Bioventix Plc Results for the year ended 30 June 2022

 
TIDMBVXP 
 
Bioventix plc 
                        ("Bioventix" or "the Company") 
 
                    Results for the year ended 30 June 2022 
 
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 audited results for the year ended 30 June 
2022. 
 
Highlights: 
 
·       Revenue up 7% to £11.72 million (2021: £10.93 million) 
 
·       Profit before tax up 14% to £9.28 million (2021: £8.12 million) 
 
·       Cash at year end of £6.1 million (30 June 2021: £6.5 million) 
 
·       Second interim dividend of 74p per share (2021: 62p) 
 
·       Special dividend of 26p per share (2021: 38p) 
 
Introduction and Technology 
 
Bioventix creates, manufactures and supplies high affinity sheep monoclonal 
antibodies (SMAs) for use in diagnostic applications. Bioventix antibodies are 
preferred for use when they confer an improved test performance compared to 
other available antibodies. 
 
Most of our antibodies are used on blood-testing machines installed in 
hospitals and other laboratories around the world. Bioventix makes antibodies 
using our SMA technology for supply to diagnostic companies for subsequent 
manufacture into reagent packs used on blood-testing machines. These 
blood-testing machines are supplied by large multinational in vitro diagnostics 
(IVD) companies such as Roche Diagnostics, Siemens Healthineers, Abbott 
Diagnostics & Beckman Coulter. Antibody-based blood tests are used to help 
diagnose many different conditions including, amongst others, heart disease, 
thyroid function, fertility, infectious disease and cancer. 
 
Over the past 18 years, we have created and supplied approximately 20 different 
SMAs that are used by IVD companies around the world. We currently sell a total 
of 15-20 grams of purified physical antibody per year, the vast majority of 
which is exported. In addition to revenues from physical antibody supplies, the 
sale by our customers of diagnostic products (based on our antibodies) to their 
downstream end-users attracts a modest percentage royalty payable to Bioventix. 
These downstream royalties currently account for approximately 70% of our 
annual revenue. 
 
Bioventix adopts one of two commercial approaches when creating new antibodies. 
The first is own-risk antibody creation projects which gives Bioventix the 
complete freedom to commercialise the antibodies produced. The second is 
contract antibody creation projects in partnership with customers who supply 
materials, know-how and funding and creates antibodies that can only be 
commercialised with the partner company. In both cases, after initiation of a 
new project, it takes around a year for our scientists to create a panel of 
purified antibodies for evaluation by our customers. The evaluation process at 
customers' laboratories generally requires the fabrication of prototype reagent 
packs which can be compared to other tests, for example the customer's existing 
commercial test or perhaps another "gold standard" method, on the assay machine 
platform being considered. The process of subsequent development thereafter by 
our customers can take many years before registration or approval from the 
relevant authority, for example the US Food and Drug Administration (FDA) or EU 
authorities, is obtained and products can be sold to the benefit of the 
customers, and of course Bioventix, through the agreed sales royalty. This does 
mean that there is a lead time of 4-10 years between our own research work and 
the receipt by Bioventix of royalty revenue from product sales. However, 
because of the resource required to gain such approvals, after having achieved 
approval for an accurate diagnostic test using a Bioventix antibody, there is a 
natural incentive for continued antibody use. This results in a barrier to 
entry for potential replacement antibodies which would require at least partial 
repetition of the approval process arising on a change from one antibody to 
another. This barrier to antibody replacement arises from a combination of 
factors driven by the clinical criticality of the test and the potential 
consequences of making such a change which include the time and cost to 
register any changes required to validate the performance of the replacement 
antibody. 
 
Another consequence of the lengthy approval process is that the revenue for the 
current accounting period is derived from antibodies created many years ago. 
Indeed, revenue growth over the next few years from, for example the troponin 
antibodies, will come from research work already carried out many years ago. By 
the same dynamics, the current research work active at our laboratories now is 
more likely to influence sales in the period 2026-2036. 
 
2021/2022 Financial Results 
 
We are pleased to report our results for the financial year ended 30 June 2022. 
Revenues for the year increased by 7% to £11.72 million (2020/21: £10.93 
million). Profits before tax for the year increased by 14% to £9.28 million 
(2020/21; £8.12million). Cash balances at the year-end were lower at £6.1 
million (30 June 2021 £6.5 million). 
 
