Bioventix plc
(“Bioventix” or the “Company”)
Preliminary
results for the year ended 30 June
2017
Bioventix plc (BVXP), a UK company specialising in the
development and commercial supply of high-affinity monoclonal
antibodies for applications in clinical diagnostics, announces its
audited results for the year ended 30 June
2017.
Highlights:
· Revenue up 31% to £7.2 million
· Profit before tax up 37% to £5.7
million
· Cash up £0.8 million to £6.1
million
· Second interim dividend of 31p per
share (2016: 26p)
· Special dividend of 40p per share
Business review
We are pleased to report another set of excellent results for
the financial year ended 30 June
2017. Most significantly, revenues for the year of £7.2
million (2015/16: £5.5 million) were ahead of expectations and up
31% on the previous year. This revenue increase, when coupled to a
modest increase in costs has resulted in increased profits after
tax of £4.9 million, 40% up on the 2015/16 figure of £3.5 million.
Despite increased dividend distribution, cash balances during the
year increased by £0.8 million to £6.2 million.
Currently, our most significant revenue stream comes from the
vitamin D antibody called vitD3.5H10. This antibody is used by a
number of small, medium and large diagnostic companies around the
world for use in vitamin D deficiency testing. Sales of vitD3.5H10
increased by 24% to £2.75 million during the year. This surpassed
our expectations based on customer feedback during the year. Our
expectation was that, whilst test volumes are increasing globally,
price pressure (i.e. $/test prices achieved) would balance the
increase in volume leading to a relatively flat total market in US
Dollars. This feedback set our expectations for royalties received
after 30 June 2017 (but relating to
the reporting period). Actual royalties received were in excess of
these expectations.
Our prudent belief is that the vitamin D market will plateau in
the near future. Nevertheless, we anticipate a modest further
increase in vitamin D antibody sales over the next year as a
limited number of smaller customers bring new vitamin D products to
the market.
We reported in May that our troponin (heart attack diagnostic)
partner, Siemens Healthineers, released a new test outside the US
market that helps facilitate a faster diagnosis of patients
presenting with chest pain in an A&E setting. The rate at which
this new test will be adopted by Siemens customers in hospitals in
the EU, Asia and elsewhere outside
the US is unfortunately not something of which we have detailed
knowledge. Whilst it is clear that a quicker test will be of
benefit to patients, clinicians and hospital budget holders, it is
also clear that there is likely to be an education period during
which clinicians become comfortable with a significant change in
diagnostic practices that can result in non MI (i.e. patients not
having a heart attack) being released from A&E much earlier. We
will develop a better understanding of this matter during 2018.
The revenues resulting from the success of the Siemens troponin
project will be important in replacing approximately £1 million of
NT proBNP sales that will be lost from the 2017/18 accounts due to
the termination of a specific technology license.
Many of the established “core” antibodies also enjoyed increased
sales in the year. Quantitatively, these were:
•
testosterone: approximately £600k(+12%);
•
T3: approximately £500k(+33%);
•
drug antibodies: approximately £500k(+50%);
•
estradiol: approximately £300k(+30%);
•
progesterone: approximately £200k(+51%).
This healthy increase in these core antibodies that are sold to
a number of customers in many countries does not have a single
explanation over and above the 5 10% increase in the global
diagnostics industry that is reported by third party analysts. The
drug testing antibody portfolio also features a handful of
antibodies to different drugs used by different customers for
different applications (e.g. EtG for alcohol testing, THC for
cannabis testing). The increase in sales within this group has been
accompanied by a significant increase in physical antibody sales in
milligrams.
Future developments
Our shipments of physical antibody to China continued to increase. Some sales are
made directly but the majority are made through five appointed
distributors. The emergence of new Chinese diagnostic companies
continues at a high rate and is a reflection of the embryonic stage
of development of this industry in China. Technical expertise at these customers
is variable but we do now see many examples of customers who are
able to identify the benefit of our excellent antibodies if used
correctly. We remain cautiously optimistic that these continued
physical antibody sales will result in royalty streams into the
future.
As mentioned above, the commercial development of the new
troponin project at Siemens will have a significant influence on
Bioventix sales next year and the years beyond. Whilst there are no
antibodies in the future pipeline that are near troponin in
potential value, modest contributions towards revenue growth are
anticipated to come from androstenedione in the financial year
2018/19 and T4 (thyroxine) in the years following
androstenedione.
