Bioventix
plc
("Bioventix" or the "Company")
Unaudited Interim Results for
the six months ended 31 December 2023
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
2023.
Highlights
· Revenue up 13% to £6.7 million (2022: £5.9 million)
· Profit
before tax £5.2 million (2022: £4.5 million)
· Closing cash balances of £5.5 million (2022: £5.1 million)
post a £4.7m dividend payment
· First
interim dividend up 10% to 68p per share (2022: 62p)
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
Business review
Bioventix is pleased to report
revenues for the half-year of £6.7 million (2022: £5.9 million), an
increase of 13% and in line with the expectations for the
year. Sales of physical products have performed well and
revenues from our vitamin D antibody and other core antibodies have
all increased as anticipated. A significant element of the
growth came from increased physical product sales and associated
royalties from our Chinese customers.
Whilst our total sales continue to
grow, our sales relating to troponin antibodies were a little below
expectation. We continue to believe that temporary
operational issues experienced by our
partner customers have slowed the rollout of their improved
troponin assays. Whilst this has inhibited growth short term,
there is no obvious reason to doubt the previous forecasts for
future growth of troponin related revenues in the longer
term.
Total profits before tax for the
half-year were up 16% to £5.2 million (2022: £4.5 million).
Profits after tax of £4.0 million (2022 £3.7 million) have only
increased by 8% due to changes in corporation tax. The
business generated cash from operations of £4.4m and cash balances
at 31 December 2023 stood at £5.5 million (2022 £5.2
million).
Our research activities continue in
line with the plans we described in our 2023 annual report.
As detailed then , it is encouraging that after having invested a
considerable amount of laboratory resource in the Tau project and
Alzheimer's disease (AD) diagnostics, our work with the University
of Gothenburg ("UGOT") has resulted in prototype assays for use in
AD. One prototype assay for early AD detection measures a
leading candidate blood biomarker for early amyloid build-up which
is, confusingly, a phosphorylated form of Tau called pTau217.
This "UGOT" prototype assay performs well and in a similar way to
pTau217 assays from other leading groups. There is a second
UGOT prototype assay for neurodegeneration based on our antibodies
that has received significant attention following recent
publications in the scientific literature. We believe this
assay could have utility in the monitoring of patients later in the
disease and treatment pathway which will be a key requirement for
assessing the efficacy of such new treatments.
After the scientific progress
detailed in the our annual report , our focus has evolved towards
refining the prototype tests described above and sending evaluation
samples of SMAs to IVD companies that serve the research community,
such as Quanterix, and our established global IVD customers.
Early indications suggest that our SMAs could facilitate Tau assays
on commercial platforms although we are aware that competing
antibodies exist from other respected sources in addition to
antibodies created in-house by our IVD company
partners.
We are pleased with the continued
development of our industrial pollution exposure assays. We
are planning a field trial with firefighters using our prototype
lateral flow test for pyrene, previously trialed in industrial
workers' urine. Antibody developments are in progress for two
additional industrial pollutants, benzene, associated with the
petrochemical industry, and isocyanates, used in the plastics and
paints industry. We plan to continue our internal and
external investment in these areas.
We continue to await news and
critical data from both of our partners in Oslo; on the
secretoneurin project with CardiNor for enhancing cardiac
diagnostics and on the amyloid beta project with Pre-Diagnostics in
Alzheimer's diagnostics. We hope to have more news on these
two projects during 2024.
Recent changes to the headline rate
of Corporation Tax has had an impact on our reported earnings and
cash flows. Nevertheless, we will endeavour to follow our
established dividend policy of increasing our distributions to
shareholders in line with increases in our post tax profit.
For the period under review, the Board is pleased to announce an
interim dividend of 68 pence per share which represents a 10%
increase on the interim dividend paid last year (62 pence per
share). The shares will be marked ex-dividend on the 11th
April 2024 and the dividend will be paid on 26st April
2024 to shareholders on the register at close of business on
12th April 2024.