Our most significant revenue stream continues to come from the vitamin D 
antibody called vitD3.5H10. This antibody is used by a number of small, medium 
and large diagnostic companies around the world for use in vitamin D deficiency 
testing. Sales of vitD3.5H10 increased by 13% to £5.4 million which we believe 
reflects an improved downstream market for vitamin D testing following a degree 
of recovery from coronavirus pandemic effects. 
 
Sales of our other core historic antibodies are featured below with the 
respective percentage increase/decrease from 2020/21: 
 
-           T3 (tri-iodothyronine): £0.93 million (+25%); 
 
-           biotins and biotin blockers: £0.90 million (+67%) 
 
-           progesterone: £0.62 million (+14%); 
 
-           estradiol: £0.59 million (+34%); 
 
-           testosterone: £0.47 million (+7%); 
 
-           drug-testing antibodies: £0.38 million (-7%); 
 
As expected, revenues from NT-proBNP terminated in August 2021 and resulted in 
a loss of £1.2 million of revenues. This loss has been balanced by the increase 
in revenues from the core antibodies together with increased troponin sales. 
 
Total troponin antibody sales from Siemens Healthineers and another separate 
technology sub-license almost doubled during the year to £1.23 million (2020/ 
21: £0.68 million). This significant increase clearly demonstrates a gathering 
momentum of product roll-outs for the new high sensitivity troponin assays 
supported by SMAs and we believe that these revenues will continue to grow. 
 
Our shipments of physical antibody to China continued to increase. Some sales 
are made directly but the majority are made through five appointed 
distributors. Regulatory approvals for domestic Chinese customers have 
considerable lead times but we are now seeing modest increases in royalty 
payments flowing from these customers. The prospects for further growth in 
China are good though we recognise that continued antibody technology 
development in China and elsewhere does constitute a longer-term threat. In 
addition, relative global geopolitical stability will be important for the 
continued trade in technology products such as our antibodies. 
 
Our underlying revenues are dominated by foreign currencies such as US Dollars 
and Euros. When converting revenues to Sterling, our functional currency, in 
the absence of any appropriate hedging mechanisms, they will be influenced by 
movements in exchange rates. When Dollar and Euro monies are received, they are 
immediately converted into Sterling at the exchange rate applying on the date 
of arrival. We have no current plans to institute any hedging mechanisms to 
cover future periods and therefore any future changes in exchange rates, up or 
down, may impact our reported Sterling revenues accordingly. The majority of 
our physical antibody sales are priced in US$. Our royalty revenues from our 
multinational customers typically arrive in either US Dollars or Euros 
depending on the location of the global finance centre of the customer. 
However, the underlying assay sales that support the royalties will comprise a 
basket of local currencies, dominated by Dollars, Euros and Asian currencies. 
Overall, we estimate that 50-60% of our total sales are directly or indirectly 
linked to US Dollars. 
 
In the reporting period, US Dollar royalty revenues received in August relating 
to sales by our customers in the period January to June 2022 were converted at 
an exchange rate of approximately $1.2 to £1 compared to an exchange rate of 
between $1.35-$1.40 to £1 for the same periods in the previous financial year. 
This effect was additive to our Sterling revenues for the second half of the 
year and contributed to a forex benefit in the year; on a constant currency 
basis our turnover for 2021/22 would have been circa £11.3million and the 
benefit therefore circa £0.4 million. 
 
During the coronavirus pandemic, activity in the diagnostic pathways that exist 
at hospitals and clinics around the world declined. We believe that the 
activity within healthcare pathways has recovered more recently in some 
territories and our sales have responded accordingly. We hope that this 
represents a return to normality but predicting the dynamics of the pandemic 
has confounded experts over the last 30 months. 
 
Cash Flows and Dividends 
 
As reported above, the performance of the business during the year generated 
cash balances at the year-end of £6.1 million and royalties received during 
quarter 3 of 2022 have added to this balance. The Board has determined that is 
appropriate to maintain the established dividend policy in the immediate 
future. For the current year, the Board is pleased to announce a second interim 

dividend of 74 pence per share which, when added to the first interim dividend 
of 52 pence per share makes a total of 126 pence per share for the current 
year. 
 
