TIDMBVXP
Bioventix plc
("Bioventix" or the "Company")
Unaudited Interim Results for the six months ended 31 December 2018
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 ended 31 December 2018.
Highlights
* Normalised* revenue up 24% to GBP4.4 million (2017: GBP3.5m)
* Normalised* profit before tax up 24% to GBP3.2 million (2017: GBP2.6m)
* Closing cash balances of GBP5.5 million (2017: GBP5.6m)
* First interim dividend up 20% to 30p per share (2017: 25p)
Business review
We are pleased to report interim results for the six-month period ended 31
December 2018.
In comparing the revenues for the equivalent period in 2017, we have excluded a
"one-off" back-royalty of GBP770k that featured in interims of the 2017/18
accounts to arrive at normalised figures.
Revenues for the half-year of GBP4.4 million (2017: GBP3.5 million) were 24% up on
the previous year.
Total profits before tax for the half-year increased by 24% to GBP3.2 million
(2017: GBP2.6 million). The cash balances remained similar, finishing the period
at GBP5.5 million (31 December 2017: GBP5.6 million).
Vitamin D antibody sales continued at the healthy levels seen during the period
2H.2018 and this contributed significantly towards the growth. Whilst this is
very encouraging, there is increasing evidence of a plateau in the downstream
global vitamin D assay market. Nevertheless, we have seen a growth in sales
from some individual customers who appear to be performing well in the
downstream market with our antibody. Diazyme (San Diego, US) have made
progress with their vitamin D assay which has the attractive feature of being
run on general "chemistry" analysers. Boditech (South Korea) is another
Bioventix customer who use the vitD3.5H10 antibody and has achieved significant
success in the growing Asian vitamin D market with their vitamin D assay.
Other revenue streams for the established antibodies to T3, NT-proBNP and
progesterone also performed well during the period.
Sales relating to troponin antibodies (i.e. Siemens & those relating to Beckman
Coulter) were not significant in the context of the overall totals for the
period. Nevertheless, we can see these revenues increasing and this provides
encouragement for future sales performance. There is further evidence of a
roll-out of high sensitivity troponin assays reported in the academic
literature (Clinical Chemistry; March 2019) though it is possible that some new
use of such tests could be part of clinical evaluations or comparisons
supported by supplies of free samples that would not register as commercial
sales.
Our research activities continue in line with the plans described in the 2018
annual report and we will report further on these various projects with our
full year results.
The overall context of the business and the landscape in which we operate has
not materially changed since the 2018 annual report and we draw the attention
of any new shareholders to this report.
The Board continues to follow a progressive dividend policy that embraces
continuity. For the period under review, the Board is pleased to announce a
first interim dividend of 30p per share which represents a 20% increase on
1H.2018.
The shares will be marked ex-dividend on 11 April 2019 and the dividend will be
paid on 26 April 2019 to shareholders on the register at close of business on
12 April 2019.
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 the remainder of the core antibody business. We remain optimistic about
our troponin revenues and the success of these high sensitivity troponin
products around the world and we look forward to further progress in the second
half of the year.