In conclusion, our core business has
performed in line with expectations with growth in China being a
key feature. Troponin revenues did not accelerate quite as
expected but we continue to believe that the headwinds are
temporary and operational in nature. We remain excited as the
scientific output of our Gothenburg Alzheimer's collaboration
slowly translates into commercial potential. We look forward
to further progress in the second half of the year and
beyond.
|
Bioventix plc
Peter Harrison
|
Chief Executive Officer
|
Tel: 01252 728 001
|
|
|
|
|
|
Cavendish (NOMAD and broker)
Geoff Nash/Simon Hicks
|
Corporate Finance
|
Tel: 020 7220 0500
|
|
Nigel Birks/Harriet Ward
|
ECM
|
|
About Bioventix plc:
Bioventix (www.bioventix.com)
specialises in the development and commercial supply of
high-affinity monoclonal antibodies with a primary focus on their
application in clinical diagnostics, such as in automated
immunoassays used in blood testing. The antibodies created at
Bioventix are generated in sheep and are of particular benefit
where the target is present at low concentration and where
conventional monoclonal or polyclonal antibodies have failed to
produce a suitable reagent. Bioventix currently offers a portfolio
of antibodies to customers for both commercial use and R&D
purposes, for the diagnosis or monitoring of a broad range of
conditions, including heart disease, cancer, fertility, thyroid
function and drug abuse. Bioventix currently supplies antibody
products and services to the majority of multinational clinical
diagnostics companies. Bioventix is based in Farnham, UK and its
shares are traded on AIM under the symbol BVXP.
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 2023
|
|
Unaudited
Six months
ended
31 Dec 2023
|
|
Unaudited
Six months
ended
31 Dec 2022
|
|
|
£
|
|
£
|
|
TURNOVER
|
6,675,396
|
|
5,895,137
|
|
Cost of sales
|
(453,088)
|
|
(431,051)
|
|
GROSS
PROFIT
|
6,222,308
|
|
5,464,086
|
|
Administrative expenses
|
(1,031,993)
|
|
(874,661)
|
|
|
|
|
|
|
Share option charge
|
(44,733)
|
|
(123,442)
|
|
|
|
|
|
|
Difference on foreign exchange
|
(12,953)
|
|
4,868
|
|
|
|
|
|
|
Research & development tax credit adjustment
|
13,408
|
|
9,674
|
|
|
|
|
|
|
OPERATING PROFIT
|
5,146,037
|
|
4,480,525
|
|
Interest receivable
|
92,130
|
|
35,342
|
|
|
|
|
|
|
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
|
5,238,167
|
|
4,515,867
|
|
Tax on profit on ordinary activities
|
(1,214,551)
|
|
(785,488)
|
|
PROFIT FOR THE FINANCIAL PERIOD
|
4,023,616
|
|
3,730,379
|
|
|
|
|
|
|
Earnings per share for the
period:
|
|
|
|
|
Basic
|
77.09p
|
|
71.61p
|
|
Diluted
|
75.96p
|
|
70.90p
|
|
|
|
|
|
BIOVENTIX PLC
STATEMENT OF FINANCIAL POSITION
as at 31 December 2023
|
|
|
Unaudited
31 Dec 2023
|
|
Unaudited
31 Dec 2022
|
|
|
|
|
|
|
|
|
|
|
|
£
|
|
£
|
|
|
FIXED ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible fixed assets
|
|
522,672
|
|
640,219
|
|
|
Investments
|
|
610,039
|
|
610,039
|
|
|
|
|
|
|
|
|
|
|
|
1,132,711
|
|
1,250,258
|
|
|
CURRENT ASSETS
|
|
|
|
|
|
Stocks
|
585,735
|
|
525,656
|
|
|
Debtors
|
5,924,735
|
|
4,785,883
|
|
|
Cash and cash equivalents
|
5,505,357
|
|
5,148,376
|
|
|
|
|
|
|
|
|
|
12,015,827
|
|
10,459,915
|
|
|
