Bioventix plc
(“Bioventix” or the “Company”)
Unaudited Interim
Results for the six months ended 31 December
2021
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 results for the
six-month period ended 31 December
2021.
Highlights
· Revenue down 8% to £4.7 million (2020:
£5.2 million)
· Profit before tax £3.6 million (2020:
£3.7 million)
· Closing cash balances of £5.1 million
(2020 £5.8 million)
· First interim dividend up 20% to 52p
per share (2020: 43p)
CHAIRMAN AND CHIEF EXECUTIVE’S
STATEMENT
Business review
Revenues for the half-year of £4.73 million (2020: £5.16
million) were affected by a number of factors. The global pandemic
has continued throughout the reporting period and has affected the
activity within diagnostic pathways in hospitals and clinics around
the world to which our business is intrinsically linked. The
dynamics of the pandemic remain difficult to predict but when it
eases, we believe our robust core business will respond
accordingly. As reported previously, the growth rates for our
vitamin D antibody sales were not expected to match those seen in
recent financial years and a plateau in the downstream global
vitamin D assay market had been anticipated. Sales associated with
assay formats using larger quantities of antibody per test suffered
more as price erosion in downstream markets puts pressure on costly
“antibody-hungry” products. As we have previously reported, the
contractual payment period relating to our NT-proBNP sales
terminated in July 2021. This
resulted in a reduction of our revenue of approximately £600k for
the period which masked a steady performance for the remainder of
the business.
Sales relating to troponin antibodies grew significantly once
again during the period. The continued roll-out of high sensitivity
troponin tests provides further encouragement for our future sales
in this area.
Total profits before tax for the half-year were down 4% to £3.56
million (2020: £3.72 million). The cash balances at 31 December 2021 stood at £5.1 million, down from
£5.8 million a year earlier.
Our research activities continue in line with the plans
described in the 2021 annual report.
We continue to await news and critical data from our partners in
Oslo on both our secretoneurin
(CardiNor & cardiac care) and amyloid beta (Pre-Diagnostics and
Alzheimer’s) projects. We hope to have more news during 2022.
Since the summer of 2020, a considerable amount of our
laboratory resources has been focused on the Tau biomarker which
shows exciting potential in neuropathological diseases including
Alzheimer’s. Some new antibodies were made during 2021 and we have
more antibodies in the development pipeline for 2022. The
antibodies have been and will continue to be subjected to assay
development and validation using clinical samples at the
world-renowned laboratory of Kaj Blennow and Henrik Zetterberg at the University of
Gothenburg. We are delighted with
the continuing development of this collaboration and look forward
to the generation of new data with our partners during 2022.
We are pleased with the continued development of our industrial
pollution exposure assay. Our prototype lateral flow test for
pyrene in industrial worker’s urine featured in a field trial at a
UK industrial site during Q4.2021. The results from the device and
phone-app correlated relatively well with results from parallel
samples analysed by a central health and safety laboratory.
Important feedback from the trial was gained and has prompted a
minor modification of the phone-app camera reader system and we
plan further trials in 2022.
Our work on developing antibodies to mitigate against the
interference effect of biotin vitamin supplements on certain blood
tests has progressed and we now have a candidate “blocker” antibody
that shows promise. Our focus now is on the process development
parameters required to make this antibody in the required quantity
and at the prices necessary for this application to be commercially
attractive for customers.
Our new THC/cannabis antibody “sandwich” format which has been
in development for approximately two years is now successfully
working in a number of customer products and is moving into
commercial development thereby adding to overall revenues in the
future.
Throughout the challenges of the recent past, Bioventix has
demonstrated that it is a resilient business with established
products and reliable revenue streams. We will therefore continue
to follow our established dividend policy and for the period under
review, the Board is pleased to announce a first interim dividend
of 52p per share which represents a 20% increase on the interim
dividend paid last year (43 pence per
share). The shares will be marked ex-dividend on the 7 April 2021 and the dividend will be paid on
22 April 2021 to shareholders on the
register at close of business on 8 April
2021.
In conclusion, there have been challenges over the last two
years but we continue to have confidence in the strength of our
core business and the outlook for the full year. We remain
optimistic about our troponin revenues and the success of these
high sensitivity troponin products around the world and we look
forward to reporting further progress in the second half of the
year.