Also in the future pipeline, we have four contract R&D
projects where antibodies have already been created and despatched
to contract partners for evaluation within their own R&D
departments. These projects are in the fields of cancer, thyroid
diagnostics, viral diagnostics and a certain vitamin/deficiency.
They are all of modest potential value but if technically
successful, capable of contributing towards revenues into the
future.
On a longer term perspective, we continue to work with our
partners in Norway on the
secretoneurin (CardiNor & heart diagnostics) and amyloid
projects (Pre Diagnostics & dementia). We have made exciting
antibodies to contribute towards the scientific development of
these projects and we look forward to developing the science of
these long term projects over the coming years. It is our intention
to seek additional long term projects of this kind with early stage
research groups where we believe there to be compatibility with our
skills and objectives.
Our revenues continue to be dominated by US dollars and Euros.
We have commented in recent reports on the effect of post Brexit
referendum exchange rates on our revenues in the absence of any
hedging mechanisms. The last half year to be subjected to pre
referendum exchange rates was 2H.2015 and so these effects have
largely receded into the past and will not affect like for like
comparisons going forward. We have no current plans to institute
any hedging mechanisms and therefore any future changes in exchange
rates, up or down will impact revenues accordingly.
Within the field of antibodies, technology changes relatively
slowly as new antibody technologies are validated and used. Such
technologies include rabbit monoclonal antibodies and novel
“synthetic” antibodies. For example, we are aware that rabbit
monoclonal antibody technology is established at some customers and
this could have resulted in lost opportunities for our sheep
monoclonal approach. However, we believe that having established
our antibodies in customer products over the last ten years or so
leaves our core business relatively secure due to the significant
barriers to changing an antibody that works well in a diagnostic
test.
The composition of the Bioventix team has remained stable over
the year facilitating excellent performance and know how retention.
This total head count of 13 full time equivalents is expected to
remain largely unchanged as this adequately serves our
manufacturing and research needs.
The continued outstanding performance of the Company in a
globally competitive market for antibodies is very satisfying. Our
sheep monoclonal antibody technology continually delivers high
performance antibodies to our customers. However, the operation of
the antibody technology is made possible by the efforts of our
expert staff and we would like to thank them for their remarkable
achievements over the last year.
Dividend policy
The healthy performance of the business during the year has
resulted in increased cash balances (increased to £6.2 million from
£5.4 million) despite increased dividend distribution during the
year. Over previous years, the Board has followed a cautious
dividend policy that embraces continuity and it is the general
intention of the Board to continue with this policy into the
future. For the current year, the Board is pleased to announce a
second interim dividend of 31 pence
per share which, when added to the first interim dividend of
20 pence per share makes a total of
51 pence per share for the current
year.
Our current view is that a cash balance of approximately £5
million is sufficient to facilitate operational and strategic
agility with respect to possible corporate or technological
opportunities that could arise in the foreseeable future. On this
occasion, we have decided to distribute some surplus cash that is
in excess of anticipated needs and accordingly, we are pleased to
announce a special dividend of 40
pence per share.
Accordingly dividends totalling 71
pence per share will be paid. The shares will be marked ex
dividend on 26 October 2017 and the
dividend will be paid on 10 November
2017 to shareholders on the register at close of business on
27 October 2017.
Conclusion
We are delighted to be able to report such positive news for the
current year. For the financial year 2017/18, our challenge will be
to make up for the approximately £1 million of lost sales mentioned
above with revenues from the newly launched Siemens troponin
project and modest growth from additional vitamin D antibody sales
and royalties. Beyond that, growth in the period 2018/2020 will be
linked to our troponin project and the success of Siemens in their
product launches around the world. We continue our research
activities as we look to seed additional projects that will
germinate in the period 2020/2030 creating additional shareholder
value.
