its behalf by:
David Cleevely, FREng
Chairman
7 September 2009 Annual Report and Accounts 2009                             Abcam plc 
 
24
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 reader.
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 the Chairman, Deputy Chairman, three 
full-time executive directors and four non-executive directors. Brief 
biographical details of all members of the Board are set out on 
pages 18 and 19.
The Board considers Mike Redmond, Tim Dye and Peter Keen to be 
independent within the meaning of the Code. Tony Kouzarides is 
also considered by the Board to be independent, notwithstanding 
the fact that he has served on the Board for more than nine years, 
since he demonstrates a continuous independence in character and 
judgement in all Board matters. David Cleevely is not deemed to  
be independent because of his shareholding. Mark Webster is not 
deemed to be independent because he has been employed by the 
Company in an executive capacity during the last five years. Peter 
Keen has been identified as the senior independent director.
The roles of Chairman and Chief Executive Officer 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 month, with attendance 
required in person one month and via telephone the next 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 sourcing; •	
regular reviews of strategic objectives and Group priorities; •	
the annual Group budget and revised forecasts; •	
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.
Corporate Governance Statement
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 those to 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 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.
Summary of Board meeting attendance in 2008/09
Twelve Board meetings were held in 2008/09. Attendance was  
as follows:
   Meetings 
   attended
David Cleevely   10(12)
Mike Redmond   3(4)
Jonathan Milner   12(12)
Jim Warwick   12(12)
Jeff Iliffe   12(12)
Mark Webster   11(12)
Tony Kouzarides   11(12)
Peter Keen   12(12)
Tim Dye   11(12)
Figures in brackets denote the maximum number of meetings that 
could have been attended.
Board Committees
The Board has established three Committees: the Audit Committee, 
the Nomination Committee and the Remuneration Committee.
Summary of Committee membership
 Audit Nomination Remuneration 
 Committee Committee Committee
David Cleevely Yes Yes Yes
Tim Dye – Chairman Yes
Peter Keen Chairman Yes Chairman
Tony Kouzarides Yes Yes –
Mark Webster – – –
On the resignation of David Cleevely following the forthcoming 
AGM, Mike Redmond will be appointed to replace him on the same 
sub-Committees. Abcam plc   Directors’ Report 25
Summary of Committee meeting attendance in 2008/09
 Audit Nomination Remuneration 
 Committee Committee Committee
David Cleevely 2(2) 1(2) 2(2)
Tim Dye – 2(2) 2(2)
Peter Keen 2(2) 2(2) 2(2)
Tony Kouzarides 2(2) 2(2) –
Figures in brackets denote the maximum number of meetings that 
could have been attended. 
The role of each Committee is described in more detail below.
The Audit Committee
The Committee has responsibility for the following matters:
reviewing 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;
reviewing the management’s reports on internal controls; •	
reviewing the Group’s risk-management process, including the •	
adequacy of insurance cover;
reviewing the appointment of the external auditors together with •	
the audit fee;
monitoring the audit and non-audit work of the external auditors, •	
including reviewing any management letters and the Company’s 
response; and
reviewing the arrangements by which staff may, in confidence, •	
raise concerns about possible improprieties.
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 under review 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
The Committee is responsible for the following matters:
reviewing the size and composition of the Board; •	
identifying and nominating suitable candidates to fill vacancies •	
on the Board; and
reviewing succession planning for both Directors and the •	
management team.
The process adopted by the Committee to identify a candidate for a 
specific vacancy is, in the first instance, to determine whether any 
individuals known to the Board would be suitable for the role. If no 
candidates can be identified through this process then an external 
search consultancy will be approached. Short-listed candidates are 
interviewed by all members of the Committee and other executive and 
non-executive directors as the Committee deems appropriate. Once 
a suitable candidate has been identified and references taken, the 
Chairman of the Committee will recommend to the Board that the 
Company make a formal offer of employment to the candidate. 
Mike Redmond, Deputy Chairman was appointed to the Board 
during the year following a selection process managed by an 
external search consultancy. 
All Directors are subject to election by shareholders at the first AGM 
after their appointment, and to re-election thereafter at intervals of 
no more than three years.
The terms of appointment of all non-executive directors will be 
available for inspection at the forthcoming AGM in November 2009.
The Remuneration Committee 
The Committee is responsible for the following matters:
setting the basic pay of executive directors and the remuneration •	
of the Chairman;
the operation of the 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; •	
overseeing the overall annual pay review for the Group; and •	
agreeing the allocation and term for the granting of share based •	
incentives to executive directors.
The Group has a formal and transparent procedure for developing 
policy on Directors’ remuneration. No Director is involved in 
deciding his own remuneration. 
The Committee aims to set levels of remuneration for executive 
directors that are sufficient to attract, retain and motivate directors  
of the quality required, without paying more than necessary, and 
that are appropriate for the size and complexity of the Group. It aims 
to see that a significant proportion of each executive director’s 
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 an ongoing system of internal 
control to provide it with reasonable assurance regarding effective 
and efficient operation, internal financial control and compliance 
with laws and regulations. This has been in place for the year under 
review and up to the date of approval of the Annual Report.
The Audit Committee reviews the need for an internal audit function 
on an annual basis and has concluded that, due to the current size 
and structure of the Group and the level of control exercised by the 
management team, an internal audit function is neither necessary 
nor cost effective at this time. 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.  Annual Report and Accounts 2009                             Abcam plc 
 
26
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 
including the preparation of the Annual Report, 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 ‘whistle-blowing’ policy circulated to all 
employees, and through the adoption of its policies and procedures 
for financial reporting.
Board performance evaluation
During 2008 the Board undertook a formal 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.
The Board also undertakes an ongoing informal evaluation of its own 
performance via debrief discussions following each Board meeting. 
The Company provides the Board with a regular programme of 
training opportunities, including training provided by external 
advisers, in order to ensure Directors remain appropriately informed 
of their roles and responsibilities. Regular updates on corporate 
governance are also provided to the Board by the Group’s advisors. 
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 on 2 November 2009.
 
Corporate Governance Statement continued Abcam plc   Directors’ Report 27
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 reader.
The Group has a Remuneration Committee (‘the Committee’), chaired by Peter Keen, which wherever possible follows the principles of the 
recommendations of the Code, consisting of two independent non-executive directors as well as the Company Chairman.
During 2007/08, 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. These consultants have continued to advise the Company throughout the 
year and have updated the comparator group of companies to ensure appropriate benchmarks are maintained. 
The recommendations on salary and bonus arrangements were implemented with effect from 1 July 2008. Following consultation with major 
shareholders, a long-term incentive plan for senior management, including the executive directors, was proposed and approved at the 2008 
AGM. Following the approval, awards were made in November 2008 and further awards will be made later this year.
Remuneration policy
The Group’s policy is that a substantial proportion of the remuneration of the executive directors should be performance-related. 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. •	
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.
Where appropriate, independent advice will be sought to confirm these objectives are being met.
Basic salary
An executive director’s basic salary is determined by the Committee and normally reviewed on 1 July each year. 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. Bonus payments are made in cash in a single payment once the 
audited financial statements have been approved.
In the year under review the total ‘on target’ bonus for executive directors was set at 37.5% of basic salary, capped at a maximum of 75% of 
basic salary; none of the bonus is pensionable. 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 profit is less than 90% of target and the 
maximum payment is due at 105% of target. As stated in the Chairman’s Review, the year has been one of outstanding performance and 
excellent progress. As a result, all financial and personal performance targets were met and the bonus for 2008/09 will therefore be payable 
in full.
In 2009/10, the parameters for the bonus will be set at the same percentages of salary, based on revised profit targets and individual 
objectives. If the maximum part of the target profit element of the performance bonus is paid, then to reward exceptional performance, the 
Committee may at its discretion award bonuses of up to an additional 25% of salary, i.e. the maximum bonus that could be payable will be 
capped at 100% of salary. The criteria for the payment of such a bonus include additional revenue growth targets and the successful launch 
of suitable initiatives to sustain the longer-term growth strategy of the business.
In prior years, 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, with the payment being 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 financial statements were approved.  Annual Report and Accounts 2009                             Abcam plc 
 
28
 
Sep
2006 2007 2008 2009
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Oct
Nov
Dec
AIM ALL SHARE 
INDEX
0.3
0.5
0.7
0.9
1.1
1.3
1.5
Index
1.7
1.9
2.1
2.3
2.5
ABCAM AIM ALL SHARE 
INDEX
ABCAM AIM ALL SHARE 
INDEX
ABCAM AIM ALL SHARE 
INDEX
AIM ALL SHARE 
INDEX
ABCAM
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.
Although the executive directors no longer participate in the PSS scheme, it still remains in place for all other employees of the Group, 
although the amount payable under PSS is no longer pensionable.
Equity-based incentives
Equity-based incentives are issued to the executive directors on a regular basis. 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.
Existing arrangements
The Abcam plc 2005 Plan
The principal form of equity-based incentive used by the Group since its flotation in November 2005 has been the Abcam plc 2005 plan 
(‘the Plan’) which, following approval at the AGM in November 2008, was amended to make it more tax efficient for US-based employees. 
All options granted under the Plan since flotation have been based on out-performance of the FTSE AIM All Share 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 no options were granted under the Plan to the executive directors.
The following graph shows the performance against the FTSE AIM All Share index for the options issued since flotation which have not been 
forfeited subsequently. If all the options had crystallised at 10 August 2009 then all performance conditions in relation to the options would 
have been met. Details of these options are set out in note 31 to the financial statements. 
 
