Bioventix plc
(“Bioventix” or the “Company”)
Unaudited Interim
Results for the six months ended 31 December
2020
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
unaudited interim results for the six-month period ended
31 December 2020.
Highlights
· Revenue up 1.3% to £5.2
million (2019: £5.1 million)
· Profit before tax down 9%
to £3.7 million (2019: £4.1 million)
· Closing cash balances up
£0.3 million to £5.8 million
· First interim dividend up
20% to 43p per share (2019: 36p)
CHAIRMAN AND CHIEF EXECUTIVE’S
STATEMENT
Business review
The continuing global pandemic has, without doubt, affected the
activity within diagnostic pathways in hospitals and clinics around
the world to which our business is intrinsically linked. Not only
have medical care resources been diverted to cope with COVID-19
patients but, even where capacity remains, there is ongoing
evidence that patients are choosing not to present to healthcare
professionals or not to enter diagnostic pathways. We are therefore
relatively pleased to announce our unaudited interim results for
the six-month period ended 31 December
2020 in which our revenues for the half-year of £5.2 million
(2019: £5.1 million) were maintained at a similar level to those
for the same period of the previous year.
Total profits before tax for the half-year decreased by 9% to
£3.7 million (2019: £4.1 million), most of the reduction being
created by exchange rate-related charges of £0.27m. The cash
balances at 31 December 2020 also
remained at a very similar level, finishing the period up by £0.3
million at £5.8 million.
As reported previously, vitamin D antibody sales were not
expected to match the growth rates seen in recent financial years
and a plateau in the downstream global vitamin D assay market had
been anticipated. The very modest growth seen was perhaps better
than could have been anticipated.
Our antibodies for thyroid disease diagnostics (T3) and others
for fertility diagnostics (estradiol, progesterone and
testosterone) form part of routine diagnostics for chronic
conditions which are often not life-threatening. We believe that
such diagnostic tests have experienced lower volumes in pandemic
affected areas and this has had a small impact on our own
revenues.
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.
Our research activities continue in line with the plans
described in the 2020 annual report. Whilst we will report further
on these various projects with our full year results, we are
particularly pleased with the development of our pollution exposure
assay. We hope to have a prototype urine lateral flow test
featuring in a field trial at a UK industrial site later in 2021.
The intention is to measure and upload the lateral flow test
results directly to health and safety operatives at the site
through a phone-app camera reader system.
Regarding the use of SMAs to mitigate against the effect of
biotin vitamin supplements on certain blood tests, we sent samples
of “blocker” antibodies to customers late in 2020. We have received
early positive feedback on the performance of these blockers from
some customers. During 2021, we will continue to receive feedback
and consider further the possible commercial development of these
blockers where bulk manufacture at low cost will be important.
In December 2020, we sent samples
of THC (the active ingredient in cannabis or marijuana) antibodies
to a few selected customers who are interested in improving their
THC lateral flow assays for saliva. The early feedback from these
customers has been encouraging and we expect to gather more
feedback during the year.
With the exception of COVID-19, the overall context of the
business and the landscape in which we operate has not materially
changed since the 2020 annual report and we draw the attention of
any new shareholders to this report.
We have continued with the development of our Farnham
laboratory. The work on our manufacturing facilities and technology
development laboratory has been completed and we are now fully
operational. The last remaining phase of the development work (cost
~£70k) is due to start imminently.
Bioventix has demonstrated that it is a resilient business and,
notwithstanding our comments regarding the impact of the COVID-19
pandemic, our plan is to continue to follow our established
dividend policy. For the period under review, the Board is pleased
to announce a first interim dividend of 43p per share which
represents a 20% increase on last year (36
pence per share).
The shares will be marked ex-dividend on the 8 April 2021 and the dividend will be paid on
23 April 2021 to shareholders on the
register at close of business on 9 April
2021.
In conclusion, we are encouraged by the performance of Bioventix
for the current half-year and pleased with the continued success of
our vitamin D antibody and 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 reporting further progress in the second half of the
year.
For further information please contact:
Bioventix
plc
Peter Harrison
Chief Executive Officer |
Tel: 01252 728
001 |
finnCap Ltd
Geoff Nash/Simon Hicks – Corporate Finance
Alice Lane – 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.