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.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE
2017
|
2017 |
2016 |
|
£ |
£ |
|
|
|
|
Turnover |
|
7,245,862 |
5,517,217 |
Cost of sales |
|
(494,880) |
(494,880) |
Gross profit |
|
6,750,982 |
5,022,337 |
Administrative
expenses |
|
(998,797) |
(839,233) |
Share option charge |
|
(67,005) |
(53,225) |
Difference on foreign
exchange |
|
5,747 |
75,512 |
Research &
development tax credit adjustment |
|
25,335 |
- |
Operating
profit |
|
5,716,262 |
4,205,391 |
|
|
|
|
Interest receivable and
similar income |
|
55,578 |
13,694 |
Interest payable and
expenses |
|
- |
(164) |
Profit before
tax |
|
5,771,840 |
4,218,921 |
Tax on profit |
|
(849,551) |
(724,493) |
Profit for the
financial year |
|
4,922,289 |
3,494,428 |
|
|
|
|
|
|
|
|
There were
no recognised gains and losses for 2017 or 2016 other than those
included in the statement of comprehensive income. |
|
|
Earnings per share: |
|
|
2017 |
2016 |
|
Basic |
96.36p |
69.18p |
|
Diluted |
94.70p |
67.95p |
|
|
|
|
|
|
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2017
|
|
2017 |
|
2016 |
|
|
£ |
|
£ |
Fixed assets |
|
|
|
|
|
Tangible assets |
|
|
449,312 |
|
467,087 |
Investments |
|
|
195,560 |
|
43,330 |
|
|
|
644,872 |
|
510,417 |
Current assets |
|
|
|
|
|
Stocks |
|
226,174 |
|
198,933 |
|
Debtors: amounts falling due within
one year |
|
3,342,692 |
|
2,685,475 |
|
Cash at bank and in hand |
|
6,166,940 |
|
5,380,405 |
|
|
|
9,735,806 |
|
8,264,813 |
|
Creditors: amounts falling due
within one year |
|
(219,944) |
|
(549,908) |
|
Net current assets |
|
|
9,515,862 |
|
7,714,905 |
Total assets less current
liabilities |
|
|
10,160,734 |
|
8,225,322 |
Provisions for
liabilities |
|
|
|
|
|
Deferred tax |
|
(16,114) |
|
(17,949) |
|
|
|
|
(16,114) |
|
(17,949) |
Net assets |
|
|
10,144,620 |
|
8,207,373 |
|
|
|
|
|
|
Capital and reserves |
|
|
|
|
|
Called up share capital |
|
|
256,934 |
|
252,547 |
Share premium account |
|
|
395,108 |
|
78,426 |
Capital redemption reserve |
|
|
1,231 |
|
1,231 |
Profit and loss account |
|
|
9,491,347 |
|
7,875,169 |
|
|
|
10,144,620 |
|
8,207,373 |
|
|
|
|
|
|
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE
2017
|
Called up
share capital |
Share
premium account |
Capital redemption
reserve |
Profit and
loss account |
Total
equity |
|
£ |
£ |
£ |
£ |
£ |
At 1 July 2016 |
252,547 |
78,426 |
1,231 |
7,875,169 |
8,207,373 |
Comprehensive income for the
year |
|
|
|
|
|
Profit for the year |
- |
- |
- |
4,922,289 |
4,922,289 |
Other comprehensive income for
the year |
- |
- |
- |
- |
- |
Total comprehensive income for
the year |
- |
- |
- |
4,922,289 |
4,922,289 |
Dividends: Equity capital |
- |
- |
- |
(3,373,116) |
(3,373,116) |
Shares issued during the year |
4,387 |
316,682 |
- |
- |
321,069 |
Share option charge |
- |
- |
- |
67,005 |
67,005 |
Total transactions with
owners |
4,387 |
316,682 |
- |
(3,306,111) |
(2,985,042) |
At 30 June 2017 |
256,934 |
395,108 |
1,231 |
9,491,347 |
10,144,620 |
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE
2016
|
Called up
share capital |
Share
premium account |
Capital redemption
reserve |
Profit and
loss account |
Total
equity |
|
£ |
£ |
£ |
£ |
£ |
At 1 July 2015 |
252,547 |
78,426 |
1,231 |
6,251,921 |
6,584,125 |
Comprehensive income for the
year |
|
|
|
|
|
Profit for the year |
- |
- |
- |
3,494,428 |
3,494,428 |
Other comprehensive income for
the year |
- |
- |
- |
- |
- |
Total comprehensive income for
the year |
- |
- |
- |
3,494,428 |
3,494,428 |
Dividends: Equity capital |
- |
- |
- |
(1,924,405) |
(1,924,405) |
Share option charge |
- |
- |
- |
53,225 |
53,225 |
Total transactions with
owners |
- |
- |
- |
(1,871,180) |
(1,871,180) |
At 30 June 2016 |
252,547 |
78,426 |
1,231 |
7,875,169 |
8,207,373 |
|
|
|
|
|
