annual report 
and accounts
for the year ended 30 june 2006
abcam plc annual accounts 
abcam plc
332 cambridge science park
milton road
cambridge cb4 0fw
united kingdom
phone 44 0 1223 696000
fax 44 0 1223 696001
wwwabcamcom
abcam plc annual report and accounts for the year ended 30 june 2006 01  highlights
02  our business at a glance
04  chairman’s statement
06  ceo’s review
07  managing director’s review
08  ceo’s questions and answers
10  financial review
12  the directors
14 corporate directory
15 directors’ report
17  corporate governance
19  directors’ remuneration report
21  statement of directors’ responsibilities
22  independent auditors’ report
23 consolidated profit and loss account
23  statement of total recognised gains and losses
24  consolidated balance sheet
25  company balance sheet
26  consolidated cash flow statement
27  notes to the consolidated cash flow statement
28  notes to the accounts
contents 	 annual	report	and	accounts	30	june	2006	 abcam   60
sales in the half year increased 
60 to £194 million 
23200
continued expansion of  
product range 23200 products 
£49m
profit before tax of £49 million in the  
current year
our vision is to build the largest 
online antibody resource in the 
world while also ensuring that 
the antibodies are of high quality 
and commercially viable
sales in the year increased 60 to £ 94 million  
2005 £ 2 million and pretax profits increased  
65 to £49 million 2005 £30 million
continued expansion of product range 23200 products 
available on the abcam website at end june 2006 up 
4  from  6500 products at end june 2005
significant contribution in sales and profits in the year 
from us office new office just opened in japan the 
world’s third largest market for research antibodies
net cash and shortterm investments of £ 9 million 
as at 30 june 2006
eps increased 34 to  53p 2005 859p
proposed final dividend of 20p a share
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our business at a glance
1
we make our own antibodies and source other excellent 
antibodies from institutes academic laboratories and 
primary manufacturers
abcam is on a mission to build the largest online catalogue of 
the best antibodies in the world and our scientists are 
dedicated to achieving this
we make our own antibodies and source other excellent 
antibodies from institutes academic laboratories primary 
manufacturers and other suppliers
we provide technical support on all of our products to enable 
our customers to achieve the result they should expect
we source and develop
our scientists have built a catalogue of the best 
antibodies in the world and provide technical support on 
all of our products to enable our customers to achieve the 
result they expect
abcam focuses on presenting test data our datasheets 
differentiate between
successfully tested
unsuccessfully tested and
not tested
datasheets display the applications and species each antibody 
is successfully tested in at least one common application prior to 
release by either ourselves or our source further testing data is 
predominantly obtained from our collaborators and customers
•
•
•
we add value
2
the idea for abcam came early in  998 out of a laboratory in the 
university of cambridge uk the principal founder jonathan milner 
was working as a postdoctoral researcher studying the newly 
discovered breast cancer protein brca2 in professor tony kouzarides’ 
laboratory the project slowed because of problems finding quality 
antibody reagents that had honest and uptodate information about 
their uses and limitations it was frustrating  	 annual	report	and	accounts	30	june	2006	 abcam  3
3
our systems enable us to process orders quickly and 
accurately and we ship to any country in the world by 
express courier delivery we keep our customers informed 
at every stage so that they can plan their experiments
as the company grows it is important that the systems and 
processes are able to take advantage of economies of scale 
and we keep this constantly under review in particular at the 
moment we are progressing with our investment in robotic 
storage and handling facilities these new facilities will enable 
us to store pick and pack stock more efficiently than the present 
systems and will allow us to expand output without a corresponding 
growth in staff and expensive conventional refrigeration
we deliver
4
we provide technical help and information about immune 
response structure and activities of antibodies 
production purification and applications
our abpromise gives our customers the reassurance of 
knowing that
our antibodies are amongst the best in the world
our unique abreviews
sm
 system provides contact with other 
customers for the same antibody
our customers are able to contact our expert technical team 
to ask for their advice
•
•
•
we support
global presence
our office in boston has made  
a significant contribution to sales  
and profit over the past two years
the opening of our japanese office  
will now give us a foothold in the third 
largest antibody research market  
in the world i am delighted to present abcam’s first 
annual report as a public company 
we enjoyed an exciting and prosperous financial year in 
200506 and i am equally positive about the opportunities and 
prospects that lie ahead 
abcam provides antibody reagents that scientists use to identify 
proteins research into the roles and effects of proteins has 
grown significantly in recent years particularly since the human 
genome project was completed estimates of the number and 
diversity of proteins that have important implications for health 
and disease continue to increase and in the future we are likely 
to witness many more groundbreaking discoveries as the 
world’s largest online antibody resource abcam is well placed 
to develop and supply the tools that allow such discoveries to be 
made and to contribute to mankind’s progress in understanding 
health and disease
i am especially pleased by the contributions made by abcam’s 
hardworking and loyal employees to the group’s continuing 
success post flotation abcam is fortunate to have a firstclass 
management team and dedicated staff who all work together to 
deliver the bestquality antibody reagents to our customers
abcam’s culture enables it to quickly recognise changes in the 
marketplace and create opportunities for the company i am 
proud of abcam’s track record in identifying new products and 
chairman’s statement
techniques and i continue to be impressed by our team’s ability 
to innovate and expand in this exciting market
abcam’s goal is to deliver the best antibodies to our customers 
and to become the world’s largest research antibody supplier 
abcam is increasingly regarded in the industry as an attractive 
partner by smaller companies that lack our geographical and 
market penetration and we continue to interest a growing 
number of companies that do not focus primarily on research 
antibodies as a consequence we have established 
partnerships and supplier agreements with many of the world’s 
best sources of antibodies with our reputation for flexibility and 
trustworthiness among suppliers we have recently been able to 
close a number of such deals including the recently announced 
acquisition of the rights to distribute exclusively the range of 
antibodies developed by triple point biologics inc we will 
continue to develop our relationships with other suppliers of 
antibodies and to look for opportunities to acquire product lines 
that we can sell either exclusively or nonexclusively
we also provide new and unique products of the highest quality 
in the form of our own antibodies currently these products 
represent a small fraction of our catalogue but they generate 
disproportionately high revenue and profits we have been 
building resources and developing expertise in the identification 
and production of antibodies and we are now looking to increase 
investment in our own manufacturing capability we are currently 
investigating the most effective way of achieving this 
 open for business
998
first of many awards
99
deloittes top 50 regional winner
fedex tieup boosts customer support 
02
25th employee hired
first overseas office established
british royalty visits abcam
03
uk online for business
technical director appointed
0 new premises on the cambridge science park
finance director appointed
0th employee hired
00
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i am optimistic about abcam’s future it has great potential  
to continue to expand in the medium to longer term the 
group’s management is very focused on profitable growth and  
i believe that they have put in place the operational processes 
product acquisition and marketing and sales strategies to 
enable this to happen
corporate governance
the board intends to follow best practice wherever practical  
as a major step in this direction i am pleased to welcome tim 
dye and mark webster to the board as nonexecutive directors 
from 1 july 2006 
tim dye is currently chairman and chief executive of william 
ransom  son plc a healthcare company quoted on aim he 
brings to the board a wealth of experience in mergers and 
acquisitions and in growing a successful company 
mark webster is a highly experienced pharmaceutical 
executive his skills and experience in sales and marketing will 
be of enormous benefit to abcam in the future
including peter keen the addition of tim dye and mark 
webster brings the number of independent nonexecutive 
directors to three each of whom contributes valuable and 
complementary skills and experience to the board 
dividend
a dividend of 325p was paid during the year prior to the listing 
on aim in accordance with the directors’ stated intention 
following the floatation of paying dividends from each year’s 
profits equal to 25 of that year’s profit after tax an interim 
dividend of 07p for this year was paid in april 2006 the 
directors recommend a final dividend of 20p per share making 
a total of 27p since floatation which equates to paying 25 of 
the profit after tax for the year ended 30 june 2006 subject to 
shareholder approval at the annual general meeting in october 
all shareholders on the register on 27 october 2006 will receive 
this dividend on 24 november 2006
i would like to take this opportunity to thank all our staff for their 
efforts and our customers suppliers and shareholders for their 
support for abcam
david cleevely
chairman
4 september 2006
2006
winner of best newcomer uk techmark mediscience awards
winner of private company of the year east of england business awards
20000 products 300 new lysates abpromise stats abupdate and news
50th employee hired
th in deloittes technology 500
04
£525 million share placing
queen’s award at first attempt
us office on the move
05
	 annual	report	and	accounts	30	june	2006	 abcam  5 abcam has made outstanding progress in  
the last financial year sales increased by  
60 to £ 94m from £ 2 m in 2005 and 
profit before tax increased by 65 to £49m  
from £30m in 2005 it is satisfying to see  
that operating profit at 237 of sales is  
only slightly below the 240 achieved in 
2005 this is despite the additional costs  
of being a publicly listed company and 
reflects the ability of the company to scale  
its operations efficiently
ceo’s review
cash balances and short term investments over the year rose 
by £104 million to £119 million £93 million came from the net 
proceeds of the aim listing in november 2005 but the business 