Our current view continues to be that maintaining a cash balance of 
approximately £5 million is sufficient to facilitate operational and strategic 
agility both with respect to possible corporate or technological opportunities 
that might arise in the foreseeable future. We have therefore decided to 
distribute surplus cash that is in excess of anticipated needs and we are 
pleased to announce a special dividend of 26 pence per share. 
 
Accordingly, dividends totaling 100 pence per share will be paid in November 
2022. The shares will be marked ex-dividend on 3 November 2022 and the dividend 
will be paid on 18 November 2022 to shareholders on the register at close of 
business on 4 November 2022. 
 
Research and Future Developments 
 
Over the next few years, the continued commercial development of the new 
troponin assays and their roll out by our customers will have the most 
significant influence on Bioventix sales. 
 
We have undertaken a range of new research projects over the previous few years 
and in the table below we have illustrated our current view of their potential 
value and probability of success: 
 
 Increasing high       Secretoneurin          Tau (Alzheimer's, 
potential              (CardiNor)             own-risk) 
value                  Amyloid 
                       (Pre-Diagnostics) 
 
            medium                                                  Biotin blockers 
                                                                    [1] 
 
            Low                               Industrial            Pyrene 
                                              biomonitoring         biomonitoring 
                                              (benzene,             THC sandwich [1] 
                                              isocyanates) 
 
                       Low                    Medium                high 
 
                         Increasing probability of success -> 
 
Table notes: 
 
[1] Projects were successful and modest sales now contribute total sales 
 
Whilst antibodies in the future pipeline are at stages of testing and 
development that do not allow us to make any prediction about their potential 
value and influence on future revenues there has still been encouraging 
progress. 
 
Our partners at CardiNor (Oslo) have continued with their work to try and 
identify the possible utility of secretoneurin in heart failure patients and in 
particular those patients who might be candidates for implantable cardiac 
devices (ICDs). Data from recent patient sample studies does show a link with 
heart disease read-outs. The next step for CardiNor will be to define the 
potential utility of secretoneurin diagnostics in cardiac health. 
 
Pre-Diagnostics (also in Oslo) and their clinical collaborators have two 
amyloid beta assays based on Bioventix antibodies available for research use. 
The goal of the project is to identify fragments of amyloid beta in patient 
samples that would be helpful in Alzheimer's diagnostics. A new area of 
interest is the diagnosis of ARIA, a side-effect related to new anti-amyloid 
drugs. 
 
Another biomarker that has shown potential in Alzheimer's diagnostics is the 
Tau protein in the form of total Tau and phosphorylated Tau. During the year we 
created more anti-Tau antibodies and this work will continue into 2023. Our 
academic collaborators at the University of Gothenburg have used our antibodies 
to create prototype assays and have generated encouraging data from patient 
blood samples. The levels of Tau detected using our antibodies are 
approximately 2 times higher in Alzheimer's samples compared to controls, a 
ratio of 2 times being similar to other research groups. Our scientific target 
ratio is slightly higher at 4-5 times. We are encouraged by this progress and 
plan to create more antibodies to support further work with our collaborators 
in Gothenburg during 2023. The recent success of the Eisai/Biogen lecanemab 
clinical trial is likely to increase the need for early diagnostics and we are 
very fortunate to be working with one of the world's leading labs focussed on 
Alzheimer's biomarkers and tests. 
 
The biotin "blocker" antibodies and THC sandwich antibodies reviewed in our 
previous reports have now progressed at customers and modest sales are now 
being generated to add to our total revenues. 
 
Our pyrene lateral flow system for industrial pollution biomonitoring completed 
a trial at a UK industrial site during quarter 4 of 2021. This went well and we 
plan to conduct additional site studies during 2023. We accept that the 
creation, manufacture and supply of final assay products is outside our normal 
focus of bulk antibody sales but we believe that through our own efforts we can 
substantiate the viability of such products and generate demand, thereby 
stimulating the interest of future commercial partners. 
 
The progress of the pyrene project has encouraged us to consider additional 
assays for benzene and isocyanates, also in the field of industrial health and 
safety. Benzene exposure is of relevance to the petroleum industry and 
isocyanates are hazardous chemicals used in the manufacture of polyurethane 
paints and plastics. This work will continue into 2023 and 2024. 
 
