abcam plc annual report and accounts for the year ended 30 june 2007
abcam plc
332 cambridge science park
milton road
cambridge cb4 0fw
united kingdom
phone 44 0 1223 696000
fax 44 0 1223 696001
wwwabcamcom
for the year ended 30 june 2007
annual report  
and accounts abcam plc annual report and accounts 30 june 2007
our vision is to build the largest 
online antibody resource in the 
world while also ensuring that  
the antibodies are of excellent 
quality and commercial viability
welcome
my name is molly i’m the resident abcam mascot and 
appear on all our packaging and branding materials
a lot of researchers ask where we got the idea for molly  
the sheep it was simply because dolly the sheep was  
making headline news at the time so we created the  
body out of a molecular space fill model and gave her  
antibody legs and thus the molecular dolly became  
abcam’s molly
01  highlights
02  our business at a glance
04  chairman’s review
06  ceo’s review
08  managing director’s review
10  financial review
12  the board
14 corporate directory
15 directors’ report
17  corporate governance
contents
19  directors’ remuneration report
22  statement of directors’ responsibilities
23  independent auditors’ report 
24 consolidated profit and loss account
25   consolidated statement of total recognised gains and losses
26  consolidated balance sheet
27  company balance sheet
28  consolidated cash flow statement
29  notes to the consolidated cash flow statement
30  notes to the accounts 01 annual report and accounts 30 june 2007 abcam plc
highlights
sales increased 266 to £245m 2006 £194m 
representing a 338 increase using constant exchange 
rates average exchange rate applied to us sales 
2007 £1 192 2006 £1 177
pretax profits increased 181 to £57m 2006 £48m
product range grew to 33900 antibodies and related 
products 2006 23200
three licensing deals agreed giving abcam exclusive 
distribution rights to over 4000 existing and future 
complementary products
highthroughput production htp laboratory built to  
boost the number of highmargin inhouse products 
operations began on schedule and the first antibodies  
will be ready for sale later this calendar year
new subsidiary in tokyo trading well to help abcam  
further develop its fastgrowing asiapacific business
net cash and short term investments at 30 june 2007  
of £107m 2006 £119m
dividend policy increased from 25 to 33 of profit 
after tax
final dividend up 60 to 319p per share 2006 20p
basic eps of 1199p per share 2006 1073p the eps 
calculation for the year uses the weighted average of 
34572810 shares 2006 31914845
•
•
•
•
•
•
•
•
•
•
266

 sales increased 266 to £245 million 
33900
  continued expansion of product  
range to 33900 products 
£57
m
  profit before tax of £57 million in  
the year
2006 2007
£245m
£194m
turnover
2006 2007
£57m
£48m
profit
2006 2007
1199p
1073p
eps abcam plc annual report and accounts 30 june 2007 02
abcam plc is a producer and distributor 
of researchgrade antibodies and 
associated products
our vision is to build the largest online 
catalogue of the best antibodies in  
the world
our business at a glance
how we work
1 we source and develop
we produce our own antibodies and 
source other excellent antibodies from 
institutes academic laboratories and 
primary manufacturers
established in 1998 abcam now has an 
online catalogue of over 25000 antibodies 
and 8000 related products such as 
proteins peptides and kits a growing 
percentage of our products are produced  
inhouse and investment in a new high 
throughput facility will see this increase 
substantially in the future other products 
are supplied by more than 200 leading oem 
partners and sold under the abcam brand
2 we add value
our scientists have built a catalogue  
of the best antibodies in the world and 
they provide technical support on all 
of our products to help our customers 
achieve results
the unique relationship abcam has with 
the scientists who use our products means 
that we can obtain a wide range of testing 
data from their feedback and enquiries  
we publish this information in the form of 
abreviews
sm
 which support the purchasing 
decisions of researchers looking for 
reagents taken across the catalogue 
average unit sales continue to increase  
the longer they have been in our catalogue 
a trend we attribute in part to the sheer 
quantity of product information we are  
able to gather and publish over time
3 we deliver
we distribute abcam products across 
the world using our fully automated 
webenabled stockmanagement 
system our size means that we can 
invest in stateoftheart storage and 
handling facilities which have enabled 
us to speed up shipping times and 
increase our output we are able to 
operate at high levels of efficiency 
with lower handling costs
customers can directly access the website 
to find the status of their orders so they can 
plan their experiments more effectively
4 we support
our products come with an abpromise 
giving customers the reassurance of 
knowing that
our antibodies are of the highest quality 
and are backed up by an expert technical 
team who are available to assist in initial 
product selection
customers can at any time contact 
other customers using the same antibody 
via our unique abreviews
sm
 system
if after optimisation any product does 
not perform as described on the 
datasheet customers can contact our 
expert team to ask for advice and 
assistance
in the unlikely event that a product is 
faulty we will replace or provide a full 
refund if reported within 120 days  
of purchase
•
•
•
•
where we operate
abcam plc is headquartered 
in cambridge uk we have 
a us office in cambridge 
massachusetts and have 
recently opened an office  
in tokyo japan
in the uk we recently completed 
construction of a new highthroughput 
production htp laboratory that will 
broaden our portfolio of highmargin 
products developed inhouse we 
continue to benefit from close links to  
the university of cambridge from which  
a large number of our phd recruits 
are drawn
our us office has made a substantial 
contribution to sales since it was opened 
four years ago over the last 12 months 
we have improved service to our us 
customers by extending opening times 
and introducing saturday working
the opening of our japanese office in 
december 2006 reflects our determination 
to expand in east asia one of the fastest
growing antibody markets in the world 
with a physical presence in tokyo we  
are radically improving the quality of the 
service we provide to customers in 
the region
3
regions
we operate in the world’s three 
main markets abcam plc annual report and accounts 30 june 2007 03 annual report and accounts 30 june 2007 abcam plc
where we operate
usa
the us is abcam’s largest market 
accounting for over 50 of sales last 
year this is the largest market in the 
world and we have recently launched a 
new sales and marketing programme 
to further drive sales growth
europe
in europe our renewed focus on 
marketing has propelled a 588 
yearonyear increase in the volume  
of business our virtual offices are 
promoting the use of french and 
german so that many european 
customers can now contact us directly 
in their own language
japan
it is still early days for our japanese 
business but we are delighted with  
its performance to date which saw 
sales in the second half of the year of 
¥160m £680k we have also recently 
launched a japanese version of our 
website
960
m
 estimated us market in 2006
525
m
estimated european market in 2006
175
m
estimated japanese market in 2006 abcam plc annual report and accounts 30 june 2007 04
it gives me great pleasure to report on a 
second outstanding year for abcam as a 
public company building on the growth 
we enjoyed in 2006 we have produced 
another excellent set of results whilst 
making some important investments in  
the year which will serve as a springboard 
to even greater success in the future
first of all the construction of our htp 
facility in cambridge uk has been 
completed on schedule and operations 
have already started the facility will help 
abcam to take advantage of new business 
opportunities such as a better pharma
biotech offering and potentially diagnostics
in addition to the htp facility we officially 
opened our new office in japan in 
december 2006 located in a prominent 
business district of tokyo the office gives 
us a strong foothold in one of the most 
rapidly growing antibody markets in the 
world having a local presence will greatly 
improve the quality of the support we can 
provide to abcam customers in this region 
with this goal in mind we have also 
enhanced the japanese version of our 
website whilst these are early days for 
the japanese business we are 
encouraged by its performance during  
its first few months
although we plan to enlarge our portfolio  
of antibodies produced inhouse we 
continue to build relationships with institutes 
academic laboratories and primary 
manufacturers that supply products to be 
sold under the abcam brand over the last 
financial year we have also acquired the 
exclusive rights to distribute new antibody 
product lines with three companies in 
august 2006 we announced an exclusive 
deal with triple point biologics inc for a 
range of 350 antibodies with the delivery of 
another 360 antibodies over the next three 
years we followed that by signing similar 
agreements with assay biotechnology 
company inc a us firm that tests 
validates and markets research antibodies 
and with diaclone which is part of the 
tepnel group and develops antibodies and 
kits in the uk abt have already made 500 
products available to abcam on exclusive 
terms and are committed to adding a further 
3000 to our portfolio over the next five 
years diaclone has made 341 products 
available with exclusive distribution rights  
in the americas and japan
since our last annual report we have 
continued to attract topquality staff we 
now employ 27 phds out of 131 fulltime 
employees and are currently in the midst  
of a recruitment drive as we increase 
production at the htp facility last july  
we announced the appointment of two new 
nonexecutive directors tim dye and 
mark webster both have proven to be 
extremely valuable additions to the board
after almost eight years as finance 
director a period including abcam’s 
successful ipo in 2005 eddie powell has 
indicated his desire to leave the company 
to allow him to take a career break and 
subsequently to be available for consulting 
positions we are already well under way 
in appointing eddie’s successor eddie  
will be stepping down from the board on 
20 november 2007 following which we 
will retain his services as an adviser  
we owe him a debt of gratitude for his 
valuable contribution to building the 
company and wish him well for the future
abcam is becoming increasingly visible  
on the world stage as an important 
contributor to the field of antibodies and 
related medical disciplines our market 
reach makes us attractive to suppliers 
and our customer base now extends 
chairman’s review
abcam is becoming increasingly visible on 
the world stage as an important contributor 
to the field of antibodies and related medical 
disciplines our market reach makes us 
attractive to suppliers and our customer 
base now extends across almost 60 countries 
thanks largely to our reputation for reliability 
and trust in the marketplace abcam plc annual report and accounts 30 june 2007 05 annual report and accounts 30 june 2007 abcam plc
across almost 60 countries thanks largely 
to our reputation for reliability and trust in 
the marketplace a recent internally 
commissioned independent report named 
abcam as one of the top five research 
antibody companies in the world and in 
some of our core focus areas cfas 
such as chromatin research we believe 
we are the market leader
with the landmarks we have reached this 
year and the initiatives we have unveiled 
abcam has laid solid foundations for 
expansion in the future we remain firmly 
committed to our mission to build the 
largest online catalogue of the best 
antibodies in the world
once again i am grateful to all of our staff 
for their efforts during the year and take  
the opportunity to thank our customers 
suppliers and shareholders for their 
continued support
dividends
the directors’ policy since the ipo in 
november 2005 has been to distribute 
25 of earnings as dividends however  
in view of the continuing strong cashflow 
and growing success of the group the 
directors have decided to increase the 
distribution to 33 of earnings an interim 
dividend of 08p per share was paid in 
april 2007 and the directors are therefore 
recommending a final dividend of 319p 
per share making a total for the year of 
399p subject to shareholder approval at 
the annual general meeting in november 
this dividend will be paid on 7 december 
2007 to shareholders on the register on 
9 november 2007
outlook
we are entering the current year with an 
exciting platform for growth and current 
trading in the first few months of the year 
has been strong the board is confident 
of the outlook for 2008
david cleevely
chairman
28 september 2007
june 2007
december 2006
july 2006 ongoing
060 7 a year in review
over 33000 products in 
our catalogue
the number of products available in our 
catalogue hit 33900 including more than 
25000 antibodies and 8000 related 
products such as proteins peptides and 
kits new products from abcam’s own 
development facilities and external 
suppliers continue to be added on a daily 
basis to the catalogue which has grown  
at a compounded annual rate of 54 since 
its inception in 2002
new japanese office
abcam opened its second overseas office 