itself continues to be very cash generative
our 60 growth in sales has been driven in part by the number 
of products published on the website this grew by 41 up 
from 16500 at the end of june 2005 to 23200 at the end of 
june 2006
products that we have published tend to sell more per month or 
per year the longer they have been available we are therefore 
continuing not only to publish more products but also to provide 
more information about the antibodies so as to exploit this 
dynamic growth in sales has also been the result of better 
market penetration brand recognition and improved distribution 
the company pays considerable attention to gross margins  
a high priority is to increase significantly the number of products 
that are owned or exclusively distributed by abcam in the 
medium term profitability is also affected by cost and we 
continue to strive for greater operational efficiency 
abcam is fortunate to have such enthusiastic highquality staff 
through our recruitment programme we have attracted some 
very able and experienced individuals and we have 28 biochemist 
phd staff many with valuable years of postdoctoral research 
experience we are committed to further enhancing the team 
through a new programme of staff training and development
jonathan milner
ceo
4 september 2006
• highly cashgenerative business 
• double digit rate of growth in sales and profits 
• high rate of new product addition 
• established brand 
• rapid penetration of geographic markets 
•  concentration on gross margins and efficiency equals 
outstanding profitability 
• highly scalable operations 
• talented and enthusiastic staff 
•  commitment to staff training and development 
abcam at a glance
 6 abcam annual	report	and	accounts	30	june	2006
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its business processes and systems in 
order that we can scale effectively central 
to this strategy is our inhouse it and 
webdevelopment capability which we 
have steadily expanded to ensure that we 
can continue to make such efficient and 
scalable progress in the future 
as an example of how our it systems integrate with our despatch 
operations we have introduced a robotic stockstorage and 
retrieval system in the uk that greatly increases our stock
storage density and enables us to process and deliver orders to 
our customers faster and more reliably once this system is fully 
implemented we will implement a second system in the us office
we see a big opportunity to increase sales by extending our 
geographical reach boosting our market penetration and  
raising our brand awareness our us office in cambridge 
massachusetts has recently lengthened its operating hours  
in order to service customers on the west coast and this  
has proved very effective we have also introduced saturday 
working in the usa so that orders placed on a friday will reach 
customers on monday morning
japan is probably the third most important market for antibodies 
after the usa and the eu and so we are keen to improve our 
market penetration there implementation of our plan to have a 
managing director’s review
functional salesgenerating japanese office is now well under 
way we now have a subsidiary company incorporated with 
premises in the country and are in the process of recruiting 
operational staff we recognise through our existing relationships 
with distributors that japan is a challenging market and that 
building our presence in it may take some time but the longterm 
potential in the region for increased sales and margins via our 
own operation is very good
we will also be putting in place it systemsarchitecture changes 
that allow the japanese office to operate on an entirely 
standalone it platform this will periodically be consolidated with 
the central uk systems improving the local performance of the 
website via local servers in japan as well as allowing us to 
develop additional regional offices more efficiently in the future
we place considerable emphasis on responsibility for and 
communication with our employees we keep all employees 
informed of what is happening in the group with weekly update 
meetings these are supplemented with presentations given 
every quarter by each head of department finally group 
strategy is agreed each year as part of the annual budget and 
planning cycle with all department heads and they then ensure 
that employees in their department understand that department’s 
objectives and targets
jim warwick
managing director
4 september 2006 
abcam is a onestopshop 
for antibodies the number of 
products available on our website 
stood at 23200 up 4  from  
the previous year 
	 annual	report	and	accounts	30	june	2006	 abcam  7 jonathan milner answers some of the most 
frequently asked questions by investors 
from the past year 
  why do you think antibodies are such an exciting  
market opportunity
research antibodies are fundamental to studying proteins at a 
cellular level and proteins are the fundamental components of 
life therefore in order to understand the differences between 
health and disease the specific functions of proteins need to be 
elucidated and the only way that this can be achieved is by 
using specific antibodies to home in and image the protein the 
recent sequencing of the human genome has identified tens of 
thousands of new potential proteins and the research world is 
moving from genomics the study of genomes and genes to 
proteomics the study of proteins and how they interact since 
the turn of the millennium the market for research antibodies 
has increased at between 10 and 20 per annum
all of this put together means that there has never been so 
much excitement opportunity and optimism as there is currently 
surrounding antibodies 
2 can you give me an example of how one of your 
customers may use an antibody
our customers are typically bioscientists working in academia 
or industry who want to answer fundamental questions about 
how their protein of interest functions at a cellular level an 
example out of thousands would be for instance a cancer 
research group from the abramson family research institute  
at the university of pennsylvania in the usa who have recently 
published a scientific paper which sheds light on how specific 
proteins are disrupted in b cell lymphomas and this research 
utilised and was enabled by antibodies purchased from abcam
3 how many antibody products are there
there are currently tens of thousands of antibodies abcam  
has over 23000 antibodies to over 6000 proteins in its online 
catalogue making it the largest online antibody resource in the 
world the human genome project alone has revealed possibly 
20000 to 25000 genes and each gene potentially encodes  
at least one or possibly more proteins each having a number  
of flavours and modifications taking the number of potential 
antibodies that will be required in the future into the hundreds  
of thousands and making this an extremely exciting market
questions and answers
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no it is an important part of abcam’s strategy to be able to offer 
our customers the best antibodies in the world regardless of 
their source practically this means we source our products 
from trusted suppliers and from academic institutes as well as 
from our own laboratories if we do not think a product is up to 
scratch whether it is our own or from one of our suppliers we 
will unpublish it using this strategy abcam has succeeded in 
having a unique product offering of exceptional value to the 
customer who is assured that they are purchasing the best 
possible product
5 what percentage of your revenues are your  
own products
currently it is around 13 of our revenues and we plan to 
increase this as our own production is ramped up
6 are there other companies doing the same as abcam
there are many other companies that sell antibodies but none 
as far as we can tell that has the same unique product offering 
we have the largest online catalogue in the industry coupled 
with the most detailed datasheets and fast delivery of the best 
in the world antibodies we do not rest on our laurels however 
and are aware that the market for antibodies does not stand still 
so we need to keep improving and modifying our product 
offering to match
7 are you a biotech company or a distributor
neither and both abcam’s unique product offering and 
business model means that the company does not fit neatly  
into any one box we manufacture our own products and we 
distribute and we are at the cutting edge of bioscience and 
biomedical research 
8 what are the biggest opportunities for growth and what 
are the risks
in the research reagent market the opportunities and risks are 
two sides of the same coin if a company can offer a large 
catalogue of high quality research antibodies coupled with 
detailed information on each product it will succeed and win in 
this exciting market other risks are operational and regulatory 
in nature such as business interruption or changes in the import 
regulations for biomedical products
our new robotic system will 
enable us to store pick and pack 
stock more efficiently and allow 
us to expand output without a 
corresponding growth in staff  
and expenditure
	 annual	report	and	accounts	30	june	2006	 abcam  9 equity
on 3 november 2005 the company was admitted to the aim  
in the process 5988024 1p ordinary shares were issued  
at a price of 167p per share raising £100m gross £92m  
after expenses
additionally during the year 6789 4p ordinary shares 
equivalent to 271560 1p ordinary shares and 400280 1p 
ordinary shares were also issued pursuant to the exercise of 
share options raising £118000 full details are set out in note 
19 to the accounts
sales
sales in the year increased to £194m from £121m in the 
previous year sales increases in the main territories in which 
the company operates over the previous year were as follows
usa and canada 65
uk 36
eu excluding uk 39
japan 60
rest of world 58
the increase was particularly high in the usa where the 
company’s subsidiary which was established in 2003 has 
successfully taken advantage of its presence in the country
gross margins
the company’s gross margins at 613 remained broadly  
at the same level as the previous year’s 615 while there 
were some price rises from suppliers these were quite modest 
and were largely offset by reductions in shipping rates and  
other costs
administrative expenses
although administrative expenses which includes marketing 
and distribution costs increased from £40m to £61m they 
decreased as a percentage of sales from 327 in the previous 
year to 315 this year despite the additional costs incurred as 
a result of abcam being a public company
research and development expenses
rd expenditure increased significantly from 48 of sales to 
63 this is due to the company‘s increasing drive to develop 
new products
profits
operating profits increased from £29m in the year ended june 
2005 to £46m although they fell slightly as a percentage of sales 
from 240 to 237 because of the increased rd effort
interest income rose due to investment of the money raised  
at the ipo
financial review
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the consolidated tax charge of £07m in the year ended  
30 june 2005 which was 234 of profits before tax rose  
to £12m which is 249 of profits before tax for the year ended 
30 june 2006 the main reason for the increased percentage is 