Future Strategy 
 
We have previously identified diagnostic biomarkers that we believe suit our 
antibody technology and have found academic collaborators who have seen merit 
in working with Bioventix. This pursuit will continue into the future to 
support the internal organic growth of our business. 
 
We will continue to rely on our core SMA antibody creation technology which 
consistently helps us to create superior antibodies for our research projects. 
We are also incorporating additional newer technologies where such technologies 
are helpful to us. We have successfully created "sandwich" assay formats for 
pyrene and THC/cannabis using a combination of primary SMA technology and a 
secondary synthetic "anti-complex" antibody created using the "antibody 
library" technology of a third party. The synergy of the two technologies 
provided unique solutions to pyrene and THC/cannabis and we will seek more such 
opportunities in the field of small molecule detection. 
 
We are also using new production techniques to improve the yields of our 
manufacturing processes. We have had success in transferring some antibody 
production from sheep cells to more productive hamster cell systems. E.coli 
bacteria have also been used to good effect with certain antibody production 
systems. These technologies combine to increase yields and increase effective 
production capacity whilst also reducing unit costs. 
 
The Bioventix Team and Facility 
 
The composition of the Bioventix team of 12 full-time equivalents has remained 
stable over the year facilitating excellent performance and know how retention. 
The past 30 months has been a challenging period for everyone and we are very 
grateful to the team at Bioventix for their dedication over this period which 
has allowed us to adapt and modify our business to cope with the effects of the 
pandemic whilst still maintaining our progress. 
 
Supply chain issues relating to plastics and chemical reagents have persisted 
during the year but have been expertly managed by our procurement team. 
 
Turmoil in the energy market has added another risk factor with some energy 
commentators predicting power outages during the winter of 2022/23. We plan to 
use our diesel generator and reserve fuel supplies to minimise any disruption 
caused to the lab by any such power outages. 
 
Environmental, Social and Governance 
 
Our production processes do consume quantities of reagents and plastics. A key 
goal for the company is to use our various technologies to reduce the 
quantities of materials we consume. The use of bioreactor technology does 
result in a significant reduction in plastics consumption and we have converted 
one antibody to this production format during the year. 
 
Genetic engineering techniques can also be used to enhance antibody 
productivity and we have successfully implemented techniques for one antibody 
during the year resulting in a four-fold increase in yield. 
 
The mass immunisation of sheep to make serum-based reagents for clinical assays 
has been common-place since the 1970s. SMAs made in vitro can substitute for 
this large scale use of animals and our T4 (thyroxine) antibody is reaching the 
market thereby resulting in a reduction in animal usage. 
 
Over the last 20 years, our SMAs have been used to improve the diagnostic 
processes at hospitals around the world. This has resulted in improved 
diagnostic tests for heart disease, thyroid function & fertility. Our goal over 
the next few years is to extend this success to dementia diagnostics. 
 
Internally at Bioventix, we value our team and seek ways to help them as they 
develop their lives. We have been supportive of recent parents in their desire 
to return to work and we now have four parents who work part-time having 
returned to the lab after parental leave. 
 
Regarding corporate Governance, we continue to follow the guidelines of the 
Quoted Companies Alliance as described in our Governance report above. We are 
aware of the need to increase the diversity of our Board whilst maintaining 
skills and experience to underpin corporate culture and support business 
continuity which both bring benefits for all our stakeholders. Like many 
businesses limited candidate availability has compromised our progress in this 
regard but our efforts will continue. 
 
Conclusion and Outlook 
 
We are pleased with our financial results for the year which we believe reflect 
both the growth in the use of our products and of course some relief from the 
global pandemic. In particular the continued roll-out of the high sensitivity 
troponin assays and the royalties associated with them have combined to help 

replace revenues from NT-proBNP which ceased from August 2021. After stripping 
out the impact of these 2 significant changes the growth in our underlying 
business over the year is in the range 8-10% which we believe is sustainable 
for the immediate future as our sales mix continues to change. 
 
Excellent technical progress has been made with our research projects and we 
anticipate that our pipeline of opportunities will create additional 
shareholder value in the period 2026 to 2036. 
 
