REG - BioVentix PLC - Interim Results
25/03/2024 07:00
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RNS Number : 0345I BioVentix PLC 25 March 2024
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 26(st) April 2024 to shareholders
on the register at close of business on 12(th) 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.
Bioventix plc
Peter Harrison Chief Executive Officer Tel: 01252 728 001
Cavendish (NOMAD and broker)
Geoff Nash/Simon Hicks Corporate Finance Tel: 020 7220 0500
Nigel Birks/Harriet Ward ECM
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
Unaudited Unaudited
Six months
Six months
ended ended
31 Dec 2023 31 Dec 2022
£ £
6,675,396 5,895,137
TURNOVER
Cost of sales (453,088) (431,051)
6,222,308 5,464,086
GROSS PROFIT
Administrative expenses (1,031,993) (874,661)
Share option charge (44,733) (123,442)
Difference on foreign exchange (12,953) 4,868
Research & development tax credit adjustment 13,408 9,674
5,146,037 4,480,525
OPERATING PROFIT
92,130 35,342
Interest receivable
5,238,167 4,515,867
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
(1,214,551) (785,488)
Tax on profit on ordinary activities
PROFIT FOR THE FINANCIAL PERIOD
4,023,616 3,730,379
Earnings per share for the period:
Basic 77.09p 71.61p
Diluted 75.96p 70.90p
BIOVENTIX PLC
STATEMENT OF FINANCIAL POSITION
as at 31 December 2023
Unaudited
31 Dec 2023
Unaudited
31 Dec 2022
£ £
FIXED ASSETS
Tangible fixed assets 522,672 640,219
610,039 610,039
Investments
1,132,711 1,250,258
CURRENT ASSETS
585,735 525,656
Stocks
5,924,735 4,785,883
Debtors
5,505,357 5,148,376
Cash and cash equivalents
12,015,827 10,459,915
CREDITORS: amounts falling due within one year (1,707,370) (1,221,885)
10,308,457 9,238,030
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES 11,441,168 10,488,288
PROVISIONS FOR LIABILITIES
(6,735) (22,649)
Deferred Tax
11,434,433 10,465,639
NET ASSETS
CAPITAL AND RESERVES
260,983 260,467
Called up share capital
Share premium account 1,471,315 1,332,472
1,231 1,231
Capital redemption reserve
9,700,904 8,871,469
Profit and loss account
11,434,433 10,465,639
SHAREHOLDERS' FUNDS
BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the six month period ended 31 December 2023
Unaudited Unaudited
31 Dec 2023 31 Dec 2022
£ £
CASHFLOW FROM OPERATING ACTIVITIES
Cash flows from operating activities 4,023,616 3,730,379
Profit for the financial period
Depreciation of tangible fixed assets 58,375 64,733
Interest received (92,130) (35,342)
Taxation charge 1,214,551 785,488
Decrease / (increase) in stocks (20,369) (63,841)
Decrease / (increase) in debtors (109,972) 438,834
(Decrease) /increase in creditors 52,282 (95,049)
Corporation tax (paid) (770,667) (741,344)
Share option charge 44,734 123,442
Net cash generated from operating activities 4,400,420 4,206,300
Cash flows from investing activities
Purchase of tangible fixed assets (5,321) (10,583)
Interest received 92,130 35,342
Net cash from investing activities 86,809 24,759
Cash flows from financing activities
Issue of ordinary shares - -
Movement on share premium account - -
Dividends paid (4,697,691) (5,209,333)
Net cash used in financing activities (4,697,691) (5,209,333)
5,715,819 6,126,650
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period 5,505,357 5,148,376
Cash and cash equivalents at the end of the period comprise:
Cash at bank, on short term deposit and in hand 5,505,357 5,148,376
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 period end.
•Annual license 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.
BIOVENTIX PLC
Notes to the financial information
3.3 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 ‑ 15% straight line
Motor Vehicles ‑ 25% straight line
Fixtures and Fittings - 15% straight line
Office Equipment ‑ 25% straight line
3.4 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.
3.5 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.
3.6 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.
3.7 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 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.
BIOVENTIX PLC
Notes to the financial information
3.8 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.
3.9 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.
3.10 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.
3.11 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.
3.12 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.
BIOVENTIX PLC
Notes to the financial information
3.13 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.
3.14 Research and development
Research and development expenditure is written off in the period in which it
is incurred.
3.15 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.
3.16 Interest income
Interest income is recognised in the Statement of comprehensive income using
the effective interest method.
3.17 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 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.
BIOVENTIX PLC
Notes to the financial information
3.18 Current and deferred taxation
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.
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.
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