SAYE scheme
The Company has also established a non-discretionary HMRC-approved SAYE scheme in which all employees, including the executive 
directors, can participate. Under this scheme, employees 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 offers 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 currently proposed not to make any further 
offers to employees under this scheme; no options were granted in the year under review.
Directors’ Remuneration Report continued Abcam plc   Directors’ Report 29
Long-Term Incentive Plan (‘LTIP’)
The 2008/09 financial year saw the first awards to senior executives, including the executive directors, under the LTIP. The LTIP includes 
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. The maximum level of award (being the 
aggregate market value of shares subject to the award at the date of grant) that can be granted to an eligible employee under the LTIP in 
any financial year is limited to 150% of that employee’s salary.
Under the LTIP, performance share awards made in 2008/09 took the form of nil cost options and are subject to achievement over three 
years of two separate conditions, the first conditions applying to 50% of the shares subject to each award and the second condition 
applying to the remaining 50%.
The Total Shareholder Return (‘TSR’) condition
In respect of the first 50% of each award (‘the TSR Awards’), the number of shares that will vest will depend on the Company’s TSR 
performance as compared to a comparator group of companies (‘the Comparator Group’): 
Where the Company’s TSR is below the 50th percentile, none of the TSR Awards will vest. •	
Where the Company’s TSR is at or above the 70th percentile of the Comparator Group, all of the TSR Awards will vest. •	
Where the Company’s TSR is between the 50th and the 70th percentile, the proportion of the TSR Awards that will vest will be calculated •	
on a straight-line basis from 30% at the 50th percentile and rising to 100% at the 70th percentile.
The Earnings Per Share (‘EPS’) condition
In respect of the second 50% of each award (’the EPS Awards’), the number of shares that vest will depend on the EPS growth of the 
Company over the vesting period:
At an average of less than 25% growth per annum, equating to 95.3% growth over the period, none of the EPS Awards will vest. •	
At average growth per annum of 33%, equating to total growth of 135.3%, the EPS Awards will vest in full. •	
At growth rates between these two figures, the EPS Awards will vest proportionately. •	
The Company regularly monitors its performance against these conditions. If the awards had crystallised as at 30 June 2009, all 
performance conditions had been met, and therefore all TSR and EPS Awards would have vested in full. 
For the LTIPs to be granted in 2009/10, it is proposed that the TSR condition remains unchanged; however the EPS condition will be 
amended. EPS has increased by 106.3% in the year under review, part of which is due to large, favourable foreign currency exchange rate 
movements which are unlikely to be repeated. The Remuneration Committee therefore considered that, in order for the LTIPs to be a realistic 
incentive, it would be appropriate to revise future years’ target growth rates to reflect this much higher starting point. It is proposed that at 
an average of less than 15% growth per annum, equating to 52.1% growth over the period, none of the EPS Awards will vest; at average 
growth per annum of 20%, equating to 72.8% growth over the period, the EPS Awards will vest in full, and at growth rates between these 
two figures, the EPS Awards will vest proportionately. 
2008/09 has been a very successful year for the Group and in order to maintain appropriate incentive to the executive directors to continue 
performance at the highest level, it is proposed that the level of award for the coming year be increased to 120% of salary, compared to 
100% awarded during 2008/09. 
Share Incentive Plan (‘SIP’)
An HMRC-approved SIP was introduced in October 2008 for all UK employees. Under the SIP, awards are made as follows:
Share awards
Annual awards are made to UK-based staff, with a market value of up to £3,000 each. Awards take the form of a conditional entitlement to 
shares and will vest after three years’ continuous employment with the Company.
Partnership Shares
All UK-based employees are 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 employed by the Company during that time then they will also receive an 
additional share for each share acquired.
New arrangements
It is the Company’s intention to grant additional equity based incentives in the coming year to executive directors under the existing SIP and 
LTIP as set out above. In addition, a new arrangement is being proposed.  Annual Report and Accounts 2009                             Abcam plc 
 
30
The Abcam 2009 Company Share Option Plan (‘CSOP’)
For the 2009/10 financial year for those employees not participating in the LTIP, it is proposed that an HMRC-approved CSOP be introduced 
for UK-based employees of the Company, with a maximum value of £30,000 of market value options granted per employee.  It is the current 
intention that the vesting of these options will be subject to the same performance conditions as applied to options granted under the 
Abcam plc 2005 Plan (see details above).
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. During the year, the Group 
contributed 12% of basic salary, excluding the individual performance bonus, to a Group personal pension plan in the name of each 
executive director. 
The Company operates a flexible benefits scheme for all UK-based employees, including executive directors, under which the option to 
sacrifice an element of basic pay and purchase additional pension contributions or other benefits is available. As a result of the salary 
sacrificed and used to purchase additional pension contributions, the Company’s National Insurance liability is reduced. The benefit of this 
reduction is added as an additional contribution to each employee’s pension fund, and for Directors this amount is included within the 
employer’s pension contribution figures disclosed in the table of remuneration details below.
Terms of appointment
The details of Directors’ contracts are summarised below:
       Notice 
       period  
      Date of contract (months)
Executive
Jonathan Milner      10 June 2000 6
Jeff Iliffe      6 November 2007 6
Jim Warwick      1 September 2001 6
Non-executive
David Cleevely      24 July 2007 1
Peter Keen      27 October 2005 1
Tony Kouzarides      24 July 2007 1
Tim Dye      26 May 2006 1
Mark Webster      10 July 2007 1
Mike Redmond      1 March 2009 1
Directors’ Remuneration Report continued Abcam plc   Directors’ Report 31
Audited information:
Remuneration details
      Employer’s 
   Basic Benefits Performance pension Total Total 
   salary
1
 in kind payments contributions
1
 2009 2008 
   £000 £000 £000 £000 £000 £000
Executive
Jonathan Milner   38 2 158 219 417 352
Jim Warwick   65 2 131 145 343 298
Jeff Iliffe (appointed 20 November 2007)   54 17
2
 116 131 318 183
Mark Webster
3
   – – – – – 81
Eddie Powell (retired 20 November 2007)   – – – – – 119
Non-executive
David Cleevely   67 – – – 67 65
Peter Keen   40 – – – 40 37
Tony Kouzarides   32 – – – 32 29
Tim Dye   33 – – – 33 27
Mark Webster
3
   27 – – – 27 17
Mike Redmond (appointed 1 March 2009)   16 – – – 16 –
   372 21 405 495 1,293 1,208
1 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. The basic salary entitlement of each executive director during the year was: Jonathan Milner £210,000, Jim Warwick £175,000 and Jeff Iliffe £154,000.
2 Allowances paid to Jeff Iliffe in respect of relocation expenses.
3 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.
Jonathan Milner has agreed to waive future emoluments totalling £18,400, being the approved increase in his basic salary effective from 
1 July 2009, in respect of services to be provided in the year ended 30 June 2010. 
Aggregate emoluments disclosed above do not include any amounts for the value of options to acquire ordinary shares in the Company 
granted to or held by the Directors. Details of options exercised during the year are as follows:
      Market price Gain on Gain on 
     Exercise at exercise exercise exercise 
    Number of price date 2009 2008 
Name of Director    options p p £ £
Jim Warwick    32,000 50.00 482.0 138,240 188,200
David Cleevely    40,000 125.0 475.0 140,000 –
Jonathan Milner    40,000 62.5 475.0 165,000 –
Eddie Powell    – – – – 101,000
       443,240 289,200 Annual Report and Accounts 2009                             Abcam plc 
 
32
Share options
Details of options and awards over 1p ordinary shares in the Company for Directors who served during the year are as follows:
  Number of   Number of 
  options/   options/  Date 
  awards   awards Exercise from 
  at 30 June   at 30 June price which 
Name of Director  2008 Granted Exercised 2009 p exercisable Expiry date
David Cleevely  40,000 – (40,000) – 125.0 31 Jan 06 29 Sep 15
Peter Keen  60,000 – – 60,000 150.0 31 Jan 06 26 Oct 15
Tony Kouzarides  40,000 – – 40,000 125.0 31 Jan 06 29 Sep 15
Jeff Iliffe  89,743
1
 – – 89,743 312.0 8 Nov 10 7 Nov 17
Jonathan Milner  40,000 – (40,000) – 62.5 27 Jul 07 29 Sep 15
  53,571
1
 – – 53,571 280.0 8 Sep 09 6 Sep 16
  46,004
1
 – – 46,004 413.0 8 May 11 7 May 18
  139,575 – (40,000) 99,575 
Jim Warwick  32,000 – (32,000) – 50.0 16 Jun 08 15 Jun 13
  42,142
1
 – – 42,142 280.0 8 Sep 09 6 Sep 16
  4,218
2
 – – 4,218 224.0 1 Nov 09 1 May 10
  41,602
1
 – – 41,602 312.0 8 Nov 10 7 Nov 17
  119,962 – (32,000) 87,962 
  489,280 – (112,000) 377,280 
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 All Share 
index at the third anniversary of grant. If this is not the case, performance will be tested on certain dates over the following 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 SAYE scheme. Options under this scheme are not subject to performance conditions. 
LTIP awards
The following table sets out the grants made under the LTIP. Full details of the operation of the LTIP, including performance conditions are 
set out above, in the unaudited information contained within the Directors’ Remuneration Report.
     Share 
     price at Value of Percentage  Number 
     date of conditional of salary  awarded 
   Date of Date of grant award at date during the 
Executive director   award release p £000 of award period
Jonathan Milner   6 Nov 08 5 Nov 11 462.0 210 100% 45,454
Jim Warwick   6 Nov 08 5 Nov 11 462.0 175 100% 37,878
Jeff Iliffe   6 Nov 08 5 Nov 11 462.0 154 100% 33,333
Directors’ Remuneration Report continued Abcam plc   Directors’ Report 33
SIP
The following table sets out the shares purchased and awarded under the SIP in respect of the executive directors. Full details of the 
operation of the SIP are set out above, in the unaudited information contained within the Directors’ Remuneration Report.
   Share price     
   at date of     
   purchase of     
   Partnership   Matching   
   Shares and Free shares Partnership Shares Dividend  
   award of conditionally Shares conditionally shares  Number 
   Matching awarded purchased awarded acquired  as at 
 Date of Date of Shares during the during the during the during the 30 June 
Executive director award release £ period period period period 2009
Jonathan Milner 7 Nov 08 8 Nov 11 462.0 649 – – – 649
 27 Nov 08 28 Nov 11 485.0 – 309 309 – 618
 8 Dec 08 9 Dec 11 475.0 – – – 6 6
 29 Apr 09 30 Apr 12 660.0 – – – 5 5
Total    649 309 309 11 1,278
Jim Warwick 7 Nov 08 8 Nov 11 462.0 649 – – – 649
 27 Nov 08 28 Nov 11 485.0 – 309 309 – 618
 8 Dec 08 9 Dec 11 475.0 – – – 6 6
 29 Apr 09 30 Apr 12 660.0 – – – 5 5
Total    649 309 309 11 1,278
Jeff Iliffe 7 Nov 08 8 Nov 11 462.0 649 – – – 649
 27 Nov 08 28 Nov 11 485.0 – 309 309 – 618
 8 Dec 08 9 Dec 11 475.0 – – – 6 6
 29 Apr 09 30 Apr 12 660.0 – – – 5 5
Total    649 309 309 11 1,278
  Annual Report and Accounts 2009                             Abcam plc 
 