For further information please contact: 
 
Bioventix plc                                     Tel: [phone] 
Peter Harrison           Chief Executive Officer 
 
finnCap Ltd                                       Tel: [phone] 
Geoff Nash/Simon Hicks   Corporate Finance 
Alice Lane               ECM 
 
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. 
 
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEARED 30 JUNE 2022 
 
 
                                                                                   2022         2021 
                                                                                   £            £ 
 
                  Turnover                                                         11,719,271   10,930,588 
 
                  Cost of sales                                                    (710,446)    (817,448) 
 
                  Gross profit                                                     11,008,825   10,113,140 
 
                  Administrative expenses                                          (1,605,446)  (1,506,741) 
 
                  Difference on foreign exchange                                   92,856       (294,046) 
 
                  Research and development tax credit                              22,160       32,878 
 
                  Share option charge                                              (244,871)    (257,629) 
 
                  Operating profit                                                 9,273,524    8,087,602 
 
                  Interest receivable and similar income                           4,804        30,628 
 
                  Interest payable and expenses                                    (303)        - 
 
                  Profit before tax                                                9,278,025    8,118,230 
 
                  Tax on profit                                                    (1,603,874)  (1,386,882) 
 
                  Profit for the financial year                                    7,674,151    6,731,348 
 
                  Other comprehensive income for the year 
 
                  Total comprehensive income for the year                          7,674,151    6,731,348 
 
 
 
 
 
 
 
Earnings per share: 
 
                                                                         2022       2021 
                                                                         £ 147.32   £ 129.22 
Basic 
 
Diluted                                                                  145.90     127.94 
 
 
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022 
 
 
                                          2022                  2021 
                                          £                     £ 
 
Tangible assets                           694,370               843,720 
 
Investments                               610,039               610,039 
 
                                          1,304,409             1,453,759 
 
Current assets 
 
Stocks                                    461,815               332,459 
 
Debtors: amounts falling due              5,224,717             4,625,967 
within one year 
 
Cash at bank and in hand                  6,126,650             6,494,985 
 
                                          11,813,182            11,453,411 
 
Creditors: amounts falling due 
within one year                           (1,252,165)           (1,008,772) 
 
Net current assets                        10,561,017            10,444,639 
 
Total assets less current                 11,865,426            11,898,398 
liabilities 
 
Provisions for liabilities 
 
Deferred tax                              (44,276)              (78,084) 
 
                                          (44,276)              (78,084) 
 
Net assets                                11,821,150            11,820,314 
 
Capital and reserves 
 
Called up share capital                   260,467               260,467 
 
Share premium account                     1,332,471             1,332,471 
 
Capital redemption reserve                1,231                 1,231 
 
Profit and loss account                   10,226,981            10,226,145 
 
                                          11,821,150            11,820,314 
 
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30 JUNE 2022 
 
                                 Called up      Share     Capital    Profit and       Total 
                                     share    premium  redemption  loss account      equity 
                                   capital    account     reserve 
 
                                         £          £           £             £           £ 
 
At 1 July 2021                     260,467  1,332,471       1,231    10,226,145  11,820,314 
 
Comprehensive income for the 
year 
 
Profit for the year                      -          -           -     7,674,151   7,674,151 
 
Dividends: Equity capital                -          -           -   (7,918,186) (7,918,186) 
 
Transfer to/from profit and              -          -           -       244,871     244,871 
loss account 
 
Total transactions with owners           -          -           -   (7,673,315) (7,673,315) 
 
At 30 June 2022                    260,467  1,332,471       1,231    10,226,981  11,821,150 
 
STATEMENT OF CHANGES IN EQUITY FOR THE YEARED 30 JUNE 2021 
 
                                 Called up      Share     Capital    Profit and       Total 
                                     share    premium  redemption  loss account      equity 
                                   capital    account     reserve 
 
                                         £          £           £             £           £ 
 
At 1 July 2020                     260,392  1,312,323       1,231    10,946,981  12,520,927 
 
Comprehensive income for the 
year 
 
Profit for the year                      -          -           -     6,731,348   6,731,348 
 
Dividends: Equity capital                -          -           -   (7,709,813) (7,709,813) 
 
Shares issued during the year           75     20,148           -             -      20,223 
 
Share option charge                      -          -           -       257,629     257,629 
 
