Bioventix plc
UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHS ENDED
31 DECEMBER
2016
Bioventix plc (BVXP) (“Bioventix” or “the Company”), a UK
company specialising in the development and commercial supply of
high-affinity monoclonal antibodies for applications in clinical
diagnostics, announces its unaudited interim financial results for
the six-month period ending 31 December 2016.
HIGHLIGHTS
- Turnover:
+ 32% to £3.12M (H2 2015: £2.37M)
- Profit before
tax:
+49% to £2.48M (H2 2015: £1.67M)
- Profit after tax:
+41% to £1.98M (H2 2015:£1.40M)
- Cash at 31 Dec:
+0.54M to £5.15M (2015: £4.61M)
- Interim dividend per
share: +21% to 20p
(March 2016: 16.5p)
CHAIRMAN AND CHIEF
EXECUTIVE'S STATEMENT
We are pleased to report the interim results for the half-year
ended 31 December 2016. Revenues for the half-year period of
£3.12M (H2 2015:£2.37M) were up 32% and profits before tax of
£2.48M (H2 2015 £1.67M) were up 49% for the comparable period in
the previous year.
Revenue growth compared to the comparable half year has come
from our vitamin D antibody (vitD3.5H10) in the form of increased
physical antibody sales and royalties. The roll out of our
customer’s vitamin D assay products has advanced further towards
completion.
As mentioned in our last report in October 2016, Bioventix revenues arriving in
global currencies converted at post-Brexit referendum exchange
rates give an uplift in reported sterling revenues of 15-20% as no
hedging mechanisms are employed. The 2015/16 annual accounts
featured such an effect for 1H.2016 compared to 1H.2015 and a
similar effect accounts for some of the growth in the reporting
period – 2H.2016 compared to 2H.2015.
Shipments to China have
continued at a high frequency with the majority of antibodies being
used for R&D purposes. Whilst revenues from China remain modest, we remain optimistic that
our antibodies are proving to be successful.
Cash flows remained strong and our cash balance increased
significantly to £5.15M at 31 December
2016 (2015: £4.61M).
Future developments
We reported in October on the progress of our troponin partner
Siemens Healthcare Diagnostics and a high sensitivity troponin test
which features a Bioventix-created antibody. Whilst the exact
timing of a Siemens product launch is confidential Siemens
information and will be dependent on their discussions with global
regulatory authorities, the Board expects to hear news later in
2017 relating to their ex-US activities. Significant troponin
revenues during the financial year 2017/2018 are expected to offset
the loss of revenues of around £800,000 from another product due to
the expiry of the relevant agreement.
Dividend Policy
The Board continues to follow a progressive dividend policy that
embraces continuity. For the current half-year, the Board is
pleased to announce a first interim dividend of 20p which
represents a 21% increase on the previous half-year.
The shares will be marked ex dividend on 6th April and the
dividend will be paid on 21st April to shareholders on the register
at close of business on 7th April.
Conclusion
We are delighted to be able to report such positive news for the
current half-year. We are pleased with the continued success
of our vitamin D antibody and remain optimistic about our troponin
project and the success of Siemens as their product launches around
the world.
For further information please
contact:
Bioventix
plc
Peter Harrison |
Chief Executive Officer |
Tel: 01252 728 001 |
|
|
|
finnCap Ltd
Geoff Nash/Simon Hicks
Stephen Norcross |
Corporate Finance
Corporate Broking |
Tel: 020 7220 0500 |
About Bioventix plc:
Bioventix (www.bioventix.com) specialises in the development and
commercial supply of high-affinity monoclonal antibodies with a
primary focus on their application in clinical diagnostics, such as
in automated immunoassays used in blood testing. The antibodies
created at Bioventix are generated in sheep and are of particular
benefit where the target is present at low concentration and where
conventional monoclonal or polyclonal antibodies have failed to
produce a suitable reagent. Bioventix currently offers a portfolio
of antibodies to customers for both commercial use and R&D
purposes, for the diagnosis or monitoring of a broad range of
conditions, including heart disease, cancer, fertility, thyroid
function and drug abuse. Bioventix currently supplies antibody
products and services to the majority of multinational clinical
diagnostics companies. Bioventix is based in Farnham, UK and its
shares are traded on AIM under the symbol BVXP.
