Bioventix Reports Flat Revenue and Lower Profits in Interim Results
Why we think this is neutral
Bioventix's interim results present a mixed picture. While revenue showed a marginal increase of 1%, profits and EPS declined. The company's core business performed in line with expectations, but troponin revenues didn't achieve the hoped-for growth. On the positive side, increased sales of Tau antibodies for Alzheimer's disease testing are promising. The slight decrease in cash balance and margin pressure are concerning, but the company remains profitable and cash-generative. The outlook suggests flat revenue for the full year with slightly lower profits due to increased R&D spend. However, management remains optimistic about future growth prospects, particularly from 2026 onwards. Given the balance of positive and negative factors, a neutral sentiment seems appropriate.
Key Points
- Revenue up 1% to £6.73 million
- Profit before tax down 4% to £5.05 million
- Basic EPS decreased to 72.27p from 77.09p
- Interim dividend increased by 3% to 70p per share
- Cash balance of £5.1 million, down from £5.5 million in 2023
- Increased sales of Tau antibodies for Alzheimer's disease testing
- Troponin revenues steady but below expectations
- Increased R&D spend on industrial pollution, water quality, and Alzheimer's disease projects
- Full-year revenues expected to be similar to previous year
- Anticipate slightly lower profits due to increased R&D spend
- Optimistic about growth from 2026 onwards, driven by troponin and Tau revenues
Summary
Bioventix PLC has released its interim results for the six months ended 31 December 2024. Revenue increased marginally by 1% to £6.73 million, while profit before tax decreased by 4% to £5.05 million. The company's core antibody business performed in line with expectations, but troponin revenues were below expectations. A highlight was the increased sales of Tau antibodies for Alzheimer's disease testing. The company maintained a strong cash position of £5.1 million, albeit slightly lower than the previous year. Bioventix increased its interim dividend by 3% to 70p per share. Looking ahead, the company expects full-year revenues to be similar to the previous year, with slightly lower profits due to increased R&D spend. Management remains optimistic about future growth prospects, particularly from 2026 onwards, driven by troponin and Tau revenues.