the higher proportion of the group’s profits being earned in the 
us where taxes on profits are higher than in the uk
inventories
inventory levels rose more rapidly than sales due predominantly 
to an increase of abcam ownproduced inventories this is 
because the production of antibodies involves batch sizes which 
are larger than the quantities required for immediate sale 
consequently the levels of inventories for these products is 
higher than would be the case for boughtin produts
debtors
although a proportion of the group’s customers pay by credit 
card the majority of sales are on credit and so credit control is 
important to the management of working capital debtors are 
monitored by measuring the number of debtor days and these 
improved slightly during the year improving from 47 in the 
previous year to just over 45
creditors
creditors rose from £21m to £30m an increase of 41 this 
percentage increase is less than the overall increase of 60  
of sales due to a lower level of purchases just before the end  
of the year together with a relatively lower level of accrued 
expenses at 30 june 2006 compared to the previous year
currency exposure
the group generates significant amounts of surplus dollars and 
euros the policy for dealing with these is to sell forward at the 
start of each financial year 80 of the forecast surpluses month 
by month in order to minimise variations from budget due to 
exchange rates in order therefore to hedge the exposure during 
the year commencing 1 july 2006 the company had forward 
exchange contracts in place to sell 96m and €36m these 
contracts are essentially at rates of £1 to 179 and £1 to €147
eddie powell
finance director
4 september 2006 
hundreds of thousands  
of antibodies are likely to be  
needed in the future and abcam 
is going to be at the forefront of 
supplying them
	 annual	report	and	accounts	30	june	2006	 abcam   david cleevely phd 53 chairman 
david cleevely is the chairman of the communications 
research network part of the cambridge mit institute and  
the founder and former chairman of telecoms consultancy 
analysys acquired by datatec international in 2004 in 1998 
he cofounded abcam with jonathan milner ceo and tony 
kouzarides he has been directly involved with 3waynetworks 
hotxt bango cambridge network and cambridge wireless he 
is also a member of the ofcom spectrum advisory board the 
expert panel for the department of media culture and sport 
and the iet telecoms sector panel since selling analysys he 
has continued to develop his business and academic interests 
and he currently holds an industrial fellowship at the university 
of cambridge computer laboratory
jonathan milner phd 4 chief executive officer
jonathan milner has a degree in applied biology from bath 
university and a phd in molecular genetics from leicester 
university from 1992 to 1995 he was a research fellow for 
pfizer pharmaceuticals in the laboratory of professor tony 
rees at the university of bath and from 1995 until 1998 he 
was a research fellow at cambridge university in the laboratory 
of professor tony kouzarides where he studied genes and 
proteins associated with human cancers while working at this 
research he saw the opportunity to market antibodies created 
by the human genome project over the internet which was 
becoming increasingly popular at that time and in february 
1998 he proceeded to found abcam with david cleevely and 
tony kouzarides 
the directors
jim warwick ma 4 managing director 
jim warwick has a degree in computer science from 
cambridge university from 1986 to 2003 he worked for 
analysys a cambridgebased telecoms consultancy heading 
up their it software and web development initiatives during 
this period he also held a number of external nonexecutive 
directorships including workbench software ltd a startup  
with a targeted software package for timerecording systems 
and vbn ltd a webbased hosting company specialising in 
business cluster and innovation network solutions he joined 
abcam in 2001 as technical director initially on a parttime 
basis but as a fulltime 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
eddie powell phd fca 58 finance director 
eddie powell gained a first degree followed by a phd in 
chemistry at cambridge and then qualified in 1976 as a 
chartered accountant with peat marwick mitchell now kpmg 
in london he then worked for two years as a financial 
controller in frankfurt germany after returning to the uk he 
joined marconi instruments a £100 millionturnover subsidiary 
of gec as financial controller and then later became finance 
director in 1990 he moved to colt a privately owned light 
engineering group with a turnover of £90 million and operations 
in eight countries as group finance director he joined abcam 
in march 2000 as finance director and has there overseen the 
financial side of the company during a period of rapid growth 
and then through the company’s ipo
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server	 studio	i	 setup	 paul	o	 first	readrevisions tony kouzarides phd 48 nonexecutive director 
tony kouzarides has a degree in molecular genetics from 
leeds university and a phd in virology from cambridge 
university he was subsequently awarded a research fellowship 
from fitzwilliam college cambridge from 1986 to 1989 he 
spent three years working as a research fellow in the laboratory 
of professor ed ziff at new york university medical center 
where he discovered a fundamental principle underlying the 
association of proteins involved in human cancer he was 
awarded a professorship at the university of cambridge in  
1999 and now oversees a group of scientists studying genes 
and proteins associated with human cancers he is a co
founder of chroma therapeutics a company developing cancer 
drugs he has played a central role in expanding abcam’s own 
antibody product range into the chromatin research area 
peter keen bsc aca 49 nonexecutive director
peter keen is a chartered accountant with over 20 years’ 
experience in the financing and management of biotechnology 
companies after experience in the agricultural biotechnology 
and medical diagnostics sectors he was a cofounder and 
finance director of chiroscience group plc where he led the 
ipo in 1994 he then helped establish merlin biosciences 
where he was uk managing director and was responsible  
for the investment as well as being a nonexecutive director  
of a number of companies including ark therapeutics arakis 
biovex cyclacel intercytex microscience reneuron and 
vectura more recently he was chief financial officer of arakis 
ltd until its successful trade sale in 2005 he is currently a non
executive director of ark therapeutics plc and the finsbury 
emerging biotechnology trust plc and acts as an advisor to 
various other organisations
tim dye ma 43 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 as well as a director of noble troy ltd through a 
series of successful acquisitions he has led the transformation 
of william ransom into one of the uk’s largest natural 
healthcare groups prior to joining ransom in 1999 and 
following an early career as a strategy consultant he founded 
and ran businesses in automated meter reading environmental 
management and property development he has a degree in 
economics from cambridge university
mark webster 44 nonexecutive director
mark webster joined abbott laboratories in 1998 ran the uk 
pharmaceutical and hospital divisions before moving to 
montreal canada in 1997 and then chicago usa in 1999  
as vice president antivirals us pharmaceuticals here he 
launched kaletra for hiv infection which became a 1 billion 
product in 2001 mark joined shire pharmaceuticals as head  
of global strategic marketing and licensingacquisitions and  
a member of the executive committee he then joined bayer 
healthcare based in germany in 2004 as senior vice 
president head of global strategic marketing and licensing 
acquisitions and a member of bayer pharmaceutical’s 
management committee mark has a degree in chemistry  
from durham university
	 annual	report	and	accounts	30	june	2006	 abcam   3 	 14 	 abcam 	 annual report and accounts 30 june 2006
corporate	directory
directors
chairman 
dr david cleevely 
chief executive officer 
dr jonathan milner 
finance director 
dr eddie powell
managing director 
mr jim warwick
nonexecutive directors 
mr tim dye
mr peter keen
prof tony kouzarides
mr mark webster
company	secretary	and	registered	office
mr tom maguire
332 cambridge science park
cambridge
cb4 0fw
nominated	advisor	and	broker
numis securities limited
cheapside house
cheapside
london 
ec2v 6lh
solicitors	to	the	company
eversheds llp
senator house
85 queen victoria street
london 
ec4v 4jl
auditors
deloitte  touche llp
chartered accountants
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  annual report and accounts 30 june 2006 abcam		 15
directors’	report
the director’s present their annual report on the affairs of the 
group together with the financial statements and auditors’ 
report for the year ended 30 june 2006
principal	activities
the group’s activities consist of the development marketing 
and selling of antibodies and closely related products the 
group sells through the internet to customers in most countries 
of the world the group operates through its parent company 
abcam plc and through its wholly owned subsidiary abcam inc 
it recently incorporated a wholly owned subsidiary in japan in 
order to support its japanese distributor and to service that 
market directly
the company is increasing its investment in research  
and development in order to strengthen its catalogue of  
own products
business	review
as shown in the group’s profit and loss account sales increased 
by 60 over the previous year and pretax profits increased  
by 65 the group’s cash and short term deposits rose from 
£15 million at 30 june 2005 to £119 million at 30 june 2006 
with £93 million of the increase coming from the issue of  
new shares net of expenses
a more detailed review of the business is set out in the chief 
executive officer’s and managing director’s reports together 
with the financial review
the group’s management uses key performance indicators kpis 
to monitor the progress of the business important kpis are
 30	 june  30 june 30 june 
kpi 2006 2005 2004
number of products  
 published 23200 16500 10300
sales per employee £000 223 209 187
profit before tax to sales 253 245 216
number of debtor days 45 47 41
principal	risks	and	uncertainties
the group faces the competitive and strategic risks that are 
inherent in a rapidly growing market and the group’s board and 
executive management keep future strategy under regular review
the group has an exposure to exchange rates in particular  
the strength of sterling relative to the us dollar and to the euro 
although there are significant natural hedges in place due to  
the fact that the group is able to utilise a large proportion of its 
dollar and euro income to pay for outgoings in those currencies 
the group still generates surpluses of both currencies the 
board’s policy for dealing with these is to sell forward 80 of the 
expected surplus currencies at the start of each financial year in 
order to eliminate most of the short term exposure however if 
there are longer term movements in the relative strength of 
sterling then these will impact the group’s profits for further 
details on the use of financial instruments see note 16
the group’s activities involve importing its products across  