34
The Directors are responsible for preparing the Annual Report and 
the financial statements. The Directors are required to prepare 
financial statements for the Group in accordance with International 
Financial Reporting Standards as adopted by the European Union 
(‘IFRSs’) and have also chosen to prepare financial statements for 
the Company in accordance with IFRSs. Company law requires the 
Directors to prepare such financial information in accordance with 
IFRSs, the Companies Act 2006 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. 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 is 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 which disclose with reasonable accuracy at any time the 
financial position of the Company, for safeguarding the assets, for 
taking reasonable steps for the prevention and detection of fraud 
and other irregularities and for the preparation of a Directors’ Report 
and Directors’ Remuneration Report which comply with the 
requirements of the Companies Act 2006.
The Directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the Company’s 
website. Legislation in the UK governing the preparation and 
dissemination of financial statements differs from legislation in  
other jurisdictions.
Statement of Directors’ Responsibilities
Responsibility statement 
We confirm to the best of our knowledge:
the financial statements, prepared in accordance with •	
International Financial Reporting Standards as adopted by the 
EU, give a true and fair view of the assets, liabilities, financial 
position and profit or loss of the Company and the undertakings 
included in the consolidation taken as a whole; and
the Directors’ Report includes a fair review of the development •	
and performance of the business and the position of the 
Company and the undertakings included in the consolidation 
taken as a whole, together with a description of the principal risks 
and uncertainties that they face.
By order of the Board
David Cleevely, FREng Jeff Iliffe
Chairman   Chief Financial Officer
7 September 2009  7 September 2009 35 Abcam plc   Financials 
Statement of Directors’ Responsibilities
We have audited the financial statements of Abcam plc for the year 
ended 30 June 2009 which comprise the Consolidated Income 
Statement, the Consolidated Statement of Recognised Income and 
Expense, the Consolidated and Parent Company Balance Sheets, 
the Consolidated and Parent Company Cash Flow Statements, the 
Parent Company Statement of Recognised Income and Expense 
and the related notes 1 to 33. The financial reporting framework that 
has been applied in their preparation is applicable law and 
International Financial Reporting Standards (‘IFRSs’) as adopted by 
the European Union.
This report is made solely to the Company’s members, as a body, in 
accordance with sections 495, 496 and 497 of the Companies Act 
2006. 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
As explained more fully in the Statement of Directors’ 
Responsibilities, the Directors are responsible for the preparation of 
the financial statements and for being satisfied that they give a true 
and fair view. Our responsibility is to audit the financial statements in 
accordance with applicable law and International Standards on 
Auditing (UK and Ireland). Those standards require us to comply 
with the Auditing Practices Board’s (‘APB’s) Ethical Standards  
for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement, whether caused by fraud or error. This includes an 
assessment of: whether the accounting policies are appropriate to 
the Group’s and the Parent Company’s circumstances and have 
been consistently applied and adequately disclosed; the 
reasonableness of significant accounting estimates made by the 
Directors; and the overall presentation of the financial statements.
Opinion on financial statements
In our opinion:
the financial statements give a true and fair view of the state of •	
the Group’s and the Parent Company’s affairs as at 30 June 2009 
and of the Group’s and the Parent Company’s profit for the year 
then ended;
the financial statements have been properly prepared in •	
accordance with IFRSs as adopted by the European Union; and
the financial statements have been prepared in accordance with •	
the requirements of the Companies Act 2006.
Separate opinion in relation to IFRSs as issued by the IASB
As explained in note 3 to the financial statements, the Group in 
addition to complying with its legal obligation to apply IFRSs as 
adopted by the European Union, has also applied IFRSs as issued 
Independent Auditors’ Report 
to the Members of Abcam plc
by the International Accounting Standards Board (‘IASB’).
In our opinion the Group financial statements comply with IFRSs as 
issued by the IASB.
Opinion on other matters prescribed by the  
Companies Act 2006
In our opinion:
the part of the Directors’ Remuneration Report to be audited has •	
been properly prepared in accordance with the provisions of the 
Companies Act 2006 that would have applied were the Company 
a quoted company; and
the information given in the Directors’ Report for the financial year •	
for which the financial statements are prepared is consistent with 
the financial statements.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report to you if, in 
our opinion:
adequate accounting records have not been kept by the Parent •	
Company, or returns adequate for our audit have not been 
received from branches not visited by us; or
the Parent Company financial statements are not in agreement •	
with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law •	
are not made; or
we have not received all the information and explanations we •	
require for our audit.
Although not required to do so, the Directors have voluntarily chosen 
to make a corporate governance statement detailing the extent of 
their compliance with the 2008 FRC Combined Code. We reviewed:
the Directors’ statement contained within the Report on Affairs of •	
the Group in the Directors’ Report in relation to going concern; and
the part of the Corporate Governance Statement relating to the •	
Company’s compliance with the nine provisions of the 2008 
Combined Code specified for our review.
Stuart Henderson (Senior Statutory Auditor)
for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditors 
Cambridge, UK
7 September 2009
  Annual Report and Accounts 2009                             Abcam plc 
 
36
        Year ended 
       Year ended 30/06/08 
       30/06/09 restated* 
      Notes £000 £000
Continuing operations
Revenue      6 56,801 36,598 
Cost of sales       (19,420) (14,389)
Gross profit       37,381 22,209 
     
Administration and management expenses excluding share based compensation charge
 and impairment of property, plant and equipment       (16,985) (12,248)
Share based compensation charge      31 (374) (173)
Impairment of property, plant and equipment      18 (1,074) –
Total administration and management expenses       (18,433) (12,421)
R&D expenses excluding share based compensation charge      (2,986) (2,398)
Share based compensation charge      31 (90) (19)
Total R&D expenses       (3,076) (2,417)
Operating profit       15,872 7,371 
Investment revenue      11 431 581
Profit before tax       16,303 7,952
Tax       14 (4,012) (2,062)
Profit for the year attributable to shareholders      8, 29 12,291 5,890 
Earnings per share from continuing operations
Basic      16 34.83p 16.88p
Diluted       16 34.17p 16.56p
*Restated to reflect the adoption of IFRIC 13 as per note 2.
Consolidated Statement of Recognised 
Income and Expense
For the year ended 30 June 2009
       Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
Gains/(losses) on cash flow hedges       1,296 (168)
Exchange differences on translation of foreign operations        245 3
Tax on items taken directly to equity       247  502
Net income recognised directly in equity       1,788  337 
 
Profit for the year       12,291 5,890
Total recognised income and expense for the year       14,079 6,227
 
Consolidated Income Statement
For the year ended 30 June 2009 37 Abcam plc   Financials 
        30/06/08 
       30/06/09 restated* 
      Notes £000 £000
Non-current assets 
Intangible assets      17 793 994 
Property, plant and equipment      18 3,541 4,204
Deferred tax asset      23 335 –
Derivative financial instruments      22 326 –
       4,995 5, 198 
Current assets
Inventories      20 6,796 4,506 
Trade and other receivables      21 6,486 4,860 
Cash and cash equivalents       21 25,501 13,473 
Short-term deposits      21 – 1,020
Derivative financial instruments      22 1,338 – 
       40,121 23,859 
Total assets       45,116 29,057 
Current liabilities
Trade and other payables      24 (6,694) (4,169)
Current tax liabilities       (1,871) (382)
Derivative financial instruments      22 – (197)
       (8,565) (4,748)
Net current assets       31,556 19, 111
Non-current liabilities
Deferred tax liabilities      23 – (78)
Deferred creditor      24 (83) (109)
       (83) (187)
Total liabilities       (8,648) (4,935)
Net assets       36,468 24,122
Equity
Share capital      26 355 351
Share premium account      27 11,558 10,871
Own shares      28 (301) –
Translation reserve      29 197 (33)
Share based compensation reserve      29 962 483
Hedging reserve      29 933 –
Deferred tax reserve      29 1,368 758
Retained earnings      29 21,396 11,692
Total equity attributable to shareholders       36,468  24,122
*Restated to reflect the adoption of IFRIC 13 as per note 2.
The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2009.
They were signed on its behalf by:
Jeff Iliffe
Director
Consolidated Balance Sheet
At 30 June 2009 Annual Report and Accounts 2009                             Abcam plc 
 
38
        30/06/08 
       30/06/09 restated* 
      Notes £000 £000
Non-current assets
Intangible assets      17 792 994
Property, plant and equipment      18 3,054 3,976
Investments      19 105 45
Deferred tax asset      23 159 –
Derivative financial instruments      22 326 –
       4,436 5,015
Current assets
Inventories      20 6,783 4,501
Trade and other receivables      21 6,579 5, 144
Cash and cash equivalents       21 24,090 11,918
Short-term deposits      21 – 1,020
Derivative financial instruments      22 1,338 –
       38,790 22,583 
Total assets       43,226 27,598 
Current liabilities
Trade and other payables      24 (6,193) (3,719)
Current tax liabilities       (1,784) (269)
Derivative financial instruments      22 – (197)
       (7,977) (4,185)
Net current assets       30,813 18,398 
Non-current liabilities
Deferred tax liabilities      23 – (178)
Deferred creditor      24 (83) (109)
       (83) (287)
Total liabilities       (8,060) (4,472)
Net assets       35,166 23,126 
Equity
Share capital      26 355 351 
Share premium account      27 11,558 10,871 
Own shares      28 (301) –
Share based compensation reserve      29 908 444
Hedging reserve      29 933 – 
Deferred tax reserve      29 1,196 758
Retained earnings      29 20,517 10,702 
Total equity attributable to shareholders       35,166 23,126
*Restated to reflect the adoption of IFRIC 13 as per note 2.
The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2009.
They were signed on its behalf by:
Jeff Iliffe
Director
Company Balance Sheet
At 30 June 2009 39 Abcam plc   Financials 
       Year ended Year ended 
       30/06/09 30/06/08 
      Notes £000 £000
Net cash inflow from operating activities      30 14,812 7, 142
Investing activities
Investment income       513 581
Proceeds on disposal of property, plant and equipment       – (1)
Purchase of property, plant and equipment       (1,756) (2,445)
Purchase of intangible assets       (259) (274)
Net cash used in investing activities       (1,502) (2,139)
Financing activities
Dividends paid       (2,572) (1,481)
Proceeds on issue of shares       691 257
Purchase of own shares       (316) –
Decrease/(increase) in short-term deposits       1,020 (1,020)
Net cash used in financing activities       (1,177) (2,244)
Net increase in cash and cash equivalents       12,133 2,759
 
Cash and cash equivalents at beginning of year       13,473 10,709
Effect of foreign exchange rates       (105) 5
Cash and cash equivalents at end of year       25,501 13,473
Consolidated Cash Flow Statement
For the year ended 30 June 2009 Annual Report and Accounts 2009                             Abcam plc 
 
40
       Year ended Year ended 
       30/06/09 30/06/08 
      Notes £000 £000
Net cash inflow from operating activities      30 13,535 5,858
Investing activities
Investment income       503  561 
Proceeds on disposal of property, plant and equipment       – 1 
Purchases of property, plant and equipment       (1,349) (2,434)
Purchases of intangible assets       (258) (251)
Investment in subsidiary       – (29)
Dividends received       918  401 
Net cash used in investing activities       (186) (1,751)
Financing activities
Dividends paid       (2,572) (1,481)
Proceeds on issue of shares       691 257 
Purchase of own shares       (316) –
Decrease/(increase) in short-term deposits       1,020 (1,020)
Net cash used in financing activities       (1,177) (2,244)
Net increase in cash and cash equivalents       12,172 1,863
Cash and cash equivalents at beginning of year       11,918 10,055 
Cash and cash equivalents at end of year       24,090 11,918 
Company Statement of Recognised 
Income and Expense
For the year ended 30 June 2009
       Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
Gains/(losses) on cash flow hedges       1,296 (168)
Share based compensation charge recognised on behalf of subsidiaries      60 29
Tax on items taken directly to equity       75  502
Net income recognised directly in equity       1,431  363 
 