in tokyo japan the move represents a 
major push to increase sales in east asia 
it will help abcam to improve the quality  
of the technical support it offers customers 
in the region and speed the delivery of 
abcam products to far east markets
new cambridge 
manufacturing facilities
abcam launched a major project to expand 
its laboratory and production capabilities 
a new development facility in cambridge 
uk will allow abcam to significantly boost 
the production of highmargin antibodies 
over the next six years
core focus area initiative
following an indepth study of the market 
abcam has chosen seven core focus 
areas cfas each of which represents  
a research area with high market demand 
we have vertically integrated our business 
development manufacturing marketing 
sales and technical support teams around 
these areas and expect to add a further 
three cfas by june 2008 abcam plc annual report and accounts 30 june 2007 06
abcam has enjoyed another impressive 
year with sales increasing by 266 to 
£245m this growth came despite the 
weakening dollar without which sales 
would have grown by 338 average 
exchange rate applied to us sales  
2007 £1 192 2006 £1 177
this success is due to the introduction  
of new products and the performance of 
the existing catalogue taken across the 
catalogue average unit sales continue  
to increase the longer a product is listed – 
a trend we attribute in part to the sheer 
quantity of product information we are 
able to gather and publish over time 
we should also not underestimate the 
contribution made by our highly skilled 
and committed staff who make abcam 
such a dynamic and motivating 
organisation
we now have almost 34000 products in 
our online catalogue up from 23200 at 
the end of june 2006 as well as listing 
over 25000 antibodies we sell more than 
8000 related products including proteins 
peptides and kits the rapid expansion of 
our product portfolio has been fuelled by  
a growing number of partnerships with 
leading oem suppliers worldwide and by 
our acquisition of the exclusive rights to 
distribute antibodies developed by some 
leading international manufacturers over 
the last financial year
major contributions to revenue have come 
from our us operation where longer 
opening hours and a push on sales and 
marketing activities have helped us to 
achieve a high rate of growth
in europe a similar focus on marketing in 
the second half of the year has propelled a 
588 yearonyear increase in the volume 
of business over the corresponding period 
last year our virtual european offices are 
promoting the use of french and german 
so that many european customers can now 
contact us directly in their own language
despite significant investments for the 
future profit before taxation increased to 
£57m from £48m in 2006 while margins 
remain strong overall profitability has 
been affected by the investment in the 
new japanese office the impact of the 
weaker us increased research and 
development costs earlystage costs for 
the exclusive distribution deals and the 
fullyear effect of the costs of operating  
as a listed company
work on the htp facility meanwhile was 
finished in june 2007 the antibodies we 
develop ourselves have typically been 
among our best sellers whilst only 6 of 
the products sold under the abcam brand 
are produced inhouse these represent 
16 of our sales by value and generate 
proportionately higher margins we expect 
that the new facility will allow us to 
dramatically increase our range of 
inhouse products over the next few years 
and will lead to increased sales as well  
as improved gross margins
abcam is expert at identifying the areas  
of research with the most promise and 
offering products specifically tailored  
to meet associated demands these 
products fall within our core focus areas 
ceo’s review
we are now becoming a leading player in an 
important and exciting market we have built  
a scaleable business based around our stateof
theart website in addition with our large and 
growing database of users we can now tailor 
our marketing activities according to customer 
interest we have almost 34000 products in our 
online catalogue up from 23200 at the end of 
june 2006 the introduction of new products  
and the performance of the existing catalogue 
have driven up sales by more than 26 abcam plc annual report and accounts 30 june 2007 07 annual report and accounts 30 june 2007 abcam plc
cfas externally we have presented at 
conferences and run marketing activities 
around these cfas while internally we 
have vertically integrated our technical 
service marketing business development 
and sales departments to take full 
advantage of them we have found this  
to be a highly successful strategy for 
capturing market share by segment and 
plan to develop more cfas in the future
we are now becoming a leading player  
in an important and exciting market we 
have a scaleable business based around 
our stateoftheart website by offering 
customers access to detailed and 
uptodate technical information on our 
products much of which is derived from 
customers’ own reviews we have built a 
strong reputation for trust and reliability 
in addition with our large and growing 
database of users we can now tailor our 
marketing activities according to customer 
interest the investment we have made  
in systems to link the website to product 
ordering and accounting has improved  
our efficiency and gives us the 
confidence that we will continue to 
manage our growth effectively
jonathan milner
ceo
28 september 2007
33900 products now in our catalogue
our products
product categories
our products fall into the following 
treatment categories
cancer
cardiovascular
cell biology
chromatin
isotypeloading controls
lysatesslideskits
neuroscience
nuclear signalling
secondary antibodies
stem cells
tags and cell markers
•
•
•
•
•
•
•
•
•
•
•
abcam has almost 34000 
products in its catalogue and 
the number is still growing
our team not only adds new 
products to our catalogue 
every day but also regularly 
modifies the datasheets for 
our existing products these 
modifications are based 
on our own testing and 
research in addition to the 
feedback of our suppliers 
and customers
for our customers  
all of this means
more antibody targets
more product types
more choice
around 6 of products sold under the 
abcam brand are manufactured inhouse 
but these products generate 16 of our 
revenue and typically generate 
proportionately higher margins
•
•
•
following the construction of a new 
production facility in cambridge uk  
we plan to devote substantially more 
resources to inhouse product 
development by 2012 we expect  
50 of abcambranded products to  
be produced at our sites this will 
significantly boost our revenue and  
gross margins
products sold by abcam but not 
manufactured on our premises are 
supplied by more than 200 leading  
oem partners around the world abcam plc annual report and accounts 30 june 2007 08
the construction of our htp facility in 
cambridge uk was a major project this 
year and i am delighted to report it was 
completed on time and within budget 
at this facility we will develop a highly 
automated monoclonal antibody 
production system and continue to 
produce polyclonal antibodies we expect 
it to become one of the most advanced 
antibody production facilities in the world 
further proving our commitment to build 
scaleable business processes and 
products of the highest standard the 
facility is expected to add over 35000 new 
quality highmargin monoclonal antibodies 
to our catalogue over the next five years
the robotic stock storage and retrieval 
system that has been so successful in the 
uk has now been replicated in the us 
and it is delivering similar results in terms 
of the speed and reliability of order 
delivery using leadingedge storage and 
handling facilities we have successfully 
cut our shipping times and increased our 
rate of output without incurring additional 
expenditure on staffing and conventional 
refrigeration systems
extended opening times and saturday 
working in the us have further improved 
service levels to customers and we are 
now trialling a keyaccount marketing 
initiative selling to targeted market areas 
in the country in the uk we recently 
launched a new service promising 
sameday delivery of antibodies to 
scientists based in the cambridge  
area at no extra cost
we have successfully developed and 
deployed a japaneselanguage version  
of our website to take full advantage of 
our local presence in our tokyo office 
priorities in the far east include improving 
our technical support and speeding up the 
delivery of our products to customers 
japan is a challenging market and so  
far we have been delighted with the 
performance of the business which has 
generated ¥160m £680k in revenue  
in the second half of the year
we continue to improve the performance 
of our website in general focusing on the 
speed of access to our global market 
we are now deploying a content caching 
and delivery solution so that our website 
can be served locally from over 25000 
servers across 69 countries this 
important initiative will help stabilise  
the website and improve response times 
for users supporting the continued 
expansion of our geographical reach
growth of the scale we are achieving 
relies in large part on the continued 
commitment of staff we place strong 
emphasis on responsibility for and 
communication with employees through 
a programme of weekly updates quarterly 
departmental and annual strategy and 
budget presentations we ensure that 
each employee understands his or her 
objectives and targets and how these 
relate to the group as a whole  
the success of the programme is 
demonstrable in the enthusiasm and 
creativity which drives the group
jim warwick
managing director
28 september 2007
managing director’s review
our highthroughput facility which is one 
of the world’s most advanced antibody 
production laboratories is designed to 
produce an increasing number of higher 
margin inhouse products to add to our 
online catalogue abcam plc annual report and accounts 30 june 2007 09 annual report and accounts 30 june 2007 abcam plc
major expansion of manufacturing facilities
our facilities
abcam is massively expanding its laboratory and 
production capabilities its brand new laboratory 
in cambridge uk covers 20000 square feet and 
includes high throughput antibody purification and 
characterisation facilities
the benefits
the facility is expected to add over 35000 
new quality highmargin products to our 
catalogue over the next five years to 
complement our existing range from 
trusted suppliers giving us the best 
catalogue in the world with this 
development we will be able to improve 
both the range and the availability of the 
products we offer our customers and 
maintain our position as market leader for 
the provision of antibodies and reagents
we are now recruiting key staff for the 
planning implementation and ongoing 
management of this exciting new 
development abcam plc annual report and accounts 30 june 2007 10
gross margin
gross margins reported for the period 
under review are 591 compared with 
613 for the previous year the 
difference results partly from an increased 
allocation of costs to cost of sales and 
lower margins in the early stages of the 
exclusive product distribution deals signed 
in the year as sales of products from 
these deals grow we expect margins to 
exceed those of the rest of the catalogue
part of the remit of our business 
development team is to obtain best terms 
from our suppliers and price increases in  
the year have been modest overall as the 
group’s sales grow we are buying more from 
our suppliers and consequently are now 
able to negotiate some price reductions
administrative expenses
although administrative expenses rose 
from £62m to £76m they fell as a 
percentage of sales from 319 to 309 
the costs for the year include those 
incurred in relation to the opening of the 
japanese office spending our first fullyear 
as a public company and as explained 
below from the application of frs 20
the accounting standard frs 20 on 
sharebased payments has been applied 
to the company’s accounts for the first 
time and this has resulted in a charge  
of £162000 for the period as the first 
application of this standard is a change  
of accounting policy the results for the 
same period last year have been restated 
by including a corresponding charge in 
the expenses for that period of £72000
us impact
the weakening dollar has had an adverse 
impact on revenue had the rate remained 
the same as the previous year sales 
would have been higher at £259m and 
operating profit would have been £04m 
higher based on an average exchange 
rate applied to us sales 2007 £1 192 
2006 £1 177
research and development 
expenditure
research and development expenditure 
increased to 70 of sales from 63 in 
2006 and this is reflected in the growing 
number of products which are produced 
inhouse
profit
operating profits increased 153 from 
£45m in the year ended june 2006 to 
£52m the decrease as a percentage of 
sales from 233 to 212 reflects the 
impact of the additional costs outlined above 
interest income rose as the company 
benefited from fullyear availability of 
funds raised from the ipo
tax
the consolidated tax charge for the year 
was £16m or 273 of profit before tax 
the effective tax charge for 2006 was 
291 reflecting the increased amount  
of research and development undertaken 
this year and the consequent tax credits 
the tax charge for 2006 has been 
restated from £12m to £14m as a result 
of frs 20 see note 22
inventories
inventory levels have increased somewhat 
