Bioventix Plc Half-year Report

 
TIDMBVXP 
 
Bioventix plc 
 
              UNAUDITED INTERIM RESULTS FOR THE SIX MONTHSED 
 
                               31 DECEMBER 2017 
 
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 ended 31 December 2017. 
 
                                  HIGHLIGHTS 
 
  * Underlyingrevenue up 13% to GBP3.5 million 
  * Back-dated royalites from prior periods of GBP0.77 million 
  * Profit before tax up 36% to GBP3.4 million 
  * Closing cash balances of GBP5.6 million* 
  * First interim dividend up 20% to 25p per share 
 
*excludes back -dated royalties 
 
                   CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT 
 
Business review 
 
We are pleased to report interim results for the six-month period ended 31 
December 2017. 
 
During the half-year, an internal audit at one of our customers identified a 
back-dated royalty stream of GBP0.77 million that was due from 1 July 2014 to 30 
June 2017 and therefore outside the current reporting period.  We have 
therefore identified these back-royalties separately in the accounts. 
 
Underlying revenues (excluding the back-royalty) for the half-year of GBP3.5 
million (2016: GBP3.1 million) were 13% up on the previous year. 
 
Total profits before tax for the half-year (including the back-royalty) 
increased by 36% to GBP3.4 million (2016: GBP2.5 million).  Cash balances 
increased, finishing the period at GBP5.6 million (31 December 2016: GBP5.2 
million).  As with other royalty payments, this cash balance excludes the 
back-royalty which was received after 31 December. 
 
Vitamin D antibody sales continued at the healthy levels seen in the prior six 
months and were approximately GBP0.4 million above the levels in the comparable 
period.  Growth in other antibody sales (progesterone, drug antibodies, 
contract NT-proBNP) also amounted to around GBP0.4 million.  The additive effect 
of these sales was more than sufficient to make up for the approximately GBP0.4 
million of revenue that has been lost through a terminated revenue stream, as 
previously reported. 
 
We have mentioned previously the developments of our troponin (chest pain and 
heart attack diagnostics) project with Siemens Healthineers.  In October 2017, 
we conveyed our expectation that the commercial development of this exciting 
new product would not gear up until calendar year 2018 and this expectation has 
been manifest in the reporting period.  We remain confident that sales will 
build during 2018, though our detailed understanding is limited by a 
six-monthly information feed through the royalty reporting mechanism. 
 
Sales in China, largely through our appointed distributors, continue to 
progress and we have further evidence that our antibodies are succeeding in 
this important emerging market. 
 
The majority of our scientific resource remains focused on our research 
projects and we are encouraged by the steady progress made in existing projects 
and the identification of exciting new projects for the future.  We will 
comment in more detail on these activities in our next report. 
 
The Board continues to follow a progressive dividend policy that embraces 
continuity.  For the current half-year, the Board is pleased to announce a 
first interim dividend of 25p which represents a 20% increase on the previous 
half-year. 
 
The shares will be marked ex-dividend on 5 April 2018 and the dividend will be 
paid on 20 April 2018 to shareholders on the register at close of business on 6 
April 2018. 
 
We are delighted to be able to report such positive news for the current 
half-year.  We are pleased with the continued success of our vitamin D antibody 
and the remainder of the core antibody business.  We remain optimistic about 
our troponin project and the success of Siemens as their product launches 
around the world and we look forward to further progress in the second half of 
the year. 
 
P Harrison                                 I J Nicholson 
 
Chief Executive Officer                Non-Executive Chairman 
 
BIOVENTIX PLC 
 
STATEMENT OF COMPREHENSIVE INCOME 
 
for the six month period ended 31 December 2017 
 
                                                   Six months     Six months 
                                                   ended 31       ended 31 
                                                   Dec 2017       Dec 2016 
 
                                                           GBP          GBP 
 
                                                   3,522,636      3,109,703 
TURNOVER 
 
Back-dated royalty income                          772,391        - 
 
TOTAL TURNOVER                                     4,295,027      3,109,703 
 
Cost of sales 
                                                   (244,333) 
 
                                                                  (200,950) 
 
                                                   4,050,694 
GROSS PROFIT                                                      2,908,753 
 
Administrative expenses                            (612,739) 
 
                                                                  (472,702) 
 