Profit for the year       11,484 5, 126
Total recognised income and expense for the year       12,915 5,489
 
Company Cash Flow Statement
For the year ended 30 June 2009 41 Abcam plc   Financials 
Notes to the Consolidated  
Financial Statements
For the year ended 30 June 2009
1. General information
Abcam plc (the Company) is incorporated in the UK under the Companies Act 2006. The address of the registered office is 330 Cambridge 
Science Park, Milton Road, Cambridge, CB4 0FL, UK.
The Group’s activities consist of the development, marketing and selling of antibodies and 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 3.
2. Adoption of new and revised standards
In the current year, three Interpretations issued by the International Financial Reporting Interpretations Committee (‘IFRIC’) are effective for 
the current period. These are: IFRIC 11 IFRS 2 – Group and Treasury Share Transactions, IFRIC 13 – Customer Loyalty Programmes and 
IFRIC 14 IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. The Group was previously 
accounting for group and treasury share transactions in accordance with IFRIC 11, so no further changes have been made as a 
consequence of the adoption of this Interpretation. The adoption of IFRIC 14 has not led to any changes in the Group’s accounting policies 
and had no impact on the Group’s financial position and performance. The adoption of IFRIC 13 has resulted in a reduction in revenue and 
administration and management expenses by £96,000 in the year ended 30 June 2008. The effect on the comparative balance sheet was to 
increase trade and other payables by £96,000, with a corresponding decrease in provisions. There is no overall impact on results or net assets.
The Group has adopted IFRS 8 Operating Segments in advance of its effective date, with effect from 1 July 2008. IFRS 8 requires operating 
segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive 
Officer to allocate resources to the segments and to assess their performance. In contrast, the predecessor Standard (IAS 14 Segment 
Reporting) required the Group to identify two sets of segments (business and geographical), using a risks and rewards approach, with the 
Group’s system of internal financial reporting to key management personnel serving only as the starting point for the identification of such 
segments. As a result, following the adoption of IFRS 8, the identification of the Group’s reportable segments has changed. There is no 
effect on reported net income or net assets as a result of applying this Standard. 
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 (and in some cases had not been adopted by the EU):
IFRS 1 (amended)/IAS 27 (amended) Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate
IFRS 1 (amended) Additional exemptions for first-time adopters
IFRS 2 (amended) Share based payment – Vesting Conditions and Cancellations
IFRS 2 (amended) Group Cash-Settled Share Based Payment Transactions
IFRS 3 (revised 2008) Business Combinations
IFRS 7 (amended) Improving Disclosures about Financial Instruments
IAS 1 (revised 2007) Presentation of Financial Statements
IAS 23 (revised 2007) Borrowing Costs
IAS 27 (revised 2008) Consolidated and Separate Financial Statements
IAS 32 (amended)/IAS 1 (amended) Puttable Financial Instruments and Obligations Arising on Liquidation
IAS 39 (amended) Financial Instruments: Recognition and Measurement: eligible hedged items
IAS 39 (amended) Financial Instruments: Reclassification of Financial Assets: Effective date and transition
IAS 39 (amended)/IFRIC 9 (amended) Embedded Derivatives
IFRIC 12 Service Concession Arrangements
IFRIC 15 Agreements for the Construction of Real Estate
IFRIC 16 Hedges of a Net Investment in a Foreign Operation
Improvements to IFRSs (May 2008) 
The amendment to IFRS 2 restricts the definition of vesting conditions to include only service conditions (requiring a specified period of 
service to be completed) and performance conditions (requiring the other party to achieve a personal goal or contribute to achieving a 
corporate target). All other features are not vesting conditions, and whereas failure to achieve such a condition was previously regarded as 
a forfeiture (giving rise to a reversal of amounts previously charged to profit) it must be reflected in the grant date fair value of the award and 
treated as a cancellation, which results in either an acceleration of the expected charge, or a continuation over the remaining vesting period, 
depending on whether the condition is under the control of the entity or counterparty. The Group is currently assessing its impact on the 
financial statements, although it is not expected to be material.
Whilst the revised IAS 1 will have no impact on the measurement of the Group’s results or net assets, it is likely to result in certain changes in 
the presentation of the Group’s financial statements for the forthcoming year.
The Directors anticipate that the adoption of the remaining Standards and Interpretations in future periods will have no material impact on 
the Group’s reported income or net assets in the period of adoption. Annual Report and Accounts 2009                             Abcam plc 
 
42
3. Significant accounting policies
Basis of accounting
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs). The financial 
statements have also been prepared in accordance with IFRSs adopted by the European Union and therefore the Group financial 
statements comply with Article 4 of the EU IAS Regulation.
After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational 
existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
The financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial instruments. The 
Group financial statements are presented in Sterling and all values are rounded to the nearest thousand Pounds (£000) except when 
otherwise indicated. 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.
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 despatched and title has passed.
Sales of goods that result in award credits for customers, under the Abpoints Scheme, are accounted for as multiple element revenue 
transactions and the fair value of the consideration received or receivable is allocated between the goods supplied and the award credits 
granted. The consideration allocated to the award credits is measured by reference to their fair value – the amount for which the award 
credits could be sold separately. Such consideration is not recognised as revenue at the time of the initial sale transaction but is deferred 
and recognised as revenue when the award credits are redeemed and the Group’s obligations have been fulfilled. 
Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable, which is the 
rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
Dividend income from investments is recognised when the shareholders’ rights to receive payment have been established.
Leasing
Leases are classified as finance 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 as an incentive to enter into 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.
Foreign currencies
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 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 that are denominated in foreign currencies 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.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 43 Abcam plc   Financials 
3. Significant accounting policies continued
Exchange differences are recognised in profit or loss in the period in which they arise except for:
exchange differences on transactions entered into to hedge certain foreign currency risks (see below under financial instruments/hedge •	
accounting); and
exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor •	
likely to occur, which form part of the net investment in a foreign operation, and which are recognised in the foreign currency translation 
reserve and recognised in profit or loss on disposal of the net investment.
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 monthly average exchange rates during the period and their balance sheets at the rates 
prevailing 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. 
Borrowing costs
Borrowing costs are recognised in profit or loss in the period in which they are incurred.
Retirement benefit costs
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made to state-
managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the nature of the Group’s 
obligations under the schemes is equivalent to those arising in a defined contribution retirement benefit scheme. 
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 computation of 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 liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests 
in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary 
difference will not reverse in the foreseeable future. 
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 calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 
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.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities 
and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and 
liabilities on a net basis.  Annual Report and Accounts 2009                             Abcam plc 
 
44
3. Significant accounting policies continued
Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any recognised impairment loss. 
Depreciation is charged so as to write off the cost or valuation of assets over their estimated useful lives, using the straight-line method, on 
the following bases:
Office equipment, fixtures and fittings 20% per annum
Laboratory equipment 20% per annum
Computer equipment  33% per annum
Hybridomas 33% per annum
The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the 
carrying amount of the asset and is recognised in income. 
Intangible assets
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Expenditure on development activities is recognised as an asset if and only if it meets the recognition criteria set out in IAS 38 – Intangible Assets. 
Payments made to acquire software and distribution rights from third parties are capitalised at cost and amortised on a straight-line basis 
over their estimated minimum useful lives. The minimum useful life is determined to be three years in the case of software, and the term of 
the deal in the case of distribution rights, which can extend up to 10 years.
Impairment of tangible and intangible assets
At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any 
indication that those assets have suffered an impairment loss. If such indication exists, the recoverable amount of the asset is estimated in 
order to determine the extent of the impairment loss (if any). An intangible asset with an indefinite useful life is tested for impairment annually 
and whenever there is an indication that the asset may be impaired. 
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows 
are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and 
the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its 
recoverable amount. An impairment loss is recognised as an expense immediately. 
Investments
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment. 
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour 
costs and an attributable portion of production overheads that have been incurred in bringing the inventories to their present location and 
condition. Cost is calculated using the standard cost method. Net realisable value represents the estimated selling price less all estimated 
costs of completion and costs to be incurred in marketing, selling and distribution. Provision is made for obsolete, slow moving or defective 
items where appropriate.
Financial instruments
Financial assets and financial liabilities are recognised on the Group’s balance sheet when the Group becomes a party to the contractual 
provisions of the instrument. 
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 
uncollectable, 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.
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.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 45 Abcam plc   Financials 
3. Significant accounting policies continued
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity 
instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The accounting 
policies adopted for specific financial liabilities and equity instruments are set out below.
Trade payables
Trade payables are measured at amortised cost.
Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs. 
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. 
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair 
value at each balance sheet date. A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a 
negative fair value is recognised as a financial liability. The resulting gain or loss is recognised in profit or loss immediately unless the 
derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the 
nature of the hedge relationship. 
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 it is not expected to be realised or settled within 12 months. Other derivatives are presented as current assets or current liabilities. 
Hedge accounting
The Group designates certain derivatives as either hedges of the fair value of recognised assets or liabilities or firm commitments (fair value 
hedges), or hedges of highly probable forecast transactions or hedges of foreign currency risk of firm commitments (cash flow hedges). 
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 fair values or cash flows of the hedged item.
Fair value hedges
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised immediately in profit or loss, 
together with any changes in the fair value of the hedged item that is attributable to the hedged risk. The change in the fair value of the 
hedging instrument and the change in the hedged item attributable to the hedged risk are recognised in the line of the income statement 
relating to the hedged item. 
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. 
Cash flow hedges
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, and is included in the ‘administration and 
management expenses’ line of the income statement. 
Amounts deferred in equity are recycled in profit or loss in the periods when the hedged item is recognised in profit or loss, in the same line 
of the income statement as the recognised hedged item.
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. 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 profit or loss. When a forecast transaction is no longer expected to 
occur, the cumulative gain or loss that was deferred in equity is recognised immediately in profit or loss. Annual Report and Accounts 2009                             Abcam plc 
 