faster than sales partly because of inventory 
purchased as part of the product line 
agreements that provide abcam with 
exclusive distribution rights to certain 
products and partly because of the increase 
in the number of abcam products developed 
inhouse which involve batch sizes larger 
than required for immediate sale
debtors
the majority of sales continue to be on 
credit and credit control is a key function 
debtor days have increased slightly to  
47 days 2006 45 days historically the 
group has experienced a low level of 
bad debt
creditors
total creditors rose from £30m to £38m 
these now include amounts owing in 
relation to the deferred settlement 
arrangements on product line acquisitions 
concluded during the year these have 
been allocated between creditors due 
within one year and amounts falling due 
after one year
provisions for liabilities and charges 
represent deferred tax balances which 
financial review
pretax profits have risen 181 to £57m and 
abcam’s operating cashflow at £49m 
remains strong abcam now employs 131 fulltime staff 
27 of whom have phds in the uk we 
are able to draw on our close links with 
the university of cambridge from where 
many of our phd recruits come
abcam remains fully committed to 
enhancing the abilities of its team 
members through its programme of  
staff training and development
we continue to grow with the 
construction of our laboratory in 
cambridge uk we are now recruiting 
staff for key roles in the planning 
implementation and management  
of this new business
the strength our staff bring is 
demonstrable in the enthusiasm and 
creativity which drives the company
abcam plc annual report and accounts 30 june 2007 11 annual report and accounts 30 june 2007 abcam plc
have increased due to the level of 
expenditure during the year on capital 
equipment relating to the htp facility
cash flow
the group’s cashflow continues to be 
strong with £49m 2006 £35m 
generated from trading in the period 
consequently despite spending £18m  
on acquiring distribution rights and £23m 
on facilities and equipment the group’s 
cash and short term investments balances 
only decreased by £12m
accounting standards
the results for the period ended 30 june 
2007 have been produced on the same 
basis as the restated statutory accounts  
at 30 june 2006 these accounts conform 
with uk generally accepted accounting 
principles abcam will move to report 
under international financial reporting 
standards for the year ending 30 june 
2008 but this is not expected to have a 
material impact on the group’s 
reported results
eps
whilst post tax profit grew by 211  
the growth in basic eps was only 1174 
reflecting the impact of the significant 
number of shares which were issued on 
the company’s ipo in november 2005 
see note 9
currency exposure
the group continues to generate 
significant amounts of surplus dollars and 
euros and has hedging arrangements in 
place to reduce the exposure during the 
year to 30 june 2007 the company had 
forward exchange contracts in place to 
sell 96m and €36m at average rates  
of £1 to 179 and £1 to €147 respectively 
for the year ending 30 june 2008 the 
company has contracts in place to sell 
forward 78m and €65m these 
contracts are at average rates of £1  
to 192 and £1 to €147
eddie powell
finance director
28 september 2007
strength through brilliant people
our people
we take enormous pride in the calibre of our employees 
since its launch in 1998 abcam has had tremendous 
success in attracting highly skilled people to its business 
and it now boasts an impressive intellectual capital base abcam plc annual report and accounts 30 june 2007 12
the board
1 2
3 4
5 6
7 8
1 david cleevely phd 54 
chairman
david cleevely is the founder and former 
managing director of analysys ltd after 
its formation in 1985 he oversaw 
analysys’ growth into europe’s largest 
independent consultancy specialising in 
telecommunications strategy analysys 
was sold in august 2004 and david has 
no current involvement david has a first 
class honours degree in cybernetics and 
instrument physics with mathematics and 
a phd in ‘regional structure in telecoms 
demand’ from cambridge university in 
1982 he joined the economist informatics 
intelligence unit eiu becoming 
divisional director he founded abcam 
with jonathan milner and tony kouzarides 
in february 1998
2 jonathan milner phd 43 
group chief executive
jonathan milner has a bsc in applied 
biology from bath university and a phd  
in molecular genetics from leicester 
university from 1992 to 1995 he was a 
research fellow for pfizer pharmaceuticals 
in the laboratory of professor tony rees 
at the university of bath and from 1995 
until 1998 he was a research fellow at 
cambridge university in the laboratory  
of professor tony kouzarides where he 
studied genes and proteins associated 
with human cancers he founded abcam 
with david cleevely and tony kouzarides 
in february 1998
3 jim warwick bsc 43 
managing director
jim warwick has a bsc in computer 
science from cambridge university from 
1986 to 2003 he worked for analysys ltd 
a cambridgebased telecommunications 
consultancy heading up the it software 
and web development initiatives during 
this period he also held a number of 
nonexecutive directorships with external 
organisations including workbench 
software ltd a startup with a targeted 
software package for time recording 
systems and vbn ltd a webbased 
hosting company specialising in business  abcam plc annual report and accounts 30 june 2007 13 annual report and accounts 30 june 2007 abcam plc
cluster and innovation network solutions 
he joined abcam in 2001 as technical 
director initially working parttime but as 
a permanent employee from 2003 he  
has overseen the expansion of abcam’s 
bespoke webbased systems jim was 
promoted to managing director of abcam 
ltd in june 2004
4 eddie powell phd fca 59 
finance director
eddie powell has a bsc and a phd in 
chemistry from cambridge university  
and qualified in 1976 as a chartered 
accountant with peat marwick mitchell 
now kpmg in london he then worked 
for two years as a financial controller in 
frankfurt germany after returning to  
the uk he joined marconi instruments a 
subsidiary of gec as financial controller 
and later finance director in 1990 he 
moved to colt a privately owned 
international lightengineering group as 
group finance director he joined abcam 
in march 2000 as finance director
5 mark webster bsc 45 
commercial director
mark webster has a bsc in chemistry 
from durham university he joined abbott 
laboratories in 1988 and ran the uk 
pharmaceutical and hospital divisions 
before moving to montreal canada in 
1997 and then chicago usa in 1999  
as vice president of antivirals us 
pharmaceuticals here he launched 
kaletra for hiv infection which generated 
1bn in revenue in 2001 he joined shire 
pharmaceuticals as head of global 
strategic marketing and licensing
acquisitions and a member of the 
executive committee he then joined 
bayer healthcare in germany in 2004  
as senior vice president head of global 
strategic marketing and licensing
acquisitions and a member of bayer 
pharmaceutical’s management 
committee after joining the board as a 
nonexecutive director in july 2006 he 
became a fulltime director of abcam in 
march 2007 he will revert back to a 
nonexecutive role in november 2007
6 tony kouzarides frs phd 50 
nonexecutive director
tony kouzarides has a bsc in molecular 
genetics from leeds university and  
a phd in virology from cambridge 
university he was subsequently awarded 
a research fellowship from fitzwilliam 
college cambridge from 1986 to 1989 
he spent three years working as a 
research fellow in the laboratory of 
professor ed ziff at new york university 
medical centre where he discovered a 
fundamental principle underlying the 
association of proteins involved in human 
cancer he was awarded a professorship 
at cambridge university in 1999 and now 
oversees a group of scientists studying 
genes and proteins associated with 
human cancers he has played a central 
role in expanding abcam’s own antibody 
product range into the chromatin 
research area
7 peter keen bsc aca 50 
nonexecutive director
peter keen is a chartered accountant 
with more than 20 years’ experience in  
the financing and management of 
biotechnology companies after gaining 
experience in the agricultural 
biotechnology and medical diagnostics 
sectors he was a cofounder and finance 
director of chiroscience group plc he 
then helped establish merlin biosciences 
being responsible for a number of 
investments including ark therapeutics 
cyclacel reneuron and vectura more 
recently he was chief financial officer of 
arakis ltd until its successful trade sale in 
2005 he is a partner with the technology 
venture firm esprit capital partners llp 
and a nonexecutive director of ark 
therapeutics plc the biotech growth 
trust plc and prelude trust plc he also 
acts as an advisor to various other 
organisations
8 tim dye ma 44 
nonexecutive director
tim dye is currently chairman and chief 
executive of william ransom  son plc 
an aimquoted business specialising in 
the manufacture sales and marketing  
of natural healthcare products through  
a series of successful acquisitions he  
has led the transformation of william 
ransom into one of the uk’s largest 
natural healthcare groups prior to joining 
ransom in 1999 and following an early 
career as a strategy consultant he 
founded and ran businesses in automated 
meter reading environmental 
management and property development 
he has an ma in economics from 
cambridge university abcam plc annual report and accounts 30 june 2007 14
corporate directory
directors
chairman
dr david cleevely
ceo
dr jonathan milner
finance director
dr eddie powell
managing director
mr jim warwick
commercial director
mr mark webster
nonexecutive directors
mr tim dye
mr peter keen
prof tony kouzarides
company secretary and registered office
mr tom mcguire
332 cambridge science park
cambridge
cb4 0fw
nominated advisor and broker
numis securities limited
the london stock exchange building
10 paternoster square
london
ec4m 7lt
solicitors to the company
eversheds llp
senator house
85 queen victoria street
london
ec4v 4jl
auditors
deloitte  touche llp
chartered accountants
126130 hills road
cambridge
cb2 1ry
public relations advisors
buchanan communications limited
45 moorfields
london
ec2y 9ae
bankers
national westminster bank plc
king’s parade
cambridge
cb2 3pu
registrars
capita irg plc
northern house
woodsome park
fenay bridge
huddersfield
hd8 0la 15 annual report and accounts 30 june 2007 abcam plc
directors’ report
the director’s present their annual report on the affairs of the 
group together with the financial statements and auditors’ report 
for the year ended 30 june 2007
principal activities and future developments
the group’s activities consist of the development marketing  
and selling of antibodies and closely related products the group 
sells through the internet to customers in most countries of the 
world the group operates through its parent company abcam 
plc and through its wholly owned subsidiaries abcam inc and 
abcam kk
the company is also increasing its own manufacturing capability 
through investment in a new highthroughput production ‘htp’ 
laboratory 
future developments are addressed in the chairman’s ceo’s 
and managing director’s reviews at the front of this annual report
business review
the group’s management uses key performance indicators kpis 
to monitor the progress of the business important kpis are
 30 june  30 june 30 june 
 2007 2006 2005
number of products  
 published 33900 23200 16500
sales per employee £000 203 223 209
profit before tax to sales 233 249 245
number of debtor days 47 45 47
sales increased by 266 over the previous year 338 on a 
constant exchange rate basis actual rate for 2007 £1 192 
2006 £1 £177 as a result of the launch of new products and 
continued increases in sales from the existing catalogue the 
group continued to generate strong margins and pretax profits 
increased by 181 reflecting the cost of investments made in 
the year particularly in connection with acquired product lines 
the new japanese office higher levels of research and 
development expenditure the costs of operating as a listed 
company for the full year and the impact of the weaker us
the average number of employees for the year has increased  
to 121 2006 87 in part this is a consequence of investments 
made for the future including those staff involved in setting up 
the htp facility and the new office in japan
the group’s cash and short term deposits remained at a strong 
level of £107 million 2006 £119m
the directors are confident that the group has a solid basis  
for growth an overview of the business is set out in the chief 
executive officer’s and managing director’s reviews together 
with the financial review
principal risks and uncertainties
the group faces the competitive and strategic risks that are 
inherent in a rapidly growing market and the group’s board  
and executive management keep these under regular review
the group has an exposure to exchange rates in particular  
the strength of sterling relative to the us dollar and the euro 
although there are significant natural hedges in place due to the 
fact that the group is able to utilise a large proportion of its dollar 
and euro income to pay for outgoings in those currencies the 
group still generates surpluses of both currencies the board’s 
policy for dealing with these is to sell forward some of the 
expected surplus currencies at the start of each financial year  
in order to reduce the short term exposure however if there are 