Share option charge                                (67,005)       - 
 
Difference on foreign exchange                     721            35,878 
 
Research & development tax credit adjustment       18,738         - 
 
                                                   3,390,409 
 
OPERATING PROFIT                                                  2,471,929 
 
Interest receivable                                 10,157        23,117 
 
 
Interest payable                                   (0)            (253) 
 
                                                   3,400,566      2,494,793 
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 
 
Tax on profit on ordinary activities               (578,068)      (471,530) 
 
 
 
PROFIT FOR THE FINANCIAL PERIOD                    2,822,498      2,023,263 
 
 
Earnings per share for the period: 
 
Basic                                              55.03p         39.01p 
 
Diluted                                            54.08p         38.67p 
 
 
BIOVENTIX PLC 
 
BALANCE SHEET 
 
as at 31 December 2017 
 
                                           31 Dec 2017              31 Dec 2016 
 
                                           GBP                        GBP 
 
 
FIXED ASSETS 
 
                                           0                        0 
Intangible fixed assets 
 
Tangible fixed assets                      444,523                  458,377 
 
Investments                                195,560                  195,560 
 
                                           640,083                  653,937 
 
 
CURRENT ASSETS 
 
Stocks                                     254,035                  233,650 
 
Debtors                                    3,714,624                2,597,150 
 
Cash at bank and in hand                   5,588,796                5,148,037 
 
                                           9,557,455                7,978,836 
 
CREDITORS: amounts falling due within one  (800,145)                (581,540) 
year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET CURRENT ASSETS                         8,757,310                7,397,296 
 
TOTAL ASSETS LESS CURRENT LIABILITIES      9,397,393                8,051,233 
 
 
PROVISIONS FOR LIABILITIES 
 
Deferred Tax                               11,730                   17,078 
 
NET ASSETS                                 9,385,663                8,034,155 
 
 
CAPITAL AND RESERVES 
 
Called up share capital                    256,934                  242,933 
 
Share premium account                      395,108                  224,942 
 
Capital redemption reserve                 1,231                    1,231 
 
Profit and loss account                    8,732,390                7,553,049 
 
SHAREHOLDERS' FUNDS                        9,385,663                8,034,155 
 
BIOVENTIX PLC 
 
STATEMENT OF CASH FLOWS 
 
for the six month period ended 31 December 2017 
 
                                           31 Dec 2017             31 Dec 2016 
 
                                           GBP                       GBP 
 
 
CASHFLOW FROM OPERATING ACTIVITIES 
 
                                           2,822,498               2,023,263 
Cash flows from operating 
activities 
Profit for the financial year 
 
Depreciation of tangible fixed             16,739                  18,215 
assets 
 
Interest received                          (10,157)                (23,117) 
 
Taxation                                   572,906                 57,034 
 
Decrease / (increase) in stocks            (27,862)                (34,716) 
 
Decrease / (increase) in debtors           (407,567)               83,338 
 
(Decrease) /increase in creditors          57,283                  (21,034) 
 
Other tax movements                        (18,737)                0 
 
Net cash generated from operating          3,005,103               2,102,983 
activities 
 
 Cash flows from investing activities 
 
                                           (11,950)                (9,505) 
Purchase of tangible fixed assets 
 
Purchase of listed and other investments   0                       (152,230) 
 
Interest received                          10,157                  23,117 
 
Share option charge                        67,005                  0 
 
Net cash from investing activities                   65,212               (138,618) 
 
Cash flows from financing activities 
 
Issue of ordinary shares                   0                       2,386 
 
Movement on share premium account          0                       146,516 
 
Dividends paid                             (3,648,459)             (2,345,382) 
 
Interest paid                              (0)                     (253) 
 
Net cash used in financing activities      (3,648,459)             (2,196,733) 
 

Cash and cash equivalents at the beginning 6,166,940               5,380,405 
of the year 
 
Cash and cash equivalents at the end of    5,588,796               5,148,037 
the year 
 
Cash and cash equivalents at the end of 
the year comprise: 
 
Cash at bank and in hand                   5,588,796               5,148,037 
 
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. 
 
 1. This interim financial statement has not been audited or reviewed by the 
    auditors. 
 
 2. 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. 
 
 
 
 
     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 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. 
 
 
 
 
 
 
BIOVENTIX PLC 
 
                      Notes to the financial information 
 
     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. 
 
BIOVENTIX PLC 
 
                      Notes to the financial information 
 
    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: 
 
         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. 
 
 
 
END 
 

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March 26, 2018 02:00 ET (06:00 GMT)