46
3. Significant accounting policies continued
Share based payments
The Group has applied the requirements of IFRS 2 Share Based Payment. In accordance with IFRS 1, IFRS 2 has been applied to all grants 
of equity instruments after 7 November 2002 that were unvested at 1 July 2006.
Incentives in the form of shares are provided to employees under share option, share purchase (SIP) and long-term incentive plans (LTIP). 
Equity-settled share based payments are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of 
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. 
Fair value of options issued under the Group’s share option schemes is measured by the use of the Monte Carlo Simulation. 
Fair value of the awards under the Group’s LTIP is measured by the use of the Monte Carlo Simulation for the TSR portion and the Binomial 
Model for the EPS portion. 
Fair value of an equity-settled payment under the SIP is measured as the face value of the award on the date of grant. 
The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non-transferability, 
exercise restrictions and behavioural considerations. Charges made to the income statement in respect of share based payments are 
credited to retained earnings.
The Group operates an employee benefit trust as part of its incentive plans for employees. All assets and liabilities of the trust are recorded 
in the balance sheet as assets and liabilities of the Company until such time as the assets are awarded to the beneficiaries. All income and 
expenditure of the trust is similarly brought into the results of the Company. 
Own shares
Own equity instruments which are acquired are recognised at cost and deducted from equity. No gain or loss is recognised in the income 
statement on the purchase, sale, issue or cancellation of the Group’s own equity instruments. Any difference between the carrying amount 
and the consideration is recognised in reserves. 
4. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in note 3, the Directors are required to make judgements, 
estimates and assumptions about the carrying amounts of 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 may 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 significant 
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. 
Impairment of property, plant and equipment
As a result of a restructuring exercise in the Company’s manufacturing activities, certain assets were no longer generating future economic 
benefits. The Directors have made an assessment of the recoverable amount of these assets, being the higher of fair value less costs to sell 
and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount 
rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future 
cash flows have not been adjusted. The recoverable amount of the assets is estimated to be less than their carrying amount, and so the 
carrying amount of the assets has been reduced to the recoverable amount. An impairment loss of £1.1m has been recognised as an 
expense immediately. 
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 47 Abcam plc   Financials 
4. Critical accounting judgements and key sources of estimation uncertainty continued
Impairment of intangibles
Management is in the process of renegotiating a product line acquisition deal. Consequently, it was considered that the carrying value of 
this intangible was no longer supportable and an impairment loss of £0.2m has been recognised to take account of the recoverable amount 
of the contract.
Fair value of derivatives and other financial instruments
As described in note 25, 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 slow moving or defective inventory
The provision for slow moving or defective inventory is based on management’s estimation of the commercial life and shelf 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.
5. Income statement for the Company
As permitted by section 408 of the Companies Act 2006 the Company has elected not to present its own income statement for the year. 
Abcam plc reported a profit for the year ended 30 June 2009 of £11,484,000 (2008: £5,126,000).
6. Revenue
An analysis of the Group’s revenue, all of which derives from continuing operations, is as follows:
        Year ended 
       Year ended 30/06/08 
       30/06/09 restated* 
      Notes £000 £000
Sales of goods       56,801 36,598
Investment revenue      11 431 581
       57,232 37, 179
*Restated to reflect the adoption of IFRIC 13 as per note 2.
7. Operating segments
Adoption of IFRS 8, Operating Segments
The Group has adopted IFRS 8 Operating Segments in advance of its effective date, with effect from 1 July 2008. IFRS 8 requires operating 
segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating 
decision maker, being the Chief Executive Officer, to allocate resources to the segments and to assess their performance. In contrast, the 
predecessor Standard (IAS 14 Segment Reporting) required the Group to identify two sets of segments (business and geographical), using 
a risks and rewards approach, with the Group’s system of internal financial reporting to key management personnel serving only as the 
starting point for the identification of such segments. As a result, following the adoption of IFRS 8, the identification of the Group’s reportable 
segments has changed.
Products and services from which reportable segments derive their revenues
In prior years, segment information reported externally was analysed on the basis of geographical locations. This is because 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. The information reported to the Group’s 
Chief Executive Officer for the purposes of resource allocation and assessment of performance is based wholly on the overall activities of 
the Group. The Group has therefore determined that it has only one reportable segment under IFRS 8, which is ‘sales of antibodies and 
related products’. The Group’s revenue and results and assets for this one reportable segment can be determined by reference to the 
Group’s income statement and balance sheet. 
The Group has no individual product or customer which comprises more than 10% of its revenues.  Annual Report and Accounts 2009                             Abcam plc 
 
48
7. Operating segments continued
Geographical information
The Group’s revenue from external customers and information about its non-current segment assets (excluding deferred tax) by 
geographical location are detailed below:
   Revenue 
|
 Non-current assets
      Year ended   
     Year ended 30/06/08 As at As at 
     30/06/09 restated* 30/06/09 30/06/08 
     £000 £000 £000 £000
United States     24,535 15,831 435 209
UK (country of domicile)     4,883 4, 148 4,173 4,970
Germany     4,719 2,935 – –
Japan     4,634 2, 1 15 52 19
Other countries     18,030 11,569 – –
     56,801 36,598 4,660 5, 198
*Restated to reflect the adoption of IFRIC 13 as per note 2.
Revenues are attributed to countries on the basis of the customer’s location. No country included within ‘Other countries’ contributes more 
than 5% of the Group’s total revenue. 
8. Profit for the year
Profit for the year has been arrived at after charging/(crediting):
       Year ended  Year ended 
       30/06/09 30/06/08 
      Notes £000 £000
Net foreign exchange losses       81 136
R&D expenditure       3,076 2,417
Operating lease rentals – land and buildings      12 822 545
Depreciation of property, plant and equipment      18 1,417 1,130
Impairment loss on property, plant and equipment      18 1,074 –
Loss on disposal of property, plant and equipment       160 56
Amortisation of intangible assets included within administration and management expenses   17 261 307
Impairment loss on intangible assets included within administration and management expenses   17 201  642
Cost of inventories recognised as an expense       18,870 13,850
Write-down of inventories recognised as an expense       550 539
Staff costs      10 10,148 7,308
Impairment (gain)/loss recognised on trade receivables      21 (84) 367
Legal fees associated with potential offer for Group       –  250
Auditors’ remuneration      9 102 91
9. Auditors’ remuneration
A detailed analysis of the auditors’ remuneration on a worldwide basis is provided below:
        Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
Fees payable to the Company’s auditors for the audit of the Company’s annual accounts    62 62
Fees payable to the Company’s auditors for other services to the Group
– The audit of the Company’s subsidiaries pursuant to legislation      13 13
Total audit fees       75 75
– Tax services        24 13
– Recruitment and remuneration services       – 3
– Other services relating to treasury advice       3  –
Total non-audit fees       27 16
Total auditors’ remuneration       102 91
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 49 Abcam plc   Financials 
10. Staff costs
Group
The average monthly number of employees (including executive directors) was:
   Group 
|
 Company
     Year ended Year ended  Year ended Year ended 
     30/06/09 30/06/08 30/06/09 30/06/08 
     Number Number Number Number
Management, administrative, marketing and distribution     170 130 111 88
Laboratory     44 36 44 36
     214 166 155 124
Their aggregate remuneration comprised:
   Group 
|
 Company
     Year ended Year ended Year ended Year ended 
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Wages and salaries     8,054 5,776 5,722 4,508
Social security costs     683 525 418 350
Pension costs     947 815 867 776
Charge in respect of share options granted     464 192 404 162
     10,148 7,308 7,411 5,796
11. Investment revenue 
       Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
Interest revenue on cash and short-term deposits       431 581
12. Operating lease arrangements
       Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
Minimum lease payments under operating leases recognised as an expense in the year:
Land and buildings       822 545
At the balance sheet date, the Group and Company had outstanding commitments for future minimum lease payments under non-cancellable 
operating leases, all of which relate to land and buildings, which fall due as follows:
   Group 
|
 Company
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Within one year      834 651 438 392
In the second to fifth years inclusive     2,552 1,615 2,158 996
     3,386 2,266 2,596 1,388
The above table reflects the committed cash payments under operating leases, rather than the expected charge to the income statement in 
the relevant periods. The effect on the income statement will differ to the above figures to the extent of the amortisation of a £1.1m lease 
incentive received on signing of a new lease in 2008/09, and also the amortisation of the rent-free period included in the same lease 
agreement. The expected operating lease charge in 2009/10 is expected to be £778,000 for the Group and £382,000 for the Company. Annual Report and Accounts 2009                             Abcam plc 
 
50
13. Other gains or losses 
       Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
(Gain)/loss in fair value of forward exchange contracts
– On contracts used as hedging instruments        (1,296) –
– On other contracts (see accounting policy note for derivative financial instruments)    (368) 197
       (1,664) 197
14. Tax
       Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
Current tax        4,539 1,632
Deferred tax (note 23)       (527) 430
       4,012 2,062
Corporation tax is calculated at 28% (2008: 29.5%) 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 ended Year ended Year ended Year ended 
     30/06/09 30/06/09 30/06/08 30/06/08 
     £000 % £000 %
Profit before tax      16,303  7,952 
Tax at the UK corporation tax rate of 28% (2008: 29.5%)     4,565 28.0% 2,346  29.5%
Effect of different tax rates of subsidiaries operating in different jurisdictions   175 1.0% 158  2.0%
Tax effect of expenses that are not deductible in determining taxable profit   48 0.3% 75  0.9%
R&D tax credit uplift     (771) (4.7)% (325) (4.1)%
Deduction for exercise for share options     – –% (122) (1.5)%
Prior year adjustments     (5) (0.0)%  (70) (0.9)%
Tax expense and effective rate for the year      4,012 24.6% 2,062 25.9%
15. Dividends
       Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
Amounts recognised as distributions to equity holders in the year:
Final dividend for the year ended 30 June 2008 of 4.56p (2007: 3.19p) per share     1,612 1, 1 16
Interim dividend for the year ended 30 June 2009 of 2.71p (2008: 1.04p) per share     960 365
Total distributions to equity holders in the period       2,572 1,481
Proposed final dividend for the year ended 30 June 2009 of 9.40p (2008: 4.56p) per share    3,339 1,599
The proposed final dividend is subject to approval of the shareholders at the AGM and has not been included as a liability in these  
financial statements.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 51 Abcam plc   Financials 
16. Earnings per share
The calculation of the basic and diluted earnings per share is based on the following data:
       Year ended Year ended 
       30/06/09 30/06/08 
       £000 £000
Earnings
Earnings for the purposes of basic and diluted earnings per share     
  being net profit attributable to equity holders of the parent      12,291 5,890
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share    35,287,943 34,902,538
Effect of dilutive potential ordinary shares:
 Share options       679,385 671,614
Weighted average number of ordinary shares for the purposes of diluted earnings per share    35,967,328 35,57 4,152
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 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.
17. Intangible assets
Group
     Upfront Distribution 
     licence fees rights Software Total 
     £000 £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 1 July 2008     164 1,393 – 1,557
Additions     99 – 162 261
Disposals     (1) – – (1)
At 30 June 2009     262 1,393 162 1,817
Amortisation and impairment
At 1 July 2007     68 189 – 257
Charge for the year     53 254 – 307
Disposals     (1) – – (1)
At 1 July 2008     120 443 – 563
Charge for the year     61 157 43 261
Impairment loss     – 201 – 201
Disposals     (1) – – (1)
At 30 June 2009     180 801 43 1,024
Carrying amount
At 30 June 2008     44 950 – 994
At 30 June 2009     82 592 119 793 Annual Report and Accounts 2009                             Abcam plc 
 