CREDITORS:
amounts falling due within one year
|
(1,707,370)
|
|
(1,221,885)
|
|
|
|
|
|
|
|
|
NET CURRENT ASSETS
|
10,308,457
|
|
9,238,030
|
|
|
TOTAL ASSETS LESS
CURRENT LIABILITIES
|
11,441,168
|
|
10,488,288
|
|
|
PROVISIONS FOR LIABILITIES
|
|
|
|
|
|
Deferred Tax
|
(6,735)
|
|
(22,649)
|
|
|
NET ASSETS
|
11,434,433
|
|
10,465,639
|
|
|
CAPITAL AND RESERVES
|
|
|
|
|
|
Called up share capital
|
260,983
|
|
260,467
|
|
|
Share premium account
|
1,471,315
|
|
1,332,472
|
|
|
Capital redemption reserve
|
1,231
|
|
1,231
|
|
|
Profit and loss account
|
9,700,904
|
|
8,871,469
|
|
|
SHAREHOLDERS' FUNDS
|
11,434,433
|
|
10,465,639
|
|
BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the six month period ended 31 December 2023
|
|
|
Unaudited
31 Dec 2023
|
|
Unaudited
31 Dec 2022
|
|
|
|
|
£
|
|
£
|
|
|
CASHFLOW FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Cash flows from
operating activities
Profit for the financial period
|
|
4,023,616
|
|
3,730,379
|
|
|
|
Depreciation of tangible fixed assets
|
|
58,375
|
|
64,733
|
|
|
|
Interest received
|
|
(92,130)
|
|
(35,342)
|
|
|
|
Taxation charge
|
|
1,214,551
|
|
785,488
|
|
|
|
Decrease / (increase) in stocks
|
|
(20,369)
|
|
(63,841)
|
|
|
|
Decrease / (increase) in debtors
|
|
(109,972)
|
|
438,834
|
|
|
|
(Decrease) /increase in creditors
|
|
52,282
|
|
(95,049)
|
|
|
|
Corporation tax (paid)
|
|
(770,667)
|
|
(741,344)
|
|
|
|
Share option charge
|
|
44,734
|
|
123,442
|
|
|
|
Net
cash generated from operating activities
|
|
4,400,420
|
|
4,206,300
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Purchase of tangible fixed assets
|
(5,321)
|
|
(10,583)
|
|
|
|
|
|
|
|
|
|
|
Interest received
|
92,130
|
|
35,342
|
|
|
|
Net cash from
investing activities
|
86,809
|
|
24,759
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Issue of ordinary shares
|
-
|
|
-
|
|
|
|
Movement on share premium account
|
-
|
|
-
|
|
|
|
Dividends paid
|
(4,697,691)
|
|
(5,209,333)
|
|
|
|
Net cash used in
financing activities
|
(4,697,691)
|
|
(5,209,333)
|
|
|
|
Cash and cash equivalents at the beginning of the
period
|
5,715,819
|
|
6,126,650
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
5,505,357
|
|
5,148,376
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period comprise:
|
|
|
|
|
|
Cash at bank, on short term deposit and in hand
|
5,505,357
|
|
5,148,376
|
|
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.
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 period end.
•Annual license 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.
|
BIOVENTIX PLC
Notes to the financial information
|
|
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
|
‑
|
15% straight line
|
|
|
|
|
|
Motor Vehicles
Fixtures and Fittings
|
‑
-
|
25% straight line
15% straight line
|
|
|
|
|
|
Office 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.
|
|
|
|
|
|
|
|
|
BIOVENTIX PLC
Notes to the financial information
|
|
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.
|
|
|
|
|
BIOVENTIX PLC
Notes to the
financial information
|
|
|
|
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.
|
|
|
|
|
BIOVENTIX PLC
Notes to the
financial information
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