many borders any changes to the regulations covering such 
movements might have an effect on the group’s trading activities
post	balance	sheet	events
on 11 august 2006 the company entered into an agreement 
with triple point biologics inc under the terms of the deal 
abcam will acquire the exclusive worldwide distribution rights  
to distribute that company’s complete range of products for a 
period of ten years for an initial payment of 2 million plus an 
earnout payment based on a percentage of sales achieved 
during the first four years subject to a cap of 8 million the 
directors’ expect the provision for the earnout payment will 
amount to approximately 14 million in addition abcam will  
pay a royalty based on a percentage of sales for the entire  
10 year term
dividends
the directors recommend a final dividend of 20p per ordinary 
share to be paid on 22 november 2006 to shareholders on the 
register on 27 october 2006 which together with the interim 
dividends of 325p paid on 28 october 2005 and 07p paid on  
7 april 2006 makes a total of 595p 2005 479p for the year
directors
the directors who held office during the year and their interests 
in the share capital of the company on 30 june 2006 other 
than with respect to share options which are detailed in the 
directors’ remuneration report were as follows
 	 4p ordinary shares 
 1p	 ordinary	 shares	 on 30 june 2005 
 on	 30	 june	 2006 or date of appointment
david cleevely 5054760 238669
peter keen 8982	 nil
tony kouzarides 629080 15727
jonathan milner 9744960 275477
eddie powell 726240 32036
jim warwick 860200 20925
peter keen was appointed to the board on 27 october 2005
on 1 july 2006 tim dye and mark webster were appointed  
to the board as nonexecutive directors
all of the directors will retire and offer themselves for  
reelection at the forthcoming annual general meeting
supplier	payment	policy
it is the group’s policy that payments to suppliers are made  
in accordance with the terms and conditions agreed with them 
provided that the supplier has provided the goods or services  
in accordance with the agreed terms and conditions
on 30 june 2006 the group had an average of 32 days of 
purchases 2005 29 outstanding in trade creditors 	 16 	 abcam 	 annual report and accounts 30 june 2006
charitable	and	political	donations
the group made charitable donations during the year of £2646 
2005 £nil principally to charities serving the communities in 
which it operates
the group made no political donations during the year 2005 £nil
substantial	shareholdings
other than directors’ interests which are set out above no 
shareholders have notified the company that they hold 3  
or more of the issued share capital of the company at  
23 august 2006
going	concern
the directors are satisfied that the group has adequate 
resources to continue its operations for the foreseeable future 
and for this reason they continue to prepare the financial 
statements on a goingconcern basis
auditors
in the case of each of the directors of the company at the date 
when this report is approved
as far as each of the directors are aware there is no relevant 
audit information as defined in the companies act 1985 of 
which the company’s auditors are unaware
 each of the directors has taken all the steps that he ought  
to have taken as a director to make himself aware of any 
relevant audit information as defined and to establish that 
the company’s auditors are aware of that information
this confirmation is given and should be interpreted in 
accordance with the provision of s234za of the companies  
act 1985
deloitte  touche llp have expressed their willingness to 
continue in office as auditors and a resolution to reappoint them 
will be proposed at the forthcoming annual general meeting
by order of the board
david cleevely
chairman
4 september 2006
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directors’	report continued  annual report and accounts 30 june 2006 abcam		 17
the board will in future meet bimonthly and in those months 
when the board does not meet members will continue to be 
informed on a formal reporting basis of financial results and  
key issues 
the board has introduced a policy to set out which matters  
are reserved for the decision of the board and to clarify  
those matters which the executive directors need not refer  
for approval 
this policy also identifies those matters regarding which full 
delegation to a board committee is not normally permitted 
because a final decision on the matter is required to be taken  
by the whole board matters which the board considers suitable 
for delegation are contained in the terms of reference of  
its committees
the board has established the following three committees
the audit committee
the nomination committee
the remuneration committee
following the appointment of tim dye and mark webster as 
independent nonexecutive directors it is the intention of the 
board to review the membership of the committees in 2007
each of the committees is described in more detail below
the	audit	committee
the committee is made up of three nonexecutive directors 
the chairman is peter keen who is a chartered accountant 
with david cleevely and tony kouzarides being the other 
directors on the committee
the committee has responsibility for the following matters
to review the accounts and the key judgements and policies 
underlying them in relation to the interim and annual financial 
statements before they are submitted to the board for  
final approval
to review the management’s reports on internal controls
to review the group’s riskmanagement process including 
the adequacy of insurance cover
to review the appointment of the external auditor together 
with the audit fee
to monitor the audit and 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 in future the 
committee is expected to meet formally twice a year
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the company believes that effective corporate governance 
appropriate to the company considering its size and stage  
of development will assist in delivering shareholder value in 
the admission document issued prior to admission to aim the 
directors stated their intention that wherever it was reasonably 
practicable the company should be managed according to the 
principles set out in the revised combined code on corporate 
governance the details of how the company follows the code 
are set out below
the	role	of	the	board
during the four years leading up to the company’s admittance 
to aim the board comprised three executive directors and two 
nonexecutive directors none of whom was deemed to be 
independent in october 2005 shortly before the company was 
admitted to aim an independent director – peter keen – joined 
the board and he took on the responsibility of chairing the audit 
and remuneration committees the board continued to seek 
additional independent directors and evaluated the ideal skill 
sets that would enhance its operation and on 1 july 2006 two 
new members – tim dye and mark webster – were appointed 
they will contribute their expertise in public companies 
operations manufacturing and sales and marketing 
the board now comprises a nonexecutive chairman who is 
not deemed to be independent because of his shareholdings 
three fulltime executive directors and four other nonexecutive 
directors three of whom are deemed to be independent 
because they have either very few or no shares or share 
options the roles of chairman and chief executive officer are 
vested in separate individuals
throughout the period since listing the board has met on  
a monthly basis the principal matters that it considers are  
as follows
monthly management accounts and performance  
against budget
regular reviews of rd operations and product  
line acquisition
an annual review of strategic objectives and company 
priorities
the company budget
reporting including statutory accounts dividend policy 
dividend payments and the agm
performance of the board and 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
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corporate	governance 	 18 	 abcam 	 annual report and accounts 30 june 2006
the	nomination	committee
the committee consists of three nonexecutive directors 
david cleevely chairman peter keen and tony kouzarides  
it is responsible for the following matters
to identify and nominate suitable candidates to fill vacancies 
on the board
to review succession planning for both directors and the 
management team
the committee has been active over the last few months in 
handling the recruitment of the two nonexecutive directors 
who have now been appointed to the board this process 
involved identifying a wide range of potential candidates through 
various intermediaries including board members of other 
companies professional investors and corporate advisors the 
committee interviewed a number of candidates and then drew 
up a shortlist of four to be interviewed by the rest of the board 
final selection was then made by the whole board
the	remuneration	committee	 during the year the committee consisted of three non
executive directors peter keen chairman david cleevely 
and tony kouzarides 
the committee is responsible for the following matters
setting the basic pay of executive directors and the 
remuneration of the chairman
setting a 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 
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the committee is also responsible for overseeing the 
company’s pss and its share option scheme both of which  
are reviewed each year
internal	control	 the board acknowledges its responsibility for safeguarding  
the shareholders’ investment and the group’s assets in 
applying this principle the board recognises that it has overall 
responsibility for ensuring that the group maintains a system  
of internal control to provide it with reasonable assurance 
regarding effective and efficient operation internal financial 
control and compliance with laws and regulations 
through the audit committee and meetings with the auditors 
the directors have reviewed the effectiveness of the internal 
controls and have undertaken an exercise to ensure that the 
group have an appropriate control environment for the size and 
complexity of the company the management team intend to 
ensure that the internal control environment develops with the 
size of the company in respect of the identification evaluation 
and monitoring of risk 
such a system is designed to manage rather than eliminate  
the risk of failure to achieve business objectives and can  
only provide reasonable and not absolute assurance against 
material loss or misstatement
dialogue	with	shareholders
the board believes it is important to have open communications 
with shareholders to this end the ceo and finance director 
working in consultation with the company’s corporate and pr 
advisors make themselves available on a regular basis and 
expect to meet with shareholders at least twice a year the 
board intends to give a presentation on progress within the 
company at the agm
corporate	governance continued  annual report and accounts 30 june 2006 abcam		 19
remuneration	 report
the group has a remuneration committee ‘the committee’ 
which wherever possible is constituted in accordance with the 
recommendations of the combined code
in considering the executive directors’ remuneration for the year 
the committee consulted the ceo about its proposals and 
