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.
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Bioventix plc Peter Harrison |
Chief Executive Officer |
Tel: 01252 728 001 |
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Cavendish (NOMAD and broker) Geoff Nash/Simon Hicks
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Corporate Finance |
Tel: 020 7220 0500 |
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Nigel Birks/Harriet Ward |
ECM |
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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
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Unaudited ended 31 Dec 2023 |
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Unaudited ended 31 Dec 2022 |
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£
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£
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TURNOVER |
6,675,396 |
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5,895,137 |
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Cost of sales |
(453,088) |
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(431,051) |
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GROSS PROFIT |
6,222,308 |
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5,464,086 |
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Administrative expenses |
(1,031,993) |
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(874,661) |
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Share option charge |
(44,733) |
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(123,442) |
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Difference on foreign exchange |
(12,953) |
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4,868 |
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Research & development tax credit adjustment |
13,408 |
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9,674 |
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OPERATING PROFIT |
5,146,037 |
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4,480,525 |
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Interest receivable |
92,130 |
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35,342 |
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PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION |
5,238,167 |
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4,515,867 |
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Tax on profit on ordinary activities |
(1,214,551) |
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(785,488) |
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PROFIT FOR THE FINANCIAL PERIOD
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4,023,616 |
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3,730,379 |
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Earnings per share for the period:
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Basic |
77.09p |
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71.61p |
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Diluted |
75.96p |
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70.90p |
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BIOVENTIX PLC
STATEMENT OF FINANCIAL POSITION
as at 31 December 2023
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Unaudited |
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Unaudited 31 Dec 2022 |
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£ |
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£ |
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FIXED ASSETS |
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Tangible fixed assets |
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522,672 |
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640,219 |
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Investments |
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610,039 |
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610,039 |
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1,132,711 |
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1,250,258 |
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CURRENT ASSETS |
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Stocks |
585,735 |
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525,656 |
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Debtors |
5,924,735 |
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4,785,883 |
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Cash and cash equivalents |
5,505,357 |
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5,148,376 |
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12,015,827 |
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10,459,915 |
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CREDITORS: amounts falling due within one year |
(1,707,370) |
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(1,221,885) |
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NET CURRENT ASSETS |
10,308,457 |
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9,238,030 |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
11,441,168 |
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10,488,288 |
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PROVISIONS FOR LIABILITIES |
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Deferred Tax |
(6,735) |
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(22,649) |
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NET ASSETS
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11,434,433 |
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10,465,639 |
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CAPITAL AND RESERVES |
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Called up share capital |
260,983 |
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260,467 |
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Share premium account |
1,471,315 |
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1,332,472 |
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Capital redemption reserve |
1,231 |
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1,231 |
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Profit and loss account |
9,700,904 |
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8,871,469 |
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SHAREHOLDERS' FUNDS |
11,434,433 |
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10,465,639 |
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BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the six month period ended 31 December 2023
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Unaudited 31 Dec 2023 |
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Unaudited 31 Dec 2022 |
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£ |
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£ |
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CASHFLOW FROM OPERATING ACTIVITIES |
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Cash flows from operating activities
Profit for the financial period |
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4,023,616 |
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3,730,379 |
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Depreciation of tangible fixed assets |
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58,375 |
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64,733 |
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Interest received |
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(92,130) |
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(35,342) |
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Taxation charge |
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1,214,551 |
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785,488 |
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Decrease / (increase) in stocks |
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(20,369) |
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(63,841) |
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Decrease / (increase) in debtors |
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(109,972) |
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438,834 |
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(Decrease) /increase in creditors |
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52,282 |
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(95,049) |
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Corporation tax (paid) |
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(770,667) |
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(741,344) |
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Share option charge |
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44,734 |
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123,442 |
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Net cash generated from operating activities |
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4,400,420 |
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4,206,300 |
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Cash flows from investing activities |
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Purchase of tangible fixed assets |
(5,321) |
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(10,583) |
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Interest received |
92,130 |
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35,342 |
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Net cash from investing activities |
86,809 |
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24,759 |
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Cash flows from financing activities |
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Issue of ordinary shares |
- |
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- |
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Movement on share premium account |
- |
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- |
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Dividends paid |
(4,697,691) |
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(5,209,333) |
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Net cash used in financing activities |
(4,697,691) |
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(5,209,333) |
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Cash and cash equivalents at the beginning of the period |
5,715,819 |
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6,126,650 |
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Cash and cash equivalents at the end of the period |
5,505,357 |
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5,148,376 |
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Cash and cash equivalents at the end of the period comprise: |
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Cash at bank, on short term deposit and in hand |
5,505,357 |
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5,148,376 |
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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:
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3.1 |
Basis of preparation of financial statements |
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3.2 |
Revenue |
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BIOVENTIX PLC
Notes to the financial information
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3.3 |
Tangible fixed assets and depreciation |
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Freehold property |
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2% straight line |
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Plant and equipment |
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15% straight line |
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Motor Vehicles Fixtures and Fittings |
‑ - |
25% straight line 15% straight line |
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Office Equipment |
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25% straight line
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3.4 |
Valuation of investments |
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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. |
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3.5 |
Stocks |
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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. |
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3.6 |
Debtors |
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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. |
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3.7 |
Cash and cash equivalents |
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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. |
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BIOVENTIX PLC
Notes to the financial information
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3.8 |
Financial instruments |
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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. |
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3.9 |
Creditors |
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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. |
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3.10 |
Foreign currency translation |
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Functional and presentation currency |
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The Company's functional and presentational currency is GBP. |
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Transactions and balances |
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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. |
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3.11 |
Finance costs |
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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. |
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3.12 |
Dividends |
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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. |
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BIOVENTIX PLC
Notes to the financial information
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3.13 |
Employee benefits-share-based compensation |
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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. |
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3.14 |
Research and development |
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Research and development expenditure is written off in the period in which it is incurred.
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3.15 |
Pensions |
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Defined contribution pension plan |
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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. |
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3.16 |
Interest income |
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Interest income is recognised in the Statement of comprehensive income using the effective interest method. |
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3.17 |
Provisions for liabilities |
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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. |
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BIOVENTIX PLC
Notes to the financial information
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3.18 |
Current and deferred taxation |
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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. |
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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. |
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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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