Total transactions with owners          75     20,148           -   (7,452,184) (7,431,961) 
 
At 30 June 2021                    260,467  1,332,471       1,231    10,226,145  11,820,314 
 
STATEMENT OF CASH FLOWS FOR THE YEARED 30 JUNE 2022 
 
 
                                                               2022        2021 
                                                               £           £ 
 
Cash flows from operating activities 
 
Profit for the financial year                                  7,674,151   6,731,348 
Adjustments for: 
 
Depreciation of tangible assets                                143,392     135,103 
 
Loss on disposal of tangible assets                            17,714      (500) 
 
Interest paid                                                  303         - 
 
Interest received                                              (4,804)     (30,628) 
 
Taxation charge                                                1,603,874   1,386,882 
 
(Increase) in stocks                                           (129,356)   (87,036) 
 
(Increase) in debtors                                          (598,752)   (976,596) 
 
Increase in creditors                                          76,347      59,514 
 
Corporation tax (paid)                                         (1,470,634) (1,138,410) 
 
Share option charge                                            244,871     257,629 
 
Net cash generated from operating activities                   7,557,106   6,337,306 
 
 
Cash flows from investing activities 
 
Purchase of tangible fixed assets                              (11,756)    (260,327) 
 
Sale of tangible fixed assets                                  -           500 
 
Interest received                                              4,804       30,628 
 
Net cash from investing activities                             (6,952)     (229,199) 
 
Cash flows from financing activities 
 
Issue of ordinary shares                                       -           20,223 
 
Dividends paid                                                 (7,918,186) (7,709,813) 
 
Interest paid                                                  (303)       - 
 
Net cash used in financing activities                          (7,918,489) (7,689,590) 
 
Net (decrease) in cash and cash equivalents                    (368,335)   (1,581,483) 
 
Cash and cash equivalents at beginning of year                 6,494,985   8,076,468 
 
Cash and cash equivalents at the end of year                   6,126,650   6,494,985 
 
Cash and cash equivalents at the end of year comprise: 
 
Cash at bank and in hand                                       6,126,650   6,494,985 
 
                                                               6,126,650   6,494,985 
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARED 30 JUNE 2022 
 
1.         Accounting policies 
 
1.1   Basis of preparation of financial statements 
 
The financial statements have been prepared under the historical cost 
convention unless otherwise specified within these accounting policies and in 

accordance with Financial Reporting Standard 102, the Financial Reporting 
Standard applicable in the UK and the Republic of Ireland and the Companies Act 
2006. 
 
The preparation of financial statements in compliance with FRS 102 requires the 
use of certain critical accounting estimates. It also requires management to 
exercise judgment in applying the Company's accounting policies (see note 3). 
 
The following principal accounting policies have been applied: 
 
1.2   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 
 
Direct sales are generally recognised at the date of dispatch unless 
contractual terms with customers state that risk and title pass on delivery of 
goods, in which case revenue is recognised on delivery. 
 
R&D income 
 
Subcontracted R&D income is recognised based upon the stage of completion at 
the year-end. 
 
Licence revenue and royalties 
 
Annual licence revenue is recognised, in full, based upon the date of invoice. 
Royalties are accrued over period to which they relate and revenue is 
recognised based upon returns and notifications received from customers. In the 
event that subsequent adjustments to royalties are identified they are 
recognised in the period in which they are identified. 
 
1.3 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. 
 
1.4   Interest income 
 
Interest income is recognised in profit or loss using the effective interest 
method. 
 
1.5   Finance costs 
 
Finance costs are charged to profit or loss 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. 
 
1.6   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 profit or loss 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. 
 
1.7   Current and deferred taxation 
 
Current and deferred tax are recognised as an expense or income in the 
Statement of Comprehensive Income, except when they relate to items credited or 
debited directly to equity, in which case the tax is also recognised directly 
in equity. 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 reporting 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. 
 
1.8   Research and development 
 
Research and development expenditure is written off in the year in which it is 
incurred. 
 
1.9   Tangible fixed assets 
 
Tangible fixed assets under the cost model are stated at historical cost less 
accumulated depreciation and any accumulated impairment losses. Historical cost 
includes expenditure that is directly attributable to bringing the asset to the 
location and condition necessary for it to be capable of operating in the 
manner intended by management. 
 