reviewed executive compensation packages in the uk for aim
listed companies of comparable size it also referred to a number 
of specialist studies on executive remuneration
remuneration	 policy
the four main elements of the remuneration package for the 
executive directors are as follows
basic annual salary
the abcam pss and individual 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 
amended at the time of the listing of the company on aim in 
november 2005 and were reviewed in june 2006 with 
increases taking effect from 1 july 2006 executive directors’ 
service contracts which include details of remuneration will be 
available for inspection at the agm
outside of basic salary and pension contributions the executive 
directors currently receive no benefits in kind 
performancerelated	 payments
the group operates a pss whereby 10 of profits above a 
minimum ratio of net profit to sales are allocated to all employees 
including the executive directors on a points system 
during the year under review all of the executive directors’ 
performancerelated payments were derived from their 
participation in the pss for the year ending 30 june 2007 this 
has been amended to incorporate performance criteria related to 
the objectives for that particular individual which are directly 
related to defined strategic objectives if the company achieves 
the budgeted profit to sales ratio and an executive director 
achieves all of his personal objectives he may earn 50 of his 
basic salary as 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  
nonpensionable 
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share	 options
no options over ordinary shares have been granted since the 
ipo in november 2005
it is the intention to grant additional options on a regular basis to 
the executive directors under the abcam plc 2005 plan while  
the value of such options may vary it is the current plan to issue 
options on an annual basis with a value equivalent to 100 of 
basic salary and with performance conditions which comply  
with guidelines and best practice governing the grant of share
based incentives in a listed company to the extent to which the 
committee considers such practice to be appropriate to the group
options will be granted to the executive directors on this basis  
ie at 100 of base salary calculated on the market price at the 
date of grant which is anticipated to be within the window of 15 
days following publication of this report 
options in the past have not been performancelinked for this 
grant the performance conditions are 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 are 
exercisable during the next seven years subject to the rules of 
the scheme if the target is not met at the third anniversary then 
it is monitored on certain dates over the next 12 months if the 
target is met on any of those dates then the options become 
exercisable if the target is not met on any of those dates the 
options will lapse on the fourth anniversary 
the company has also established a 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 were 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 
remuneration is basic salary plus ontarget earnings from the 
pss during the year the group contributed a maximum of 5 
of basic salary for executive directors to a group personal 
pension scheme in the name of each executive director for the 
year ending 30 june 2007 this has been increased for executive 
directors to 6 of ontarget earnings excluding the individual 
performance bonus 
directors’	remuneration	report 	 20 	 abcam 	 annual report and accounts 30 june 2006
remuneration	details
    employer’s notional gain   
 basic benefits performance pension on options   
 salary in kind payments contributions exercised 2006 total 2005 total 
 £000 £000 £000 £000 £000 £000 £000
david cleevely 43 – – – 31 74 30
peter keen 18 – – – – 18 nil
tony kouzarides 20 – – – 46 66 10
jonathan milner 126 5 46 7 68 252 150
eddie powell 87 – 56 10 51 204 115
jim warwick 90 – 46 15 53 204 114
directors had the following interests in options over the ordinary shares in the company
     option  
   share options share options  exercise 
   held at 30 june held at 30 june  price for  
   2006 over 1p  2005 over 4p  1p ordinary 
   ordinary shares ordinary shares shares  exercise period
david cleevely   40000 500 125p 310106 to 290915
peter keen   60000 nil 150p 310106 to 261015
tony kouzarides   40000 738 125p 310106 to 290915
jonathan milner   40000 1200 625p 270707 to 290915
eddie powell   40000 900 625p 270707 to 290915
jim warwick   40000 5335 625p 270707 to 290915
directors were granted and they exercised the following numbers of share options during the year
     numbers  
     of options   
     converted from   
   number of number of  4p ordinary number of number of 
  class of options at  options shares to options options at 
  ordinary 30 june granted 1p ordinary exercised 30 june 
  share 2005 in year shares in year 2006
david cleevely  4p 500 1000 1500 – –
  1p – – 60000 20000 40000
peter keen  4p – 1500 1500 – –
  1p – – 60000 – 60000
tony kouzarides  4p 738 1000 1738 – –
  1p – – 69520 29520 40000
jonathan milner  4p 1200 1000 2200 – –
  1p – – 88000 48000 40000
eddie powell  4p 900 1000 1900 – –
  1p – – 76000 36000 40000
jim warwick  4p 5335 1000 4425 1910 –
  1p – – 177000 37000 140000
the notional gain on options exercised is the market value of the shares at date of exercise less the exercise price payable the 
notional gain is before taking account of any tax liability that may arise
during the year the company’s shares were reorganised with each 4p ordinary share effectively being replaced with 40 1p ordinary 
shares see note 19 to the accounts for a detailed reconciliation of the reorganisation
directors’	 contracts
the notice periods for directors are as follows
      notice period  
     date of contract months
david cleevely     28 october 2002 1
peter keen     27 october 2005 1
tony kouzarides     28 october 2002 1
jonathan milner     10 june 2000 6
eddie powell     11 august 2000 6
jim warwick     1 september 2001 6 
directors’	remuneration	report	 continued  annual report and accounts 30 june 2006 abcam		 21
the directors are responsible for preparing the annual report 
and the financial statements the directors have chosen to 
prepare the accounts for the company and the group in 
accordance with united kingdom generally accepted 
accounting practice
united kingdom company law requires the directors to prepare 
such financial statements for each financial year which give a 
true and fair view in accordance with united kingdom generally 
accepted accounting practice of the state of affairs of the 
company and of the group and of the profit or loss of the 
company for that period and comply with uk gaap and the 
companies act 1985 in preparing those financial statements 
the directors are required to
a select suitable accounting policies and then apply  
them consistently 
b make judgements and estimates that are reasonable  
and prudent 
c state whether applicable accounting standards have been 
followed and
d prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the company will 
continue in business
the directors are responsible for keeping proper accounting 
records which disclose with reasonable accuracy at any time 
the financial position of the company and to enable them to 
ensure that the financial statements comply with the companies 
act 1985 they are also responsible for safeguarding the assets 
of the company and hence for taking reasonable steps for the 
prevention and detection of fraud and other irregularities
statement	of 	directors’	responsibilities 	 22 	 abcam 	 annual report and accounts 30 june 2006
we have audited the group and individual company financial 
statements the ‘financial statements’ of abcam plc for the year 
ended 30 june 2006 which comprise the consolidated profit and 
loss account the consolidated statement of total recognised 
gains and losses the consolidated and individual company 
balance sheets the consolidated cash flow statement the notes 
to the consolidated cash flow statement and the related notes  
1 to 24 these financial statements have been prepared under 
the accounting policies set out therein
this report is made solely to the company’s members as a 
body in accordance with section 235 of the companies act 
1985 our audit work has been undertaken so that we might 
state to the company’s members those matters we are required 
to state to them in an auditors’ report and for no other purpose 
to the fullest extent permitted by law we do not accept or 
assume responsibility to anyone other than the company and 
the company’s members as a body for our audit work for this 
report or for the opinions we have formed
respective	responsibilities	of	directors	and	auditors
the directors’ responsibilities for preparing the annual report 
and the financial statements in accordance with applicable law 
and united kingdom accounting standards united kingdom 
generally accepted accounting practice are set out in the 
statement of directors’ responsibilities
our responsibility is to audit the financial statements in 
accordance with relevant united kingdom legal and regulatory 
requirements and international standards on auditing uk  
and ireland
we report to you our opinion as to whether the financial 
statements give a true and fair view in accordance with the 
relevant financial reporting framework and are properly 
prepared in accordance with the companies act 1985 we 
report to you whether in our opinion the information given in the 
directors’ report is consistent with the financial statements we 
also report to you if in our opinion the company has not kept 
proper accounting records if we have not received all the 
information and explanations we require for our audit or if 
information specified by law regarding directors’ remuneration 
and other transactions is not disclosed
we read the directors’ report and the other information 
contained in the annual report for the above year as described 
in the contents section and consider the implications for our 
report if we become aware of any apparent misstatements or 
material inconsistencies with the financial statements 
basis	of	audit	opinion
we conducted our audit in accordance with international 
standards on auditing uk and ireland issued by the auditing 
practices board an audit includes examination on a test basis 
of evidence relevant to the amounts and disclosures in the 
financial statements it also includes an assessment of the 
significant estimates and judgements made by the directors  
in the preparation of the financial statements and of whether 
the accounting policies are appropriate to the circumstances  
of the company and the group consistently applied and 
adequately disclosed
we planned and performed our audit so as to obtain all the 
information and explanations which we considered necessary  
in order to provide us with sufficient evidence to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or other irregularity or  
error in forming our opinion we also evaluated the overall adequacy 
of the presentation of information in the financial statements
opinion
in our opinion
the financial statements give a true and fair view in 
accordance with united kingdom generally accepted 
accounting practice of the state of the group’s and the 
individual company’s affairs as at 30 june 2006 and of the 