52
17. Intangible assets continued
Company
     Upfront Distribution 
     licence fees rights Software Total 
     £000 £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 1 July 2008     164 1,393 – 1,557
Additions     99  – 161 260
Disposals     (1) – – (1)
At 30 June 2009     262 1,393 161 1,816
Amortisation and impairment
At 1 July 2007     68 189 – 257
Charge for the year     53 254 – 307
Disposals     (1) – – (1)
At 1 July 2008     120 443 – 563
Charge for the year     61 157 43 261
Impairment loss     – 201 – 201
Disposals     (1) – – (1)
At 30 June 2009     180 801 43 1,024
Carrying amount
At 30 June 2008     44 950 – 994
At 30 June 2009     82 592 118 792
The amortisation period for the upfront licence fees and software is three 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.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 53 Abcam plc   Financials
18. Property, plant and equipment
Group
      Offi ce 
      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 1 July 2008    588 4,679 1,111 22 6,400
Additions    193 653 1,025 66 1,937
Exchange differences    30 53 48 – 131
Disposals    (68) (1) (780)  (35) (884)
At 30 June 2009    743 5,384 1,404 53 7,584
Accumulated depreciation and impairment
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 1 July 2008    345 1,046 802 3 2,196
Charge for the year    165 1,032 200 20 1,417
Impairment loss    63 988 9 14 1,074
Exchange differences    17 23 40 – 80
Eliminated on disposals    (63) (1) (654) (6) (724)
At 30 June 2009    527 3,088 397 31 4,043
Carrying amount
At 30 June 2008    243 3,633 309 19 4,204
At 30 June 2009    216 2,296 1,007 22 3,541 Annual Report and Accounts 2009                             Abcam plc 
 
54
18. Property, plant and equipment continued
Company
      Offi ce 
      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 1 July 2008    461 4,427 904 22 5,814
Additions    138 630 693 66 1,527
Disposals    (57) (1) (780) (35) (873)
At 30 June 2009    542 5,056 817 53 6,468
Accumulated depreciation and impairment
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 1 July 2008    272 943 620 3 1,838
Charge for the year    119 967 118 20 1,224
Impairment loss    62 986 7 14 1,069
Eliminated on disposals    (56) (1) (654) (6) (717)
At 30 June 2009    397 2,895 91 31 3,414
Carrying amount
At 30 June 2008    189 3,484 284 19 3,976
At 30 June 2009    145 2,161 726 22 3,054
As a result of the decision to refocus the monoclonal manufacturing resource towards more targeted, lower level production, an impairment 
loss of £1.1m (2008: £nil) has been recognised in the year relating to tangible assets associated with the higher volume production 
processes which will not now be implemented. 
19. Investments
The Company’s subsidiaries at 30 June 2009 and 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 and related products. Camgene is dormant.
Analysis of changes in investments:
        £000
At 1 July 2008        45
Additions        60
At 30 June 2009        105
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.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 55 Abcam plc   Financials 
20. Inventories
   Group 
|
 Company
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Goods for resale     6,796 4,506 6,783 4,501
21. Financial assets
Trade and other receivables
   Group 
|
 Company
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Amounts receivable for the sale of goods     5,685 4,288 2,614 2,470
Allowance for doubtful debts     (305) (591) (115) (413)
     5,380 3,697 2,499 2,057
Amounts owed by subsidiary undertakings     – – 3,332 2, 169
Other debtors     516 499 277 292
Prepayments     590 664 471 626
     6,486 4,860 6,579 5, 144
Trade receivables
The average credit period taken for sales is 32.0 days (2008: 34.4 days). No interest has been 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 receivables over 120 days because historical experience is such that receivables that are past due beyond 120 days 
are generally not 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. No customer represents more than 5% of the total balance of trade receivables.
The analysis below shows 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.
Ageing of past due but not impaired receivables:
   Group 
|
 Company
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
0 to 30 days overdue     938 242 434 111
30 to 60 days overdue     90 48 – 48
     1,028 290 434 159
During the prior year the Group formalised and improved the credit control procedures. This has resulted in a noticeable improvement in the 
ageing of the debtors of the past two years.
Movement in the allowance for doubtful debts:
   Group 
|
 Company
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Balance at the beginning of the year     (591) (224) (413) (198)
Impairment gains/(losses) recognised through income statement    84 (367) 17 (215)
Exchange differences on translation of foreign operations     (39) – – –
Amounts written off as uncollectable     241 – 281 –
Balance at the end of the year     (305) (591) (115) (413) Annual Report and Accounts 2009                             Abcam plc 
 
56
21. Financial assets continued
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 no individually impaired trade receivables (2008: £289,000) relating to companies in 
financial difficulties. The impairment recognised in the prior year represents the difference between the carrying amount of these trade 
receivables and the present value of the expected litigation proceeds. Neither the Group nor the Company holds collateral over these 
balances. The balances were written off as uncollectable within the year ended 30 June 2009. 
Ageing of impaired receivables:
       30/06/09 30/06/08 
       £000 £000
0 to 30 days overdue       99 –
30 to 60 days overdue       155 –
60 to 90 days overdue       35 38
More than 90 days overdue       16 553
       305 591
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
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Cash and cash equivalents, and short-term deposits     25,501 14,493 24,090 12,938
Cash and cash equivalents and short-term deposits comprise cash held by the Group or Company and short-term deposits with an original 
maturity of three months or less. The carrying amount of these assets approximates their fair value.
22. Derivative financial instruments
Group and Company
       30/06/09 30/06/08 
       £000 £000
Derivatives which mature within one year
Derivatives that are designated and effective as hedging instruments carried at fair value
Forward exchange contracts       970 –
Derivatives carried at fair value through profit and loss (FVTPL)
Forward exchange contracts that are not designated in hedge accounting relationships    368 (197)
       1,338 (197)
Derivatives which mature after more than one year
Derivatives that are designated and effective as hedging instruments carried at fair value
Forward exchange contracts       326 –
       1,664 (197)
Further details of derivative financial instruments are provided in note 25.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 57 Abcam plc   Financials
23. Deferred tax
The following are the major deferred tax liabilities and assets recognised by the Group and Company and movements thereon during the 
current and prior reporting period.
Group
    Accelerated  Share Other 
    tax Cash flow based timing 
    depreciation hedges payment differences Total 
    £000 £000 £000 £000 £000
At 1 July 2007    (549) – 306  55  (188)
(Charge)/credit to income    (332) – (224)  126  (430)
Credit to equity     – – 540  – 540
At 30 June 2008    (881) – 622  181  (78)
Credit/(charge) to income    481 – 135 (89) 527
(Charge)/credit to equity    (1) (363) 222 28 (114)
At 30 June 2009    (401) (363) 979 120 335
Company
    Accelerated  Share Other 
    tax Cash flow based timing 
    depreciation hedges payment differences Total 
    £000 £000 £000 £000 £000
At 1 July 2007    (549) – 306  55  (188)
(Charge)/credit to income    (338) – 54  54  (230)
Credit to equity     – – 240  – 240
At 30 June 2008    (887) – 600  109  (178)
Credit/(charge) to income    534 – 113 (119) 528
(Charge)/credit to equity     – (363) 172  – (191)
At 30 June 2009    (353) (363) 885 (10)  159
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 £1,210,000 (2008: £1,028,000). 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.
24. Other financial liabilities
Trade and other payables
   Group 
|
 Company
      30/06/08  30/06/08 
     30/06/09 restated* 30/06/09 restated* 
     £000 £000 £000 £000
Amounts falling due within one year
Trade payables     1,703 1,992 1,502 1,783
Amounts owed to subsidiary undertakings     – – 218 95
Accruals and deferred income     4,603 1,742 4,128 1,439
Deferred creditor     57 86 57 86
Other taxes and social security     241 160 226 159
Other creditors     90 189 62 157
     6,694 4, 169 6,193 3,719
Amounts falling due after more than one year
Deferred creditor     83 109 83 109
     6,777 4,278 6,276 3,828
*Restated to reflect the adoption of IFRIC 13 as per note 2. Annual Report and Accounts 2009                             Abcam plc 
 
58
24. Other financial liabilities continued
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period 
taken for trade purchases is 19 days (2008: 17 days). 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 Directors consider that 
the carrying amount of trade and other payables approximates to their fair value.
The deferred creditor represents the earn-out payable on sales of products under a distribution agreement. 
25. 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. 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.
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 note 3. Foreign exchange contracts are measured using quoted forward exchange rates and the yield curves derived from 
quoted interest rates matching maturities of these contracts.
Categories of financial instruments
   Group   Company 
   carrying value 
|
 carrying value
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Financial assets
Loans and receivables
Amounts owed by subsidiary undertakings     –  – 3,332 2,033
Trade receivables     5,380 3,697 2,499 2,057
VAT recoverable (included in other debtors)     290 234 224 234
     5,670 3,931 6,055 4,324
Cash and cash equivalents
Cash and cash equivalents and short-term deposits     25,501 14,493 24,090 12,938
Loans and receivables (including cash and cash equivalents)    31,171 18,424 30,145 17,262
Financial liabilities
Other financial liabilities at amortised cost
Trade and other payables     (6,694) (4,169) (6,193) (3,719)
Current tax liabilities     (1,871) (382) (1,784) (269)
Non-current deferred creditor     (83) (109) (83) (109)
Amortised cost     (8,648) (4,660) (8,060) (4,097)
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.
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  
a 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.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 59 Abcam plc   Financials
25. Financial instruments continued
The standard payment terms for receivables other than intra-group balances are 30 days. Any variation in these terms requires authorisation 
by senior management. Year end debtor days are 32.0 days (2008: 34.4 days). 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 32.0 days, as well as 
observable changes in international or local economic conditions.
The standard payment terms for intra-group receivables are 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
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Euros     (211) (79) 1,882 1,655
Dollars     (1,459) (821) 3,447 3,886
Yen     (39) (17) 490 539
     (1,709) (917) 5,819 6,080
Foreign currency sensitivity analysis
The Group’s principal functional currency is Sterling. The Group is mainly exposed to Dollars and Euros but has an increasing exposure to 
Japanese Yen. The following table demonstrates the Group’s sensitivity to an 8% increase and decrease in the Sterling exchange rate 
against the relevant foreign currencies on the Group’s profit before tax and equity (due to the fair value of monetary assets, liabilities and 
forward exchange contracts outstanding as at 30 June 2009). 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. A positive number indicates an 
increase in profit or equity.
 Yen currency impact 
|
 Euro currency impact 
|
 Dollar currency impact
   2009 2008 2009 2008 2009 2008 
   £000 £000 £000 £000 £000 £000
Effect of an 8% strengthening in relevant exchange rate on:
Profit or loss   – (39) 94 323 68 (73)
Other equity   176 – 1,163 – 907 –
Effect of an 8% weakening in relevant exchange rate on:
Profit or loss   – 45 (111) 65 (80) 70
Other equity   (167) – (1,365) – (1,064) –
In management’s opinion, the sensitivity analysis is representative of the inherent foreign exchange risk at year end.  Annual Report and Accounts 2009                             Abcam plc 
 