|
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE
2017
|
|
|
|
2017 |
2016 |
|
|
|
|
£ |
£ |
Cash flows from
operating activities |
|
|
Profit for the financial
year |
4,922,289 |
3,494,428 |
Adjustments
for: |
|
|
Depreciation of tangible
assets |
39,479 |
41,729 |
Interest paid |
- |
164 |
Interest received |
(55,578) |
(13,694) |
Taxation charge |
849,551 |
724,493 |
(Increase) in
stocks |
(27,240) |
(5,963) |
(Increase) in
debtors |
(621,581) |
(594,901) |
Increase in
creditors |
78,840 |
19,558 |
Corporation tax
(paid) |
(1,265,505) |
(494,039) |
Other tax movements |
(30,323) |
- |
Net cash generated
from operating activities |
3,889,932 |
3,171,775 |
Cash flows from
investing activities |
|
|
Purchase of tangible
fixed assets |
(21,703) |
(21,012) |
Purchase of unlisted and
other investments |
(152,230) |
(43,330) |
Interest received |
55,578 |
13,694 |
Share option charge |
67,005 |
53,225 |
Net cash from
investing activities |
(51,350) |
2,577 |
|
|
|
Cash flows from financing
activities |
|
|
Issue of ordinary shares |
321,069 |
- |
Dividends paid |
(3,373,116) |
(1,924,405) |
Interest paid |
- |
(164) |
Net cash used in financing
activities |
(3,052,047) |
(1,924,569) |
Net increase in cash and cash
equivalents |
786,535 |
1,249,783 |
Cash and cash equivalents at
beginning of year |
5,380,405 |
4,130,622 |
Cash and cash equivalents at the
end of year |
6,166,940 |
5,380,405 |
|
|
|
Cash and cash equivalents at the
end of year comprise: |
|
|
Cash at bank and in hand |
6,166,940 |
5,380,405 |
|
6,166,940 |
5,380,405 |
|
|
|
1. Accounting
policies
|
1.1 |
Basis of preparation
of financial statements |
The financial statements have been prepared under the historical
cost convention unless otherwise specified within these accounting
policies and in accordance with Financial Reporting Standard 102,
the Financial Reporting Standard applicable in the UK and the
Republic of Ireland and the
Companies Act 2006.
The preparation of financial statements in compliance with FRS
102 requires the use of certain critical accounting estimates. It
also requires management to exercise judgment in applying the
Company's accounting policies.
The following principal accounting policies have been
applied:
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
Direct sales are recognised at the date of dispatch.
R&D income
Subcontracted R&D income is recognised based upon the stage of
completion at the year-end.
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.
Intangible assets are initially recognised at cost. After
recognition, under the cost model, intangible assets are measured
at cost less any accumulated amortisation and any accumulated
impairment losses.
All intangible assets are considered to have a finite useful
life. If a reliable estimate of the useful life cannot be made, the
useful life shall not exceed ten years.
The estimated useful lives range as follows:
|
|
|
|
Goodwill |
- |
10 |
years |
|
|
|
|
Know how |
- |
10 |
years |
|
1.4 |
Tangible
fixed assets |
|
|
|
|
|
|
|
|
|
Tangible fixed assets under the cost model are stated at
historical cost less accumulated depreciation and any accumulated
impairment losses. Historical cost includes expenditure that is
directly attributable to bringing the asset to the location and
condition necessary for it to be capable of operating in the manner
intended by management.
Depreciation is charged so as to allocate the cost of assets
less their residual value over their estimated useful lives on the
following basis:
|
|
|
|
Freehold property |
- |
2% |
straight line |
|
|
|
|
Plant and equipment |
- |
25% |
reducing balance |
|
|
|
|
Motor Vehicles |
- |
25% |
straight line |
|
|
|
|
Equipment |
- |
25% |
straight line |
|
1.5 |
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.