group’s profit for the year then ended 
the financial statements have been properly prepared in 
accordance with the companies act 1985 and
the information given in the directors’ report is consistent with 
the financial statements
deloitte  touche llp 
chartered accountants and registered auditors 
cambridge uk 
5 september 2006
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independent	auditors’	report	to	the	members	of 	abcam	plc	  annual report and accounts 30 june 2006 abcam		 23
      year	 to year to 
      30606 30605 
     note £000 £000
turnover     2 19362 12135
cost of sales      7485 4678
gross	 profit      11877 7457
expenses
administrative expenses      6106 3972
research and development expenses      1226 582
      7332 4554
      4545 2903
other operating income      42 15
operating	 profit     4 4587 2918
interest receivable and similar income      313 59
profit	 on	 ordinary	 activities	 before	 taxation	    4900 2977
tax on profit on ordinary activities     6 1221 696
profit	 on	 ordinary	 activities	 after	 taxation	   20	 3679 2281
earnings	 per	 share
basic earnings per share     9 1153p 859p
fully diluted earnings per share      1113p 847p
dividends paid per share     8 595p 479p
all activities derive from continuing operations
the statement of movements on reserves is shown in note 20
consolidated	statement	of 	total	recognised	gains	and	losses
year ended 30 june 2006
      year	 to year to 
      30606 30605 
      £000 £000
profit for the financial year     	 3679 2281
foreign exchange differences      23 11
total recognised gains and losses since the last annual report    3656 2292
consolidated	profit	and	loss	account
year ended 30 june 2006 	 24 	 abcam 	 annual report and accounts 30 june 2006
      30606 30605 
     note £000 £000
fixed	 assets
intangible assets     10 77	 –
tangible assets     11 1094 835
       1171 835 
current	 assets
stocks     13 2358	 1187 
debtors     14 2762	 1912 
short term investments     16 11000	 1000 
cash at bank and in hand     16 884	 510 
      17004	 4609 
creditors	 amounts	 falling	 due	 within	 one	 year    15 3023 2149
net	 current	 assets      13981	 2460 
total	 assets	 less	 current	 liabilities     15152	 3295 
provisions	 for	 liabilities	 and	 charges    18 112 80
net	 assets      15040	 3215 
capital	 and	 reserves
called up share capital     19 345	 28 
share premium account     20 10573	 1568 
other reserves     20 335	 335 
foreign exchange reserve     20 8 15
profit and loss account     20 3795	 1269
total	 equity	 shareholders’	 funds	    21 15040	 3215 
these financial statements were approved by the board of directors on 4 september 2006
signed on behalf of the board of directors
eddie powell
finance director
consolidated	balance	sheet
30 june 2006  annual report and accounts 30 june 2006 abcam		 25
      30606 30605 
     note £000 £000
fixed	 assets
intangible assets     10 77	 –
tangible assets     11 901	 724 
investments     12 16	 6 
       994 730 
current	 assets
stocks     13 2348  1182 
debtors     14 2676	 1932 
short term investments      11000	 1000 
cash at bank and in hand      312  208 
      16336	 4322 
creditors	 amounts	 falling	 due	 within	 one	 year    15 2705 1909
net	 current	 assets      13631  2413 
total	 assets	 less	 current	 liabilities     14625	 3143 
provisions	 for	 liabilities	 and	 charges    18 103 74
net	 assets      14522	 3069 
capital	 and	 reserves
called up share capital     19 345	 28 
share premium account     20 10573	 1568 
other reserves     20 335	 335 
profit and loss account     20	 3269 	 1138 
total	 equity	 shareholders’	 funds	     14522	 3069 
these financial statements were approved by the board of directors on 4 september 2006
signed on behalf of the board of directors
eddie powell
finance director
company	balance	sheet	
30 june 2006  	 26 	 abcam 	 annual report and accounts 30 june 2006
   	 year 	 to	 year 	 to year to year to 
    30606	 30606 30605 30605 
   note £000	 £000 £000 £000
net	 cash	 inflow	 from	 operating	 activities   a	 	 3547   2571 
returns	 on	 investments	 and	 servicing	 of	 finance
interest received    313	 	 59 
net	 cash	 inflow	 from	 returns	 on	 investments	 and	 	 servicing	 of	 finance 	 	 	 	 313 	  59 
taxation 
corporation tax paid    954	 700
tax	 paid   	 	 954  700
capital	 expenditure	 and	 financial	 investment
payments to acquire tangible fixed assets   	 597	 847
payments to acquire intangible fixed assets   	 100
receipts from sales of tangible fixed assets   	 6	 22 
net	 cash	 outflow	 from	 capital	 expenditure	 and	 financial	 investment 	 	 691  825
equity	 dividends	 paid   	 	 1153  1317
net	 cash	 outflow	 before	 management	 of	 liquid	 resources	 	 and	 financing	 	 	 	 	 1062 	  212
management	 of	 liquid	 resources
increase in short term deposits   	 10000 	 	 150
net	 cash	 outflow	 from	 management	 of	 liquid	 resources 	 	 	 10000  150
financing
issue of ordinary share capital   	 9322	 570 
net	 cash	 inflow	 from	 financing   	 	 9322  570 
increase	 in	 cash   bc	 	 384 	 	 208 
consolidated	cash	flow	statement
year ended 30 june 2006  annual report and accounts 30 june 2006 abcam		 27
a	 reconciliation	of	operating	profit	to	net	cash	inflow	from	operating	activities	
      year	 to year to 
      30606 30605 
      £000 £000
operating profit      4587	 2918 
depreciation and amortisation      355	 153 
profitloss on sale of tangible fixed assets       3 12 
increase in stocks      1171 629
increase in debtors      850 911
increase in creditors      629 1028 
net	 cash	 inflow	 from	 operating	 activities      3547	 2571 
b	 analysis	of	net	funds	
    at cash  exchange at	    01705 flow movement 30606	    £000 £000 £000 £000
cash in hand and at bank    510  384  10 884	 current asset investments    1000  10000   11000	 total    1510  10384  10 11884 
c	 reconciliation	of	net	cash	flow	to	movement	in	net	funds	
   	 year 	 to	 year 	 to year to year to 
   	 30606	 30606 30605 30605 
    £000	 £000 £000 £000
increase	 in	 cash	 in	 the	 year    384	 	 208  
cash outflow from decrease in liquid resources   10000	  150  
change	 in	 net	 funds	 resulting	 from	 cash	 flows	  	 10384 	  358 
translation difference     10  28 
movement	 in	 net	 funds	 in	 the	 year     10374	  386 
net	 funds	 at	 start	 of	 year     1510	  1124 
net	 funds	 at	 end	 of	 year     11884	  1510
notes	to	the	consolidated	cash	flow	statement
year ended 30 june 2006 	 28 	 abcam 	 annual report and accounts 30 june 2006
1	 accounting	policies
the financial statements are prepared in accordance with applicable united kingdom accounting standards the particular 
accounting policies adopted which have been applied consistently are described below
accounting convention
the financial statements are prepared under the historical cost convention
basis of consolidation
the group financial statements consolidate the financial statements of the company and its subsidiary undertakings abcam inc 
abcam kk and camgene ltd 
tangible fixed assets
tangible fixed assets are stated at cost less depreciation and any provision for impairment depreciation is provided at cost in 
equal instalments over the estimated lives of the fixed assets
the depreciation rates generally used are shown below
office equipment fixtures and fittings 20 per annum
laboratory equipment 20 per annum
computer equipment 33 per annum
motor vehicles 33 per annum
depreciation is accelerated if assets are deemed to have been impaired or there is a change in the residual economic life
intangible assets
the company acquires hybridomas for generating monoclonal antibodies either by licensing them in or by developing them itself 
the upfront fees paid for licensing hybridomas in and the cost of developing hybridomas themselves are capitalised in line with 
ssap 13 and these costs are then amortised over their estimated minimum useful lives of three years
provision is made for any impairment
investments
investments held as fixed assets are stated at cost less provision for any impairment in value
current asset investments are held at the lower of cost and net realisable value
stocks
stocks are stated at the lower of cost and net realisable value
costs include materials direct labour and an attributable portion of production overheads based on normal levels of activity net 
realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal provision 
is made for obsolete slowmoving or defective items where appropriate
taxation
current tax including uk corporation tax and foreign tax is provided at amounts expected to be paid or recovered using the tax 
rates and laws that have been enacted by the balance sheet date 
deferred taxation is provided in full on timing differences which represent an obligation at the balance sheet date to pay more tax  
or a right to pay less tax at rates expected to apply when they crystallise based on current tax rates and law timing differences 
arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they 
are included in financial statements deferred tax assets and liabilities are not discounted
notes	to	the	accounts
year ended 30 june 2006  annual report and accounts 30 june 2006 abcam		 29
1	 accounting	policies	 continued
pensions
the group operates a defined contribution pension scheme in the uk which is open to all employees and directors of the company 
the amount charged to the profit and loss account in respect of pension costs is the contributions payable in the year any differences 
between contributions payable in the year and contributions actually paid are shown either as accruals or prepayments in the  
balance sheet
the amount included in the profit and loss account in the year in respect of the pension scheme was £88000 2005 £47000  
the amounts included in creditors at 30 june 2006 in relation to the defined contribution pension scheme is £10000 2005 £3000
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 
for a forward foreign exchange contract to be treated as a hedge the instrument must be related to actual foreign currency assets or 
liabilities or to a probable commitment it must involve the same currency as the hedged item and must also reduce the risk of foreign 
currency exchange movements on the group’s operations gains and losses on these contracts are deferred and recognised in the 
profit and loss account only when the hedged transaction has itself been reflected in the group’s financial statements
if an instrument ceases to be accounted for as a hedge for example because the underlying position is eliminated the instrument 
is marked to market and any resulting profit or loss recognised at that time 
government grants
amounts receivable under government grants are credited to the profit and loss account as the related expenditure is incurred  
and is included in other operating income £42000 has been recognised in the profit and loss account in the period 2005 – £nil  
in relation to a grant for the epitron project which is for the research and technological development of an epigenetic treatment  
for neoplastic disease
2	 turnover
turnover represents the amounts derived from the provision of goods and services which fall within the group’s ordinary activities 
after deduction of trade discounts and value added tax
revenue is recognised on despatch to the customer  	 30 	 abcam 	 annual report and accounts 30 june 2006
3	 information	regarding	employees
group
      year	 to year to 
      30606 30605 
      no no
