TIDMBVXP
Bioventix plc
("Bioventix" or the "Company")
Correction - Unaudited Interim Results for the six months ended 31 December
2019
The Company has become aware that due to an administration error a sales rebate
of $219k (GBP167k) was not entered into the accounting system. Consequently
revenues for the six month period were GBP5.1m not the GBP5.3m as reported on 30
March 2020. Pre tax profits were GBP4.1m as opposed to GBP4.3m as previously
stated. The cash figure and interim dividend remain unchanged.
The revised results are as stated below.
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 2019.
Highlights
* Revenue up 17% to GBP5.1 million (2018: GBP4.4 million)
* Profit before tax up 26% to GBP4.1 million (2018: GBP3.2 million)
* Closing cash balances unchanged at GBP5.5 million
* First interim dividend up 20% to 36p per share (2018: 30p)
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
Business review
We are pleased to announce a strong performance for the unaudited interim
results for the six-month period ended 31 December 2019 with revenues for the
half-year of GBP5.1 million (2018: GBP4.4 million) up 17% on the previous year.
Total profits before tax for the half-year increased by 26% to GBP4.1 million
(2018: GBP3.2 million). The cash balances remained very similar, finishing the
period unchanged at GBP5.5 million.
Vitamin D antibody sales continued at the healthy levels seen during the
previous financial year and this contributed towards the growth. Whilst this
is very encouraging, we continue to see evidence of a plateau in the downstream
global vitamin D assay market. We have previously commented on the impressive
performance of two specific customers in the downstream vitamin D test market -
Diazyme (San Diego, US) and Boditech (South Korea) - and their sales continued
to grow.
Other revenue streams for the core of established antibodies showed modest
growth during the period. Added to this were increased sales of a number of
newer antibodies (T4/thyroxine, androstenedione and biotin).
Sales relating to troponin antibodies grew significantly during the period.
Whilst the actual sales were slightly below our expectation, the percentage
growth provides encouraging evidence of the roll-out of these new tests and for
the future sales performance.
Our research activities continue in line with the plans described in the 2019
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 have successfully tested a prototype lab-based
ELISA method and this will progress towards commercial kit manufacture during
the second half of calendar 2020. Our hope is that we will have a lab-based
kit available for sale to pollution researchers sometime during calendar 2021.
In addition to the pollution research market, it is also possible that the test
will have a degree of utility in the health and safety field (i.e. industrial
worker biomonitoring). We will initially introduce the test directly to
interested parties before seeking appropriate commercial partners for the
future.
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 2019 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 has been completed and we are now fully
operational. The last remaining phase of the development work (cost GBP100k)
covering the technology development lab is planned for later in 2020.
In relation to the comments below regarding COVID-19, Bioventix is a resilient
business and the Board will continue to follow our established dividend
policy. For the period under review, the Board is pleased to announce a first
interim dividend of 36p per share which represents a 20% increase on last
year.
The shares will be marked ex-dividend on 9 April 2020 and the dividend will be
paid on 28 April 2020 to shareholders on the register at close of business on
14 April 2020.
We would like to offer some comments on and the impact of COVID-19 on
Bioventix, accepting that perspectives on the infection have tended to be
overtaken by rapidly changing events. Like many companies, we will be subject
to the effects of COVID-19. Circumstances have changed quickly during the last
few weeks and therefore we will limit our comments to some general observations
that we believe to be accurate. In most affected countries, healthcare and
associated products and services have been prioritised and so we expect that
our customers will continue to operate and that we will continue to supply
antibodies to them. Within the field of our customers in downstream in vitro
diagnostics, it is possible that some routine diagnostic testing could be
reduced as hospitals refocus towards virus-infected patients and this could
have an impact on Bioventix into the future. Regarding our own activities in
Farnham, the welfare of our staff is our top priority. We will be following
Government guidelines on working practices which could result in staff
shortages. During 2020, we will aim to maintain the production and supply of
commercial SMAs to our customers. We have already implemented a raw material
purchasing strategy that minimises the possibility of reagent supply shortages
and we hold large stocks of final products which offers a degree of buffering
against adverse effects.
In conclusion, we are encouraged by the performance 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 further progress in the second half of the year.
P Harrison I J Nicholson
Chief Executive Officer Non-Executive Chairman
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 2019
Six months Six months
ended ended
31 Dec 2019 31 Dec 2018
GBP GBP
TURNOVER 5,098,588 4,364,665
Cost of sales (393,673) (438,160)
GROSS PROFIT 4,704,915 3,926,505
Administrative expenses (643,819) (655,873)
Share option charge (67,294) (67,294)
Difference on foreign exchange 80,258 24,680
Research & development tax credit adjustment 5,369 8,319
OPERATING PROFIT 4,079,429 3,236,337
Interest receivable 17,521 9,662
Interest payable (0) (0)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 4,096,950 3,245,999
Tax on profit on ordinary activities (669,223) (499,183)
PROFIT FOR THE FINANCIAL PERIOD 3,427,727 2,746,816
Earnings per share for the period:
Basic 66.65p 53.44p
Diluted 65.56p 52.54p
BIOVENTIX PLC
BALANCE SHEET
as at 31 December 2019
31 Dec 2019 31 Dec 2018
GBP GBP
FIXED ASSETS
0 0
Intangible fixed assets
Tangible fixed assets 718,921 524,761
579,375 388,377
Investments
1,298,296 913,138
CURRENT ASSETS
Stocks 219,007 258,814
Debtors 3,648,303 3,368,057
Cash at bank and in hand 5,530,539 5,456,257
9,397,849 9,083,128
CREDITORS: amounts falling due within one year (940,209) (797,616)
8,457,640 8,285,512
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES 9,755,936 9,198,650
PROVISIONS FOR LIABILITIES
Deferred Tax 63,020 31,989
NET ASSETS 9,692,916 9,166,661
CAPITAL AND RESERVES
Called up share capital 257,134 257,034
Share premium account 435,908 414,608
Capital redemption reserve 1,231 1,231
Profit and loss account 8,998,643 8,493,788
SHAREHOLDERS' FUNDS 9,692,916 9,166,661
BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the six month period ended 31 December 2019
31 Dec 2019 31 Dec 2018
GBP GBP
CASHFLOW FROM OPERATING ACTIVITIES
Cash flows from operating activities
Profit for the financial year 3,427,727 2,746,816
Depreciation of tangible fixed assets 57,391 30,349
Interest received (17,521) (9,662)
Taxation 192,597 (90,014)
Decrease / (increase) in stocks 20,288 24,276
Decrease / (increase) in debtors 285,612 448,733
(Decrease) /increase in creditors 28,574 63,281
Share option charge 67,294 67,294
Other tax movements (5,369) (8,319)
Net cash generated from operating 4,056,593 3,272,754
activities
Cash flows from investing activities
(261,492) (57,307)
Purchase of tangible fixed assets
Interest received 17,521 9,662
Purchase of unlisted and other investments (190,998) (96,953)
Net cash from investing activities (434,969) (144,598)
Cash flows from financing activities
Issue of ordinary shares 0 100
Movement on share premium account 0 19,500
Dividends paid (4,628,407) (4,678,013)
Interest paid (0) (0)
Net cash used in financing activities (4,628,407) (4,658,413)
Cash and cash equivalents at the beginning of 6,537,322 6,986,514
the year
Cash and cash equivalents at the end of the 5,530,539 5,456,257
year
Cash and cash equivalents at the end of the
year comprise:
Cash at bank and in hand 5,530,539 5,456,257
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 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
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:
- 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.
END
(END) Dow Jones Newswires
March 31, 2020 12:47 ET (16:47 GMT)
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