REG-Bioventix Plc: Half-yearly Report <Origin Href="QuoteRef">BVXP.L</Origin>
21/03/2016 11:30
Bioventix plc
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED
31 DECEMBER 2015
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 ending 31 December 2015.
HIGHLIGHTS
* Turnover: + 23% to £2.37M (H2 2014: £
1.93M)
* Profit before tax: +33% to £1.67M (H2 2014: £
1.26M)
* Profit after tax: +31% to £1.40M (H2 2014:£
1.07M)
* Cash at 31 Dec: +0.81M to £4.61M (2014: £
3.80M)
* Interim dividend per share: +50% to 16.5p (March 2014: 11p)
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
We are pleased to report the interim results for the half-year ended 31
December 2015. Revenues for the half-year period of £2.37M (H2 2014:£1.93M)
were up 23% and profits before tax of £1.67M (H2 2015 £1.26M) were up 33% for
the comparable period in the previous year.
In line with expectations, the core business has remained robust with
additional growth coming from our vitamin D antibody vitD3.5H10. Revenue from
this product - now our leading source of revenue - has continued to grow from
antibody sales and from royalties as customer products (assays for vitamin D
deficiency) reach markets around the world. The "roll-out" of our customers'
vitamin D products which tend to launch initially in the EU and later in the US
has continued and is advanced. Nevertheless, we still anticipate additional
modest growth from a few additional customers over the next year or so.
Autumn 2017 is outside the current reporting period. However, in 18 months'
time, around 15% of the Company's revenue will be lost due to the expiry of
payments relating to one of our first license agreements. The timing of this
expiry is coincident with the expected launch of a high sensitivity troponin
assay for heart attack diagnostics that uses Bioventix antibodies. The timing
of our customer's troponin product launch is a matter under their control but
our understanding is that launch is expected to take place during 2017, most
likely in the EU market first. Our expectation at this time is that the
dynamics of the revenue shift from these two events will not adversely affect
overall sales or cash generation. We will report again on this important issue
later in the year.
Cash flows remained strong and our cash balance increased significantly to £
4.61M at 31 December 2015 (2014: £3.80M) despite markedly increased dividend
payments during 2015.
Over the previous years, the Board has followed a cautious dividend policy that
embraces continuity in the absence of special dividends and it is the intention
of the Board to continue with this policy into the future. We are able to
announce a first interim dividend of 16.5p (2015: 11p). The shares will be
marked ex-dividend on 7th April and become payable on 22nd April to all
shareholders on the register at the close of business on the 8th April. This
represents a similar step increase as was reported for the dividend paid in
October 2015 (21.6p) compared to October 2014 (14.4p). Taken together these
two recent payments total 38.1p and represent a new base level from which
future dividends will be considered.
During the reporting period, we developed our relationship with CardiNor AS, a
new company that has evolved out of Akershus University Hospital and the
University of Oslo. CardiNor has been set up to continue the validation of the
novel cardiac biomarker secretoneurin and to demonstrate the utility of
secretoneurin in the field of heart diagnostics, and to handle the
commercialisation process. Whilst working in the field of an unproven
diagnostic biomarker represents a higher risk if compared to established
biomarkers in current use, we are impressed by the quality of the basic
research within the University and hospital groups in Norway. Over the last
year or so, we have made some excellent antibodies that we believe will be
helpful in creating an assay for the research market that will help elucidate
the utility of secretoneurin.
In our view, the CardiNor collaboration has great merit as it combines the
excellent research of the Norwegian groups together with the antibody and assay
expertise of Bioventix. We believe this to be a good use of the Company's
scientific and financial resources as we continue to develop our pipeline of
products for the future.
There have been no significant staff changes during the reporting period. The
output of the lab in terms of antibody creation, antibody production and
technology development has been of the usual high standard and we would like to
take this opportunity to thank all the operating staff for their contribution
to this result.
With a good first half of the year behind us, we look forward to the rest of
the financial year with confidence.
