NIce to find £770k due from previous years underpayment of royalties. Royalty deals
usually have some form of procedure for post period auditing to avoid underpayment. This makes a big difference to the cash holding going forward, securing the divi for the coming year.
The report sounds much more positive than recent prececessors , with optimism that the Siemens revenue would be commencing in 2018, together with good progress being made on some other exciting research projects.
Sorry for delay in reply.
Re your question about price weakness, there has not been a business update for a while. Bioventix business highly dependent upon take up of Siemens kit by health professionals. Not in Bioventix hands.
This business is highly profitable, but it is priced in for growth!
A great set of financials, as previously guided. Healthy dividend pay out including a special divi, gives an annualised payout of around 3.5%, based on current share price. A business with sales revenue up by 30+% with no cost increase is certainly an attractive animal.
It would appear that use of the Siemens kit have not taken off yet and the level of growth in sales of this diagnostic test in the coming year will influence whether the overall BVXP growth can be sustained.
Revenue to 30th June 2017 is expected to be marginally in excess of £7m and that due to the cost base follow a similar shallow trajectory as in previous years, both revenues and profits are expected to be ahead of market expectations. ShareScope and Stockopedia forecasts were for revenue of £6.3m and pre-tax profits of £4.9m. In excess of £7M is a considerable hike on top of the forecasts - in excess of 11% as the precise figure above the £7M not yet known. One could assume pre-tax profits and earnings per share to be well ahead and significantly more than expectations - possibly circa 30% rather than the 17% forecast. The implications for the cash pile and dividend are clear.
Going forward given that they described the launch of a new test by Siemens for troponin, a key biomarker used in heart attack diagnostics, as significant' for the company and that this was announced early in May so has had only a matter of weeks to make contributions to the FY ending 30 June this augurs well for the current year when it will contribute for the full 52 weeks.
Quite right, as long as they keep increasing revenue, profits and dividend, the share price is a bit of an irrelevance to me - at least till it starts getting to be too large a proportion of my portfolio.
The Company Secretary's reply to me, then was wrong. Maybe they had not quite finished bean counting at that stage, and indications were revenue was going to be within the range of expectations, but now they've got further, things look a little better so they had to release the up date.
As you say, good news.
So if the EPS is around 90 there is still a lot of growth built into the share price - probably quite rightly, but maybe there is an expectation of a better dividend hike too, though it will still only be a yield of around 2.5%.
Last year they issued a trading update on 22nd August. I wrote to the company secretary to ask if we could expect a similar one this year.
He replied promptly (always a good sign) to say last year they had to issue one because the results were going to be considerably better than forecast. This year they are likely to be in line with forecasts, so no trading statement will be issued. The Finals will be in October.
Current forecast (from Digital Look)
Pre-tax profits £4.9m
So at current prices that puts us on a PE of 27.3 & a yield of 2.4%: not cheap, but for the speed of growth, not overly expensive.
"Stockmarket valuations often drift in the traditionally quiet summer months, and this year is no exception. But after taking a breather in recent weeks, smaller-cap indices are beginning to pick up again - and this bullish move is being led by ..."
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