60
25. Financial instruments continued
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 out to 
15 months within 30% to 80% of the exposure generated. Upon maturity of a forward exchange contract, the Group may enter into a new 
contract designated as a separate hedging relationship.
Foreign currency forward contracts are measured using quoted forward exchange rates and the yield curves derived from quoted interest 
rates matching maturities of the contracts.
The following table details the forward exchange contracts outstanding as at the year end:
      Foreign  Contract Fair 
     Average currency value value 
     rate 30/06/09 30/06/09 30/06/09 
Outstanding contracts     30/06/09 000 £000 £000
Sell Dollars
Less than 3 months     1.49 $2,600 1,749 168
3 to 6 months     1.49 $5,300 3,558 333
7 to 12 months     1.50 $8,000 5,324 451
13 to 15 months     1.51 $4,200 2,781 220
     1.50 $20,100 13,412 1,172
Sell Euros
Less than 3 months     1.14 €2,200 1,932 58
3 to 6 months     1.14 €4,200 3,687 107
7 to 12 months      1.14 €7,800 6,862 209
13 to 15 months     1.14 €4,200 3,692 104
     1.14 €18,400 16,173 478
Sell Yen
Less than 3 months     157.47 ¥50,000 318 2
3 to 6 months     157.28 ¥100,000 636 4
7 to 12 months     156.84 ¥150,000 956  6
13 to 15 months     156.30 ¥75,000 480 2
     156.93 ¥375,000 2,390 14
Total of outstanding forward contracts       31,975 1,664
      Foreign  Contract Fair 
     Average currency value value 
     rate 30/06/08 30/06/08 30/06/08 
Outstanding contracts     30/06/08 000 £000 £000
Sell 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 (134)
     1.34 €4,500 3,366 (204)
Total of outstanding forward contracts       5,505 (197)
At 30 June 2009, the fair value of contracts held as cash flow hedges is £1,296,000. The remaining contracts are not held as cash flow 
hedges. At 30 June 2008, none of the contracts were held as cash flow hedges.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 61 Abcam plc   Financials 
25. Financial instruments continued
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 2009, the average maturity of balances 
was 47 days (2008: 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 one month. Trade payables are 
normally payable within 30 days of invoice.
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
2009
Trade payables    – (1,604) (82) (17) (1,703)
Accruals and deferred income    – (3,725) (196) (682) (4,603)
     (5,329) (278) (699) (6,306)
Company
2009
Trade payables    – (1,403) (82) (17) (1,502)
Accruals and deferred income    – (3,367) (133) (628) (4,128)
     (4,770) (215) (645) (5,630)
    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     – (1,961) (25) (6) (1,992)
Accruals and deferred income     – (1,268)  – (474) (1,742)
     (3,229) (25) (480) (3,734)
Company
2008
Trade payables     – (1,758) (25)  – (1,783)
Accruals and deferred income     – (1,021)  – (418) (1,439)
     (2,779) (25) (418) (3,222)
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 
£376,000 (2008: £113,000) and by the Company of £369,000 (2008: £103,000). A decrease of 1% in the average interest rate during the 
year would have resulted in a reduction in interest received by the Group of £136,000 (2008: £113,000) and by the Company of £113,000 
(2008: £103,000). There would have been no effect on equity reserves. 
The closing cash balance at the year end has been used as the basis for the calculations. A 1% increase or decrease in interest rates 
represents management’s assessment of the reasonably possible change in interest rates.  Annual Report and Accounts 2009                             Abcam plc 
 
62
26. Share capital
Group and Company
       30/06/09 30/06/08 
       £000 £000
Authorised:
100,000,000 ordinary shares of 1p each       1,000 1,000
Issued and fully paid:
35,525,450 (2008: 35,066,781) ordinary shares of 1p each       355 351
The movement during the year on the Company’s issued and fully paid shares was as follows:
      2009 2009 2008 
      Number £000 £000
Balance at beginning of year      35,066,781 351 346
Issue of share capital      458,669 4 5
Balance at end of year      35,525,450 355 351
The Company has one class of ordinary shares which carry no right to fixed income. 
During the year the Company issued 1p ordinary shares as follows:
       Exercise  Total 
      Number price paid 
Date issued      of shares p £
July 2008      2,382 224.00 5,336
September 2008      60,800 25.00 15,200
September 2008      32,000 50.00 16,000
September 2008      10,280 62.50 6,425
October 2008      1,200 12.50 150
October 2008      80,000 25.00 20,000
October 2008      28,440 62.50 17,775
October 2008      545 224.00 1,121
October 2008      6,525* 451.00 29,428
November 2008      59,410* 462.00 274,474
November 2008      1,344* 485.00 6,518
November 2008      42,500 62.50 26,563
November 2008      40,000 125.00 50,000
January 2009      440* 470.00 2,068
February 2009      407* 492.00 2,002
March 2009      348* 570.00 1,984
April 2009      10,000 25.00 2,500
April 2009      16,320 62.50 10,200
April 2009      615 280.00 1,722
April 2009      6,100 312.00 19,032
April 2009      150 462.00 693
May 2009      3,020 62.50 1,888
May 2008      15,996 280.00 44,789
May 2008      28,180 312.00 87,922
May 2008      8,550 462.00 39,501
June 2008      1,465 224.00 3,282
June 2008      902 280.00 2,526
June 2008      750 312.00 2,340
      458,669  691,439
* New shares issued and held by the employee benefit trust to satisfy the Company’s obligations under the Free Shares and Matching Shares elements of the SIP. 
Further details of the Company’s share option schemes are provided in note 31. 
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 63 Abcam plc   Financials 
27. Share premium
Group and Company
        £000
Balance at 1 July 2007        10,619
Premium arising on issue of equity shares        252
Balance at 1 July 2008        10,871
Premium arising on issue of equity shares        687
Balance at 30 June 2009        11,558
There were no costs of issue incurred during the year or the previous year.
28. Own shares
Group and Company
        £000
Balance at 1 July 2007 and 1 July 2008        –
Acquired in the period        (316)
Disposed of on exercise of options        15
Balance at 30 June 2009        (301)
This balance represents the cost of 65,094 shares in Abcam plc (2008: nil) which were issued by the Company at market value and held by 
the Abcam Employee Share Benefit Trust. These shares have been purchased in order to satisfy the Free Shares and Matching Shares 
elements of the various share based compensation plans. See note 31 for further details of these schemes. 
29. Retained earnings and other reserves
Group
   Share based 
  Translation compensation Hedging Deferred tax Retained 
  reserve
1
 reserve
2
 reserve
3
 reserve
4
 earnings Total 
  £000 £000 £000 £000 £000 £000
Balance as at 1 July 2007  (36) 251  168 256 7,283 7,922
Exchange differences 
 on translation of foreign operations  3   –  – – – 3
Share based compensation charge   – 232   – – – 245
Deferred tax asset recognised   –  –  – 502 – 502
Profit for the year   –  –  – – 5,890 5,890
Utilisation of derivative instruments   –  – (168) – – (168)
Payment of dividends (note 15)   –  –  – – (1,481) (1,481)
Balance as at 1 July 2008  (33) 483   – 758  11,692 12,900
Exchange differences 
 on translation of foreign operations  230 15  –  – – 245
Share based compensation charge    – 464  –  – – 464
Deferred tax (liability)/asset recognised    –  – (363) 610 – 247
Profit for the year    –  –  –  – 12,291 12,291
Own shares disposed of on exercise of options  –  –  –  – (15) (15)
Increase in fair value of hedging derivatives   –  – 1,296  – – 1,296
Payment of dividends (note 15)    –  –  –  – (2,572) (2,572)
Balance as at 30 June 2009  197 962 933 1,368 21,396 24,856
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 IAS 12. Annual Report and Accounts 2009                             Abcam plc 
 
64
29. Retained earnings and other reserves continued
Company
   Share based 
   compensation Hedging Deferred tax Retained 
   reserve
1
 reserve
2
 reserve
3
 earnings Total 
   £000 £000 £000 £000 £000
Balance as at 1 July 2007    251 168 256 6,654 7,329
Share based compensation charge    164 – – – 164
Share based compensation charge recognised on behalf of subsidiaries  29 – – – 29
Deferred tax asset recognised    – – 502 – 502
Profit for the year    – – – 5,126 5,126
Utilisation of derivative instruments    – (168) – – (168)
Payment of dividends (note 15)    – – – (1,481) (1,481)
Receipt of dividends    – – – 403 403
Balance as at 1 July 2008    444 – 758 10,702 11,904
Share based compensation charge    404 – – – 404
Share based compensation charge recognised on behalf of subsidiaries  60 – – – 60
Deferred tax (liability)/asset recognised    – (363) 438 – 75
Profit for the year    – – – 11,484 11,484
Own shares disposed of on exercise of options     –  –  – (15) (15)
Increase in fair value of hedging derivatives    – 1,296 – – 1,296
Payment of dividends (note 15)    – – – (2,572) (2,572)
Receipt of dividends    – – – 918 918
Balance as at 30 June 2009    908 933 1,196 20,517 23,554
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 IAS 12.
30. Notes to the cash flow statement
   Group 
|
 Company
     30/06/09 30/06/08 30/06/09 30/06/08 
     £000 £000 £000 £000
Operating profit for the year     15,872 7,371 14,514 6, 1 13
Adjustments for:
Depreciation of property, plant and equipment     1,417 1,092 1,224 917
Impairment losses on property, plant and equipment     1,074 – 1,069 –
Loss on disposal of property, plant and equipment     160 – 156 –
Amortisation of intangible assets     261 309 261 306
Impairment losses on intangible assets     201 642 201  642
Decrease in provisions     (16) – (16) –
Change in fair value of derivatives outstanding at year end     (565) 197 (565) 197
Share based compensation charge     464 232 404 192
Operating cash flows before movements in working capital    18,884 9,843 17,264 8,367
Increase in inventories     (2,289) (1,405) (2,282) (1,412)
Increase in receivables     (1,263) (533) (1,393) (572)
Increase in payables     2,182
1
 772 2,144
1
  503
Cash generated by operations     17,514 8,677 15,733 6,886
Income taxes paid     (2,702) (1,535) (2,198) (1,028)
Net cash inflow from operating activities     14,812 7, 142 13,535 5,858
1 This increase in payables includes £1.0m of the total balance of £1.1m received as an incentive from the landlord of premises leased by Abcam plc with effect from 
December 2008.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 65 Abcam plc   Financials 
31. 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, the Abcam 2005 
share option scheme, the SAYE scheme, the Long-Term Incentive Plan (‘LTIP’) and the Share Incentive Plan (‘SIP’). Option grants under 
each scheme have been aggregated.
Some grants under the SAYE scheme vest from one to five years. Those options with performance criteria vest when the criteria are met. 
The vesting period for all other options is from one to three years. If the options remain unexercised after a period of 10 years from the date 
of grant the options expire. Options are forfeited if the employee leaves the Group before the options vest.
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.
The Group recorded a total share based expense of £464,000 in the year (2008: £192,000), of which £374,000 (2008: £173,000) was 
included within administration and management expenses and £90,000 (2008; £19,000) was included within R&D expenses.
Summary of all schemes, excluding SIP and LTIP
Options outstanding as at 30 June 2009 had an exercise price of between 12.50p and 462.00p (2008: 10.00p and 413.00p). The weighted 
average remaining contractual life is 7.46 years (2008: 8.12 years). The weighted average fair value of the options outstanding at the end of 
the year was 65.56p (2008: 65.24p). The Group recorded total share based expenses of £272,000 (2008: £192,000) relating to all schemes 
excluding the SIP and LTIP.
      Weighted  Weighted 
     2009 average 2008 average 
     Number of exercise Number of exercise 
     share price share price 
     options p options p
Outstanding at beginning of year     1,389,012 219.99 1,568,335 156.03
Granted during the year     181,021 462.00 544,875 316.10
Forfeited during the year     (46,936) 340.70 (280,801) 233.24
Exercised during the year     (390,195) 97.65 (443,397) 57.96
Outstanding at the end of the year     1,132,902 232.31 1,389,012 219.99
Exercisable at end of year     150,080 109.16 302,640 43.07
Enterprise management incentive (EMI) scheme
      Weighted  Weighted 
     2009 average 2008 average 
     Number of exercise Number of exercise 
     share price share price 
     options p options p
Outstanding at beginning of year     833,528 206.94 966, 191 131.51
Granted during the year     – – 284,851 312.00
Forfeited during the year     (27,274) 298.69 (90, 177) 161.41
Exercised during the year     (290,706) 81.20 (327,337) 53.80
Outstanding at the end of the year     515,548 272.78 833,528 206.94
Exercisable at end of year     50,080 47.59 262,640 40.11
The growth in the net assets of the Group means that the Group has exceeded the limits set by HMRC for the tax incentives available under 
the EMI scheme so no further grants can be made under this scheme.  Annual Report and Accounts 2009                             Abcam plc 
 
