Bioventix (BVXP) , a manufacturer and supplier of high-affinity monoclonal antibodies for applications in clinical diagnostics, announced its audited results for the year ended 30 June 2023, detailing revenue, profits and cash all rising, with its product mix underpinning growth.
Revenue rose by 9% to £12.82 million, compared to £11.72 million in 2022, with its most significant revenue stream coming from the vitamin D antibody called vitD3.5H10, for use in vitamin D deficiency testing. Troponin, a biomarker to help diagnose heart attacks, also showed strong growth, with revenues rising 30% in the period.
Profit before tax increased by 9% to £10.13 million, up from £9.28 million in the previous year. Cash at the year-end was reported at £5.7 million, with free cash flow increasing 5% to £7.9m in the year.
A second interim dividend of 90p per share was declared, showing an increase from 74p in 2022. Total dividends remained steady at 152p per share.
Bioventix continues to make good progress with its research projects. It's been working with the University of Gothenburg since early 2020 to create new antibodies to develop prototype assays for use in Alzheimer's disease, with AD therapeutics expected to see increased demand following expected launches from EISAI Pharma and Eli Lilly by year-end.
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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.
Its SMA-produced antibodies are key components in blood-testing machines used globally. These are supplied to diagnostic companies and incorporated into reagent packs for machines provided by major IVD companies like Roche Diagnostics, Siemens Healthineers, Abbott Diagnostics, and Beckman Coulter. These blood tests assist in diagnosing various conditions, including heart disease, thyroid function, fertility, infectious diseases, and cancer.
On the full year results, the broker Cavendish said, “ We upgrade FY 2024E adjusted PBT and EPS by 2% to £11.4m and 168.4p and introduce FY 2025E, calling for adj. PBT of £12.3m (+8%). This implies adjusted EPS growth of +5% in FY 2024 (due to the rise in UK corporation tax from 19% to 25%) and 181.5p (+9%) in FY 2025E, with EPS growth. We increase our target price to 4400p (adjusted P/E of 26.1x in FY 2024E, dropping to 24.2x for FY 2025E) and underpinned by a free cash yield of 3.7% for FY 2024E and rising ROCE and FCF/Capital employed in FY 2024E; 89.4% and 67.4%, respectively.
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