longer term movements in the relative strength of sterling then 
these will impact the group’s profits for further details on the 
use of financial instruments see note 16
the group’s activities involve importing and exporting its 
products across many international borders any changes to the 
regulations covering such movements might have an effect on 
the group’s trading activities
the company has made qualifying third party indemnity 
provisions for the benefit of its directors which were made during 
the reporting period and remain in force at the date of this report
research and development
the group undertakes research and development in areas 
related to its principal activities and this is discussed in the 
chairman’s ceo’s and managing director’s reviews at the  
front of this annual report
post balance sheet events
none to be noted
dividends
the directors propose paying a final dividend of 319p 2006 
20p per ordinary share to be paid on 7 december 2007 to 
shareholders on the register on 9 november 2007 together  
with the interim dividend of 08p paid on 9 april 2007 this  
makes a combined dividend of 399p 2006 595p abcam plc annual report and accounts 30 june 2007 16
directors’ report continued
directors
the directors who held office throughout the year and their 
interests in the share capital of the company at 30 june 2007 
other than with respect to share options which are detailed in  
the directors’ remuneration report were as follows
 1p ordinary shares 1p ordinary shares  
 30 june 2007 30 june 2006
david cleevely 4669760 5054760
peter keen 8982 8982
tony kouzarides 359080 629080
tim dye nil nil
jonathan milner 9044960 9744960
eddie powell 636240 726240
jim warwick 826200 860200
mark webster nil nil
david cleevely and jonathan milner are required to be reelected 
at the forthcoming annual general meeting
supplier payment policy
it is the group’s policy that payments to suppliers are made in 
accordance with the terms and conditions agreed with them 
provided that the supplier has provided the goods or services  
in accordance with the agreed terms and conditions
on 30 june 2007 the group had an average of 32 days of 
purchases 2006 32 outstanding in trade creditors
charitable and political donations
the group made charitable donations during the year of £1020 
2006 £2646 principally to charities serving the communities 
in which it operates
the group made no political donations during the year 
2006 £nil
substantial shareholdings
other than directors’ interests which are set out above as at  
28 september 2007 the company had been notified that the 
following shareholders hold 3 or more of the issued share 
capital of the company
unicorn asset management limited  73
aviva plc  66
standard life investments limited  51
eaglet investment trust plc  32
corporate social and ethical policies
we recognise the importance of balancing the interests of all  
our key stakeholders – our customers our shareholders our 
employees our suppliers and the communities in which we 
operate management of the environmental and social issues  
that play a part in our business is a key factor in our strategy for 
success and in the practice of good corporate governance
going concern
the directors are satisfied that the group has adequate 
resources to continue its operations for the foreseeable  
future and for this reason they continue to prepare the  
financial statements on a goingconcern basis
auditors
in the case of each of the directors of the company at the date 
on which this report was approved
 as far as each of the directors is aware there is no relevant 
audit information as defined in the companies act 1985 of 
which the company’s auditors are unaware
 each of the directors has taken all the steps that he ought to 
have taken as a director to make himself aware of any relevant 
audit information as defined and to establish that the 
company’s auditors are aware of that information
this confirmation is given and should be interpreted in 
accordance with the provision of s234za of the companies  
act 1985
deloitte  touche llp have expressed their willingness to 
continue in office as auditors and a resolution to reappoint them 
will be proposed at the forthcoming annual general meeting
approved by the board and signed on its behalf by
david cleevely
chairman
28 september 2007
•
• abcam plc annual report and accounts 30 june 2007 17 annual report and accounts 30 june 2007 abcam plc
corporate governance
the directors believe that effective corporate governance 
appropriate to the group considering its size and stage of 
development will assist in the delivery of corporate strategy  
the generation of shareholder value and the safeguarding of 
shareholders’ long term interests the directors are committed 
therefore wherever it is reasonably practicable to ensure that 
the group is managed in accordance with the principles set out 
in the revised combined code on corporate governance
the role and composition of the board
the board comprises a nonexecutive chairman who is not 
deemed to be independent because of his shareholdings four 
fulltime executive directors and three other nonexecutive 
directors two of whom are deemed to be independent because 
they have either very few or no shares or share options mark 
webster moved from being nonexecutive to executive director 
in march 2007 and having successfully redefined and 
implemented the company’s sales and marketing strategy 
particularly in the north american market will resume his  
nonexecutive responsibilities from 1 november this year
the roles of chairman and chief executive are vested in 
separate individuals each with clear allocation of accountability 
and responsibility the chairman has prime responsibility for 
running the board and the chief executive officer has executive 
responsibilities for the company’s strategic development 
operations and results
the structure of the board and the integrity of each director 
ensures that there is no one individual or group dominating  
the decision making process
the board holds full meetings every second month the principal 
matters that it considers are as follows
 monthly management accounts and performance against 
budget
 regular reviews of rd operations and product line 
acquisition
 an annual review of strategic objectives and company priorities
 the group budget
 reporting including statutory accounts dividend policy 
dividend payments and the agm
 performance of the board and subcommittees
 reports of the audit nomination and remuneration  
committees
 an annual review of riskmanagement strategy and controls  
and a sixmonthly review of the risk register
 matters relating to the company’s obligations as a listed 
company
 management of funds and major capital expenditure including 
proposals for mergers or acquisitions of other companies or 
product lines
•
•
•
•
•
•
•
•
•
•
in those months when the board does not meet members continue 
to be informed on a formal reporting basis of financial results and 
key issues the board is supplied with information in a timely 
manner and in a form and of a quality appropriate to enable it to 
discharge its duties directors receive appropriate induction on 
joining the board and regularly update their skills and knowledge
the board has a policy to set out which matters are reserved for 
the decision of the board and to clarify those matters which the 
executive directors need not refer for approval
this policy also identifies those matters regarding which full 
delegation to a board committee is not normally permitted 
because a final decision on the matter is required to be taken by 
the whole board the terms and conditions for the appointment 
of nonexecutive directors are available for inspection matters 
which the board considers suitable for delegation are contained 
in the terms of reference of its committees
the board has established the following three committees
the audit committee
the nomination committee
the remuneration committee
each of the committees is described in more detail below
the audit committee
the committee is made up of three nonexecutive directors two 
of whom are considered to be independent the chairman is 
peter keen who is a chartered accountant with david cleevely 
and tony kouzarides being the other directors on the committee
the committee has responsibility for the following matters
 to review the accounts and the key judgements and policies 
underlying them in relation to the interim and annual financial 
statements before they are submitted to the board for final 
approval
 to review the management’s reports on internal controls
 to review the group’s riskmanagement process including the 
adequacy of insurance cover
 to review the appointment of the external auditors together 
with the audit fee
 to monitor the audit and nonaudit work of the external 
auditors including reviewing any management letters and the 
company’s response
as part of its procedures the committee discusses the interim 
and annual financial statements with the external auditors when 
appropriate noncommittee members are invited to attend 
during the period the committee has met twice on a formal basis 
and a number of times informally the committee is expected to 
continue to meet formally twice a year
•
•
•
•
•
•
•
• abcam plc annual report and accounts 30 june 2007 18
the nomination committee
the committee is made up of three nonexecutive directors  
one of whom is considered to be independent david cleevely 
chairman peter keen and tony kouzarides it is responsible 
for the following matters
 to identify and nominate suitable candidates to fill vacancies 
on the board
 to review succession planning for both directors and the 
management team
the remuneration committee
the committee is made up of three nonexecutive directors two 
of whom are deemed to be independent peter keen chairman 
david cleevely and tim dye
the committee is responsible for the following matters
 setting the basic pay of executive directors and the 
remuneration of the chairman
 setting a performancerelated bonus plan for the executive 
directors including determining the extent to which they 
participate in the company’s profit share scheme pss
 agreeing the allocation and term for the granting of new share 
options to executive directors
 determining the executive directors’ pension contributions
 overseeing the overall annual pay review for the group
the committee aims to set levels of remuneration for executive 
directors that are appropriate for the size and complexity of the 
group it aims to see that a significant proportion of their 
remuneration package is performancerelated
the committee is also responsible for overseeing the company’s 
profit share scheme and its share option scheme both of which 
are reviewed each year
•
•
•
•
•
•
•
internal control
the board acknowledges its responsibility for safeguarding the 
shareholders’ investment and the group’s assets in applying this 
principle the board recognises that it has overall responsibility 
for ensuring that the group maintains a system of internal control 
to provide it with reasonable assurance regarding effective and 
efficient operation internal financial control and compliance with 
laws and regulations
through the audit committee and meetings with the auditors the 
directors have reviewed the effectiveness of the internal controls 
and taken steps to ensure that the group has an appropriate 
control environment for its size and complexity the management 
team will identify evaluate and monitor risk in order to ensure 
that the internal control environment develops with the size of 
the group
such systems which are designed to manage rather than 
eliminate the risk of failure to achieve business objectives  
will provide reasonable though not absolute assurance  
against material loss or misstatement
dialogue with shareholders
the board believes it is important to have open communications 
with shareholders to this end the ceo and finance director 
working in consultation with the company’s corporate and pr 
advisors make themselves available to and expect to meet with 
shareholders at least twice a year the board intends to give a 
presentation on progress within the group at the agm
corporate governance continued abcam plc annual report and accounts 30 june 2007 19 annual report and accounts 30 june 2007 abcam plc
directors’ remuneration report
unaudited information
remuneration report
the group has a remuneration committee ‘the committee’ 
which wherever possible is constituted in accordance with  
the recommendations of the combined code
in considering the executive directors’ remuneration for the  
year the committee consulted the ceo about its proposals  
and reviewed executive compensation packages in the uk for 
aimlisted companies of comparable size it also referred to  
a number of specialist studies on executive remuneration
remuneration policy
the four main elements of the remuneration package for the 
executive directors are as follows
 basic annual salary
 the abcam profit share scheme pss and individual 
performancerelated targets which if targets are met  
amount to 50 of basic salary paid in cash
 shareoption incentives
 pension arrangements
the group’s policy is that a substantial proportion of the 
remuneration of the executive directors should be 
performancerelated
basic salary
an executive director’s basic salary is determined by the 
committee at the beginning of each financial year salaries were 
reviewed in june 2007 with increases taking effect from 1 july 
2007 executive directors’ service contracts which include details 
of remuneration will be available for inspection at the agm
performancerelated payments