66
31. Share based payments continued
Unapproved share option scheme
      Weighted  Weighted 
     2009 average 2008 average 
     Number of exercise Number of exercise 
     share price share price 
     options p options p
Outstanding at beginning of year     354,909 223.66 427,504 194.71
Granted during the year     – – 148,338 340.30
Forfeited during the year     – – (137,375) 288.34
Exercised during the year     (86,397) 109.91 (83,558) 71.76
Outstanding at the end of the year     268,512 260.26 354,909 223.66
Exercisable at end of year     100,000 140.00 40,000 62.50
Abcam Inc share scheme
      Weighted  Weighted 
     2009 average 2008 average 
     Number of exercise Number of exercise 
     share price share price 
     options p options p
Outstanding at beginning of year     121,712 291.47 104,207 185.56
Granted during the year     – – 81,160 312.00
Forfeited during the year     (3,921) 593.65 (32,735) 312.00
Exercised during the year     – –  (30,920)  56.33
Outstanding at the end of the year     117,791 315.15 121,712 291.47
Exercisable at end of year     – – – –
SAYE scheme
      Weighted  Weighted 
     2009 average 2008 average 
     Number of exercise Number of exercise 
     share price share price 
     options p options p
Outstanding at beginning of year     78,863 231.11 70,433 224.00
Granted during the year     – – 30,526 249.00
Forfeited during the year     (7,465) 226.84 (20,514) 233.86 
Exercised during the year     (4,392) 224.00 (1,582) 224.00
Outstanding at the end of the year     67,006 232.05 78,863 231.1 1
Exercisable at end of year     – – – –
The Abcam 2005 share option scheme
        Weighted 
       2009 average 
       Number of exercise 
       share price 
       options p
Outstanding at beginning of year       – –
Granted during the year       181,021 462.00
Forfeited during the year       (8,276) 462.00
Exercised during the year       (8,700) 462.00 
Outstanding at the end of the year       164,045 462.00
Exercisable at end of year       – –
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 67 Abcam plc   Financials 
31. Share based payments continued
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   16/06/03 16/06/03 05/07/04 17/12/04 27/05/05 05/09/05
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 30/09/05 30/09/05 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%
SAYE scheme
Grant date     02/10/06 02/10/06 08/11/07 08/11/07
Share price at grant (pence)     280 280 312 312
Fair value at valuation date (pence)     104 113 106 122
Exercise price (pence)     224 224 249 249
Expected volatility     30% 30% 30% 30%
Expected life (years)     3 5 3 5
Expected dividend yield     1.1% 1.1% 1.5% 1.5%
Risk free rate     4.54% 4.54% 4.80% 4.80%
Employee exercise multiple     2 2 2 2
Employee exit rate     10.00% 10.00% 12.00% 12.00%
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     07/09/06 08/11/07 07/05/08 06/11/08
Share price at grant (pence)     280 312 413 462.5
Fair value at valuation date (pence)     84 89 123 115
Exercise price (pence)     280 312 413 462
Expected volatility     30% 30% 30% 24%
Expected life (years)     3 3.01 3 3
Expected dividend yield     1.1% 1.5% 1.5% 0.87%
Risk free rate     4.57% 4.80% 4.79% 3.90%
Employee exercise multiple     2 2 2 2
Employee exit rate     9.53% 12.00% 12.00% 0.00% Annual Report and Accounts 2009                             Abcam plc 
 
68
31. Share based payments continued
Share Incentive Plan
All UK-based employees are eligible to participate in the SIP whereby employees buy shares in the Company. These shares are called 
Partnership Shares and are held in trust on behalf of the employee. For every Partnership Share bought by the employee the Company will 
give the employee one share free of charge (Matching Shares), provided the employee remains employed by the Company for a period of at 
least three years. The employees must take their shares out of the Plan on leaving the Company and will not be entitled to the Matching 
Shares if they leave within three years of buying the Partnership Shares. In addition, the Company can also award employees the right to 
acquire up to a maximum of £3,000 of shares (Free Shares). There are no vesting conditions attached to the Free Shares, other than being 
continuously employed by the Company for three years from the date of grant.
       SIP SIP 
       Free Matching 
       Shares Shares
Outstanding at beginning of year       – –
Granted during the year       59,410 10,271
Forfeited during the year       (2,244) –
Exercised during the year       (2,982) (398) 
Outstanding at end of year       54,184 9,873
Exercisable at end of year       – –
For the purposes of IFRS 2 the fair value of these Matching Shares and Free Shares is determined as the market value of the shares at the 
date of grant. No valuation model is required to calculate the fair value of awards under the SIP. The fair value of an equity-based payment 
under the SIP is the face value of the award on the date of grant because the participants are entitled to receive the full value of the shares 
and there are no market-based performance conditions attached to the awards.
The Group recognised a total expense of £68,000 (2008: £nil) related to Matching and Free Share awards in the year. 
Long-Term Incentive Plan
In 2008 the Company approved a new LTIP. Vesting of performance share awards made under this scheme is conditional upon achievement 
of two separate performance conditions. Full details of the performance conditions are shown in the Directors’ Remuneration Report.  
All awards made under this scheme have a fixed term of three years. Save as permitted in the LTIP rules, awards lapse on an employee 
leaving the Company. 
Details of performance share awards outstanding during the year are as follows:
        LTIP awards 
        2009
Granted during the year and outstanding at end of year        154,545
Exercisable at end of year        –
These performance share awards were made on 6 November 2008. The aggregate of the fair values of the awards made on that date is 
£573,000. The estimated fair values were calculated using a stochastic (Monte Carlo binomial) model. The inputs to the model for awards 
granted in the year were as follows:
Grant date        06/11/08
Weighted average exercise price (pence)        –
Expected volatility        24%
Expected life        3 years
Expected dividend yield        0.87%
Risk free rate        3.41%
The Group recognised a total expense of £124,000 (2008: £nil) related to performance share awards under the LTIP in the year.
Notes to the Consolidated  
Financial Statements continued
For the year ended 30 June 2009 69 Abcam plc   Financials 
32. Retirement benefit schemes
Defined contribution schemes
The UK-based employees of the Company have the option to be members of a defined contribution pension scheme managed by a third 
party pension provider. For each employee who is a member of the scheme the Company will contribute a fixed percentage of each 
employee’s salary to the scheme. The only obligation of the Group with respect to this scheme is to make the specified contributions. 
The employees of the Group’s subsidiaries in the USA and Japan are members of state-managed retirement benefit schemes operated by 
the governments of the USA and Japan respectively. The subsidiaries are required to contribute a specified percentage of payroll costs to 
the retirement benefit schemes to fund the benefits. The only obligation of the Group with respect to the retirement benefit schemes is to 
make the specified contributions.
The total cost charged to the income statement in respect of these schemes during the year ended 30 June 2009 was £947,000  
(2008: £815,000). As at 30 June 2009 contributions of £75,000 (2008: £65,000) due in respect of the current reporting period had  
not been paid over to the schemes. 
33. 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 £24,018 (2008: £16,714) and paid £41,166  
in royalties (2008: £36,148). £5,889 relating to these royalties was outstanding at the year end (2008: £6,632).
Abcam Plc purchased services with a value of £51,050 (2008: £6,000) from Cambridge Network Limited and its subsidiaries, which are 
non-profit making entities of which David Cleevely (Chairman of the Company) is chairman. £7,912 was prepaid at the end of the year  
(2008: £nil). These services were purchased at the market value. 
Remuneration of key personnel
The remuneration of the executive 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
       30/06/09 30/06/08 
       £000 £000
Short-term employee benefits and fees       1,078 1,033
Share based payment       153 50
       1,231 1,083 Annual Report and Accounts 2009                             Abcam plc 
 
70
Notes 71 Abcam plc   Financials 
Notes Annual Report and Accounts 2009                             Abcam plc 
 
72
Notes Our vision is to build the 
largest online catalogue 
of the best antibodies in 
the world.
Directors’ Report
01 Highlights
02 At a glance
04 We source and produce
06 We add value with customer support
08 We distribute internationally
10 Another year of continued growth
12 Chairman’s Review
14 Chief Executive Officer’s Review
16 Financial Review
18 Board of Directors
20 Corporate Directory
21 Report on Affairs of the Group
24 Corporate Governance Statement
27 Directors’ Remuneration Report
34 Statement of Directors’ Responsibilities
Financials
35 Independent Auditors’ Report
36 Consolidated Income Statement
36 Consolidated Statement of Recognised Income and Expense
37 Consolidated Balance Sheet
38 Company Balance Sheet
39 Consolidated Cash Flow Statement
40 Company Cash Flow Statement
40 Company Statement of Recognised Income and Expense
41 Notes to the Consolidated Financial Statements Abcam Annual Report and Accounts 2009
Annual Report and Accounts 
Year ended 30 June 2009
A producer and distributor of research-grade antibodies
www.abcamplc.com
330 Cambridge Science Park
Cambridge
CB4 0FL
UK
Email: corporate@abcam.com
Phone: +44 (0)1223 696000
Fax: +44 (0)1223 771600