Land is not depreciated. Depreciation on other assets is charged so as to 
allocate the cost of assets less their residual value over their estimated 
useful live 
 
Freehold property                      -           2% straight line 
 
Plant and equipment                  -          25% straight line 
 
Motor Vehicles                          -          25% straight line 
 
Fixtures & Fittings                      -          25% straight line 
 
Equipment                                  -          25% straight line 
 
1.10 Valuation of investments 
 
Investments in unlisted Company shares, whose market value can be reliably 
determined, are remeasured to market value at each reporting 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. 
 
1.11 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. 
 
1.12 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. 
 
1.13 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. 
 
1.14 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. 
 
1.15 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 profit or loss in the year that the 
Company becomes aware of the obligation, and are measured at the best estimate 
at the reporting 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. 
 
1.16 Financial instruments 
 
The Company only enters into basic financial instrument 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 ordinary shares. 
 
1.17 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. 
 
1.18 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. 
 
2.         Judgments in applying accounting policies and key sources of 
estimation uncertainty 
 
In the application of the company's accounting policies, management is required 

to make judgments, estimates and assumptions. These estimates and underlying 
assumptions and are reviewed on an ongoing basis. 
 
Carrying value of Unlisted Investments 
 
The Company holds two unlisted investments in companies carrying out research 
in identifying biomarkers for diagnosing health conditions. The Directors have 
reviewed the progress of this research over the last year. In common with much 
scientific research there is uncertainty, both in relation to the science and 
to the commercial outcome, and no information to be able to reliably calculate 
a fair value for these investments. The carrying value of these investments 
will continue to be historic cost. 
 
3.   Turnover 
 
     An analysis of turnover by class of business is as follows: 
 
                                                                            2022           2021 
                                                                            £              £ 
 
     Product revenue and R&D income                                         3,592,556      3,620,416 
 
     Royalty and licence fee income                                         8,126,715      7,310,172 
 
                                                                            11,719,271     10,930,588 
 
 
                                                                            2022           2021 
                                                                            £              £ 
 
     United Kingdom                                                         787,046        824,518 
 
     European Union                                                         1,327,360      1,246,024 
 
     Rest of the world                                                      9,604,865      8,860,046 
 
                                                                            11,719,271     10,930,588 
 
 
 
 
 
 
4. Operating profit 
 
The operating profit is stated after charging:                   2022          2021 
 
                                                                 £             £ 
 
Depreciation of tangible fixed assets                            143,392       135,104 
 
Fees payable to the Company's auditor and its associates for the 
audit of the Company's annual financial statements               25,000        12,500 
 
Exchange differences                                             (92,856)      294,046 
 
Research and development costs                                   975,317       1,201,236 
 
 
5.         Taxation 
 
                                                           2022        2021 
 
                                                           £           £ 
 
Corporation tax 
 
Current tax on profits for the year                        1,637,682   1,359,036 
 
Total current tax                                          1,637,682   1,359,036 
 
Deferred tax 
 
Origination and reversal of timing differences             (33,808)    27,846 
 
Total deferred tax                                         (33,808)    27,846 
 
                                                           1,603,874   1,386,882 
 
Taxation on profit on ordinary activities 
 
Factors affecting tax charge for the year 
 
The tax assessed for the year is higher than (2021 - lower than) the standard 
rate of corporation tax in the UK of 19% (2021 - 19%). The differences are 
explained below: 
 
                                                                2022         2021 
                                                                   £            £ 
 
Profit on ordinary activities before tax                   9,278,025    8,118,230 
 
Profit on ordinary activities multiplied by standard       1,762,825    1,542,464 
rate of corporation tax in the UK of 19% (2021 - 19%) 
 
Effects of: 
 
Expenses not deductible for tax purposes, other than              83           42 
goodwill amortisation and impairment 
 
Capital allowances for year in excess of depreciation         27,048      (6,398) 
 
Research and development tax credit                        (198,799)    (226,022) 
 
Share based payments                                          46,525       48,950 
 
Other differences leading to an increase in the tax         (33,808)       27,846 
charge 
 
Total tax charge for the year                              1,603,874    1,386,882 
 
Factors that may affect future tax charges 
 
The rate of corporation tax in the UK is set to be increased from the current 
rate of 19% to 25% with effect from 1 April 2023. This change will increase the 
tax charge in future years such that, had the change been in place in the 
current year, it would have increased by £517,163 from £1,603,874 to £ 
2,121,037. 
 
