TIDMBVXP
Bioventix plc
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED
31 DECEMBER 2017
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 2017.
HIGHLIGHTS
* Underlyingrevenue up 13% to GBP3.5 million
* Back-dated royalites from prior periods of GBP0.77 million
* Profit before tax up 36% to GBP3.4 million
* Closing cash balances of GBP5.6 million*
* First interim dividend up 20% to 25p per share
*excludes back -dated royalties
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
Business review
We are pleased to report interim results for the six-month period ended 31
December 2017.
During the half-year, an internal audit at one of our customers identified a
back-dated royalty stream of GBP0.77 million that was due from 1 July 2014 to 30
June 2017 and therefore outside the current reporting period. We have
therefore identified these back-royalties separately in the accounts.
Underlying revenues (excluding the back-royalty) for the half-year of GBP3.5
million (2016: GBP3.1 million) were 13% up on the previous year.
Total profits before tax for the half-year (including the back-royalty)
increased by 36% to GBP3.4 million (2016: GBP2.5 million). Cash balances
increased, finishing the period at GBP5.6 million (31 December 2016: GBP5.2
million). As with other royalty payments, this cash balance excludes the
back-royalty which was received after 31 December.
Vitamin D antibody sales continued at the healthy levels seen in the prior six
months and were approximately GBP0.4 million above the levels in the comparable
period. Growth in other antibody sales (progesterone, drug antibodies,
contract NT-proBNP) also amounted to around GBP0.4 million. The additive effect
of these sales was more than sufficient to make up for the approximately GBP0.4
million of revenue that has been lost through a terminated revenue stream, as
previously reported.
We have mentioned previously the developments of our troponin (chest pain and
heart attack diagnostics) project with Siemens Healthineers. In October 2017,
we conveyed our expectation that the commercial development of this exciting
new product would not gear up until calendar year 2018 and this expectation has
been manifest in the reporting period. We remain confident that sales will
build during 2018, though our detailed understanding is limited by a
six-monthly information feed through the royalty reporting mechanism.
Sales in China, largely through our appointed distributors, continue to
progress and we have further evidence that our antibodies are succeeding in
this important emerging market.
The majority of our scientific resource remains focused on our research
projects and we are encouraged by the steady progress made in existing projects
and the identification of exciting new projects for the future. We will
comment in more detail on these activities in our next report.
The Board continues to follow a progressive dividend policy that embraces
continuity. For the current half-year, the Board is pleased to announce a
first interim dividend of 25p which represents a 20% increase on the previous
half-year.
The shares will be marked ex-dividend on 5 April 2018 and the dividend will be
paid on 20 April 2018 to shareholders on the register at close of business on 6
April 2018.
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 project and the success of Siemens as their product launches
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
BIOVENTIX PLC
STATEMENT OF COMPREHENSIVE INCOME
for the six month period ended 31 December 2017
Six months Six months
ended 31 ended 31
Dec 2017 Dec 2016
GBP GBP
3,522,636 3,109,703
TURNOVER
Back-dated royalty income 772,391 -
TOTAL TURNOVER 4,295,027 3,109,703
Cost of sales
(244,333)
(200,950)
4,050,694
GROSS PROFIT 2,908,753
Administrative expenses (612,739)
(472,702)
Share option charge (67,005) -
Difference on foreign exchange 721 35,878
Research & development tax credit adjustment 18,738 -
3,390,409
OPERATING PROFIT 2,471,929
Interest receivable 10,157 23,117
Interest payable (0) (253)
3,400,566 2,494,793
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
Tax on profit on ordinary activities (578,068) (471,530)
PROFIT FOR THE FINANCIAL PERIOD 2,822,498 2,023,263
Earnings per share for the period:
Basic 55.03p 39.01p
Diluted 54.08p 38.67p
BIOVENTIX PLC
BALANCE SHEET
as at 31 December 2017
31 Dec 2017 31 Dec 2016
GBP GBP
FIXED ASSETS
0 0
Intangible fixed assets
Tangible fixed assets 444,523 458,377
Investments 195,560 195,560
640,083 653,937
CURRENT ASSETS
Stocks 254,035 233,650
Debtors 3,714,624 2,597,150
Cash at bank and in hand 5,588,796 5,148,037
9,557,455 7,978,836
CREDITORS: amounts falling due within one (800,145) (581,540)
year
NET CURRENT ASSETS 8,757,310 7,397,296
TOTAL ASSETS LESS CURRENT LIABILITIES 9,397,393 8,051,233
PROVISIONS FOR LIABILITIES
Deferred Tax 11,730 17,078
NET ASSETS 9,385,663 8,034,155
CAPITAL AND RESERVES
Called up share capital 256,934 242,933
Share premium account 395,108 224,942
Capital redemption reserve 1,231 1,231
Profit and loss account 8,732,390 7,553,049
SHAREHOLDERS' FUNDS 9,385,663 8,034,155
BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the six month period ended 31 December 2017
31 Dec 2017 31 Dec 2016
GBP GBP
CASHFLOW FROM OPERATING ACTIVITIES
2,822,498 2,023,263
Cash flows from operating
activities
Profit for the financial year
Depreciation of tangible fixed 16,739 18,215
assets
Interest received (10,157) (23,117)
Taxation 572,906 57,034
Decrease / (increase) in stocks (27,862) (34,716)
Decrease / (increase) in debtors (407,567) 83,338
(Decrease) /increase in creditors 57,283 (21,034)
Other tax movements (18,737) 0
Net cash generated from operating 3,005,103 2,102,983
activities
Cash flows from investing activities
(11,950) (9,505)
Purchase of tangible fixed assets
Purchase of listed and other investments 0 (152,230)
Interest received 10,157 23,117
Share option charge 67,005 0
Net cash from investing activities 65,212 (138,618)
Cash flows from financing activities
Issue of ordinary shares 0 2,386
Movement on share premium account 0 146,516
Dividends paid (3,648,459) (2,345,382)
Interest paid (0) (253)
Net cash used in financing activities (3,648,459) (2,196,733)
Cash and cash equivalents at the beginning 6,166,940 5,380,405
of the year
Cash and cash equivalents at the end of 5,588,796 5,148,037
the year
Cash and cash equivalents at the end of
the year comprise:
Cash at bank and in hand 5,588,796 5,148,037
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.
1. This interim financial statement has not been audited or reviewed by the
auditors.
2. The accounting policies which were used in the preparation of this interim
financial information were as follows:
3.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost
convention and in accordance with FRS 102.
3.2 Revenue
*Turnover is recognised for product supplied or services rendered to the
extent that it is probable that the economic benefits will flow to the
Company and the turnover can be reliably measured. Turnover is measured as
the fair value of the consideration received or receivable, excluding
discounts, rebates, value added tax and other sales taxes. The following
criteria determine when turnover will be recognised:
*Direct sales are recognised at the date of dispatch.
*Subcontracted R & D income is recognised based upon the stage of
completion at the 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.
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
BIOVENTIX PLC
Notes to the financial information
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.
BIOVENTIX PLC
Notes to the financial information
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.
BIOVENTIX PLC
Notes to the financial information
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:
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.
END
(END) Dow Jones Newswires
March 26, 2018 02:00 ET (06:00 GMT)
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