Bioventix plc UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2014Bioventix plc (BVXP) ("Bioventix" or "the Company"), a UK company specialisingin the development and commercial supply of high-affinity monoclonal antibodiesfor applications in clinical diagnostics, announces its unaudited interimfinancial results for the six-month period ending 31 December 2014. HIGHLIGHTS * Turnover: £1.93M (+28%; H2 2013: £1.51M) * Profit before tax: £1.26M (+31%; H2 2013: £0.96M) * Profit after tax: £1.07M (+32%; H2 2013:£0.81M) * Cash at 31 Dec: £3.80M (+0.92M; 2013: £2.88M) * Interim dividend per share: 11p (+15%; March 2013: 9.6p) CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENTWe are pleased to report the interim results for the half-year ended 31December 2014. Revenues for the half-year period of £1.93M (H2 2013:£1.51M)were up 28% and profits after tax have increased by 32% for the comparableperiod in the previous year.The core business has remained robust with additional growth coming from ourvitamin D antibody vitD3.5H10. We have reported previously on our positiveoutlook for vitD3.5H10 and revenue from this product has continued to grow fromantibody sales and from royalties as customer products (assays for vitamin Ddeficiency) reach markets around the world. More customer product launches havenow taken place in the valuable US market and this has been a significantcontributing factor such that this vitamin D antibody has now become thelargest revenue stream for the Company.Over the last few years, there has been significant growth in the volume ofvitamin D tests at hospitals and clinics in the USA and in other countriesaround the world. This growth has naturally followed medical research over thelast decade or so that has clearly linked low vitamin D levels with not onlybone fractures but also other key health measures such as heart disease,stroke, cancer - and indeed overall mortality.Many experts believe that the weight of this evidence supports the testing of"at risk" patients and the vitamin D supplementation of those patients who areshown to be deficient. However, there are also other experts in the field whoargue that this strategy of vitamin D testing and supplementation has not yetactually been demonstrated to be of overall patient benefit. There is ongoingresearch around the world to investigate this area of medicine further andthose involved in the vitamin D field - such as Bioventix - will continue tomonitor the evolution of the science with interest.Despite the lack of a complete consensus in the area of vitamin D science, weremain optimistic that revenues from vitD3.5H10 will continue to grow as morevitD3.5H10 based products reach the market.Cash flows remained strong and have increased significantly to £3.8M at 31December 2014 (2013: £2.88M) despite increased dividend payments during 2014.During 2014, total dividend payments of 24p were paid (9.6p plus 14.4p, firstand second interim payments). This represented a significant increase over the14.4p total paid in 2013. Over the previous years, the Board has followed acautious dividend policy that embraces continuity in the absence of specialdividends and it is the intention of the Board to continue with this policyinto the future, albeit from the higher base level set in 2014.Accordingly, we are pleased to announce a first interim dividend payment of 11prepresenting a 15% increase from the equivalent period in 2014.The shares will be marked ex dividend on 9 April 2015 and the dividend will bepaid on 24 April 2015 to shareholders on the register at close of business on10 April 2015.The Company has enjoyed continued success during the first half of the year andwe would like to take this opportunity to thank all the operating staff fortheir contribution to this result.P J HarrisonChief Executive OfficerI J NicholsonNon-Executive ChairmanFor further information please contact:Bioventix plc Chief Executive Officer Tel: 01252 728 001Peter HarrisonfinnCap Ltd Corporate Finance Tel: 020 7220 0500Geoff Nash/Simon Hicks Corporate BrokingStephen NorcrossAbout Bioventix plc:Bioventix (www.bioventix.com) specialises in the development and commercialsupply of high-affinity monoclonal antibodies with a primary focus on theirapplication in clinical diagnostics, such as in automated immunoassays used inblood testing. The antibodies created at Bioventix are generated in sheep andare of particular benefit where the target is present at low concentration andwhere conventional monoclonal or polyclonal antibodies have failed to produce asuitable reagent. Bioventix currently offers a portfolio of antibodies tocustomers for both commercial use and R&D purposes, for the diagnosis ormonitoring of a broad range of conditions, including heart disease, cancer,fertility, thyroid function and drug abuse. Bioventix currently suppliesantibody products and services to