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
BIOVENTIX PLC
STATEMENT OF
COMPREHENSIVE INCOME
for the six month
period ended 31 December 2016
|
Six months
ended
31 Dec
2016 |
|
Six months
ended
31 Dec 2015 |
|
£ |
|
£ |
TURNOVER |
3,124,841 |
|
2,370,841 |
Cost of sales |
(217,820) |
|
(259,132) |
GROSS PROFIT |
2,907,021 |
|
2,111,709 |
Administrative expenses |
(445,919) |
|
(444,912) |
|
|
|
|
OPERATING PROFIT |
2,461,102 |
|
1,666,797 |
Interest receivable |
23,117 |
|
3,393 |
Interest payable |
(253) |
|
(2,083) |
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION |
2,483,966 |
|
1,668,107 |
Tax on profit on ordinary
activities |
(504,822) |
|
(270,281) |
PROFIT FOR THE FINANCIAL PERIOD |
1,979,144 |
|
1,397,826 |
|
|
|
|
Earnings per share for the period: |
|
|
|
Basic |
39.01p |
|
27.67p |
Diluted |
38.67p |
|
27.20p |
BIOVENTIX PLC
BALANCE SHEET
as at 31 December 2016
|
|
31 Dec
2016 |
|
31 Dec 2015 |
|
|
£ |
|
£ |
FIXED ASSETS |
|
|
|
|
Intangible fixed assets |
|
0 |
|
0 |
|
|
|
|
|
Tangible fixed assets |
|
458,377 |
|
470,541 |
Investments |
|
195,560 |
|
411 |
|
|
|
|
|
|
|
653,937 |
|
470,952 |
CURRENT ASSETS |
|
|
|
Stocks |
233,650 |
|
181,597 |
Debtors |
2,612,288 |
|
2,013,504 |
Cash at bank and in
hand |
5,148,037 |
|
4,611,800 |
|
|
|
|
|
7,993,975 |
|
6,806,901 |
CREDITORS: amounts falling due within one year |
(631,703) |
|
(343,063) |
|
|
|
|
NET CURRENT
ASSETS |
7,362,272 |
|
6,463,838 |
TOTAL
ASSETS LESS CURRENT LIABILITIES |
8,016,209 |
|
6,934,790 |
PROVISIONS FOR LIABILITIES |
|
|
|
Deferred Tax |
17,078 |
|
17,897 |
NET ASSETS |
7,999,131 |
|
6,916,893 |
CAPITAL AND RESERVES |
|
|
|
Called up share
capital |
254,933 |
|
252,546 |
Share
premium account |
224,942 |
|
78,426 |
Capital redemption
reserve |
1,231 |
|
1,231 |
Profit and loss
account |
7,518,025 |
|
6,584,690 |
SHAREHOLDERS'
FUNDS |
7,999,131 |
|
6,916,893 |
BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the
six month period ended 31 December
2016
|
|
31 Dec
2016 |
|
31 Dec
2015 |
|
|
£ |
|
£ |
CASHFLOW FROM OPERATING ACTIVITIES |
|
|
|
|
Cash flows from operating
activities
Profit for the financial year |
|
2,461,102 |
|
1,666,797 |
Amortisation of
intangible assets |
|
- |
|
- |
Depreciation of
tangible fixed assets |
|
18,215 |
|
18,396 |
Taxation |
|
(414,747) |
|
(187,917) |
Increase / (increase)
in stocks |
|
(34,718) |
|
11,373 |
Decrease in
debtors |
|
68,200 |
|
72,866 |
(Decrease) in
creditors |
|
(4,164) |
|
(35,045) |
Share option
charge |
|
9,094 |
|
25,944 |
Net cash generated
from operating activities |
|
2,102,982 |
|
1,572,414 |
|
|
|
|
|
|
|
|
Purchase of tangible fixed assets |
(9,505) |
|
(1,545) |
Purchase
of listed and other investments |
(152,230) |
|
0 |
Interest
received |
23,117 |
|
3,393 |
Net
cash from investing activities |
(138,618) |
|
1,848 |
Cash flows
from financing activities |
|
|
|
Issue of
ordinary shares |
2,387 |
|
0 |
Movement
on share premium account |
146,516 |
|
0 |
Dividends
paid |
(2,345,382) |
|
(1,091,001) |
Interest
paid |
(253) |
|
(2,083) |
Net
cash used in financing activities |
(2,196,732) |
|
(1,093,084) |
Cash and cash
equivalents at the beginning of the year |
5,380,405 |
|
4,130,622 |
|
|
|
|
Cash and cash
equivalents at the end of the year |
5,148,037 |
|
4,611,800 |
|
|
|
|
Cash
and cash equivalents at the end of the year comprise: |
|
|
|
Cash at
bank and in hand |
5,148,037 |
|
4,611,800 |
BIOVENTIX PLC
Notes to the
financial information
1. While the interim financial information has
been prepared using the company’s accounting policies and in
accordance with Financial Reporting Standard 102 (FRS 102), the
announcement does not itself contain sufficient information to
comply with FRS 102.
