Bioventix posts healthy profits, ups dividend; warns of plateauing vit-D sales

Aim’s Bioventix announced Monday it would pay a special dividend after a strong year of revenue and profit growth – but also sounded a warning over one of its key revenue streams.

The pharmaceutical company, which creates and supplies antibodies for use in blood testing machines, said revenues in the year to 30 June were £8.8m, a 21% increase. Pre-tax profits were ahead 19%, at £6.9m.

The cash balance was £7m, an £800,000 rise on the previous year.

The second-half dividend is 36p per share, bringing the total for the year to 61p per share. In a statement, Bioventix said it was maintaining “a cautious dividend policy that embraces continuity”.

But it added: "Our current view is that a cash balance of approximately £5m is sufficient to facilitate operational and strategic agility.

"On this occasion, we have decided to distribute some surplus cash that is in excess of anticipated needs and are pleased to announce a special dividend of 55p per share."

Bioventix’s most important revenue stream is from a vitamin D antibody called vitD3.5H10, which is used in vitamin D deficiency testing.

Sales of it increased 23% to £3.4m, but the company sounded a cautious note looking forward.

"Our expectation has been that, while vitamin D test volumes are increasing globally, price pressure would balance the increase in volume, leading to a relatively flat total market in US dollar terms. While actual royalties received were once again in excess of expectations we nevertheless perceive a plateauing of the vitamin D testing market."

However, the company stressed it still expected "modest growth" in vitamin D antibody sales and royalties, and pointed to growth in other core antibodies, such as testosterone, and new projects, including one to test troponin with Siemens.

Shares in Bioventix were off 5% at 150p in London at 12.30pm.