the group operates a pss whereby an amount is allocated to all 
employees including the executive directors on a pointsbased 
system for the year under review the amount allocated was 
based on the achievement of a ratio of profit to sales and 
increased or decreased depending on whether the target ratio 
was hit for the year ending 30 june 2008 the amount to be paid 
through pss is dependent on the level of pretax profit achieved 
the amount allocated will vary depending on the level of 
profitability
the basis of performancerelated pay for executive directors for 
the year ending 30 june 2008 incorporates performance criteria 
related to the objectives for that particular individual which are 
directly related to defined strategic objectives if the company 
achieves the budgeted pretax profit and an executive director 
achieves all of his personal objectives he may earn 50 of his 
basic salary as performancerelated pay 40 from the pss and 
10 from the individual bonus the pss payment is not capped 
•
•
•
•
and so if the company exceeds its targets additional payments 
may be made payments on account from the pss are made 
each quarter although at no stage will they exceed 85 of the 
amount due until the audited accounts are approved
the pss scheme for all staff including executive directors  
is pensionable the performancerelated bonuses are non
pensionable
share options
it is the intention to grant additional options on a regular basis to 
the executive directors under the abcam plc 2005 plan while 
the value of such options may vary it is the current plan to issue 
options on an annual basis with a value equivalent to 100 of 
basic salary and with performance conditions which comply with 
guidelines and best practice governing the grant of sharebased 
incentives in a listed company to the extent to which the 
committee considers such practice to be appropriate to the 
group options will be granted to the executive directors on this 
basis ie at 100 of base salary calculated on the market price 
at the date of grant
for the next grant the performance conditions will be based on 
outperformance of the ftse aim index measured on the third 
anniversary of the date of grant if the target is achieved then 
options will be exercisable during the next seven years subject  
to the rules of the scheme if the target is not met at the third 
anniversary then it will be monitored on certain dates over the 
next 12 months if the target is met on any of those dates then 
the options become exercisable if the target is not met on any  
of those dates the options will lapse on the fourth anniversary
the company has also established a nondiscretionary inland 
revenueapproved saye scheme in which the executive 
directors may participate under this scheme employees can 
contract to save any amount up to a maximum of £250 per 
month of their posttax earnings for a period of either three or 
five years at the time of entering the contract the company will 
offer the employee the option to acquire shares using the money 
that has been saved over the life of the contract the price at 
which the shares can be purchased will be the market value of 
the shares on the date immediately preceding the offer at a 
discount of 20
in the period since listing on aim no share options have been 
granted to nonexecutive directors there are no plans for any 
such grants in the future
pension arrangements
in the uk all employees including executive directors are 
invited to participate in the group personal pension plan which 
is moneypurchase in nature the pensionable element of  abcam plc annual report and accounts 30 june 2007 20
directors’ remuneration report continued
remuneration is basic salary plus ontarget earnings from the pss during the year the group contributed 6 of ontarget earnings 
excluding the individual performance bonus to a group personal pension scheme in the name of each executive director
executive directors also have the option to take a further element of their remuneration as pension contributions and a flexible 
benefits scheme was introduced on 1 july 2007 for all employees of the company including executive directors
audited information
remuneration details
     employer’s notional gain 
  basic  performance pension on options 
  salary allowances payments contributions exercised 2007 total 2006 total 
  £000 £000 £000 £000 £000 £000 £000
david cleevely 57 – – – – 57 74
peter keen 33 – – – – 33 18
tony kouzarides 25 – – – – 25 66
tim dye 25 – – – – 25 nil
jonathan milner 97 – 95 77 – 269 252
eddie powell 106 – 70 17 – 193 204
jim warwick 73 – 75 61 92 301 204
mark webster 67 3 24 3 – 97 nil
the notional gain on options exercised is the market value of the shares at date of exercise less the exercise price payable the 
notional gain is before taking account of any tax liability that may arise
directors had the following interests in options over 1p ordinary shares in the company
 share number of number of share 
 options at options granted  options exercised options at exercise 
 30 june 2006 in the year  in the year 30 june 2007 price exercise period
david cleevely 40000 – – 40000 125p 310106 to 290915
peter keen 60000 – – 60000 150p 310106 to 261015
tony kouzarides 40000 – – 40000 125p 310106 to 290915
jonathan milner 40000 – – 40000 625p 270707 to 290915
 – 53571
1
 – 53571 280p 080909 to 060916
eddie powell 40000 – – 40000 625p 270707 to 290915
 – 39642
1
 – 39642 280p 080909 to 060916
 – 4218
2
 – 4218 224p 080909 to 060916
jim warwick 36000 – 36000 – 25p
 32000 – – 32000 375p 160607 to 150613
 32000 – – 32000 50p 160608 to 150613
 40000 – – 40000 625p 270707 to 290915
 – 42142
1
 – 42142 280p 080909 to 060916
 – 4218
2
 – 4218 224p 011109 to 010510
mark webster – 167230
3
 – 167230 296p  011107 to 010108
1 these options were granted under the abcam plc 2005 plan and are subject to the performance condition that the share price outperforms the ftse aim index 
at the third anniversary of grant if this is not the case performance will be tested on certain dates over the next 12 months and if the target is not met on any of 
those dates the options will lapse on the fourth anniversary
2 these options are granted under the save as you earn scheme options under the scheme are not subject to performance conditions
3 mark webster will become a nonexecutive director with effect from 1 november 2007 these options are not subject to performance conditions and have a two 
month exercise period ending on 1 january 2008 abcam plc annual report and accounts 30 june 2007 21 annual report and accounts 30 june 2007 abcam plc
directors’ contracts
the notice periods for directors are as follows
        notice period 
       date of contract months
david cleevely     24 july 2007 1
peter keen     27 october 2005 1
tony kouzarides     24 july 2007 1
tim dye     26 may 2006 1
jonathan milner     10 june 2000 6
eddie powell     11 august 2000 1
1
jim warwick     1 september 2001 6
mark webster     12 march 2007 1
2
1 eddie powell will be stepping down as finance director on 20 november 2007 following which he will remain as an adviser to the company consequently his 
notice period has been reduced to one month
2 mark webster will become a nonexecutive director with effect from 1 november 2007 at which point his notice period will become one month abcam plc annual report and accounts 30 june 2007 22
statement of directors’ responsibilities
the directors are responsible for preparing the annual report 
and the financial statements in accordance with applicable law 
and regulations
company law requires the directors to prepare financial 
statements for each financial year under that law the directors 
have elected to prepare the financial statements in accordance 
with united kingdom generally accepted accounting practice 
united kingdom accounting standards and applicable law  
the financial statements are required by law to give a true and 
fair view of the state of affairs of the company and the group  
and the profit or loss of the group for that period in preparing 
these financial statements the directors are required to
 select suitable accounting policies and then apply them 
consistently
 make judgements and estimates that are reasonable and 
prudent
 state whether applicable uk accounting standards have been 
followed and
 prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the company will 
continue in business
•
•
•
•
the directors are responsible for keeping proper accounting 
records that disclose with reasonable accuracy at any time the 
financial position of the company and enable them to ensure that 
the financial statements comply with the companies act 1985 
they are also responsible for safeguarding the assets of the 
company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity 
of the corporate and financial information included on the 
company’s website legislation in the united kingdom governing 
the preparation and dissemination of financial statements may 
differ from legislation in other jurisdictions abcam plc annual report and accounts 30 june 2007 23 annual report and accounts 30 june 2007 abcam plc
independent auditors’ report to the members of abcam plc
we have audited the group and parent company financial 
statements the ‘financial statements’ of abcam plc for the year 
ended 30 june 2007 which comprise the group profit and loss 
account the group and company balance sheets the group 
cash flow statement the group statement of total recognised 
gains and losses and the related notes 1 to 25 these financial 
statements have been prepared under the accounting policies set 
out therein
this report is made solely to the company’s members as a body 
in accordance with section 235 of the companies act 1985 our 
audit work has been undertaken so that we might state to the 
company’s members those matters we are required to state to 
them in an auditors’ report and for no other purpose to the 
fullest extent permitted by law we do not accept or assume 
responsibility to anyone other than the company and the 
company’s members as a body for our audit work for this  
report or for the opinions we have formed
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report 
and the financial statements in accordance with applicable law 
and united kingdom accounting standards united kingdom 
generally accepted accounting practice are set out in the 
statement of directors’ responsibilities
our responsibility is to audit the financial statements in 
accordance with relevant legal and regulatory requirements  
and international standards on auditing uk and ireland
we report to you our opinion as to whether the financial 
statements give a true and fair view and are properly prepared in 
accordance with the companies act 1985 we also report to you 
whether in our opinion the information given in the directors’ 
report is consistent with the financial statements
in addition we report to you if in our opinion the company has 
not kept proper accounting records if we have not received all 
the information and explanations we require for our audit or if 
information specified by law regarding directors’ remuneration 
and other transactions is not disclosed
we read the other information contained in the annual report  
as described in the contents section and consider whether it is 
consistent with the audited financial statements this other 
information comprises only the directors’ report the chairman’s 
review the ceo’s review the managing director’s review and 
the financial review we consider the implications for our report 
if we become aware of any apparent misstatements or material 
inconsistencies with the financial statements our responsibilities 
do not extend to any further information outside the annual 
report
basis of audit opinion
we conducted our audit in accordance with international 
standards on auditing uk and ireland issued by the auditing 
practices board an audit includes examination on a test basis 
of evidence relevant to the amounts and disclosures in the 
financial statements it also includes an assessment of the 
significant estimates and judgments made by the directors in  
the preparation of the financial statements and of whether the 
accounting policies are appropriate to the group’s and company’s 
circumstances consistently applied and adequately disclosed
we planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary  
in order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or other irregularity  
or error in forming our opinion we also evaluated the  
overall adequacy of the presentation of information in the 
financial statements
opinion
in our opinion
 the financial statements give a true and fair view in 
accordance with united kingdom generally accepted 
accounting practice of the state of the group’s and the parent 
company’s affairs as at 30 june 2007 and of the group’s profit 
for the year then ended
 the financial statements have been properly prepared in 
accordance with the companies act 1985 and
 the information given in the directors’ report is consistent  
with the financial statements
deloitte  touche llp
chartered accountants and registered auditors
cambridge uk
28 september 2007
•
•
• abcam plc annual report and accounts 30 june 2007 24
 year to 30607  year to 30606 restated
    note £000 £000 £000 £000
turnover   2  24519  19362
cost of sales     10020  7485
gross profit     14499  11877
expenses
administrative expenses    7584  6178
research and development expenses    1709  1226
      9293  7404
      5206  4473
other operating income     –  42
operating profit   4  5206  4515
interest receivable and similar income     495  313
profit on ordinary activities before taxation     5701  4828