the majority of multinational clinicaldiagnostics companies. Bioventix is based in Farnham, UK and its shares aretraded on AIM under the symbol BVXP. BIOVENTIX PLC PROFIT AND LOSS ACCOUNT for the six month period ended 31 December 2014 Six months Six months ended ended 31 Dec 2014 31 Dec 2013 £ £TURNOVER 1,925,249 1,507,329Cost of sales (202,221) (167,512)GROSS PROFIT 1,723,028 1,339,817Administrative expenses (466,732) (383,880)OPERATING PROFIT 1,256,296 955,937Interest receivable 1,282 19,368Interest payable (1,874) (0)PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 1,255,704 975,305Tax on profit on ordinary activities (189,270) (169,656)PROFIT FOR THE FINANCIAL PERIOD 1,066,434 805,649Earnings per share for the period:Basic 21.15p 16.03pDiluted 20.79p 16.03p BIOVENTIX PLC BALANCE SHEET as at 31 December 2014 31 Dec 2014 31 Dec 2013 £ £FIXED ASSETSIntangible fixed assets 0 0Tangible fixed assets 413,312 428,550 413,312 428,550CURRENT ASSETSStocks 176,151 156,782Debtors 1,487,374 1,383,692Cash at bank and in hand 3,795,449 2,878,618 5,458,974 4,419,092CREDITORS:amounts falling due within one (266,479) (268,894)yearNET CURRENT ASSETS 5,192,495 4,150,198TOTAL ASSETS LESS CURRENT LIABILITIES 5,605,807 4,578,748PROVISIONS FOR LIABILITIESDeferred Tax 17,364 (5,481)NET ASSETS 5,623,171 4,573,267CAPITAL AND RESERVESCalled up share capital 252,546 251,269Share premium account 78,426 -Capital redemption reserve 1,231 1,231Profit and loss account 5,290,968 4,320,767SHAREHOLDERS' FUNDS 5,623,171 4,573,267 BIOVENTIX PLC CASH FLOW STATEMENT for the six month period ended 31 December 2014 31 Dec 2014 31 Dec 2013 £ £NET CASHFLOW FROM OPERATINGACTIVITIESOperating profit 1,256,296 955,937Amortisation of intangible assets - 10,000Depreciation of tangible fixed 9,088 10,217assetsIncrease in stocks (12,044) (8,252)Decrease/(increase) in debtors 332,978 (54,330)(Decrease) in creditors (18,965) (44,053)Share option charge 25,945 -Net cash inflow from operating 1,593,298 869,519activitiesNet cash inflow from operating activities 1,593,298 869,519Returns on investments & servicing of (591) 19,368financeTaxation (440,706) (158,567)Capital expenditure & financial investment (2,660) -Equity dividends paid (726,365) (437,208)Financing 20,994 -Increase in cash 443,970 293,112Net funds at 1 July 2014 3,351,479 2,585,506Net funds at 31 December 2014 3,795,449 2,878,618 BIOVENTIX PLC Notes to the financial information 1. While the interim financial information has been prepared using the company's accounting policies and in accordance with UK GAAP, the announcement does not itself contain sufficient information to comply with UK GAAP. 2. This interim financial statement has not been audited or reviewed by the auditors. 3. The accounting policies which were used in the preparation of this interim financial information were as follows: 3.1 Basis of preparation of financial statements The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards. 3.2 Turnover •Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. •Direct sales are recognised at the date of dispatch, and royalties are accrued over the period to which they relate. •Subcontracted R & D income is recognised based upon the stage of completion at the year end. •Annual licence revenue is recognised, in full, based upon the date of the invoice. 3.3 Intangible fixed assets and amortisation Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life. Amortisation is provided at the following rates: Goodwill - Over 10 years Know how - Over 10 years 3.4 Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following bases: Freehold property - 2% straight line Plant and equipment - 25% reducing balance Motor Vehicles - 25% straight line Equipment - 25% straight line 3.5 Stocks Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. 3.6 Deferred taxation Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse. Deferred tax assets and liabilities are not discounted. 3.7 Foreign currencies Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Profit and loss account. 3.8 Research and development Research and development expenditure is written off in the year in which it is incurred. 3.9 Pensions The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. 3.10 Employee benefits-share-based compensation The company operates an equity-settled, share-based compensation plan. The fair value of the employee services received in exchange for the grant of the options is recognised as an expense over the vesting period. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted. At each balance sheet date, the company will revise its estimates of the number of options are expected to be exercisable. It will recognise the impact of the revision of original estimates, if any, in the profit and loss account, with a corresponding adjustment to equity. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