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.
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.
|
1.8 |
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.
|
1.9 |
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.
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.
|
1.11 |
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.
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.
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.
|
1.14 |
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.
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.
Interest income is recognised in the Statement of comprehensive
income using the effective interest method.
|
1.17 |
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 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.
|
1.18 |
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.
|
1.19 |
Research and development |
Research and development expenditure is written off in the year
in which it is incurred.
|
2.
Judgments in applying accounting policies and key sources of
estimation uncertainty |
In the application of the company's accounting policies (as
described in note 1), management is required to make judgments,
estimates and assumptions. These estimates and underlying
assumptions are reviewed on an ongoing basis.
There are no sources of estimation uncertainty that have a
significant effect on the amounts recognised in the financial
statements.
|
3.
Turnover |
|
An analysis of turnover
by class of business is as follows: |
|
|
|
|
|
2017 |
2016 |
|
|
|
|
|
£ |
£ |
|
Product revenue and
R&D income |
1,925,059 |
1,389,061 |
|
Royalty and licence fee
income |
5,320,803 |
4,128,156 |
|
|
7,245,862 |
5,517,217 |
|
|
|
|
|
|
|
|
|
2017 |
2016 |
|
|
|
|
|
£ |
£ |
|
United Kingdom |
305,609 |
313,712 |
|
Other EU |
2,378,988 |
1,754,400 |
|
Rest of the world |
4,561,265 |
3,449,104 |
|
|
7,245,862 |
5,517,216 |
|
|
|
|
|
4.
Operating profit |
|
The operating profit is
stated after charging: |
|
|
|
|
|
2017 |
2016 |
|
|
|
|
|
£ |
£ |
|
Depreciation of tangible
fixed assets |
39,479 |
41,729 |
|
Fees payable to the
Company's auditor and its associates for the audit of the Company's
annual financial statements |
9,654 |
9,240 |
|
Exchange
differences |
(5,747) |
(75,512) |
|
Research and development
costs |
764,480 |
713,715 |
|
5.
Taxation |
|
|
|
|
|
|
|
2017 |
2016 |
|
|
|
|
|
£ |
£ |
|
Corporation
tax |
|
|
|
Current tax on profits
for the year |
851,386 |
726,862 |
|
|
851,386 |
726,862 |
|
|
|
|
|
Total current
tax |
851,386 |
726,862 |
|
Deferred tax |
|
|
|
Origination and reversal
of timing differences |
(1,835) |
(2,369) |
|
Total deferred
tax |
(1,835) |
(2,369) |
|
|
|
|
|
Taxation on profit on
ordinary activities |
849,551 |
724,493 |
|
Factors affecting tax
charge for the year |
|
The tax assessed for the
year is higher than (2016 - lower than) the standard rate of
corporation tax in the UK of 19% (2016 - 20%). The
differences are explained below: |
|
|
|
|
|
2017 |
2016 |
|
|
|
|
|
£ |
£ |
|
Profit on ordinary
activities before tax |
5,771,840 |
4,218,921 |
|
Profit on ordinary
activities multiplied by standard rate of corporation tax in the UK
of 19% (2016 - 20%) |
1,096,650 |
843,784 |
|
Effects of: |
|
|
|
Expenses not deductible
for tax purposes, other than goodwill amortisation and
impairment |
12,946 |
10,898 |
|
Capital allowances for
year in excess of depreciation |
3,146 |
3,855 |
|
Short term timing
difference leading to an increase (decrease) in taxation |
(1,835) |
(2,368) |
|
Adjustment in research
and development tax credit leading to an increase (decrease) in the
tax charge |
(131,939) |
(131,676) |
|
Tax deduction arising
from exercise of employee options |
(161,775) |
- |
|
Other differences
leading to an increase (decrease) in the tax charge |
32,358 |
- |
|
Total tax charge for
the year |
849,551 |
724,493 |
|
Factors that may affect future
tax charges |
There were no factors that may affect future tax charges.
|
6.
Dividends |
|
|
|
|
|
2017 |
2016 |
|
|
|
|
|
£ |
£ |
|
Dividends paid |
3,373,116 |
1,924,405 |
|
|
3,373,116 |
1,924,405 |
|
7.