tax on profit on ordinary activities   6  1554  1403
profit on ordinary activities after taxation   20  4147  3425
earnings per share
basic earnings per share   9  1199p  1073p
diluted earnings per share   9  1167p  1036p
dividends paid per share   8  399p  595p
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
all activities derive from continuing operations
the statement of movements on reserves is shown in note 20
consolidated profit and loss account
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007 25 annual report and accounts 30 june 2007 abcam plc
       year to year to 
       30607 30606 
       £000 £000
profit for the financial year before restatement      4147 3679
currency translation differences on foreign currency net investments    28 24
total recognised gains and losses relating to the year     4119 3655
prior year adjustment see note 22      254
total recognised gains and losses recognised since last annual report    3865
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
consolidated statement of total recognised gains and losses
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007 26
       30606 
      30607 restated 
     note £000 £000
fixed assets
intangible assets     10 1691 77
tangible assets     11 2832 1094
       4523 1171
current assets
stocks     13 3102 2358
debtors     14 4327 2762
short term investments     16 8500 11000
cash at bank and in hand     16 2209 884
       18138 17004
creditors amounts falling due within one year    15 3404 3023
net current assets      14734 13981
total assets less current liabilities      19257 15152
creditors amounts falling due after more than one year    15 386 –
provisions for liabilities and charges     18 444 85
net assets      18427 15067
capital and reserves
called up share capital     19 346 345
share premium account     20 10619 10573
other reserves     20 251 89
foreign exchange reserve     20 36 8
profit and loss account     20 7247 4068
total shareholders’ funds     21 18427 15067
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
these financial statements were approved by the board of directors and authorised for issue on 28 september 2007
signed on behalf of the board of directors
dr e w powell
finance director
consolidated balance sheet
30 june 2007 abcam plc annual report and accounts 30 june 2007 27 annual report and accounts 30 june 2007 abcam plc
       30606 
      30607 restated 
     note £000 £000
fixed assets
intangible assets     10 1691 77
tangible assets     11 2459 901
investments     12 16 16
       4166 994
current assets
stocks     13 3089 2348
debtors     14 4572 2676
short term investments      8500 11000
cash at bank and in hand      1555 312
       17716 16336
creditors amounts falling due within one year    15 3218 2705
net current assets      14498 13631
total assets less current liabilities      18664 14625
creditors amounts falling due after more than one year    15 386 –
provisions for liabilities and charges     18 444 77
net assets      17834 14548
capital and reserves
called up share capital     19 346 345
share premium account     20 10619 10573
other reserves     20 251 89
profit and loss account     20 6618 3541
total equity shareholders’ funds      17834 14548
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
these financial statements were approved by the board of directors and authorised for issue on 28 september 2007
signed on behalf of the board of directors
dr e w powell
finance director
company balance sheet
30 june 2007 abcam plc annual report and accounts 30 june 2007 28
 year to 30607  year to 30606 restated
    note £000 £000 £000 £000
net cash inflow from operating activities   a  4898  3547
returns on investments and servicing of finance
net interest received    495  313
net cash inflow from returns on investments and servicing  
 of finance     495  313
taxation
corporation tax paid    1473  954
tax paid     1473  954
capital expenditure and financial investment
payments to acquire tangible fixed assets    2316  597
payments to acquire intangible fixed assets    1848  100
receipts from sales of tangible fixed assets    2  6
net cash outflow from capital expenditure and  
 financial investment     4162  691
equity dividends paid     968  1153
net cash outflow before management of liquid resources  
 and financing     1210  1062
management of liquid resources
decreaseincrease in short term deposits    2500  10000
net cash inflowoutflow from management of liquid resources   2500  10000
financing
issue of ordinary share capital    47  9322
net cash inflow from financing     47  9322
increase in cash   bc  1337  384
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
consolidated cash flow statement
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007 29 annual report and accounts 30 june 2007 abcam plc
a reconciliation of operating profit to net cash inflow from operating activities
       year to 
      year to 30606 
      30607 restated 
      £000 £000
operating profit      5206 4515
depreciation and amortisation      795 355
profit on sale of tangible fixed assets      – 3
movement on share based compensation reserve     162 72
increase in stocks      745 1171
increase in debtors      1565 850
increase in creditors      1045 629
net cash inflow from operating activities      4898 3547
b analysis of net funds
     at cash exchange at 
     010706 flow movement 300607 
     £000 £000 £000 £000
cash in hand and at bank    884 1337 12 2209
current asset investments    11000 2500  – 8500
total    11884 1163 12 10709
c reconciliation of net cash flow to movement in net funds
     30607 30607 30606 30606 
     £000 £000 £000 £000
increase in cash in the year    1337  384
cash inflowoutflow from increasedecrease in liquid resources  2500  10000
change in net funds resulting from cash flows    1163  10384
translation difference     12  10
movement in net funds in the year     1175  10374
net funds at start of year     11884  1510
net funds at end of year     10709  11884
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
notes to the consolidated cash flow statement
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007 30
1 accounting policies
the financial statements are prepared in accordance with applicable united kingdom accounting standards the particular accounting 
policies which have been applied consistently are described below
accounting convention
the financial statements are prepared under the historical cost convention
basis of consolidation
the group financial statements consolidate the financial statements of the company and its subsidiary undertakings abcam inc 
abcam kk and camgene ltd
tangible fixed assets
tangible fixed assets are stated at cost less depreciation and any provision for impairment depreciation is provided at cost in equal 
instalments over the estimated lives of the fixed assets
the depreciation rates generally used are shown below
office equipment fixtures and fittings      20 per annum
laboratory equipment      20 per annum
computer equipment      33 per annum
depreciation is accelerated if assets are deemed to have been impaired or there is a change in the residual economic life
intangible assets
payments made to acquire distribution rights from certain suppliers are capitalised and are amortised over the period of the 
agreement
the group acquires hybridomas for generating monoclonal antibodies either by licensing them in or by developing them itself the 
upfront fees paid for licensing in hybridomas and the cost of developing hybridomas are capitalised in line with frs 10 and ssap 13 
respectively they are then amortised over their estimated minimum useful lives of three years
investments
investments held as fixed assets are stated at cost less provision for any impairment in value
stocks
stocks are stated at the lower of cost and net realisable value 
the cost of abcam own manufactured stock includes material direct labour and an attributable portion of production overheads 
based on normal levels of activity net realisable value is based on the estimated selling price less further costs expected to be 
incurred to completion and disposal provision is made for obsolete slow moving or defective items where appropriate
taxation
current tax including uk corporation tax and foreign tax is provided at amounts expected to be paid or recovered using the tax rates 
and laws that have been enacted by the balance sheet date
deferred taxation is provided in full on timing differences which represent an obligation at the balance sheet date to pay more tax or a 
right to pay less tax at rates expected to apply when they crystallise based on current tax rates and law timing differences arise from 
the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in 
financial statements deferred tax assets and liabilities are not discounted
notes to the accounts
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007 31 annual report and accounts 30 june 2007 abcam plc
pensions
the group operates a defined contribution pension scheme in the uk which is open to all employees and directors of the company
the amount charged to the profit and loss account in respect of pension costs is the contribution payable in the year any differences 
between contributions payable in the year and contributions actually paid are shown either as accruals or prepayments in the 
balance sheet
the amount included in the profit and loss account in the year in respect of the pension scheme was £253000 2006 £105000  
the amounts included in creditors at 30 june 2007 in relation to the defined contribution pension scheme is £38000 2006 £10000
research and development
research and development expenditure other than the development costs for internally produced hybridomas see intangible assets 
above is charged to the profit and loss account as incurred
leases
rentals under operating leases are charged on a straightline basis over the lease term even if the payments are not made on such 
a basis
foreign exchange
transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of the transactions 
monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated at the rates ruling at that 
date or if appropriate at the forward contract rate
these translation differences are dealt with in the profit and loss account
the results of the operations of the company’s overseas subsidiaries abcam inc and abcam kk are translated at the average rate of 
exchange during the period and their balance sheets at the rates ruling at the balance sheet date exchange differences arising on the 
translation of the opening net assets and results of operations are reported in the statement of total recognised gains and losses all 
other exchange differences are included in the profit and loss account
derivative financial instruments
the group uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements the group 
does not hold or issue derivative financial instruments for speculative purposes
government grants
amounts receivable under government grants are credited to the profit and loss account as the related expenditure is incurred and is 
included in other operating income £nil has been recognised in the profit and loss account in the year 2006 £42000 in relation to a 
grant for the epitron project which is for the research and technological development of an epigenetic treatment for neoplastic disease
2 turnover
turnover represents the amounts derived from the provision of goods and services which fall within the group’s ordinary activities 
after deduction of trade discounts and value added tax
revenue is recognised on despatch to the customer
1 accounting policies continued abcam plc annual report and accounts 30 june 2007 32
3 information regarding employees
group      year to year to 
      30607 30606 
      number number
average monthly number of employees including executive directors
administrative marketing and distribution      101 74
laboratory      20 13
       121 87
       year to 
      year to 30606 
      30607 restated 
      £000 £000
staff costs during the year including directors
wages and salaries      4369 3122
social security costs      466 351
pension costs      253 105
charge in respect of share options granted      162 72
       5250 3650
company        
      year to year to 
      30607 30606 
      number number
average monthly number of employees including executive directors
administrative marketing and distribution      69 54
laboratory      20 13
       89 67
       year to 
      year to 30606 
      30607 restated 
      £000 £000
staff costs during the year including directors
wages and salaries      3511 2434
social security costs      359 279
pension costs      233 88
charge in respect of share options granted      162 72
       4265 2873
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
notes to the accounts continued
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007 33 annual report and accounts 30 june 2007 abcam plc
4 operating profit
operating profit is after chargingcrediting      year to year to 
      30607 30606 
      £000 £000
depreciation – owned assets      561 332
profit on disposal of fixed assets      – 3
amortisation of intangible assets      234 23
auditors remuneration
 fees payable to the group’s auditors for the audit of the annual accounts    79 51
 fees payable to the group’s auditors for other services to the group being tax services   73 84
rd expenditure      1709 1226
rentals under operating leases
land and buildings      237 246
5 segmental reporting
geographical segmental analysis
    30607 30607 30607 30606 30606 
    uk us japan uk us 
    £000 £000 £000 £000 £000
net assetsliabilities   17834 676 83 14548 519