P Harrison I J Nicholson
Chief Executive Officer Non-Executive Chairman
* excluding back-dated royalties of GBP0.77 million received in the year ended 30
June 2018
For further information please contact:
Bioventix plc Tel: 01252 728 001
Peter Harrison Chief Executive Officer
finnCap Ltd Tel: 020 7220 0500
Geoff Nash/Simon Hicks Corporate Finance
Alice Lane ECM
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 2018
Six months Six months
ended ended
31 Dec 2018 31 Dec 2017
GBP GBP
4,364,665
TURNOVER 3,522,636
Back-dated royalty income 0 772,391
TOTAL TURNOVER 4,364,665 4,295,027
Cost of sales
(438,160)
(244,333)
3,926,505
GROSS PROFIT 4,050,694
Administrative expenses (655,873)
(612,739)
Share option charge (67,294) (67,005)
Difference on foreign exchange 24,680 721
Research & development tax credit adjustment 8,319 18,738
3,236,337
OPERATING PROFIT 3,390,409
9,662
Interest receivable 10,157
Interest payable (0) (0)
3,245,999
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 3,400,566
(499,183)
Tax on profit on ordinary activities (578,063)
PROFIT FOR THE FINANCIAL PERIOD 2,746,816 2,822,498
Earnings per share for the period:
Basic 53.44p 55.03p
Diluted 52.54p 54.08p
BIOVENTIX PLC
BALANCE SHEET
as at 31 December 2018
31 Dec 2018 31 Dec 2017
GBP GBP
FIXED ASSETS
0 0
Intangible fixed assets
Tangible fixed assets 524,761 444,523
388,377 195,560
Investments
913,138 640,083
CURRENT ASSETS
258,814 254,035
Stocks
3,368,057 3,714,624
Debtors
5,456,257 5,588,796
Cash at bank and in hand
9,083,128 9,557,455
CREDITORS: amounts falling due within one year (797,616) (800,145)
8,285,512 8,757,310
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES 9,198,650 9,397,393
PROVISIONS FOR LIABILITIES
31,989 11,730
Deferred Tax
NET ASSETS 9,166,661 9,385,663
CAPITAL AND RESERVES
257,034 256,934
Called up share capital
Share premium account 414,608 395,108
1,231 1,231
Capital redemption reserve
8,493,788 8,732,390
Profit and loss account
SHAREHOLDERS' FUNDS 9,166,661 9,385,663
BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the six month period ended 31 December 2018
31 Dec 2018 31 Dec 2017
GBP GBP
CASHFLOW FROM OPERATING ACTIVITIES
2,746,816 2,822,498
Cash flows from operating activities
Profit for the financial year
Depreciation of tangible fixed assets 30,349 16,739
Interest received (9,662) (10,157)
Taxation (90,014) 572,906
Decrease / (increase) in stocks 27,776 (27,862)
Decrease / (increase) in debtors 448,733 (407,567)
(Decrease) /increase in creditors 63,281 57,283
Share option charge 67,294 67,005
Other tax movements (8,319) (18,737)
Net cash generated from operating 3,272,754 3,072,108
activities
Cash flows from investing activities
(57,307) (11,950)
Purchase of tangible fixed assets
Interest received 9,662 10,157
Purchase of unlisted and other investments (96,953) 0
Net cash from investing activities (144,598) (1,793)
Cash flows from financing activities
Issue of ordinary shares 100 0
Movement on share premium account 19,500 0
Dividends paid (4,678,013) (3,648,459)
Interest paid (0) (0)
Net cash used in financing activities (4,658,413) (3,648,459)
6,986,514 6,166,940
Cash and cash equivalents at the beginning of
the year
Cash and cash equivalents at the end of the 5,456,257 5,588,796
year
Cash and cash equivalents at the end of the
year comprise:
Cash at bank and in hand 5,456,257 5,588,796
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, the announcement does not itself contain sufficient information
to comply with Financial Reporting Standard 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 FRS 102.
3.2 Revenue
· 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:
· Direct sales are recognised at the date of dispatch.
· Subcontracted R & D income is recognised based upon the stage of
completion at the year end.
· 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. Revenue is recognised based on the returns and notifications received
from customers and in the event that subsequent adjustments are identified,
they are recognised in the period in which they are identified.
3.3 Intangible fixed assets and amortisation
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 Statement of comprehensive
income 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 debtors and creditors, 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
Functional and presentation currency
The Company's functional and presentational currency is GBP.
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 Statement of comprehensive income 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 Research and development
Research and development expenditure is written off in the year in which
it is incurred.
3.16 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 payment obligations.
The contributions are recognised as an expense in the Statement of
comprehensive income when they fall due. Amounts not paid are shown in accruals
as a liability in the Statement of financial position. The assets of the plan
are held separately from the Company in independently administered funds.
3.17 Interest income
Interest income is recognised in the Statement of comprehensive income using
the effective interest method.
3.18 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.
Provisions are charged as an expense to the Statement of comprehensive income
in the year that the Company becomes aware of the obligation, and are measured
at the best estimate at the Statement of financial position date of the
expenditure required to settle the obligation, taking into account relevant
risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in
the Statement of financial position.
3.19 Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is
recognised in the Statement of comprehensive income, except that a charge
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 reporting 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 Statement of financial position 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 reporting date.
END
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