average	monthly	number	of	employees	including	executive	directors
administrative marketing and distribution      74 50
laboratory      13 8
      87 58
 
     	 £000 £000
staff	 costs	 during	 the	 year	 including	 directors
wages and salaries      3122 1999
social security costs      351 173
pension costs      105 55
charge in respect of share options granted      – 17
      3578 2244
company
      no no
average	 monthly	 number	 of	 employees	 including	 executive	 directors
administrative marketing and distribution      54 38
laboratory      13 8
      67 46
      £000 £000
staff	 costs	 during	 the	 year	 including	 directors
wages and salaries      2434 1663
social security costs      279 142
pension costs      88 47
charge in respect of share options granted      – 17
      2801 1869
4	 operating	profit
operating profit is after charging
      year	 to year to 
      30606 30605 
      £000 £000
depreciation – owned assets      332 153
profitloss on disposal of fixed assets      3 12
amortisation of intangible assets      23 –
auditors’ remuneration for audit services – group and company    51 26
fees paid to the auditors for other services to the group and the company    84 –
rd expenditure      1226 582
rentals under operating leases
land and buildings      246 198
notes	to	the	accounts continued
year ended 30 june 2006  annual report and accounts 30 june 2006 abcam		 31
5	 segmental	reporting
geographical segmental analysis
    30606 30606 30605 30605 
    uk us uk us 
    £000 £000 £000 £000
net assets    14522 518 3069 146
the company operates only one class of business
an analysis of turnover and profit before tax by class of business and geographical location is not presented as in the opinion of the 
directors such disclosure would be prejudicial to the interests of the group
6	 tax	on	profit	on	ordinary	activities
      year	 to year to 
      30606 30605 
      £000 £000
current	tax
uk corporation tax at 30 2005 30      942 662
foreign tax      256	 97
adjustments in respect of prior periods – uk tax     9 135
adjustments in respect of prior periods – foreign tax     – 6
total current tax      1189 618
deferred	 tax
timing differences origination and reversal – uk tax     29	 72
timing differences origination and reversal – foreign tax     3	 6
total deferred tax      32	 78
      1221 696
 
the standard rate of current tax for the year is 30 2005 30
the current tax charge for the year reconciles to the standard rate as follows
      year	 to year to 
      30606 30605 
      £000 £000
profit on ordinary activities before tax      4900	 2977 
tax on profit on ordinary activities at standard rate of 30     1470 893
factors affecting charge for the year
capital allowances for year in excess of depreciation     23 68
other timing differences       5 3
expenses not deductible for tax purposes      28 66
revenue items capitalised      2	 –
rd tax credit uplift      120 66
deduction for exercise of share options      225 97
adjustment in respect of prior years      9 141
differences in tax rates      65 28
current tax charge for the year      1189 618  	 32 	 abcam 	 annual report and accounts 30 june 2006
7	 profit	attributable	to	the	company
as permitted by section 230 of the companies act 1985 the profit and loss account of the parent company is not presented as part of 
these accounts the parent’s profit for the financial year before dividends amounted to £3284000 2005 £2118000
8	 dividends
      year	 to year to 
      30606 30605 
      £000 £000
first interim dividend for the year ended 30 june 2006 of 325p 2005 229p per share   912 623
second interim dividend for the year ended 30 june 2006 of 070p 2005 250p per share  241 694
      1153 1317
proposed final dividend for the year ended 30 june 2006 of 20p 2005 nil    689 –
the proposed final dividend is subject to approval by shareholders at the annual general meeting and has not been included as a 
liability in these financial statements
9	 earnings	per	share
the calculation of the basic and diluted earnings per share is based on the following data
      2006 2005 
      £000 £000
profit for the financial year      3679 2281
      number number 
      of shares of shares
weighted number of shares
basic earnings per share      31914845 26538889
assumed exercise of share options      845725 353907
fully diluted earnings per share      33050430 26932877
notes	to	the	accounts continued
year ended 30 june 2006  annual report and accounts 30 june 2006 abcam		 33
10	 intangible	assets
group and company
       development 
       costs and 
       upfront licence 
       fees for 
       monoclonal 
       antibodies 
       £000
cost
as at 1 july 2005
additions in the year       100
at	 30	 june	 2006	 	 	 	 	 	 	 100
accumulated	 amortisation
as at 1 july 2005
charge for the year       23
at	 30	 june	 2006	 	 	 	 	 	 	 23
net	 book	 value
at	 30	 june	 2006	 	 	 	 	 	 	 77
at 30 june 2005       –
the amortisation period for development costs and upfront licence fees is three years 	 34 	 abcam 	 annual report and accounts 30 june 2006
11	 tangible	fixed	assets
     laboratory office 
     and  equipment 
    computer operations fixtures and 
    equipment equipment fittings total 
    £000 £000 £000 £000
group
cost
at 1 july 2005    155  262  639  1056 
additions in year    101  458  38  597 
disposals in year    4 2 –  6
exchange difference    1 1 3 5
at	 30	 june	 2006	 	 	 	 251 	 	 717 	 	 674 	 	 1642	 accumulated	 depreciation
at 1 july 2005    85  67  69  221 
charge for the year    54  69  209  332 
disposals in year    3 2 –  5
at	 30	 june	 2006	 	 	 	 136 	 	 134 	 	 278 	 	 548	 net	 book	 value
at	 30	 june	 2006	 	 	 	 115 	 	 583 	 	 396 	 	 1094	 at 30 june 2005    70  195  570  835 
company
cost
at 1 july 2005    133  239  550  922 
additions in year    77  363  29  469 
disposals in year    4 3 –  7
at	 30	 june	 2006	 	 	 	 206 	 	 599 	 	 579 	 	 1384	 accumulated	 depreciation
at 1 july 2005    77  61  60  198 
charge for the year    41  63  185  289 
disposals in year    3 1 –  4
at	 30	 june	 2006	 	 	 	 115 	 	 123 	 	 245 	 	 483	 net	 book	 value
at	 30	 june	 2006	 	 	 	 91 	 	 476 	 	 334 	 	 901	 at 30 june 2005    56  178  490  724 
notes	to	the	accounts continued
year ended 30 june 2006  annual report and accounts 30 june 2006 abcam		 35
12	 fixed	asset	investments	
company
       subsidiary 
       undertakings 
       £000
at 1 july 2005       6
investment in abcam kk       10
at	 30	 june	 2006	 	 	 	 	 	 	 16
abcam kk was incorporated on 9 june 2006 and did not trade in the year
the company’s subsidiaries at 30 june 2006 are
      proportion proportion 
    nature of country of of shares of voting 
    business incorporation owned power held
abcam inc    sale and usa 100 100
    distribution of   
    antibodies
abcam kk    dormant japan 100 100
camgene    dormant uk 100 100
as at 30 june 2006 the called up share capital and reserves of camgene were £10 2005 £10 the company is dormant all 
subsidiary companies have one class of ordinary shares
13	 stocks
    group company group company 
    30606 30606 30605 30605 
    £000 £000 £000 £000
goods for resale    2308 2298 946 941
work in progress    50 50 241 241
    2358 2348 1187 1182
14	 debtors
    group company group company 
    30606 30606 30605 30605 
    £000 £000 £000 £000
trade debtors    2386 1164 1733 805
owed by subsidiary undertaking    – 1165 – 955
other debtors and prepayments    376 347 179 172
    2762 2676 1912 1932
all amounts are due within one year 	 36 	 abcam 	 annual report and accounts 30 june 2006
15	 creditors	amounts	falling	due	within	one	year
    group company group company 
    30606 30606 30605 30605 
    £ £ £ £
trade creditors    1160 1133 835 743
corporation tax    562 411 327 251
other taxes and social security    89 89 62 54
other creditors    127 98	 109	 91
accruals and deferred income    1085 974 816 770
    3023 2705 2149 1909
16	 financial	instruments
the group does not undertake any speculative trading in financial instruments financial instruments comprise cash and short 
term investments together with debtors creditors and accruals short term debtors and creditors have been excluded from the 
following disclosures other than the currency disclosures the risks that arise from these instruments are currency exposure 
interest rate credit and liquidity and the policies followed throughout the year are as follows
currency risk
the group operates in us dollars and euros as well as in sterling having both income and expenses in all of these currencies and 
this trading results in a surplus of dollars and euros the group hedges these surpluses at the start of each financial year in order 
to minimise the impact on that year’s trading from exchange rate fluctuations this is done by arranging forward exchange contracts 
month by month to sell the majority of the expected surpluses
interest rate risk
the group places most of its liquid assets on deposit for periods of between one and six months and are all floating rate financial 
assets these deposits are with recognised uk high street banks interest rates are based upon prevailing market rates during the 
year the weighted average interest rate received on these deposits was 445 and the weighted average period to maturity for 
each currency was 13 days 2005nil days
credit risk
the group’s main financial assets are cash deposits bank accounts and trade debtors 
credit risk is primarily attributable to its trade debtors the average credit period taken on sales of goods is 45 days an allowance 
has been made for potential bad debts in arriving at the amounts stated in the balance sheet the group has no significant 
concentration of credit risk in its debtors as the exposure is spread over a very wide range of customers 
the credit risk on cash deposits and bank accounts is limited because the counterparties are leading uk banks
liquidity risk
liquidity is maintained by placing cash on deposit for relatively short periods of time in order to ensure that cash is available when 
the group requires it at 30 june the group held the following liquid assets
      30606 30605 
      £000 £000
sterling cash deposits      11000 1000
cash – sterling      205 80
cash – us dollars      610 356
cash – euros      59 74
cash – yen      10	 –
      11884 1510
at the balance sheet date abcam plc was contracted to sell £5362000 of us 2005 £5057000 and £2433000 of euros 
2005 £2320000 the directors consider there to be no material difference between the book value and the fair value of the 
group’s financial assets as at the balance sheet date
notes	to	the	accounts continued
year ended 30 june 2006  annual report and accounts 30 june 2006 abcam		 37
17	 financial	commitments
operating lease commitments
at 30 june 2006 the following payments were committed to be paid during the next year in respect of operating leases
      30606 30605 
      land	 and land and 
      buildings buildings 
      £000 £000
group
leases which expire
within 12 months      66	 –
within two to five years      – 68
after five years      209 177
      275 245
company
leases which expire
after five years      275 177
18	 deferred	tax	 	 company and group
deferred taxation provided is as follows
 group  company
    30606 30605 30606 30605 
    £000 £000 £000 £000
accelerated capital allowances    152  107  110	 78 
other timing differences    40 27 7 4
deferred tax liability    112	 80  103	 74 
     
       £000
group   
at 1 july 2005       80
charge in year       32
