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 £4.4 million (2017: £3.5m)
- Normalised* profit before tax up 24% to £3.2 million (2017:
£2.6m)
- Closing cash balances of £5.5 million (2017: £5.6m)
- 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 £770k that featured in
interims of the 2017/18 accounts to arrive at normalised
figures.
Revenues for the half-year of £4.4 million (2017: £3.5 million)
were 24% up on the previous year.
Total profits before tax for the half-year increased by 24% to
£3.2 million (2017: £2.6 million). The cash balances remained
similar, finishing the period at £5.5 million (31 December 2017: £5.6 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 £0.77 million received in
the year ended 30 June 2018
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
2018
|
Six months
ended
31 Dec 2018 |
|
Six months
ended
31 Dec 2017 |
|
£ |
|
£ |
TURNOVER |
4,364,665 |
|
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) |
GROSS PROFIT |
3,926,505 |
|
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 |
|
|
|
|
OPERATING PROFIT |
3,236,337 |
|
3,390,409 |
Interest receivable |
9,662 |
|
10,157 |
Interest payable |
(0) |
|
(0) |
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION |
3,245,999 |
|
3,400,566 |
Tax on profit on ordinary activities |
(499,183) |
|
(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 |
|
|
£ |
|
£ |
FIXED ASSETS |
|
|
|
|
Intangible fixed assets |
|
0 |
|
0 |
|
|
|
|
|
| Tangible fixed assets |
|
524,761 |
|
444,523 |
Investments |
|
388,377 |
|
195,560 |
|
|
|
|
|
|
|
913,138 |
|
640,083 |
CURRENT ASSETS |
|
|
|
Stocks |
258,814 |
|
254,035 |
Debtors |
3,368,057 |
|
3,714,624 |
Cash at bank and in hand |
5,456,257 |
|
5,588,796 |
|
|
|
|
|
9,083,128 |
|
9,557,455 |
|
CREDITORS: amounts falling due within one year |
(797,616) |
|
(800,145) |
|
|
|
|
NET CURRENT ASSETS |
8,285,512 |
|
8,757,310 |
| TOTAL
ASSETS LESS CURRENT LIABILITIES |
9,198,650 |
|
9,397,393 |
PROVISIONS FOR LIABILITIES |
|
|
|
Deferred Tax |
31,989 |
|
11,730 |
NET ASSETS |
9,166,661 |
|
9,385,663 |
CAPITAL AND RESERVES |
|
|
|
Called up share capital |
257,034 |
|
256,934 |
| Share
premium account |
414,608 |
|
395,108 |
Capital redemption reserve |
1,231 |
|
1,231 |
Profit and loss account |
8,493,788 |
|
8,732,390 |
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 |
|
|
£ |
|
£ |
CASHFLOW FROM OPERATING ACTIVITIES |
|
|
|
|
Cash flows from operating activities
Profit for the financial year |
|
2,746,816 |
|
2,822,498 |
| 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 activities |
|
3,272,754 |
|
3,072,108 |
|
|
|
|
| Cash flows from
investing activities |
|
|
|
Purchase of tangible fixed assets |
(57,307) |
|
(11,950) |
| 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) |
Cash and cash equivalents at the beginning of the year |
6,986,514 |
|
6,166,940 |
|
|
|
|
| Cash and cash
equivalents at the end of the year |
5,456,257 |
|
5,588,796 |
|
|
|
|
| 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. |
|
|
|
|