the company operates only one class of business
an analysis of turnover and profit before tax by class of business and geographical location is not presented as in the opinion of the 
directors such disclosure would be prejudicial to the interests of the group
6 tax on profit on ordinary activities
       year to 
      year to 30606 
      30607 restated 
      £000 £000
current tax
uk corporation tax at 30 2006 30      871 1146
foreign tax      324 256
adjustments in respect of prior periods – uk tax      – 9
total current tax      1195 1393
deferred tax
timing differences origination and reversal – uk tax     366 7
timing differences origination and reversal – foreign tax     7 3
total deferred tax      359 10
       1554 1403
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22 abcam plc annual report and accounts 30 june 2007 34
the standard rate of current tax for the year is 30 2006 30 the current tax charge for the year reconciles to the standard rate 
as follows
       year to 
      year to 30606 
      30607 restated 
      £000 £000
profit on ordinary activities before tax      5701 4828
tax on profit on ordinary activities at standard rate of 30     1710 1448
factors affecting charge for the year
capital allowances for year in excess of depreciation     411 23
other timing differences      13 5
expenses not deductible for tax purposes      8 51
revenue items capitalised      2 2
rd tax credit uplift      199 120
deduction for exercise of share options      35 22
adjustment in respect of prior years       – 9
losses in foreign subsidiary not subject to tax      27  –
differences in tax rates      84 65
current tax charge for the year      1195 1393
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
in march 2007 the uk government announced that they would introduce legislation that would reduce the corporation tax rate to 28 
with effect from 1 april 2008 this legislation has been substantively enacted in june 2007 in future any deferred tax balances will be 
stated at 28 of those amounts
the effective tax rate for the year to 30 june 2008 is expected to reduce accordingly
7 profit attributable to the company
as permitted by section 230 of the companies act 1985 the profit and loss account of the parent company is not presented as part 
of these accounts the parent’s profit for the financial year before dividends amounted to £3776000 2006 £3029000
8 dividends
      year to year to 
      30607 30606 
      £000 £000
final dividend for the year ended 30 june 2006 of 20p 2006 first interim 325p per share   691 912
interim dividend for the year ended 30 june 2007 of 080p 2006 second interim 070p per share  277 241
       968 1153
proposed final dividend for the year ended 30 june 2007 of 319p 2006 20p    1105 689
the proposed dividend is subject to approval by shareholders at the annual general meeting and has not been included as a liability 
in these financial statements
notes to the accounts continued
year ended 30 june 2007
6 tax on profit on ordinary activities continued abcam plc annual report and accounts 30 june 2007 35 annual report and accounts 30 june 2007 abcam plc
9 earnings per share
the calculation of the basic and diluted earnings per share is based on the following data
       year to 
      year to 30606 
      30607 restated 
      £000 £000
profit for the financial year      4147 3425
       number number 
       of shares of shares
weighted average number of shares
basic earnings per share      34572810 31914845
assumed exercise of share options      943674 1135585
fully diluted earnings per share      35516484 33050430
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
10 intangible assets
group and company 
      development 
      costs and 
      upfront licence 
      fees for 
      monoclonal distribution 
      antibodies rights total 
      £000 £000 £000
cost
as at 1 july 2006     100 – 100
additions in the year     50 1798 1848
at 30 june 2007     150 1798 1948
accumulated amortisation
as at 1 july 2006     23 – 23
charge for the year     45 189 234
at 30 june 2007     68 189 257
net book value
at 30 june 2007     82 1609 1691
at 30 june 2006     77 – 77 abcam plc annual report and accounts 30 june 2007 36
11 tangible fixed assets
      laboratory office 
      and equipment 
     computer operations fixtures and 
     equipment equipment fittings total 
     £000 £000 £000 £000
group
cost
at 1 july 2006    251 717 674 1642
additions in year    207 1824 285 2316
disposals in year    1 1 – 2
exchange difference    3 9 11 23
at 30 june 2007    454 2531 948 3933
accumulated depreciation
at 1 july 2006    136 134 278 548
charge for the year    85 214 262 561
disposals in year    – 1 – 1
exchange difference    3 1 3 7
at 30 june 2007    218 346 537 1101
net book value
at 30 june 2007    236 2185 411 2832
at 30 june 2006    115 583 396 1094
company
cost
at 1 july 2006    206 599 579 1384
additions in year    139 1690 171 2000
disposals in year    1 3 – 4
at 30 june 2007    344 2286 750 3380
accumulated depreciation
at 1 july 2006    115 123 245 483
charge for the year    65 170 204 439
disposals in year    – 1 – 1
at 30 june 2007    180 292 449 921
net book value
at 30 june 2007    164 1994 301 2459
at 30 june 2006    91 476 334 901
notes to the accounts continued
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007 37 annual report and accounts 30 june 2007 abcam plc
12 fixed asset investments
the company’s subsidiaries at 30 june 2007 are
       proportion proportion 
     nature of country of of shares of voting 
     business incorporation owned power held
abcam inc  sale and distribution of antibodies usa 100 100
abcam kk  sale and distribution of antibodies japan 100 100
camgene  dormant uk 100 100
as at 30 june 2007 the called up share capital and reserves of camgene were £10 2006 £10 the company is dormant
13 stocks
     group company group company 
     30607 30607 30606 30606 
     £000 £000 £000 £000
goods for resale    3102 3089 2308 2298
work in progress    – – 50 50
     3102 3089 2358 2348
14 debtors
     group company group company 
     30607 30607 30606 30606 
     £000 £000 £000 £000
trade debtors    3315 1708 2386 1164
owed by subsidiary undertaking    – 1461 – 1165
other debtors and prepayments    1012 1403 376 347
     4327 4572 2762 2676
all amounts are due within one year
15 creditors
amounts falling due within one year
     group company group company 
     30607 30607 30606 30606 
     £000 £000 £000 £000
trade creditors    1382 1324 1160 1133
corporation tax    284 279 562 411
other taxes and social security    124 124 89 89
other creditors    337 321 127 98
accruals and deferred income    1277 1170 1085 974
     3404 3218 3023 2705 abcam plc annual report and accounts 30 june 2007 38
amounts falling due after more than one year    group company group company 
     30607 30607 30606 30606 
     £000 £000 £000 £000
other creditors    386 386 – –
16 financial instruments
the group does not undertake any speculative trading in financial instruments financial instruments comprise cash and short term 
investments together with debtors creditors and accruals the risks that arise from these instruments are currency exposure interest 
rate and liquidity and the policies followed throughout the year are as follows
currency risk
the group trades in us dollars and euros as well as in sterling having both income and expenses in all of these currencies and this 
trading results in a surplus of dollars and euros the group hedges these surpluses at the start of each financial year in order to 
minimise the impact on that year’s trading from exchange rate fluctuations this is done by arranging forward exchange contracts 
month by month to sell a portion of the expected surpluses
interest rate risk
the group places most of its liquid assets on deposit for periods of between one and six months these deposits are with recognised 
uk high street banks during the year the average interest rate received on these deposits was 512 2006 445
liquidity risk
liquidity is maintained by placing cash on deposit having regard to the group’s liquidity requirements which are assessed on a regular 
basis
at 30 june the group held the following liquid assets
       30607 30606 
       £000 £000
sterling cash deposits      8500 11000
cash – sterling      1017 205
cash – us dollars      697 610
cash – euros      40 59
cash – yen      455 10
       10709 11884
at the balance sheet date abcam plc was contracted to sell 7750000 2006 9624000 and €6450000 2006 €3577000  
the directors consider there to be no material difference between the book value and the fair value of the group’s financial assets  
as at the balance sheet date
credit risk
credit risk is primarily attributable to the groups’s trade debtors the average credit period taken on sales goods is 47 days 
an allowance has been made for potential bad debts in arriving at the amounts stated in the balance sheet the group has  
no significant concentration of credit risk in its debtors as the exposure is spread over a very wide range of customers
notes to the accounts continued
year ended 30 june 2007
15 creditors continued abcam plc annual report and accounts 30 june 2007 39 annual report and accounts 30 june 2007 abcam plc
17 financial commitments
operating lease commitments
at 30 june 2007 the following payments were committed to be paid during the next year in respect of operating leases
       30607 30606 
       land and land and 
       buildings buildings 
       £000 £000
group
leases which expire
within 12 months      197 66
within two to five years      631 –
after five years      – 209
       828 275
company
leases which expire
within 12 months      197 66
within two to five years      631 –
after five years      – 209
       828 275
18 deferred tax
company and group
deferred taxation provided is as follows
 group  company
     30606  30606 
    30607 restated 30607 restated 
    £000 £000 £000 £000
accelerated capital allowances    549 152 534 110
other timing differences    105 67 90 33
deferred tax liability    444 85 444 77
       30607 
       £000
group
at 1 july 2006 restated       85
charge in year       359
at 30 june 2007       444
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22 abcam plc annual report and accounts 30 june 2007 40
       30607 
       £000
company
at 1 july 2006 restated       77
charge in year       367
at 30 june 2007       444
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
19 called up share capital
       30607 30606 
       £000 £000
authorised
100000000 2006 100000000 ordinary shares of 1p each     1000 1000
called up allotted and fully paid
34623384 2006 34464584 ordinary shares of 1p each     346 345
the company operates a number of share option schemes for certain employees of the group the share based compensation 
charge is made up from option awards from the emi plan unapproved share option plan the us employees share option plan and  
the saye plan information is shown for these schemes in aggregate 
the vesting period is from 1–3 years other than for those options with performance criteria which vest when the criteria are met  
if the options remain unexercised after a period of 10 years from the date of grant the options expire options are forfeited if the 
employee leaves the group before the options vest 
details of the share options outstanding during the year are as follows
      weighted  weighted 
     2007 average 2006 average 
     no of exercise price no of exercise price 
     share options pence share options pence
outstanding at beginning of period    1085160 474 1176080 125
granted during the period    651393 280 612520 53
forfeited during the period    79851 280 31600 125
exercised during the period    158800 30 671840 14
outstanding at the end of the period    1497902 144 1085160 474
exercisable at end of period    162080 3575 419400 3412
notes to the accounts continued
year ended 30 june 2007
18 deferred tax continued abcam plc annual report and accounts 30 june 2007 41 annual report and accounts 30 june 2007 abcam plc
under the company’s enterprise management incentive scheme employees of abcam plc held options at 30 june 2007 for 966191 
unissued 1p ordinary shares 2006 728480 during the year options for 117440 1p ordinary shares were exercised and 37089 
1p ordinary shares lapsed the options outstanding at the end of the year were as follows
   option price date of 
date of grant  number of 1p shares per share vesting
april 2003   8280 125p april 2005
june 2003   64000 250p to 500p june 2007
july 2004   61920 250p november 2005
december 2004   220000 250p november 2007
july 2005   196840 625p july 2007
september 2005   60000 625p september 2007
september 2006   321368 2800p september 2009
march 2007   33783 2960p march 2010
employees of abcam plc also held options under an unapproved scheme at 30 june 2007 for 427504 unissued ordinary shares 
2006 261360 at exercise prices of 625p to 296p per share 1360 options for 1p ordinary shares were exercised during the year 
742 options for 1p ordinary shares lapsed and 168246 options for 1p ordinary shares were granted the options vest over the period 
january 2006 to march 2010
employees of abcam inc held options under an unapproved scheme at 30 june 2007 for 104207 unissued 1p ordinary shares 
2006 55320 at an exercise price between 1125 and 526 during the year 42020 options for 1p ordinary shares lapsed and 
90907 options for 1p ordinary shares were granted the options vest over the period july 2007 and september 2009
an option for 40000 1p ordinary shares granted to a scientific advisor in 2003 was exercised in july 2006 at a price of 25p per share
during the year the company issued 1p ordinary shares as follows
      exercise total 
