Good morning - and greetings from the Greek islands!

Yes, I'm on holiday for the next fortnight, but am happy to continue keeping an eye on the market, and giving a quick view on the day's small cap results & trading updates.

We haven't got access to our villa yet, so my laptop is perched on a white plastic table, by the beach, whilst the 9 family members I'm holidaying with are having a dip in the sea. Internet access isn't great, so this may or may not work.

Bioventix (LON:BVXP)

Share price: 1085p (up 11.3% today)
No. shares: 5.1m
Market cap: £55.3m

Trading update - for y/e 30 Jun 2016.

It's positive - ahead of market expectations;

The Board is pleased to report that revenues for the financial year ended 30 June 2016 are expected to be in excess of £5.3M (2015: £4.33M).

A strong performance during the financial year has been supplemented by a positive exchange rate effect.

Since the cost base of the Company follows the same trajectory as in previous years, both revenues and profits before tax are expected to be ahead of market expectations for the year ended 30 June 2016.

Valuation - FinnCap says this morning that revenue was expected to be £4.8m. So £5.3m is a significant beat. Also factor in that BVXP achieves super-high profit margins, and that should feed through into a sizeable profit beat, I reckon.

FinnCap also says that net cash is likely to be around £5.2m at 30 Jun 2016, so almost 10% of the market cap.

The broker is expecting EPS to rise by 13-20% in each of FY2016 and FY2017, pending a full update of its forecasts shortly.

Outlook - this bit sounds double-edged;

The Board is encouraged by the recent development activities of our partner, Siemens Healthcare Diagnostics. A Bioventix-created antibody is being used in a Siemens troponin product that is under development, as mentioned in a scientific presentation at the August 2016 American Association of Clinical Chemistry.

Troponin remains an important product for Bioventix’s future performance, as we expect to commence significant sales during the financial year ending 30 June 2018, which will offset revenues from other products which are expected to reduce during this period.

I'm a bit concerned that sales of other products are set to reduce. This seems to undermine the bull case somewhat - that product revenues are annuity-like.


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