at	 30	 june	 2006	 	 	 	 	 	 	 112
company	 	 	 at 1 july 2005       74
charge in year       29
at	 30	 june	 2006	 	 	 	 	 	 	 103
there are no unprovided deferred tax amounts 	 38 	 abcam 	 annual report and accounts 30 june 2006
19	 called	up	share	capital
      30606 30605 
      £000 £000
authorised
100000000 2005 4000000 ordinary shares of 1p each 2005 4p    1000 160
called	 up	 allotted	 and	 fully	 paid
34464584 2005 695118 ordinary shares of 1p each 2005 4p    345 28
under the company’s enterprise management incentive scheme employees of abcam plc held options at 30 june 2006 for 
728480 unissued 1p ordinary shares 2005 23788 4p ordinary shares during the year options for 6789 4p ordinary shares and 
229760 1p ordinary shares were exercised options for 7308 4p ordinary shares were granted and options for 178 4p ordinary 
shares and 6920 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  100000 250p to 500p june 2005 to june 2006
july 2004  121920 250p july 2006
december 2004  220000 250p 2 years after a listing
july 2005  218280 625p july 2007
september 2005  60000 625p september 2007
employees of abcam plc also held options under an unapproved scheme at 30 june 2006 for 261360 unissued ordinary shares 
2005 4263 4p ordinary shares at exercise prices of 625p to 150p per share 170520 options for 1p ordinary shares were 
exercised during the year and 6534 options for 4p ordinary shares were granted the options vest over the period january 2006 
to july 2007 employees of abcam inc also held options under an unapproved scheme at 30 june 2006 for 55320 unissued 
ordinary shares 2005 nil at an exercise price of 1125 an option for 40000 2005 1000 4p ordinary shares 1p ordinary shares 
has been granted to a scientific advisor at an exercise price of 25p per share the option vested in may 2005 
reconciliation of 1p ordinary shares to 4p ordinary shares
on 20 october 2005 a bonus issue of one 4p ordinary share for each 4p ordinary share took place on 3 november 2005 each  
4p ordinary share was split into four 1p ordinary shares this was then immediately followed by a bonus issue of four 1p ordinary 
shares for each 1p ordinary share the cumulative effect of these steps was that one 4p ordinary share before 20 october 2005 
became 40 1p ordinary shares on or shortly before 3 november 2005
during the period from 1 july 2005 to 2 november 2005 the company issued ordinary 4p shares as follows
      exercise 
     number price total paid 
date issued     of shares £ £
4 july 2005     3913 500 19565
6 september 2005     100 500 500
22 september 2005     270 500 1350
23 september 2005     70 1000 700
28 september 2005     255 500 1275
29 september 2005     975 500 4875
29 september 2005     935 1000 9350
3 october 2005     68 500 340
7 october 2005     203 500 1015
     6789  38970
notes	to	the	accounts continued
year ended 30 june 2006  annual report and accounts 30 june 2006 abcam		 39
19	 called	up	share	capital	 continued
during the period from 3 november 2005 to 30 june 2006 the company issued ordinary 1p shares as follows
      exercise 
     number price total paid 
date issued     of shares £ £
3 november 2005     5988024 167 10000000
3 november 2005     146120 0125 18265
3 november 2005     217280 025 54320
26 april 2006     1400 025 350
31 may 2006     7680 025 1920
12 june 2006     20000 0125 2500
27 june 2006     7800 025 1950
      6388304   10079305
 
20	 statement	of	movements	on	reserves
    share  foreign profit 
    premium other exchange  and loss 
    account reserves reserve account 
    £000 £000 £000 £000
group
as at 1 july 2005    1568 335 15 1269
retained profit for the year    – – – 3679
dividends paid    – – – 1153
bonus issues    253 – – –
premium on shares issued    10056 – – –
expenses of share issues    798 – – –
currency translation difference on foreign currency net investments  – – 23 –
at	 30	 june	 2006	 	 	 	 10573	 335	 8	 3795
    share   profit 
    premium other  and loss 
    account reserves  account 
    £000 £000  £000
company
as at 1 july 2005    1568 335  1138
retained profit for the year    – –  3284
dividends paid    – –  1153
bonus issues    253 –  –
premium on shares issued    10056 –  –
expenses of share issues    798 –  –
at	 30	 june	 2006	 	 	 	 10573	 335	 	 3269 	 40 	 abcam 	 annual report and accounts 30 june 2006
21	 reconciliation	of	movements	in	group	shareholders’	funds
      2006 2005 
      £000 £000
profit for the year      3679 2281
other recognised gains and losses relating to the year net     23 11
add back charge in respect of share options      – 17
      3656 2309
dividends paid      1153 1317
issue of shares net of issuing costs      9322 570
net addition to shareholders’ funds     	 11825 1562
opening shareholders’ funds      3215 1653
closing shareholders’ funds     	 15040 3215
22	 post	balance	sheet	events
on 11 august 2006 the company entered an agreement with triple point biologics inc under the terms of the deal abcam will 
acquire the worldwide distribution rights for a period of 10 years for an initial payment of 2 million plus an earnout payment based 
on a percentage of sales achieved during the first four years subject to a cap of 8 million based on current estimates of future 
sales the directors expect the provision for the earnout payment will amount to approximately 14 million in addition abcam will 
pay a royalty based on a percentage of sales for the entire 10 year term
23	 ultimate	controlling	party
there was no ultimate controlling party in either year
24	 related	party	transactions
until september 2005 dr e w powell was a director of cambridge theranostics ltd which during the year purchased products 
from abcam to a value of £4274 2005 £52031
notes	to	the	accounts continued
year ended 30 june 2006 01  highlights
02  our business at a glance
04  chairman’s statement
06  ceo’s review
07  managing director’s review
08  ceo’s questions and answers
10  financial review
12  the directors
14 corporate directory
15 directors’ report
17  corporate governance
19  directors’ remuneration report
21  statement of directors’ responsibilities
22  independent auditors’ report
23 consolidated profit and loss account
23  statement of total recognised gains and losses
24  consolidated balance sheet
25  company balance sheet
26  consolidated cash flow statement
27  notes to the consolidated cash flow statement
28  notes to the accounts
contents annual report 
and accounts
for the year ended 30 june 2006
abcam plc annual accounts 
abcam plc
332 cambridge science park
milton road
cambridge cb4 0fw
united kingdom
phone 44 0 1223 696000
fax 44 0 1223 696001
wwwabcamcom
abcam plc annual report and accounts for the year ended 30 june 2006


Summary:
 jonathan milner answers some of the most 
frequently asked questions by investors 
from the past year 
  why do you think antibodies are such an exciting  
market opportunity
research antibodies are fundamental to studying proteins at a 
cellular level and proteins are the fundamental components of 
life therefore in order to understand the differences between 
health and disease the specific functions of proteins need to be 
elucidated and the only way that this can be achieved is by 
using specific antibodies to home in and image the protein the 
recent sequencing of the human genome has identified tens of 
thousands of new potential proteins and the research world is 
moving from genomics the study of genomes and genes to 
proteomics the study of proteins and how they interact since 
the turn of the millennium the market for research antibodies 
has increased at between 10 and 20 per annum
all of this put together means that there has never been so 
much excitement opportunity and optimism as there is currently 
surrounding antibodies 
2 can you give me an example of how one of your 
customers may use an antibody
our customers are typically bioscientists working in academia 
or industry who want to answer fundamental questions about 
how their protein of interest functions at a cellular level an 
example out of thousands would be for instance a cancer 
research group from the abramson family research institute  
at the university of pennsylvania in the usa who have recently 
published a scientific paper which sheds light on how specific 
proteins are disrupted in b cell lymphomas and this research 
utilised and was enabled by antibodies purchased from abcam
3 how many antibody products are there
there are currently tens of thousands of antibodies abcam  
has over 23000 antibodies to over 6000 proteins in its online 
catalogue making it the largest online antibody resource in the 
world the human genome project alone has revealed possibly 
20000 to 25000 genes and each gene potentially encodes  
at least one or possibly more proteins each having a number  
of flavours and modifications taking the number of potential 
antibodies that will be required in the future into the hundreds  
of thousands and making this an extremely exciting market
questions and answers
 8 abcam annual	report	and	accounts	30	june	2006
job	 7475abcamarawftindd	 proof	 04	 proof read by
operator	rob	 date	 080906	
server	 studio	i	 setup	 paul	o	 first	readrevisions 4 does abcam make all its own products
no it is an important part of abcam’s strategy to be able to offer 
our customers the best antibodies in the world regardless of 
their source practically this means we source our products 
from trusted suppliers and from academic institutes as well as 
from our own laboratories if we do not think a product is up to 
scratch whether it is our own or from one of our suppliers we 
will unpublish it using this strategy abcam has succeeded in 
having a unique product offering of exceptional value to the 
customer who is assured that they are purchasing the best 
possible product
5 what percentage of your revenues are your  
own products
currently it is around 13 of our revenues and we plan to 
increase this as our own production is ramped up
6 are there other companies doing the same as abcam
there are many other companies that sell antibodies but none 
as far as we can tell that has the same unique product offering 
we have the largest online catalogue in the industry coupled 
with the most detailed datasheets and fast delivery of the best 
in the world antibodies we do not rest on our laurels however 
and are aware that the market for antibodies does not stand still 
so we need to keep improving and modifying our product 
offering to match
7 are you a biotech company or a distributor
neither and both abcam’s unique product offering and 
business model means that the company does not fit neatly  
into any one box we manufacture our own products and we 
distribute and we are at the cutting edge of bioscience and 
biomedical research 
8 what are the biggest opportunities for growth and what 
are the risks
in the research reagent market the opportunities and risks are 
two sides of the same coin if a company can offer a large 
catalogue of high quality research antibodies coupled with 
detailed information on each product it will succeed and win in 
this exciting market other risks are operational and regulatory 
in nature such as business interruption or changes in the import 
regulations for biomedical products
our new robotic system will 
enable us to store pick and pack 
stock more efficiently and allow 
us to expand output without a 
corresponding growth in staff  
and expenditure
	 annual	report	and	accounts	30	june	2006	 abcam  9