Share capital |
|
|
|
|
|
2017 |
2016 |
|
|
|
|
|
£ |
£ |
|
Shares classified as
equity |
|
|
Allotted, called up
and fully paid |
|
|
|
|
|
|
|
|
|
|
|
5,138,674 (2016 -
5,050,931) Ordinary shares of £0.05 each |
256,934 |
252,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
The holders of ordinary
shares are entitled to receive dividends as declared and are
entitled to one vote per share at meetings of the Company. All
ordinary shares rank equally with regard to the Company's residual
assets. |
|
|
8.
Share based payments |
|
During the year the
company operated an Approved Share Option Scheme (the "Option
Scheme"), to incentivise employees.
The company has applied the requirements of FRS 102 Section 26
Share-based Payment to all the options granted. The Option Scheme
provides for a grant price equal to the market value of the
Company's shares on the date of the grant, as agreed with HMRC
Shares and Assets Valuation Division.
The contractual life of an option is 10 years from the date of
grant. Options granted become exercisable on the third anniversary
of the date of grant. Exercise of an option is normally subject to
continued employment, but there are also considerations for good
leavers. All share based remuneration is settled in equity
shares.
|
|
|
Weighted average
exercise price (pence)2017 |
Number2017 |
Weighted average
exercise price
(pence)2016 |
Number2016 |
|
|
|
|
|
|
|
Outstanding at the beginning of the
year |
£3.99 |
91,743 |
£3.66 |
87,743 |
|
Granted during the year |
£13.50 |
85,938 |
£11.15 |
4,000 |
|
Exercised during the year |
£3.66 |
(87,743) |
|
- |
|
Outstanding at the end of the
year |
£13.40 |
89,938 |
£3.99 |
91,743 |
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
2016 |
|
Option pricing model
used |
Black
Scholes |
Black
Scholes |
|
Issue price |
£3.12-£13.50 |
£3.12-£11.60 |
|
Exercise price
(pence) |
£3.12-£13.50 |
£3.12-£11.60 |
|
Option life |
10 years |
10 years |
|
Expected volatility |
25.15% |
17.47%-33.82% |
|
Fair value at
measurement date |
£1.72-£4.66 |
£1.50-£3.08 |
|
Risk-free interest
rate |
1.02% |
0.84% |
|
Expected
volatility was based on past volatility since the shares have been
listed on AIM.
The expense recognised for share-based payments during the year
ended 30 June 2017 was £67,005 (Year ended 30 June 2016 :
£53,225).
The number of staff and officers holding share options at 30 June
2017 was 15. The share options have been issued to underpin staff
service conditions. |
|
|
|
|
|
|
|
|
|
9.
Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
The weighted average number of shares in issue for the basic
earnings per share calculation is 5,108,026 (2016: 5,050,931) and
for the diluted earnings per share, assuming the exercise of all
share options is 5,197,961 (2016: 5,142,673).
The calculation of the basic earnings per shares is based on the
profit for the period of £4,922,289 (2016: £3,494,428) divided by
the weighted average number of shares in issue of 5,108,026 (2016:
5,505,931), the basic earnings per share is 96.36p (2016: 69.18p).
The diluted earnings per share, assuming the exercise of all of the
share options is based on 5,197,961 (2016: 5,142,673) shares and is
94.70p (2016: 67.95p).
|
10.
Publication of Non-Statutory Accounts |
The financial information set out in this preliminary
announcement does not constitute the Group's financial statements
for the year ended 30 June 2017. The
financial statements for the year ended 30
June 2016 have been delivered to the Registrar of Companies.
The financial statements for the year ended 30 June 2017 will be delivered to the Registrar
of Companies following the Company's Annual General Meeting. The
auditors' report on both accounts was unqualified, did not include
references to any matters to which the auditors drew attention by
way of emphasis without qualifying their report and did not contain
statements under sections 498(2) or (3) of the Companies Act
2006. The audited financial statements of Bioventix plc for
the period ended 30 June 2017 are
expected to be posted to shareholders shortly, will be available to
the public at the Company's registered office, 7 Romans Business
Park, East Street, Farnham, Surrey, GU9 7SX and available to view
on the Company's website at www.bioventix.com once posted.