2. This interim financial statement has not
been audited or reviewed by the auditors.
3. The accounting policies which were used in
the preparation of this interim financial information were as
follows:
3.1 Basis of preparation of financial
statements
The
financial statements have been prepared under the historical cost
convention and in accordance with applicable accounting
standards.
3.2 Turnover
Turnover
is recognised for product supplied or services rendered to the
extent that it is probable that the economic benefits will flow to
the Company and the turnover can be reliably measured. Turnover is
measured as the fair value of the consideration received or
receivable, excluding discounts, rebates, value added tax and other
sales taxes. The following criteria determine when turnover will be
recognised:
3.2.1 Direct sales
Direct sales are recognized at the date of dispatch.
3.2.2 R&D income
Subcontract R&D income is recognised based upon the stage of
completion at the year-end.
3.2.3 Licence revenue
Annual licence revenue is recognised, in full, based upon the date
of the invoice, and royalties are accrued over the period to which
they relate
3.3 Intangible fixed assets and
amortization
Goodwill
is the difference between amounts paid on the acquisition of a
business and the fair value of the identifiable assets and
liabilities. It is amortised to the Profit and loss account over
its estimated economic life.
|
|
|
|
|
Amortisation is provided at the following rates:
|
|
|
|
|
Goodwill |
- |
Over 10 years |
|
|
|
|
Know how |
- |
Over 10 years |
3.4 Tangible fixed assets and
depreciation
|
|
Tangible fixed assets are stated at cost less depreciation.
Depreciation is not charged on freehold land. Depreciation on other
tangible fixed assets is provided at rates calculated to write off
the cost of those assets, less their estimated residual value, over
their expected useful lives on the following bases: |
|
|
|
|
|
Freehold property |
- |
2% straight line |
|
|
|
|
Plant and equipment |
- |
25% reducing
balance |
|
|
|
|
Motor Vehicles |
- |
25% straight line |
|
|
|
|
Equipment |
- |
25% straight
line |
|
|
|
|
|
|
|
|
3.5 Valuation of
investments
Investments in unlisted Company shares, whose market value can be
reliably determined, are remeasured to market value at each balance
sheet date. Gains and losses on remeasurement are recognised in the
Profit and loss account for the period. Where market value cannot
be reliably determined, such investments are stated at historic
cost less impairment.
3.6 Stocks
Stocks are stated at the lower of cost and net realisable value,
being the estimated selling price less costs to complete and sell.
Cost includes all direct costs and an appropriate proportion of
fixed and variable overheads.
At
each balance sheet date, stocks are assessed for impairment. If
stock is impaired, the carrying amount is reduced to its selling
price less costs to complete and sell. The impairment loss is
recognised immediately in profit or loss.
3.7 Debtors
Short term debtors are measured at transaction price, less any
impairment. Loans receivable are measured initially at fair value,
net of transaction costs, and are measured subsequently at
amortised cost using the effective interest method, less any
impairment.
3.8 Cash and cash
equivalents
Cash is represented by cash in hand and deposits with financial
institutions repayable without penalty on notice of not more than
24 hours. Cash equivalents are highly liquid investments that
mature in no more than three months from the date of acquisition
and that are readily convertible to known amounts of cash with
insignificant risk of change in value.
