Half-year Results

Bioventix plc (BVXP) ("Bioventix" or "the Company"), a UK company specialising in the development and commercial supply of high-affinity monoclonal antibodies for applications in clinical diagnostics, announces its unaudited interim results for the six-month period ended 31 December 2024.

Highlights

• Revenue up 1% to £6.73 million (2023: £6.68 million)
• Profit before tax £5.05 million down 4% (2023: £5.24 million) due to increased R&D spend
• Cash balances of £5.1 million (2023 £5.5 million)
• Interim dividend up 3% to 70p per share (2023: 68p)

CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT

Bioventix is pleased to report revenues for the half-year of £6.7 million, broadly similar to the corresponding period last year.

Sales of our vitamin D antibody and other core antibodies were all more or less in line with last year's sales reflecting the mature nature of the diagnostic products that our antibodies support.

Our sales relating to troponin antibodies were steady and a little below our expectation. In November 2024, we reported that Siemens had received FDA approval for a revised label claim for their troponin assay covering a new prognostic application. This was an encouraging development, but it remains too early to see the significant adoption of this application and therefore the use and sales of the assay and an uplift in our associated royalties.

The level of research interest at our in vitro diagnostic customers in the field of neurology, initially focusing on Alzheimer's disease testing continues to increase. Three of the Tau antibodies that Bioventix has created have already moved into full scale manufacture. Two of these are aimed at brain-derived Tau for neurodegeneration testing and the other is a detector antibody that can pair with Bioventix or other specific antibodies (i.e. pTau217) as part of customer test designs. Sales of these Tau antibodies for research use only assays have increased during the period and we remain optimistic about the future prospects for these and other additional antibodies that could feature in neurological blood testing assays into the future.

Total profits before tax for the half-year were down 4% to £5.05 million (2023: £5.24 million). Profits after tax of £3.77 million (2023 £4.02 million) were 6% down on the previous half year. Increased external research and development spending on the industrial pollution and water quality projects, as well as for our Alzheimer's disease projects, was incurred in the period and thus, as such cost is treated as a direct cost, there is corresponding reduction in the reported profit. The cash balances at 31 December 2024 stood at £5.1 million (2023 £5.5 million).

Our research activities continue in line with the plans we described in our 2024 annual report. In addition to those Tau antibodies already created and in manufacture described above, we have a growing panel of new Tau antibodies aimed at assays that could correlate with the results of Tau PET brain scans. Such assays are recognized by our customers as having value in the future as the scope of neurological blood testing expands. As with previous antibodies, the validation of our new antibodies will be carried out at the University of Gothenburg.

We are pleased with the continued development of our industrial pollution exposure assays. We are planning a field trial with firefighters using our prototype lateral flow test for pyrene, previously trialed in industrial worker's urine. Antibody developments are in progress for two additional industrial pollutants, benzene (associated with the petrochemical industry) and isocyanates (used in the plastics and paints industry). We plan to continue our internal and external investment in these areas.

The water quality project mentioned in our November 2024 continues to progress. This project is based on the riverbank measurement of both caffeine and paracetamol, either individually or in combination, as markers of human-derived by-products in "fresh water". Laboratory based tests and lateral flow devices are in development and we anticipate that field trials will be possible during the second half of 2025.

We continue to follow our established dividend policy of distributing post-tax profits to shareholders. For the period under review, the Board is pleased to announce an interim dividend of 70 pence per share which represents a 3% increase on the interim dividend paid last year (68 pence per share). The shares will be marked ex-dividend on the 10th April 2025 and the dividend will be paid on 25th April 2025 to shareholders on the register at close of business on 11th April 2025.

The modest rate of growth in troponin revenues and revenues from core business being broadly flat in the first half both lead us to expect revenues for the year to 30 June 2025 to be similar to those of the prior year. We will continue to be cash generative even as we expand our portfolio of antibodies however, the heightened investment in R&D spend, will result in a slightly lower level of profits than that in the year to 30 June 2024

In conclusion, our core business has performed in line with expectations although troponin revenues did not achieve the growth we hoped for. Increased sales of Tau antibodies for Alzheimer's disease have been a highlight and we continue to remain excited about the future for these antibodies as the scientific output of our collaboration with University of Gothenburg increasingly translates into commercial success. We also remain excited about the antibodies we have developed with potential applications outside of our core business and anticipate a return to growth in 2026 and beyond as troponin and Tau revenues become more significant.

General information

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.

This interim financial statement has not been audited or reviewed by the auditors.

The accounting policies which were used in the preparation of this interim financial information were as below.

Accounting policies

2.1 Basis of preparation of financial statements

The interim financial information has 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 following principal accounting policies have been applied.

2.2 Revenue

Direct Sales

R&D income

Subcontracted R&D income is recognised based upon the stage of completion at the year end.

Licence revenue and royalties

2.3 Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

2.4 Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.5 Pensions

Defined contribution pension plan

2.6 Current and deferred taxation

2.7 Research and development

Research and development expenditure is written off in the year in which it is incurred.

2.8 Tangible fixed assets

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 lives.

2.9 Valuation of investment

2.10 Stocks

2.11 Debtors

2.12 Cash and cash equivalents

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.

2.13 Creditors

2.14 Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.15 Financial instruments

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

2.16 Dividends

2.17 Employee benefits share based compensation

• Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies (as described in note 2), management is required to make judgments, estimates and assumptions. These estimates and underlying assumptions and are reviewed on an ongoing basis.

There were no areas requiring significant management judgment during the 6 months to 31 December 2024.