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
BIOVENTIX PLC
STATEMENT OF
COMPREHENSIVE INCOME
for the six month period ended 31 December
2020
|
Unaudited
Six months
ended
31 Dec 2020 |
|
|
Unaudited
Six months
ended
31 Dec 2019 |
|
£ |
|
|
£ |
|
|
|
|
|
|
TURNOVER |
5,164,733 |
|
|
5,098,588 |
|
|
|
|
|
| Cost of sales |
(452,689) |
|
|
(393,673) |
|
|
|
|
|
| GROSS
PROFIT |
4,712,044 |
|
|
4,704,915 |
|
|
|
|
|
| Administrative expenses |
(688,981) |
|
|
(643,819) |
|
|
|
|
|
| Share option charge |
(137,810) |
|
|
(67,294) |
|
|
|
|
|
| Difference on foreign exchange |
(195,842) |
|
|
80,258 |
|
|
|
|
|
| Research & development tax
credit adjustment |
17,981 |
|
|
5,369 |
|
|
|
|
|
| OPERATING PROFIT |
3,707,392 |
|
|
4,079,429 |
|
|
|
|
|
| Interest
receivable |
10,587 |
|
|
17,521 |
|
|
|
|
|
| Interest payable |
(0) |
|
|
(0) |
|
|
|
|
|
| PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION |
3,717,979 |
|
|
4,096,950 |
|
|
|
|
|
| Tax on profit on ordinary
activities |
(620,012) |
|
|
(669,223) |
|
|
|
|
|
| PROFIT FOR THE
FINANCIAL PERIOD |
3,097,967 |
|
|
3,427,727 |
|
|
|
|
|
| Earnings per share
for the period: |
|
|
|
|
| Basic |
59.47p |
|
|
66.65p |
| Diluted |
58.84p |
|
|
65.56p |
BIOVENTIX PLC
STATEMENT OF
FINANCIAL POSITION
as at 31 December 2020
|
Unaudited
Six Months ended
31 Dec 2020 |
|
Unaudited
Six Months ended
31 Dec 2019 |
|
£ |
|
£ |
| FIXED ASSETS |
|
|
|
|
|
|
|
| Tangible fixed assets |
777,244 |
|
718,921 |
|
|
|
|
| Investments |
610,039 |
|
579,375 |
|
|
|
|
|
1,387,283 |
|
1,298,296 |
|
|
|
|
| CURRENT
ASSETS |
|
|
|
|
|
|
|
| Stocks |
225,471 |
|
219,007 |
|
|
|
|
| Debtors |
3,747,887 |
|
3,348,303 |
|
|
|
|
| Cash at bank and in hand |
5,844,455 |
|
5,530,539 |
|
|
|
|
|
9,817,813 |
|
9,397,849 |
|
|
|
|
| CREDITORS:
amounts falling due within one year |
(839,835) |
|
(940,209) |
|
|
|
|
| NET CURRENT ASSETS |
8,977,978 |
|
8,457,640 |
|
|
|
|
| TOTAL ASSETS LESS
CURRENT LIABILITIES |
10,365,261 |
|
9,755,936 |
|
|
|
|
| PROVISIONS FOR
LIABILITIES |
|
|
|
|
|
|
|
| Deferred Tax |
58,134 |
|
63,020 |
|
|
|
|
| NET ASSETS |
10,307,127 |
|
9,692,916 |
|
|
|
|
| CAPITAL AND RESERVES |
|
|
|
|
|
|
|
| Called up share capital |
260,467 |
|
257,034 |
|
|
|
|
| Share premium
account |
1,332,471 |
|
435,908 |
|
|
|
|
| Capital redemption
reserve |
1,231 |
|
1,231 |
|
|
|
|
| Profit and loss
account |
8,712,958 |
|
8,998,643 |
|
|
|
|
| SHAREHOLDERS' FUNDS |
10,307,127 |
|
9,692,916 |
BIOVENTIX PLC
STATEMENT OF CASH
FLOWS
for the six month period ended 31 December
2020
|
Unaudited
31 Dec 2020 |
|
Unaudited
31 Dec 2019 |
|
£ |
|
£ |
| CASHFLOW FROM OPERATING
ACTIVITIES |
|
|
|
|
|
|
|
| Cash flows from
operating activities |
|
|
|
|
|
|
|
| Profit for the
financial year |
3,097,967 |
|
3,427,727 |
| Depreciation of
tangible fixed assets |
61,858 |
|
57,391 |
| Interest received |
(10,587) |
|
(17,521) |
| Taxation |
264,483 |
|
192,597 |
| Decrease / (increase)
in stocks |
19,952 |
|
20,288 |
| Decrease / (increase)
in debtors |
(98,517) |
|
285,612 |
| (Decrease) /increase in
creditors |
(127,399) |
|
28,574 |
| Share option
charge |
137,810 |
|
67,294 |
| Other tax
movements |
(17,984) |
|
(5,369) |
| Net cash generated
from operating activities |
3,327,584 |
|
4,056,593 |
|
|
|
|
| Cash flows from investing
activities |
|
|
|
|
|
|
|
| Purchase of tangible
fixed assets |
(120,607) |
|
(261,492) |
| Interest received |
10,587 |
|
17,521 |
| Purchase of unlisted
and other investments |
(0) |
|
(190,998) |
| Net cash from
investing activities |
(110,020) |
|
(434,969) |
|
|
|
|
| Cash flows from
financing activities |
|
|
|
| Issue of ordinary
shares |
74 |
|
0 |
| Movement on share
premium account |
20,148 |
|
0 |
| Dividends paid |
(5,469,800) |
|
(4,628,407) |
| Interest paid |
(0) |
|
(0) |
|
|
|
|
| Net cash used in
financing activities |
(5,449,578) |
|
(4,628,407) |
|
|
|
|
| Cash and cash
equivalents at the beginning of the year |
8,076,468 |
|
6,537,322 |
|
|
|
|
| Cash and cash equivalents at the
end of the year |
5,844,455 |
|
5,530,539 |
|
|
|
|
| Cash and cash
equivalents at the end of the year comprise: |
|
|
|
|
|
|
|
| Cash at bank and in
hand |
5,884,455 |
|
5,530,539 |
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.
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