P
Harrison
I J Nicholson
Chief Executive
Officer
Non-Executive Chairman
For further information please contact:
Bioventix plc
Peter Harrison
Chief Executive Officer Tel: 01252 728 001
finnCap Ltd
Geoff Nash/Simon Hicks
Alice Lane
Corporate Finance
ECM 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 2021
|
Unaudited
Six months
ended
31 Dec 2021 |
|
Unaudited
Six months
ended
31 Dec 2020 |
|
£ |
|
£ |
|
TURNOVER |
4,730,570 |
|
5,164,733 |
| Cost of sales |
(388,205) |
|
(452,689) |
| GROSS
PROFIT |
4,342,365 |
|
4,712,044 |
| Administrative
expenses |
(669,107) |
|
(688,981) |
|
|
|
|
| Share option charge |
(129,873) |
|
(137,810) |
|
|
|
|
| Difference on foreign exchange |
10,565 |
|
(195,842) |
|
|
|
|
| Research & development tax
credit adjustment |
5,583 |
|
17,981 |
|
|
|
|
| OPERATING
PROFIT |
3,559,533 |
|
3,707,392 |
| Interest
receivable |
2,657 |
|
10,587 |
|
|
|
|
| PROFIT ON ORDINARY
ACTIVITIES BEFORE TAXATION |
3,562,190 |
|
3,717,979 |
| Tax on profit on
ordinary activities |
(574,380) |
|
(620,012) |
| PROFIT
FOR THE FINANCIAL PERIOD |
2,987,810 |
|
3,097,967 |
|
|
|
|
Earnings per share for the period: |
|
|
|
| Basic |
57.35p |
|
59.47p |
| Diluted |
56.79p |
|
58.84p |
BIOVENTIX PLC
STATEMENT OF
FINANCIAL POSITION
as at 31 December 2021
|
|
|
Unaudited
31 Dec 2021 |
|
Unaudited
31 Dec 2020 |
|
|
|
|
|
|
|
£ |
|
£ |
FIXED ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible fixed assets |
|
779,003 |
|
777,244 |
| Investments |
|
610,039 |
|
610,039 |
|
|
|
|
|
|
|
1,389,042 |
|
1,387,283 |
CURRENT ASSETS |
|
|
|
| Stocks |
375,163 |
|
225,471 |
|
Debtors |
3,813,882 |
|
3,747,887 |
| Cash at
bank and in hand |
5,050,769 |
|
5,844,455 |
|
|
|
|
|
9,239,814 |
|
9,817,813 |
|
CREDITORS: amounts falling due within one year |
(836,475) |
|
(839,835) |
|
|
|
|
| NET
CURRENT ASSETS |
8,403,339 |
|
8,977,978 |
| TOTAL
ASSETS LESS CURRENT LIABILITIES |
9,792,381 |
|
10,365,261 |
PROVISIONS FOR LIABILITIES |
|
|
|
| Deferred
Tax |
(63,717) |
|
58,134 |
| NET
ASSETS |
9,728,664 |
|
10,307,127 |
CAPITAL AND RESERVES |
|
|
|
| Called up
share capital |
260,467 |
|
260,467 |
| Share
premium account |
1,332,471 |
|
1,332,471 |
| Capital
redemption reserve |
1,231 |
|
1,231 |
| Profit and
loss account |
8,134,495 |
|
8,712,958 |
|
SHAREHOLDERS' FUNDS |
9,728,664 |
|
10,307,127 |
BIOVENTIX PLC
STATEMENT OF CASH
FLOWS
for the six month
period ended 31 December 2021
|
|
Unaudited
31 Dec 2021 |
|
Unaudited
31 Dec 2020 |
|
|
£ |
|
£ |
CASHFLOW FROM OPERATING ACTIVITIES |
|
|
|
|
Cash
flows from operating activities
Profit for the financial period |
|
2,987,810 |
|
3,097,967 |
| Depreciation of
tangible fixed assets |
|
68,034 |
|
61,858 |
| Interest received |
|
(2,657) |
|
(10,587) |
| Taxation charge |
|
574,380 |
|
620,012 |
| Decrease / (increase)
in stocks |
|
(42,705) |
|
19,952 |
| Decrease / (increase)
in debtors |
|
812,085 |
|
(98,517) |
| (Decrease) /increase
in creditors |
|
(212,127) |
|
(127,399) |
| Corporation tax
(paid) |
|
(548,916) |
|
(373,512) |
| Share option
charge |
|
129,873 |
|
137,810 |
| Net cash generated
from operating activities |
|
3,765,777 |
|
3,327,584 |
|
|
|
|
| Cash flows from
investing activities |
|
|
|
| Purchase
of tangible fixed assets |
(3,317) |
|
(120,607) |
| Interest
received |
2,657 |
|
10,587 |
| Net
cash from investing activities |
(660) |
|
(110,020) |
| Cash
flows from financing activities |
|
|
|
| Issue of
ordinary shares |
- |
|
74 |
| Movement
on share premium account |
- |
|
20,148 |
| Dividends
paid |
(5,209,333) |
|
(5,469,800) |
| Net
cash used in financing activities |
(5,209,333) |
|
(5,449,578) |
| Cash and cash equivalents at the beginning of the
period |
6,494,985 |
|
8,076,468 |
|
|
|
|
| Cash and cash
equivalents at the end of the period |
5,050,769 |
|
5,884,455 |
|
|
|
|
| Cash
and cash equivalents at the end of the period comprise: |
|
|
|
| Cash at
bank and in hand |
5,050,769 |
|
5,884,455 |
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, 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.
2. 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 period
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 |
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 |
|
|
3.4 |
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. |
|
|
|
|
|
|
3.5 |
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.
|
|
|
3.6 |
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. |
|
|
|
|
|
|
3.7 |
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 twelve 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. |
|
|
|
|
|
|
3.8 |
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
3.9 |
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. |
|
|
|
|
|
|
|
|
3.10 |
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. |
|
|
|
|
|
|
|
|
3.11 |
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. |
|
|
|
|
|
|
|
|
3.12 |
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. |
|
|
|
|
|
|
|
|
3.13 |
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. |
|
|
|
|
|
|
|
|
3.14 |
Research and development |
|
|
|
|
Research and development expenditure is written off in the
period in which it is incurred. |
|
|
|
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
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. |
|
|
|
|
|
3.16 |
Interest income |
|
|
|
Interest
income is recognised in the Statement of comprehensive income 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.
Provisions are charged as an expense to the Statement of
comprehensive income in the period 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. |
|
|
|
|
|
|
3.18 |
Current
and deferred taxation |
|
|
|
The tax expense for the period 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. |
|