      number price paid 
date issued     of shares £ £
july 2006     40000 025 10000
september 2006     20000 025 5000
september 2006     36000 025 9000
september 2006     3360 025 840
september 2006     4320 025 1080
november 2006     20000 025 5000
march 2007     1360 0625 850
march 2007     2160 0625 1350
march 2007     1960 0625 1225
april 2007     4320 025 1080
may 2007     2160 0625 1350
may 2007     4000 025 1000
may 2007     6720 0625 4200
june 2007     5200 0625 3250
june 2007     3240 0625 2025
june 2007     4000 025 1000
      158800  48250
19 called up share capital continued abcam plc annual report and accounts 30 june 2007 42
fair value calculation
the fair value of the options schemes has been calculated using the trinomial model other than those options with market based 
perfomance criteria the inputs into the trinomial model are as follows
       30607 30606
weighted average share price      £274 £182
weighted average exercise price      £090 £060
expected volatility      30–40 30
expected life      2–5 years 3 years
expected dividend yield      110 110
risk free rate      397–508 431–472
the fair value of options issued in september 2006 with market based performance criteria are calculated using the monte carlo 
model 
the inputs into the monte carlo model are as follows
       30607 30606
weighted average share price      £280 –
weighted average exercise price      £280 –
expected volatility      12–30 –
expected life      3 years –
expected dividend yield      110 –
risk free rate      457 –
20 statement of movements on reserves
       profit 
    share other foreign and loss 
    premium reserves exchange account 
    account restated reserve restated 
    £000 £000 £000 £000
group
as at 1 july 2006    10573 89 8 4068
retained profit for the year    – – – 4147
dividends paid note 8    – – – 968
premium on shares issued    46 – – –
share based compensation charge    – 162 – –
currency translation difference on foreign currency net investments  – – 28 –
at 30 june 2007    10619 251 36 7247
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
19 called up share capital continued
notes to the accounts continued
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007 43 annual report and accounts 30 june 2007 abcam plc
       profit 
    share other  and loss 
    premium reserves  account 
    account restated  restated 
    £000 £000  £000
company
as at 1 july 2006    10573 89  3541
retained profit for the year    – –  3776
dividends paid note 8    – –  968
dividend received    – –  269
share based compensation charge    – 162  –
premium on shares issued    46 –  –
at 30 june 2007    10619 251  6618
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
21 reconciliation of movements in group shareholders’ funds
       2006 
      2007 restated 
      £000 £000
profit for the year      4147 3425
other recognised gains and losses relating to the year net     28 24
       4119 3401
dividends paid      968 1153
current tax charge on share based compensation charge     – 204
share based compensation reserve      162 89
issue of shares net of issuing costs      47 9322
net addition to shareholders’ funds      3360 11863
opening shareholders’ funds      15067 3204
closing shareholders’ funds      18427 15067
 restated for the effects of frs 20 ‘share based payment’ as explained in note 22
20 statement of movements on reserves continued abcam plc annual report and accounts 30 june 2007 44
22 prior year adjustment
the group adopted frs 20 ‘share based payment’ for the year ended 30 june 2007 this resulted in a prior period adjustment to 
expense the fair value of the options granted being £162000 for the year ended 30 june 2006 and £89000 for the prior periods
the effects of this change is summarised below
       group and 
       company 
       2006 
       £000
profit and loss account
administrative expenses as previously stated       6106
share based compensation charge       72
administrative expenses as restated       6178
   
taxation as previously stated       1221
share based compensation charge       182
taxation as restated       1403
balance sheet   
provisions for liabilities and charges as previously stated      112
deferred tax on share based compensation charge      27
provisions for liabilities and charges as restated       85
23 post balance sheet events
there were no post balance sheet events that are considered relevant for the purposes of these accounts
24 ultimate controlling party
there was no ultimate controlling party in either year
25 related party transactions
until september 2005 dr e w powell was a director of cambridge theranostics ltd which during the year purchased products from 
abcam to a value of nil 2006 £4274 during the year £19000 2006 nil was paid to a relative of david cleevely for consultancy 
work under a new product development agreement with a laboratory associated with tony kouzarides abcam provided products 
from its catalogue free of charge with a resale value of £14000 2006 £22000 and paid £23000 in royalties 2006 £17000 
£5000 of these royalties were outstanding at the year end 2006 £4000
notes to the accounts continued
year ended 30 june 2007 abcam plc annual report and accounts 30 june 2007
our vision is to build the largest 
online antibody resource in the 
world while also ensuring that  
the antibodies are of excellent 
quality and commercial viability
welcome
my name is molly i’m the resident abcam mascot and 
appear on all our packaging and branding materials
a lot of researchers ask where we got the idea for molly  
the sheep it was simply because dolly the sheep was  
making headline news at the time so we created the  
body out of a molecular space fill model and gave her  
antibody legs and thus the molecular dolly became  
abcam’s molly
01  highlights
02  our business at a glance
04  chairman’s review
06  ceo’s review
08  managing director’s review
10  financial review
12  the board
14 corporate directory
15 directors’ report
17  corporate governance
contents
19  directors’ remuneration report
22  statement of directors’ responsibilities
23  independent auditors’ report 
24 consolidated profit and loss account
25   consolidated statement of total recognised gains and losses
26  consolidated balance sheet
27  company balance sheet
28  consolidated cash flow statement
29  notes to the consolidated cash flow statement
30  notes to the accounts abcam plc annual report and accounts for the year ended 30 june 2007
abcam plc
332 cambridge science park
milton road
cambridge cb4 0fw
united kingdom
phone 44 0 1223 696000
fax 44 0 1223 696001
wwwabcamcom
for the year ended 30 june 2007
annual report  
and accounts


Summary:
 abcam plc annual report and accounts 30 june 2007 04
it gives me great pleasure to report on a 
second outstanding year for abcam as a 
public company building on the growth 
we enjoyed in 2006 we have produced 
another excellent set of results whilst 
making some important investments in  
the year which will serve as a springboard 
to even greater success in the future
first of all the construction of our htp 
facility in cambridge uk has been 
completed on schedule and operations 
have already started the facility will help 
abcam to take advantage of new business 
opportunities such as a better pharma
biotech offering and potentially diagnostics
in addition to the htp facility we officially 
opened our new office in japan in 
december 2006 located in a prominent 
business district of tokyo the office gives 
us a strong foothold in one of the most 
rapidly growing antibody markets in the 
world having a local presence will greatly 
improve the quality of the support we can 
provide to abcam customers in this region 
with this goal in mind we have also 
enhanced the japanese version of our 
website whilst these are early days for 
the japanese business we are 
encouraged by its performance during  
its first few months
although we plan to enlarge our portfolio  
of antibodies produced inhouse we 
continue to build relationships with institutes 
academic laboratories and primary 
manufacturers that supply products to be 
sold under the abcam brand over the last 
financial year we have also acquired the 
exclusive rights to distribute new antibody 
product lines with three companies in 
august 2006 we announced an exclusive 
deal with triple point biologics inc for a 
range of 350 antibodies with the delivery of 
another 360 antibodies over the next three 
years we followed that by signing similar 
agreements with assay biotechnology 
company inc a us firm that tests 
validates and markets research antibodies 
and with diaclone which is part of the 
tepnel group and develops antibodies and 
kits in the uk abt have already made 500 
products available to abcam on exclusive 
terms and are committed to adding a further 
3000 to our portfolio over the next five 
years diaclone has made 341 products 
available with exclusive distribution rights  
in the americas and japan
since our last annual report we have 
continued to attract topquality staff we 
now employ 27 phds out of 131 fulltime 
employees and are currently in the midst  
of a recruitment drive as we increase 
production at the htp facility last july  
we announced the appointment of two new 
nonexecutive directors tim dye and 
mark webster both have proven to be 
extremely valuable additions to the board
after almost eight years as finance 
director a period including abcam’s 
successful ipo in 2005 eddie powell has 
indicated his desire to leave the company 
to allow him to take a career break and 
subsequently to be available for consulting 
positions we are already well under way 
in appointing eddie’s successor eddie  
will be stepping down from the board on 
20 november 2007 following which we 
will retain his services as an adviser  
we owe him a debt of gratitude for his 
valuable contribution to building the 
company and wish him well for the future
abcam is becoming increasingly visible  
on the world stage as an important 
contributor to the field of antibodies and 
related medical disciplines our market 
reach makes us attractive to suppliers 
and our customer base now extends 
chairman’s review
abcam is becoming increasingly visible on 
the world stage as an important contributor 
to the field of antibodies and related medical 
disciplines our market reach makes us 
attractive to suppliers and our customer 
base now extends across almost 60 countries 
thanks largely to our reputation for reliability 
and trust in the marketplace abcam plc annual report and accounts 30 june 2007 05 annual report and accounts 30 june 2007 abcam plc
across almost 60 countries thanks largely 
to our reputation for reliability and trust in 
the marketplace a recent internally 
commissioned independent report named 
abcam as one of the top five research 
antibody companies in the world and in 
some of our core focus areas cfas 
such as chromatin research we believe 
we are the market leader
with the landmarks we have reached this 
year and the initiatives we have unveiled 
abcam has laid solid foundations for 
expansion in the future we remain firmly 
committed to our mission to build the 
largest online catalogue of the best 
antibodies in the world
once again i am grateful to all of our staff 
for their efforts during the year and take  
the opportunity to thank our customers 
suppliers and shareholders for their 
continued support
dividends
the directors’ policy since the ipo in 
november 2005 has been to distribute 
25 of earnings as dividends however  
in view of the continuing strong cashflow 
and growing success of the group the 
directors have decided to increase the 
distribution to 33 of earnings an interim 
dividend of 08p per share was paid in 
april 2007 and the directors are therefore 
recommending a final dividend of 319p 
per share making a total for the year of 
399p subject to shareholder approval at 
the annual general meeting in november 
this dividend will be paid on 7 december 
2007 to shareholders on the register on 
9 november 2007
outlook
we are entering the current year with an 
exciting platform for growth and current 
trading in the first few months of the year 
has been strong the board is confident 
of the outlook for 2008
david cleevely
chairman
28 september 2007
june 2007
december 2006
july 2006 ongoing
060 7 a year in review
over 33000 products in 
our catalogue
the number of products available in our 
catalogue hit 33900 including more than 
25000 antibodies and 8000 related 
products such as proteins peptides and 
kits new products from abcam’s own 
development facilities and external 
suppliers continue to be added on a daily 
basis to the catalogue which has grown  
at a compounded annual rate of 54 since 
its inception in 2002
new japanese office
abcam opened its second overseas office 
in tokyo japan the move represents a 
major push to increase sales in east asia 
it will help abcam to improve the quality  
of the technical support it offers customers 
in the region and speed the delivery of 
abcam products to far east markets
new cambridge 
manufacturing facilities
abcam launched a major project to expand 
its laboratory and production capabilities 
a new development facility in cambridge 
uk will allow abcam to significantly boost 
the production of highmargin antibodies 
over the next six years
core focus area initiative
following an indepth study of the market 
abcam has chosen seven core focus 
areas cfas each of which represents  
a research area with high market demand 
we have vertically integrated our business 
development manufacturing marketing 
sales and technical support teams around 
these areas and expect to add a further 
three cfas by june 2008