P J Harrison
Chief Executive Officer
I J Nicholson
Non-Executive Chairman
BIOVENTIX PLC
PROFIT AND LOSS ACCOUNT
for the six month period ended 31 December 2015
Six months Six months
ended ended
31 Dec 31 Dec
2015 2014
£ £
TURNOVER 2,370,841 1,925,249
Cost of sales (259,132) (202,221)
GROSS PROFIT 2,111,709 1,723,028
Administrative expenses (444,912) (466,732)
OPERATING PROFIT 1,666,797 1.256,296
Interest receivable 3,393 1,282
Interest payable (2,083) (1,874)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 1,668,107 1,255,704
Tax on profit on ordinary activities (270,281) (189,270)
PROFIT FOR THE FINANCIAL PERIOD 1,397,826 1,066,434
Earnings per share for the period:
Basic 27.67p 21.15p
Diluted 27.20p 20.79p
BIOVENTIX PLC
BALANCE SHEET
as at 31 December 2015
31 Dec 2015 31 Dec 2014
£ £
FIXED ASSETS
Intangible fixed assets 0 0
Tangible fixed assets 470,541 413,312
Investments 411 0
470,952 413,312
CURRENT ASSETS
Stocks 181,597 176,151
Debtors 2,013,504 1,487,374
Cash at bank and in hand 4,611,800 3,795,449
6,806,901 5,458,974
CREDITORS: amounts falling due within one (343,063) (266,479)
year
6,463,838 5,192,495
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES 6,934,790 5,605,807
PROVISIONS FOR LIABILITIES
Deferred Tax 17,897 17,364
NET ASSETS
6,916,893 5,623,171
CAPITAL AND RESERVES
Called up share capital 252,546 252,546
Share premium account 78,426 78,426
Capital redemption reserve 1,231 1,231
Profit and loss account 6,584,690 5,290,968
SHAREHOLDERS' FUNDS
6,916,893 5,623,171
BIOVENTIX PLC
CASH FLOW STATEMENT
for the six month period ended 31 December 2015
31 Dec 2015 31 Dec 2014
£ £
NET CASHFLOW FROM OPERATING
ACTIVITIES
1,666,797 1,256,296
Operating profit
Amortisation of intangible assets - -
Depreciation of tangible fixed assets 18,396 9,088
Decrease in stocks 11,373 (12,044)
Decrease/(increase) in debtors 72,866 332,978
(Decrease) in creditors (35,045) (18,965)
Share option charge 25,945 25,945
Net cash inflow from operating 1,760,332 1,593,298
activities
Net cash inflow from operating activities 1,760,332 1,593,298
1,310 (591)
Returns on investments & servicing of finance
Taxation (187,917) (440,706)
Capital expenditure & financial investment (1,545) (2,660)
Equity dividends paid (1,091,001) (726,365)
Financing - 20,994
481,179 443,970
Increase in cash
Net funds at 1 July 2015 4,130,622 3,351,479
Net funds at 31 December 2015 4,611,800 3,795,449
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 UK GAAP, the announcement
does not itself contain sufficient information to comply with UK GAAP.
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 applicable accounting standards.
3.2 Turnover
•Turnover comprises revenue recognised by the company in respect of goods
and services supplied, exclusive of Value Added Tax and trade
discounts.
•Direct sales are recognised at the date of dispatch, and royalties are
accrued over the period to which they relate.
•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.
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 Stocks
Stocks are valued at the lower of cost and net realisable value after
making due allowance for obsolete and slow-moving stocks. Cost includes
all direct costs and an appropriate proportion of fixed and variable
overheads.
3.6 Deferred taxation
Full provision is made for deferred tax assets and liabilities arising
from all timing differences between the recognition of gains and losses in
the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more
likely than not that there will be suitable taxable profits from which the
future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates
expected to be effective at the time the timing differences are expected
to reverse.
Deferred tax assets and liabilities are not discounted.
3.7 Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are
translated into sterling at rates of exchange ruling at the balance sheet
date.
Transactions in foreign currencies are translated into sterling at the
rate ruling on the date of the transaction.
Exchange gains and losses are recognised in the Profit and loss account.
3.8 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
3.9 Pensions
The company operates a defined contribution pension scheme and the pension
charge represents the amounts payable by the company to the fund in
respect of the year.
3.10 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.
END
Copyright © 2016 PR Newswire Association, LLC. All Rights ReservedRecent news on Bioventix
See all newsREG - BioVentix PLC - Holding(s) in Company
AnnouncementREG - BioVentix PLC - Interim Results
AnnouncementREG - BioVentix PLC - Director/PDMR Shareholding
AnnouncementREG - BioVentix PLC - Result of AGM
AnnouncementREG - BioVentix PLC - Director/PDMR Shareholding
Announcement