REG-Bioventix Plc: Half-year Report
29/03/2021 07:05
Bioventix plc
(“Bioventix” or the “Company”)
Unaudited Interim Results for the six months ended 31 December 2020
Bioventix plc (BVXP), 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 2020.
Highlights
· Revenue up 1.3% to £5.2 million (2019: £5.1 million)
· Profit before tax down 9% to £3.7 million (2019: £4.1
million)
· Closing cash balances up £0.3 million to £5.8 million
· First interim dividend up 20% to 43p per share (2019: 36p)
CHAIRMAN AND CHIEF EXECUTIVE’S STATEMENT
Business review
The continuing global pandemic has, without doubt, affected the activity
within diagnostic pathways in hospitals and clinics around the world to which
our business is intrinsically linked. Not only have medical care resources
been diverted to cope with COVID-19 patients but, even where capacity remains,
there is ongoing evidence that patients are choosing not to present to
healthcare professionals or not to enter diagnostic pathways. We are therefore
relatively pleased to announce our unaudited interim results for the six-month
period ended 31 December 2020 in which our revenues for the half-year of £5.2
million (2019: £5.1 million) were maintained at a similar level to those for
the same period of the previous year.
Total profits before tax for the half-year decreased by 9% to £3.7 million
(2019: £4.1 million), most of the reduction being created by exchange
rate-related charges of £0.27m. The cash balances at 31 December 2020 also
remained at a very similar level, finishing the period up by £0.3 million at
£5.8 million.
As reported previously, vitamin D antibody sales were not expected to match
the growth rates seen in recent financial years and a plateau in the
downstream global vitamin D assay market had been anticipated. The very modest
growth seen was perhaps better than could have been anticipated.
Our antibodies for thyroid disease diagnostics (T3) and others for fertility
diagnostics (estradiol, progesterone and testosterone) form part of routine
diagnostics for chronic conditions which are often not life-threatening. We
believe that such diagnostic tests have experienced lower volumes in pandemic
affected areas and this has had a small impact on our own revenues.
Sales relating to troponin antibodies grew significantly once again during the
period. The continued roll-out of high sensitivity troponin tests provides
further encouragement for our future sales in this area.
Our research activities continue in line with the plans described in the 2020
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 hope to have a prototype urine lateral flow test
featuring in a field trial at a UK industrial site later in 2021. The
intention is to measure and upload the lateral flow test results directly to
health and safety operatives at the site through a phone-app camera reader
system.
Regarding the use of SMAs to mitigate against the effect of biotin vitamin
supplements on certain blood tests, we sent samples of “blocker”
antibodies to customers late in 2020. We have received early positive feedback
on the performance of these blockers from some customers. During 2021, we will
continue to receive feedback and consider further the possible commercial
development of these blockers where bulk manufacture at low cost will be
important.
In December 2020, we sent samples of THC (the active ingredient in cannabis or
marijuana) antibodies to a few selected customers who are interested in
improving their THC lateral flow assays for saliva. The early feedback from
these customers has been encouraging and we expect to gather more feedback
during the year.
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 2020 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 and technology development laboratory has been
completed and we are now fully operational. The last remaining phase of the
development work (cost ~£70k) is due to start imminently.
Bioventix has demonstrated that it is a resilient business and,
notwithstanding our comments regarding the impact of the COVID-19 pandemic,
our plan is to continue to follow our established dividend policy. For the
period under review, the Board is pleased to announce a first interim dividend
of 43p per share which represents a 20% increase on last year (36 pence per
share).
The shares will be marked ex-dividend on the 8 April 2021 and the dividend
will be paid on 23 April 2021 to shareholders on the register at close of
business on 9 April 2021.
In conclusion, we are encouraged by the performance of Bioventix 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 reporting further progress in the second half
of the year.
For further information please contact:
Bioventix plc Peter Harrison Chief Executive Officer Tel: 01252 728 001
finnCap Ltd Geoff Nash/Simon Hicks – Corporate Finance Alice Lane – 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.
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 2020
Unaudited Unaudited
Six months ended 31 Dec 2020 Six months ended 31 Dec 2019
£ £
TURNOVER 5,164,733 5,098,588
Cost of sales (452,689) (393,673)
GROSS PROFIT 4,712,044 4,704,915
Administrative expenses (688,981) (643,819)
Share option charge (137,810) (67,294)
Difference on foreign exchange (195,842) 80,258
Research & development tax credit adjustment 17,981 5,369
OPERATING PROFIT 3,707,392 4,079,429
Interest receivable 10,587 17,521
Interest payable (0) (0)
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 3,717,979 4,096,950
Tax on profit on ordinary activities (620,012) (669,223)
PROFIT FOR THE FINANCIAL PERIOD 3,097,967 3,427,727
Earnings per share for the period:
Basic 59.47p 66.65p
Diluted 58.84p 65.56p
BIOVENTIX PLC
STATEMENT OF FINANCIAL POSITION
as at 31 December 2020
Unaudited Six Months ended 31 Dec 2020 Unaudited Six Months ended 31 Dec 2019
£ £
FIXED ASSETS
Tangible fixed assets 777,244 718,921
Investments 610,039 579,375
1,387,283 1,298,296
CURRENT ASSETS
Stocks 225,471 219,007
Debtors 3,747,887 3,348,303
Cash at bank and in hand 5,844,455 5,530,539
9,817,813 9,397,849
CREDITORS : amounts falling due within one year (839,835) (940,209)
NET CURRENT ASSETS 8,977,978 8,457,640
TOTAL ASSETS LESS CURRENT LIABILITIES 10,365,261 9,755,936
PROVISIONS FOR LIABILITIES
Deferred Tax 58,134 63,020
NET ASSETS 10,307,127 9,692,916
CAPITAL AND RESERVES
Called up share capital 260,467 257,034
Share premium account 1,332,471 435,908
Capital redemption reserve 1,231 1,231
Profit and loss account 8,712,958 8,998,643
SHAREHOLDERS' FUNDS 10,307,127 9,692,916
BIOVENTIX PLC
STATEMENT OF CASH FLOWS
for the six month period ended 31 December 2020
Unaudited 31 Dec 2020 Unaudited 31 Dec 2019
£ £
CASHFLOW FROM OPERATING ACTIVITIES
Cash flows from operating activities
Profit for the financial year 3,097,967 3,427,727
Depreciation of tangible fixed assets 61,858 57,391
Interest received (10,587) (17,521)
Taxation 264,483 192,597
Decrease / (increase) in stocks 19,952 20,288
Decrease / (increase) in debtors (98,517) 285,612
(Decrease) /increase in creditors (127,399) 28,574
Share option charge 137,810 67,294
Other tax movements (17,984) (5,369)
Net cash generated from operating activities 3,327,584 4,056,593
Cash flows from investing activities
Purchase of tangible fixed assets (120,607) (261,492)
Interest received 10,587 17,521
Purchase of unlisted and other investments (0) (190,998)
Net cash from investing activities (110,020) (434,969)
Cash flows from financing activities
Issue of ordinary shares 74 0
Movement on share premium account 20,148 0
Dividends paid (5,469,800) (4,628,407)
Interest paid (0) (0)
Net cash used in financing activities (5,449,578) (4,628,407)
Cash and cash equivalents at the beginning of the year 8,076,468 6,537,322
Cash and cash equivalents at the end of the year 5,844,455 5,530,539
Cash and cash equivalents at the end of the year comprise:
Cash at bank and in hand 5,884,455 5,530,539
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 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. 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.
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.
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