Bioventix posts healthy profits, ups dividend; warns of plateauing vit-D sales
Bioventix
4,450.00p
17:15 28/03/24
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.
FTSE AIM All-Share
743.26
16:50 28/03/24
Pharmaceuticals & Biotechnology
21,366.25
17:14 28/03/24
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.