     6.         Dividends 
 
                                                                  2022         2021 
                                                                  £            £ 
 
     Dividends paid                                               7,918,186    7,709,813 
 
                                                                  7,918,186    7,709,813 
 
 
 
 
7.         Share capital 
 
                                                               2022        2021 
                                                               £           £ 
     Allotted, called up and fully paid 
 
     5,209,333 (2021 - 5,209,333) Ordinary shares of £0.05     260,467     260,467 
     each 
 
The holders of ordinary shares are entitled to receive dividends as declared 
and are entitled to one vote per share at meetings of the Company. All ordinary 
shares rank equally with regard to the Company's residual assets. 
 
8.         Share based payments 
 
During the year the company operated 2 share option schemes; an Approved EMI 
Share Option Scheme and an Unapproved Share Option Scheme to incentivise 
employees. 
 
The company has applied the requirements of FRS 102 Section 26 Share-based 
Payment to all the options granted under both schemes. The terms for granting 
share options under both schemes are the same and provide for an option price 
equal to the market value of the Company's shares on the date of the grant and 
for the Approved EMI Share Option Scheme this price is subsequently agreed with 
HMRC Shares and Assets Valuation Division. 
 
The contractual life of an option under both schemes is 10 years from the date 
of grant. Options granted become exercisable on the third anniversary of the 
date of grant. Exercise of an option is normally subject to continued 
employment, but there are also considerations for good leavers. All share based 
remuneration is settled in equity shares. 
 
                                     Weighted                 Weighted 
                                      average                  average 
                                      exercise                exercise 
                                         price                   price 
                                       (pence)       Number    (pence)      Number 
                                          2022         2022       2021        2021 
 
Outstanding at the beginning of the    2942.00       52,204   2,942.00      57,103 
year 
 
Granted during the year                                   -          -           - 
 
Forfeited during the year              3855.00      (1,706)    3855.00     (3,401) 
 
Exercised during the year                    -            -    1350.00     (1,498) 
 
Outstanding at the end of the year     2896.00       50,498    2928.00      52,204 
 
                                                         2022              2021 
 
Option pricing model used Issue price 
 
Exercise price (pence) 
 
Black Scholes 
 
£13.50- 
 
£38.55 
 
£13.50- 
 
£38.55 
 
Black Scholes 
 
£13.50- 
 
£38.55 
 
£13.50- 
 
£38.55 
 
Option 
life 
10 
years 
10 years 
 
Expected 
volatility 
25.15% 
25.15% 
 
Fair value at measurement date 
 
£4.66 - 
 
£26.91 
 
£4.66 - 
 
£26.91 
 
Risk-free interest 
rate 
0.18% 
0.18% 
 
The expected volatility is based upon the historical volatility over the period 
since the Company's shares were listed on AIM. 
 
The expense recognised for share-based payments during the year ended 30 June 
2022 was £244,871 (2021 : £257,629). 
 
The number of staff and officers holding share options at 30 June 2022 was 13 
(2021: 14). The share options have been issued to underpin staff service 
conditions. 
 
9.         Publication of Non-Statutory Accounts 
 
The financial information set out in this preliminary announcement does not 
constitute the Group's financial statements for the year ended 30 June 2022. 
The financial statements for the year ended 30 June 2021 have been delivered to 
the Registrar of Companies. The financial statements for the year ended 30 June 
2022 will be delivered to the Registrar of Companies following the Company's 
Annual General Meeting. The auditors' report on both accounts was unqualified, 
did not include references to any matters to which the auditors drew attention 
by way of emphasis without qualifying their report and did not contain 
statements under sections 498(2) or (3) of the Companies Act 2006. The audited 
financial statements of Bioventix plc for the period ended 30 June 2022 are 
expected to be posted to shareholders shortly, will be available to the public 
at the Company's registered office, 7 Romans Business Park, East Street, 
Farnham, Surrey, GU9 7SX and available to view on the Company's website at 
www.bioventix.com once posted. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

October 24, 2022 02:02 ET (06:02 GMT)