In
the Statement of cash flows, cash and cash equivalents are shown
net of bank overdrafts that are repayable on demand and form an
integral part of the Company's cash management.
3.9 Financial
instruments
The
Company only enters into basic financial instruments transactions
that result in the recognition of financial assets and liabilities
like trade and other accounts receivable and payable, loans from
banks and other third parties, loans to related parties and
investments in non-puttable ordinary shares.
3.10 Creditors
Short term creditors are measured at the transaction price. Other
financial liabilities, including bank loans, are measured initially
at fair value, net of transaction costs, and are measured
subsequently at amortised cost using the effective interest
method.
3.11 Foreign currency translation
3.11.1 Functional and presentation
currency
The Company's functional and presentational currency is GBP.
3.11.2 Transactions and balances
Foreign currency transactions are translated into the functional
currency using the spot exchange rates at the dates of the
transactions.
At
each period end foreign currency monetary items are translated
using the closing rate. Non-monetary items measured at historical
cost are translated using the exchange rate at the date of the
transaction and non-monetary items measured at fair value are
measured using the exchange rate when fair value was
determined.
3.12 Finance costs
Finance costs are charged to the Profit and loss account over the
term of the debt using the effective interest method so that the
amount charged is at a constant rate on the carrying amount. Issue
costs are initially recognised as a reduction in the proceeds of
the associated capital instrument.
3.13 Dividends
Equity dividends are recognised when they become legally
payable. Interim equity dividends are recognised when paid. Final
equity dividends are recognised when approved by the shareholders
at an annual general meeting. Dividends on shares recognised as
liabilities are recognised as expenses and classified within
interest payable.
3.14 Employee benefits-share-based
compensation
The
company operates an equity-settled, share-based compensation plan.
The fair value of the employee services received in exchange for
the grant of the options is recognised as an expense over the
vesting period. The total amount to be expensed over the vesting
period is determined by reference to the fair value of the options
granted. At each balance sheet date, the company will revise its
estimates of the number of options are expected to be exercisable.
It will recognise the impact of the revision of original estimates,
if any, in the profit and loss account, with a corresponding
adjustment to equity. The proceeds received net of any directly
attributable transaction costs are credited to share capital
(nominal value) and share premium when the options are
exercised.
3.15 Pensions
Defined contribution pension plan
The
Company operates a defined contribution plan for its employees. A
defined contribution plan is a pension plan under which the Company
pays fixed contributions into a separate entity. Once the
contributions have been paid the Company has no further payments
obligations.
3.16 Interest income
Interest income is recognised in the Profit and loss account using
the effective interest method.
3.17 Provisions for liabilities
Provisions are made where an event has taken place that gives the
Company a legal or constructive obligation that probably requires
settlement by a transfer of economic benefit, and a reliable
estimate can be made of the amount of the obligation.
When payments are eventually made, they are charged to the
provision carried in the Balance sheet.
3.18 Current and deferred taxation
The
tax expense for the year comprises current and deferred tax. Tax is
recognised in the Profit and loss account, except that a change
attributable to an item of income and expense recognised as other
comprehensive income or to an item recognised directly in equity is
also recognised in other comprehensive income or directly in equity
respectively.
The
current income tax charge is calculated on the basis of tax rates
and laws that have been enacted or substantively enacted by the
balance sheet date in the countries where the Company operates and
generates income.
Deferred tax balances are recognised in respect of all timing
differences that have originated but not reversed by the Balance
sheet date, except that:
· The recognition of deferred tax
assets is limited to the extent that it is probable that they will
be recovered against the reversal of deferred tax liabilities or
other future taxable profits; and
· Any deferred tax balances are
reversed if and when all conditions for retaining associated tax
allowances have been met.
Deferred tax balances are not recognised in respect of permanent
differences except in respect of business combinations, when
deferred tax is recognised on the differences between the fair
values of assets acquired and the future tax deductions available
for them and the differences between the fair values of liabilities
acquired and the amount that will be assessed for tax. Deferred tax
is determined using tax rates and laws that have been enacted or
substantively enacted by the balance sheet date.
3.19 Research and development
Research and development expenditure is written off in the year
in which it is incurred.